"Reducing our infrastructure costs and rebalancing our resources generates savings that allow us to accelerate new product development, enhance technology leadership and drive greater customer intimacy across all our businesses," said Michel Mayer, chairman and chief executive, in a statement.

Freescale made the cuts despite a profitable third quarter ended Oct. 2, where the company earned $57 million on sales of $1.43 billion. By contrast, Freescale earned $43 million on sales of $1.46 billion the previous quarter and posted a net loss of $106 million on sales of $1.23 billion in the year-ago quarter.

Gross margins also improved, reaching 39 percent the third quarter compared to 30.3 percent a year ago and 38.4 percent the previous quarter.

All of Freescale's major businesses—Transportation and Standard Products, Networking and Computing Systems, and Wireless and Mobile Solutions—reported year-over-year sales gains, though the Wireless and Mobile Solutions business posted a $9 million operating loss.

Freescale operated as a unit of Motorola until officially being spun off as an independent company in July. Operating earnings included $19 million of expenses related to the separation from Motorola.

For the fourth quarter, Freescale projects earnings of $1.40 to $1.45 billion, with gross margin of 38 to 39 percent. Besides the $65 million restructuring charge, the company expects to record separation charges of $25 million to $30 million.

By: DocMemory
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