Vitesse Reports Results for Fourth Quarter and Fiscal Year-end 2001
CAMARILLO, Calif., Oct 22, 2001 (BUSINESS WIRE) -- Vitesse Semiconductor Corp. (Nasdaq: VTSS chart, msgs) ("Vitesse" or the "Company") today reported results for
the fourth quarter and fiscal year ended Sept. 30, 2001.
Revenues in the fourth quarter of fiscal 2001 were $37.2 million, a decrease of 73% from the $138.0 million in the fourth quarter of fiscal 2000 and a decrease of 38% from
the $60.1 million in the third quarter of fiscal 2001. For the year ended Sept. 30, 2001, revenues were $384.1 million, a 13% decrease from the $441.7 million for the year
ended Sept. 30, 2000.
Pro forma net loss for the fourth quarter of fiscal 2001, which excludes the amortization of goodwill and deferred compensation and various non-recurring charges discussed
below, as well as an extraordinary gain on the extinguishment of debt, was $28.1 million, or $0.14 loss per share, compared with pro forma net income of $40.2 million, or
$0.21 per share, in the fourth quarter of fiscal 2000 and pro forma net loss of $11.9 million, or $0.06 loss per share, in the prior quarter. Pro forma net income for the year
ended Sept. 30, 2001, was $26.5 million, or $0.14 per share, compared with pro forma net income of $116.9 million, or $0.62 per share, for the prior year.
In the fourth quarter of fiscal 2001, the Company recorded non-recurring charges in the amount of $9.2 million. These charges consisted of a $8.1 million charge for the
impairment of certain fixed assets and a $1.1 million restructuring charge in connection with a workforce reduction and office closures which were initiated in May 2001. The
Company also recorded an extraordinary gain on the extinguishment of debt, net of taxes, of $11.9 million upon the repurchase of $118.6 million face value of its
subordinated convertible debt for $97.1 million in cash.
In the year ended Sept. 30, 2001, the Company recorded non-recurring charges in the amount of $92.4 million. These charges consisted of a $50.6 million write-off for
excess and obsolete inventories (excluding the reversal of the inventory reserve of approximately $9.0 million), a $15.3 million charge for the impairment of certain fixed
assets and investments, a $22.9 million charge for the impairment of goodwill related to certain acquisitions and a $3.6 million restructuring charge in connection with a
workforce reduction and office closures initiated in May 2001. The Company also recorded an extraordinary gain on the extinguishment of debt, net of taxes, of $19.0
million upon the repurchase of $182.9 million face value of its subordinated convertible debt for $148.8 million in cash.
Vitesse President and CEO Lou Tomasetta commented: "The last few quarters have been very difficult as the entire industry has suffered through a massive slowdown in
end user demand, exacerbated by excess inventories throughout the supply chain. While we don't expect marked improvement in the December quarter, we now believe
that demand should begin to slowly improve in calendar 2002.
"We believe that our large R&D investments in switch and processor products over the last two years will begin to pay dividends and allow us to grow from current levels,
even assuming total communication capital expenditures decline in 2002. During the next few quarters, we will continue to reduce costs even as we ramp our optical
subsystem manufacturing capacity."
Vitesse Semiconductor Corp. is a leading designer and supplier of innovative, high-performance integrated circuits (ICs) and optical modules used in next generation
networking and optical communications equipment. The Company's products address the needs of Enterprise, Access, Metro, Core, and Optical Transport network
equipment manufacturers who demand a robust combination of high-speed, high-service delivery and low-power dissipation in their products.
In concert with its broad communications product portfolio, Vitesse also develops ICs for storage area networking and enclosure management. Vitesse has headquarters in
Camarillo, Calif., and operates two fabrication facilities -- one in Camarillo and one in Colorado Springs, Colo. Company and product information can be found on the Web at
www.vitesse.com or is available by calling 1-800-VITESSE. |
