As a result of this action, the company expects to reduce its annual R&D expenses by approximately $4.0 million to $5.0 million beginning in its fourth quarter. The company also said it expects to incur a cash charge of less than $1 million related to severance to be paid in the third quarter, and a charge of $2 million to $3 million related to facilities consolidation.

As noted in Cirrus Logic's fiscal year 2004 Q2 press release on Oct. 22, 2003, the company implemented targeted expense reductions earlier in this quarter, which included the elimination of 38 positions, primarily in Austin, Texas.