Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Recently, the Compensation Committee of our Board of Directors reviewed the compensation of our chief financial officer, Mr. Bryon Look and the head of our semiconductor business, Mr. Jeffrey Richardson, each of whom assumed additional responsibilities in connection with a reorganization of our business early this year. In addition to his role as the head of our finance organization, Mr. Look assumed responsibility for our public relations, marketing and investor relations organizations. In addition to his role as the head of our networking, storage controller and custom silicon businesses, Mr. Richardson assumed responsibility for our business that makes integrated circuits for use in hard disk drives and tape drives.

Noting these changes, as well as a comparison of their existing compensation to market data, the committee, on August 20, 2009, increased Mr. Look's base salary from $400,000 to $440,000 per year and increased Mr. Richardson's base salary from $400,000 to $475,000 per year, in each case effective August 24, 2009. The Committee also increased the target bonus of Mr. Richardson to 100% of his base salary and the target bonus of Mr. Look to 75% of his base salary. The company currently does not expect to pay bonuses for 2009.

Item 7.01 Regulation FD Disclosure.

On August 20, 2009, our Board of Directors considered the compensation of the outside directors and, noting that their total compensation, and particularly their equity compensation, appeared to be lower than the compensation paid by our peer group companies, the Board awarded each outside director an option to purchase 50,000 shares, effective August 20, 2009, with an exercise price per share equal to the fair market value of a share of the company's stock on the grant date.

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