TXCC ($5-$4) P/E 100...beats by 1 cent..rev's fell almost 90%...
TranSwitch Corporation Announces Third Quarter Results
SHELTON, Conn.--(BUSINESS WIRE)--Oct. 17, 2001--TranSwitch Corporation (NASDAQ:TXCC - news) announced today that it posted net revenues of $4.5 million and a pro forma net loss of ($9.7) million, or a pro forma diluted loss per share as adjusted of ($0.07) for the third quarter of 2001.
The pro forma net loss for the prior quarter was ($9.5) million and pro forma net income was $12.1 million for the same period last year.
The net revenues of $4.5 million for the third quarter of 2001 were down compared to net revenues of $11.0 million for the prior quarter and $42.6 million for the same period last year. In addition, the Company reported a pro forma operating loss of ($15.1) million for the third quarter of 2001, versus a pro forma operating loss of ($15.7) million reported in the second quarter of 2001 and pro forma operating income of $17.1 million for the same period last year.
The pro forma net loss of ($9.7) million for the third quarter of 2001 excludes: (1) the $22.0 million charge related to in-process research and development resulting from the acquisition of ONEX Communications Corporation, (2) the $1.9 million charge related to the July workforce reduction and asset write-down, (3) the $10.9 million extraordinary gain, net of income taxes, related to the repurchase of $63.8 million of our 4.5% convertible notes, (4) the $0.6 million charge for amortization of goodwill and other purchased intangible assets related to prior acquisitions, and (5) the income tax effect related to the items stated above. When items 1 through 5 are included, the net loss for the third quarter of 2001 was ($22.2) million, or ($0.25) per basic and diluted share, compared to net income of $9.1 million, or $0.11 per basic and diluted share, for the same period last year.
``Although near-term business conditions remain very challenging, TranSwitch continues to build its foundation for long-term success at a steady pace. Our design-win momentum continued on a worldwide basis across our diverse customer set. We were successful in continuing to reduce our operating expenses while maintaining aggressive product development timetables,'' stated Dr. Santanu Das, Chairman of the Board, Chief Executive Officer and President of TranSwitch Corporation.
``While the continued weakness in the telecommunications systems market in North America, Europe and some parts of Asia has had a significant impact on our third quarter revenues, we are staying on course with our strategic plans and technology development. The integration of ONEX into the TranSwitch team is moving forward and our partnership companies; OptiX Networks, SOSi, IC4IC and TeraOp (USA) Inc., are all on track. The recently announced strategic alliance agreement with Samsung Electronics is a further demonstration of our product leadership,'' concluded Dr. Das.
There will be a conference call regarding this announcement on Wednesday, October 17, 2001 at 5:30 PM EDT. The dial-in number is 1-312-470-0029, the conference passcode is TRANSWITCH and the leader will be PETER TALLIAN. The call will be recorded and a replay will be available for 30 days at 1-402-220-5187 using the same passcode and leader information beginning at 7:30 PM EDT. Interested parties can also access the webcast via www.vcall.com by clicking on the TranSwitch Corporation conference call link. This audio webcast will also be available on a replay basis for 30 days.
About TranSwitch Corporation:
TranSwitch Corporation, headquartered in Shelton, Connecticut, is a leading developer and global supplier of innovative high-speed VLSI semiconductor solutions - Connectivity Engines (TM)- to original equipment manufacturers who serve three fast-growing end-markets: the Worldwide Public Network Infrastructure, the Internet Infrastructure, and corporate Wide Area Networks (WANs). Combining its in-depth understanding of applicable global communication standards and its world-class expertise in semiconductor design, TranSwitch Corporation implements communications standards in VLSI solutions that deliver high levels of performance. Committed to providing high-quality products and service, TranSwitch is ISO 9001 registered. Detailed information on TranSwitch products, news announcements, seminars, service and support is available on TranSwitch's home page at the World Wide Web site - transwitch.com. |
