Amazing that revenues have fallen to less than $4 million for the whole quarter. A perfect poster child for the telecom bubble and how a company can be blinded by it's own temporary success. I still can't believe that this company hasn't found someone to partner with. Looks like they are stubborn as a mule, but that's my opinion! There are about 100 or more companies just like TXCC, so they aren't the only "jackasses". So much money poured down the drain by so many companies... What a freakin' waste!
TranSwitch Corporation Provides Update on Third Quarter of Fiscal 2002
Monday September 30, 4:15 pm ET
SHELTON, Conn.--(BUSINESS WIRE)--Sept. 30, 2002--TranSwitch Corporation (NASDAQ: TXCC - News) expects its third quarter net revenues will be between $3.3 - $3.6 million due to continued, severe weakness in the worldwide telecommunications systems market.
In addition, the Company expects to incur the following one-time charges on a GAAP (Generally Accepted Accounting Principles) basis:
A $6.0 - $7.0 million charge consisting of costs to exit facilities and employee termination costs related to the restructuring plan announced on July 17, 2002;
A $60.0 - $62.0 million charge to provide for a valuation allowance on deferred tax assets. The Company will no longer recognize a future tax benefit on its statement of operations until management believes that these assets are realizable; and
Charges in the range of $60.0 - $70.0 million related to the impairment of goodwill and investments in non-public companies and inventory write-downs.
Furthermore, the Company will begin accounting for its investment in OptiX Networks Inc. (OptiX) under the equity method of accounting. This will require the Company to adjust prior periods as well as record its pro-rata share of OptiX's losses on the statement of operations in this and future periods.
As a result of the actions outlined above, the Company expects to record a pro forma loss per diluted share, as adjusted in the third quarter in the range of approximately ($0.20) - ($0.22). The Company expects to have between $217.0 and $219.0 million of cash, cash equivalents and investments at the end of the third quarter.
The pro forma statements reflect the results from continuing operations, excluding business restructuring and one-time charges, amortization or impairment of goodwill and other acquired intangibles, impairments of investments in non-public companies, tax valuation allowances, inventory write-downs, as well as benefits related to the sale of previously reserved inventory. Pro forma loss per share, as adjusted also assumes conversion of the convertible notes. This is not a GAAP calculation.
Full financial results for the third quarter, 2002 will be provided on October 16, 2002 at approximately 4:15 p.m. eastern time followed by a conference call to discuss the results at 5:30 p.m. eastern time. The dial-in number is 1-703-736-7293, the conference passcode is 6241225. The call will be recorded and a replay will be available for 15 days at 1-703-925-2533 using the same passcode beginning at 8:30 p.m. eastern time. 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 15 days. |
