COMPUTER chip manufacturer CSR was the highest riser in the FTSE 250 yesterday after the company announced its intent to pull out of its loss-making digital television and silicon tuner businesses.
Shares rose by as much as 15 per cent before closing up 10 per cent at 183p.
The move, which will save the chip developer $60m (£38m) a year in operational costs, is part of a plan to focus on areas where the company has a stronger market presence.
CSR will axe 400 jobs – mainly outside the UK – as a result of this closure, incurring an additional $10m in restructuring costs by the end of the first half of 2012.
This comes after the firm cut 400 jobs this summer as the Cambridge-based company acquired Zoran, the US image technology group, for £300m.
Joep van Beurden, chief executive officer of CSR, said: “The actions we have announced today will allow us to increase our focus on the areas of the business that offer the best prospects for delivering sustained and profitable growth.”
CSR will continue to support its current products in the closed sectors, but will stop developing new models.
Fourth quarter 2011 revenues are expected to be in line with previous guidance, in the range of $230m to $250m.