NAND flash controller chip vendor SkymediCorp. laid off 60-70 percent of its workforce last month to reduce costs and plans to raise funds by launching a private placement next year, a company spokesman said Thursday.

According to media reports, Skymedi originally had 48 employees and after it implemented the workforce reduction plan last month, 30 workers have been laid off. It plans to lay off two more employees in February and March 2016, respectively.

The company spokesman confirmed the reports, saying that due to operating difficulties, the company decided to downsize its workforce to reduce costs and expenditures and will offer severance pay to laid-off employees in accordance with the relevant regulations.

he company will seek new clients, launch a private placement, and attract strategic partners, the spokesman added.

Private placement is a common method of raising business capital through the offering of equity shares.

Skymedi plans to raise capital via a private placement of 40 million shares and the plan will be discussed during a board meeting in January next year, said the spokesman for the memory controller IC supplier.

It was reported that Simon Chen, the chairman of ADATA Technology, a leading memory product and solutions provider/manufacturer, is considering taking a commanding stake in the company through the planned private placement.

In 2010, Skymedi recorded earnings per share (EPS) of NT$16.35, thanks to massive orders from South Korea's Samsung Electronics. However, after it became listed on the over-the-counter (OTC) market in 2011, its sales declined significantly due to diminishing demand from Samsung. In 2012, it posted a negative EPS of NT$14.94.

By: DocMemory
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