Syntax-Brillian ( BRLC) says it will take a $40 million charge to close or sell one of its chip plants.

The maker of Olevia brand flat panel TVs says it will exit the liquid-crystal-on-silicon, or LCoS, production facility in Tempe, Ariz. The move comes a week after the company initiated a 120-day action plan.

Last month, Syntax-Brillian shares fell 25% after the company slashed guidance and showed its CFO the door. The company said sales to for the quarter ending Sept. 30 would be about $175 million. Analysts had expected revenue of $256 million.

Industry observers dismissed the shortfall as simply some misfiring by a third-tier LCD TV maker, and not necessarily reflective of the conditions among other players including flat-glass maker Corning ( GLW).

Syntax-Brillian shares rose 8 cents to $4.78 in after-hours trading Tuesday.