TXCC...(14c vs 11c)Announces Record Revenues and Record Profitability
for the Third Quarter
SHELTON, Conn., Oct 11, 2000 (BUSINESS WIRE) --
TranSwitch
Corporation (NASDAQ:TXCC) announced today that it posted record
revenue of $42,600,000 and record pro forma net income of $12,088,000
or $0.14 per diluted share for the third quarter of 2000. Reported
revenues represent increases of 25% over the second quarter of 2000
and 124% over the third quarter of 1999.
Financial highlights for the third quarter of 2000 include the
following:
-- Quarterly total revenues up 124% over third quarter 1999
-- Quarterly pro forma operating income up 267% over third
quarter 1999
-- Quarterly total revenues up 25% sequentially over second
quarter 2000
-- Quarterly pro forma operating income up 39% sequentially over
second quarter 2000
-- Gross margin increased to 70.6% from 69.4% in the prior
quarter 2000
For the nine months of 2000, the consolidated financial highlights
are as follows:
-- Revenues up 106% over the same period of 1999
-- Pro forma operating income up 246% over the same period of
1999
Total revenues for the third quarter of 2000 were $42,600,000, an
increase of 124% over the revenues of $19,044,000 reported for the
third quarter of 1999. For the nine months of 2000, revenues were
$104,031,000, an increase of 106% over the $50,436,000 for the same
period in 1999. In addition, the Company reported pro forma operating
income of $17,060,000 for the third quarter 2000, an increase of 267%
over the $4,644,000 operating income reported in the third quarter of
1999. For the nine months of 2000, pro forma operating income was
$38,308,000, an increase of 246% over the $11,057,000 operating income
for the same period in 1999.
In the third quarter of 2000, TranSwitch's pro forma effective tax
rate was 36%, resulting in pro forma net income of $12,088,000 or
$0.14 per diluted share. Net income for the third quarter of 1999 was
$9,957,000, or $0.12 per diluted share, which included a tax benefit
of approximately $4,500,000 related to the reversal of the Company's
deferred tax valuation allowance. The pro forma net income for the
nine months of 2000, taxed at the pro forma effective tax rate of 36%,
was $27,677,000, or $0.32 per diluted share, compared with net income
of $17,759,000, or $0.22 per share for the nine months of 1999, which
included the aforementioned $4,500,000 tax benefit.
The pro forma income for the third quarter of 2000 excludes
$153,000 for amortization of goodwill and other purchased intangible
assets and $2,800,000 for in-process R&D related to the acquisition of
Alacrity Communications in July, 2000. For the nine months of 2000,
the pro forma income also excludes the one-time merger costs of
$1,163,000 related to the EASICS transaction completed in May, 2000.
The actual net income for the third quarter 2000 was $9,135,000,
or $0.11 per diluted share, and for nine months of 2000 was
$23,561,000, or $0.27 per diluted share.
"With this quarter, our revenues have grown for sixteen quarters
consecutively, and we also have had sequential growth in profitability
on a pro forma basis for the last thirteen quarters. We are also
pleased that our gross margin has increased to 70.6% during this last
quarter," commented Dr. Santanu Das, President and CEO of TranSwitch
Corporation.
"In addition to generating $17 million in cash this quarter, the
Company raised $445 million (net of commissions) from an
over-subscribed private placement of 144A convertible notes. We intend
to use the net proceeds of the offering for general corporate
purposes, including working capital, and may use a portion of the net
proceeds to acquire or invest in complementary businesses, products or
technologies, although we currently have no commitments or agreements
for any acquisitions," continued Dr. Das.
"During this quarter, we further strengthened our product
portfolio and engineering resources with the acquisition of Alacrity
Communications located in Milpitas, California. With this acquisition,
TranSwitch gains access to Alacrity's highly innovative VLSI
technology for integrated data, voice, and video switching and traffic
management. In combination with our CellBus(R) and SONET/SDH
technology, TranSwitch now has key VLSI solutions for applications in
equipment needed to configure the next generation network
infrastructures," concluded Dr. Das. |
