TXCC ( $50 run 19vs16) ....SHELTON, Conn.--(BUSINESS WIRE)--Jan. 18, 2001--TranSwitch Corporation (NASDAQ:TXCC - news) announced today that it posted record revenue of $51,052,000 and record pro forma net income of $15,024,000, or diluted earnings per share as adjusted of $0.19, for the fourth quarter of 2000. Reported revenues represent increases of 20% over the third quarter of 2000 and 121% over the fourth quarter of 1999.
Financial highlights for the fourth quarter of 2000 include the following:
Quarterly total revenues up 121% over fourth quarter 1999
Quarterly pro forma operating income up 199% over fourth quarter 1999
Quarterly total revenues up 20% sequentially over third quarter 2000
Gross margin increased to 71.7% from 70.6% in the third quarter 2000
For the twelve months of 2000, the consolidated financial highlights are as follows:
Revenues up 111% over the same period of 1999
Pro forma operating income up 229% over the same period of 1999
Total revenues for the fourth quarter of 2000 were $51,052,000, an increase of 121% over total revenues of $23,097,000 reported for the fourth quarter of 1999. For the year 2000, revenues were $155,083,000, an increase of 111% over revenues of $73,533,000 for the same period in 1999. In addition, TranSwitch reported pro forma operating income of $20,254,000 for the fourth quarter 2000, an increase of 199% over operating income of $6,760,000 reported in the fourth quarter of 1999. For the year 2000, pro forma operating income was $58,563,000, an increase of 229% over operating income of $17,817,000 for the same period in 1999.
In the fourth quarter of 2000, TranSwitch's pro forma effective tax rate was 37%, resulting in pro forma net income of $15,024,000, or $0.19 per diluted share as adjusted. Net income for the fourth quarter of 1999 was $7,552,000, or $0.09 per diluted share, based on an effective tax rate of 8.4%. The pro forma net income for the year 2000, taxed at the pro forma effective tax rate of 36%, was $42,702,000, or $0.52 per diluted share as adjusted, compared with net income of $25,334,000, or $0.31 per share for year 1999, 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 fourth quarter of 2000 excludes $231,000 for amortization of goodwill and other purchased intangible assets related to the acquisition of Alacrity Communications, Inc. in July 2000. For the twelve months of 2000, the pro forma net income excludes $384,000 for amortization of goodwill and other purchased intangible assets and a one-time write-off of $2,800,000 for in process R&D related to the acquisition of Alacrity Communications, Inc. and one-time merger costs of $1,163,000 related to the combination with EASICS NV completed in May 2000.
The actual net income for the fourth quarter 2000 was $14,793,000, or $0.17 per diluted share, and for the full year 2000 was $38,355,000, or $0.44 per diluted share.
``With this quarter, our revenues have grown for seventeen quarters consecutively, and we also have had sequential growth in profitability on a pro forma basis for the last fourteen quarters. Also, in addition to generating $24 million in cash this quarter, we are pleased that our gross margin has increased to 71.7%,'' commented Dr. Santanu Das, President and CEO of TranSwitch Corporation.
``During this year, we further strengthened our product portfolio and engineering resources with the acquisition of Alacrity Communications, Inc. located in Milpitas, California and combination with EASICS NV located in Leuven, Belgium. With these transactions, TranSwitch gains access to highly innovative VLSI technology for integrated data, voice and video switching and traffic management, strengthening our position as a leading developer and global supplier of innovative high-speed VLSI semiconductor solutions,'' added Dr. Das. ``In addition, TranSwitch opened its first European Design Center in Lausanne, Switzerland. Located in close proximity to EPFL (Ecole Polytechnique Federale de Lausanne) and the University of Lausanne, enabling us to have access to world-class systems and VLSI design expertise. Currently, the design center is focused on developing products for multi-service access applications.''
Additional highlights of the Company's year 2000 achievements are as follows:
The Company raised $460 million through a private offering of convertible notes.
The Fabless Semiconductor Association recognized TranSwitch for its ``outstanding financial performance'' at their December 7, 2000 awards ceremony.
The Company acquired Alacrity Communications, Inc. located in Milpitas, CA.
TranSwitch President and CEO, Dr. Santanu Das, was named Entrepreneur of the Year by Ernst & Young LLP for the Southwest Connecticut / New York Hudson Valley in the Technology and Communications category.
The Company combined with EASICS NV, a Belgium-based design company with extensive design expertise in VHDL-based digital ASIC design for telecommunications and data communications.
The Company established an alliance with OptiX Networks, Inc. to develop VLSI devices for converged networks.
The Company expanded its executive team by appointing Cliff Ficke, formerly of NEC, as the new Vice President of Worldwide Sales.
TranSwitch opened its European Design Center in Lausanne, Switzerland.
TranSwitch is targeting three fast-growing end markets in the communications semiconductor sector - namely, the Public Network Infrastructure, Internet Infrastructure and the corporate Wide Area Network (WAN).
``We believe,'' Dr. Das concluded, ``that our record revenue and profitability in the fourth quarter as well as the full year 2000 reflect the strength of these end-markets - as well as TranSwitch's strong position in this space. The continued strong book-to-bill ratio and our solid track record in the last four years give us the confidence that we are beginning the new year with positive anticipation.''
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