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News >> Technology >>
TranSwitch posts $157.2 M Q3 loss
By siliconindia
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Thursday, 17 October 2002, 19:30 IST
SHELTON: TranSwitch Corporation (NASDAQ: TXCC) announced Thursday that it posted third quarter 2002 net revenues of $3.7 million and a net loss on a GAAP (Generally Accepted Accounting Principles) basis, of $157.2 million, or $1.74 per basic and diluted share.
The net loss includes a $61.4 million charge related to the valuation allowance for deferred income taxes, a $59.9 million charge to reflect the impairment of goodwill;
a $7.7 million charge to reflect the impairment of investments in non-publicly traded companies, a $5.5 million restructuring charge related to the July 2002 workforce reduction and design center consolidations, a $4.8 million write-down for excess inventory based on the Company's assessment of demand for current products and
a benefit of $0.2 million related to the sale of previously reserved inventory.
The company announced that it anticipates fourth quarter net revenues to be approximately $3.0 million and pro forma diluted loss per share to be in the range of $0.20-$0.21 per share.
"While our third quarter results have been disappointing and industry conditions continue to be challenging, TranSwitch is winning significant design wins among our worldwide customer base. This is due to our ability to define the targeted solutions that the marketplace requires as our end market emerges from this unprecedented downturn," stated Dr. Santanu Das, Chairman of the Board, Chief Executive Officer and President of TranSwitch Corporation.
"In the third quarter, we secured 48 design wins at 30 customers with increasing Tier 1 success," stated Dr. Das. "Ethernet over SONET (EoS) products are a strong focus for TranSwitch and our new EtherMap-3 product has recently shipped to multiple customers. Several customers are testing their new generation systems based on our solution. Furthermore, our OMNI chip set has shipped in pilot production quantities to a customer that is in evaluation with a major carrier," continued Dr. Das.
"Our strategy is to deliver focused solutions, such as the EtherMap-3, that allow telecommunication carriers to immediately enhance their revenue from the existing SONET/SDH infrastructure. These solutions include additional EtherMap products, our CUBIT and ASPEN family of products and the new packet processing products that we are rapidly developing. Worldwide customer feedback indicates that our approach is right on target," Dr. Das claimed.
"This focused approach will enable us to deploy our research and development resources in the most efficient manner and further reduce our operating expenses. While 2002 will have been the toughest year in our industry's history, our customer's reception of our new family of products leads us to have positive anticipation for the future," he said.