Here are the Q2 results released today after the close. Does anyone know how these numbers compare to analyst expectations?
SHELTON, Conn.--(BUSINESS WIRE)--July 15, 1997--TranSwitch Corp.
(NASDAQ: TXCC), announced today the financial results for the second
quarter which ended June 30, 1997.
Total revenues for the second quarter of 1997 were $6,256,000, a
24% sequential increase above the first quarter of 1997, and a 4%
decrease from the revenue of $6,486,000 reported for the second
quarter of 1996, In addition, the Company reported a net loss of
($892,000), or ($.07) per share, for the second quarter of 1997,
compared to a net income of $92,000 or $.01 per share for the second
quarter of 1996.
Total revenues for the six months ended June 30, 1997, were
$11,312,000, a decrease of 12% from the $12,845,000 for the same
period in 1996. The company reported a net loss of ($2,484,000), or
($0.21) per share, for the first six months of 1997, compared to a
net income of $155,000 or $.01 per share for the same period in
1996.
"We are quite pleased with our progress in this quarter and
particularly excited by the trend in the revenue growth. With this
quarter, we now have posted three consecutive quarters of sequential
revenue growth and the results confirm our belief that the
fundamentals of our business are correct," commented Dr. Santanu
Das, chief executive officer of TranSwitch Corp.
"We are also very excited about our design-win momentum, both
in quality and quantity. We now have design-wins with our CUBIT
VLSI in the products of four out of the five largest
telecommunications equipment manufacturers in the world," stated Dr.
Das.
"As indicated in an earlier announcement, the Internet area
represents our newest market initiative; and we are very pleased
with our progress in this area. For instance, we believe that
TranSwitch is the only supplier to currently provide a complete
solution for channelized T3 applications. This one-stop shopping
capability is very convenient and important to our customers,"
continued Dr. Das.
The second quarter was also very significant in furthering the
company's corporate relationships. TranSwitch announced a
collaborative effort with Bay Networks on the development of a
4-channel T1 framer (QT1F-Plus), and a strategic alliance with
Harris & Jeffries whereby certain high-performance SOFT-ATM(TM)
software products developed by Harris & Jeffries would be ported to
run on TranSwitch-developed VLSI devices. In addition, the Company
announced the general sampling of the SALI-25C, a six-channel 25
Mb/s Asynchronous Transfer Mode (ATM) Line Interface device which
was developed in a collaborative effort with Cisco Systems.
"Our current revenue growth trend, the success in our Internet
thrust, our record in continuously improving our operational
effectiveness exemplified by being awarded ISO 9001 certification,
our strengthened sales and marketing organizations, and significant
corporate relationships, give us the confidence that we are moving
with positive anticipation into the second half of 1997 and beyond,"
concluded Dr. Das.
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Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that all
forward-looking statements involve risks and uncertainties,
including without limitation risks of dependence on third-party VLSI
fabrication facilities, intellectual property rights and litigation,
risks in technology development and commercialization, risks in
product development and market acceptance of and demand for the
company's products, risks of downturns in economic conditions
generally, and in the telecommunications and data communications
markets and the semiconductor industry specifically, risks
associated with competition and competitive pricing pressures, risks
associated with foreign sales and high customer concentration and
other risks detailed in the company's filings with the Securities
and Exchange Commission.
Headquartered in Shelton, Conn., TranSwitch Corp. is a leading
innovator of high-speed semiconductor solutions which, as key
components in telecommunications and data communications equipment,
enable people to communicate more readily, affordably, and reliably
via voice, data, video, and multi-media. Our customers are the
Original Equipment Manufacturers (OEMs) who serve five
communications market segments: worldwide public telephone networks,
the Internet, Local Area Networks (LANs), corporate Wide Area
Networks (WANs), and Cable Television (CATV) systems.
-0-
*T
TranSwitch Corp.
Consolidated Statement of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
Total Revenues $6,256 $6,486 $11,312 $12,845
Total cost of revenues 2,803 2,787 5,177 5,641
Gross profit (loss) 3,453 3,699 6,135 7,204
Operating expenses:
Research and development 2,216 2,002 4,614 4,083
Marketing and sales 1,673 1,289 3,174 2,474
General and administrative 567 505 1,085 914
Total operating expenses 4,456 3,796 8,873 7,471
Operating loss (1,003) (97) (2,738) (267)
Interest income, net 111 189 254 422
Net income (loss) ($892) $92 ($2,484) $155
Income (loss) per share ($0.07) $0.01 ($0.21) $0.01
Weighted average shares 12,093 12,284 12,063 12,236
Consolidated Balance Sheets
June 30, Dec. 31,
1997 1996
Assets
Cash and short term investments $ 9,525 $12,688
Accounts receivable, net 4,226 2,893
Inventory, net 3,435 3,524
Other current assets 535 305
Total current assets 17,721 19,410
Property and equipment, net 2,926 2,647
Product licenses 1,169 1,254
Total assets $21,816 $23,311
Liabilities and stockholders' equity
Accounts payable $1,545 $1,805
Other accrued liabilities 4,308 2,955
Total current liabilities 5,853 4,760
Product licenses, less current portion 792 1,252
Total stockholders' equity 15,171 17,299
Total liabilities &
stockholders' equity $21,816 $23,311
*T
CONTACT:
TranSwitch Corp., Shelton
Michael F. Stauff, 203/929-8810
Fax: 203/926-9453
KEYWORD: CONNECTICUT
BW1572 JUL 15,1997
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