Creative Technology Ltd. has announced that its subsidiary, 3Dlabs Inc., Ltd. will refocus its 3D graphics business on the portable handheld device market and de-emphasize its professional workstation graphics business.
3Dlabs supplies a range of graphics accelerators to Computer Aided Design (CAD), Digital Content Creation (DCC), and visual simulation professionals.
According to Creative, 3Dlabs will transition from the shrinking professional workstation graphics market to focus on portable handheld devices which require intensive media processing for video, audio and increasingly powerful 3D graphics. This will result in a workforce reduction of approximately 100 3Dlabs employees.
As a result of the 3Dlabs refocus, Creative expects to take a one-time restructuring charge of approximately US$9 million in the current fiscal quarter and a non-cash impairment charge of approximately US$25 million for goodwill and intangible assets relating to 3Dlabs.