TXCC ($17, steady ) Announces First Quarter Results
SHELTON, Conn.--(BUSINESS WIRE)--April 18, 2001--TranSwitch Corporation (NASDAQ:TXCC - news) announced today that it posted revenues of $38,650,000, and pro forma net income of $6,105,000, or diluted earnings per share as adjusted of $0.10 for the first quarter of 2001. Reported revenues represent an increase of 41% over the first quarter of 2000 and a decrease of 24% over the fourth quarter of 2000.
Net revenues for the first quarter of 2001 were $38,650,000, an increase of 41% over net revenues of $27,360,000, reported for the first quarter of 2000. In addition, TranSwitch reported pro forma operating income for the first quarter of 2001 of $6,502,000, a decrease of 28% over pro forma operating income of $8,971,000, reported in the first quarter of 2000.
In the first quarter of 2001, TranSwitch's pro forma effective tax rate was 36%, resulting in pro forma net income of $6,105,000, or $0.10 per diluted share as adjusted. Pro forma net income for the first quarter of 2000 was $6,478,000, or $0.07 per diluted share as adjusted, based on an effective tax rate of 38%.
The pro forma net income for the first quarter of 2001 excludes $546,000, for amortization of goodwill and other purchased intangible assets related to various acquisitions including ADV Engineering S.A. and Horizon Semiconductors, Inc. completed in the first quarter of 2001 and Alacrity Communications, Inc. completed in July, 2000. The actual net income for the first quarter of 2001 was $5,559,000, or $0.06 per diluted share.
``Due to widespread weakness in the telecommunications systems market in North America, TranSwitch's first quarter 2001 revenue has decreased compared to fourth quarter 2000 revenue of $51 Million. Our business in Asia and in Europe currently remains steady,'' said Dr. Santanu Das, Chairman of the Board, President, and CEO of TranSwitch Corporation.
Dr. Das continued, ``We remain hopeful that business conditions will start improving in the second half of 2001. A clear indication of a positive trend would be improved order flow from the contract manufacturers. In the meantime, we are managing our business according to our established business model, but the revenue base in the model has been revised downward, resulting in managing down our discretionary expenses and keeping our headcount at current levels.''
``While we are disappointed with the near-term business situation in North America, our design-win momentum in the first quarter, 2001 was strong. We are especially encouraged by the fact that these design wins were throughout our worldwide markets. The PHAST series of products has experienced an enthusiastic reception by both new and existing customers. On the switching and traffic management front, our ASPEN product has experienced the fastest production ramp of any TranSwitch product to date. As a result of the continued strength in design-win momentum and the release of new products, we remain excited and confident in the long-term prospects of our business,'' concluded Dr. Das.
TranSwitch Corporation
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
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