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TranSwitch sees wider Q3 loss
By siliconindia
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Tuesday, 01 October 2002, 19:30 IST
SHELTON: Semiconductor technology firm TranSwitch Corp.(NasdaqNM:TXCC) said Monday that it expected a wider than forecast loss and more than $120 million in charges related to restructuring and inventory write-downs, due to the weak telecommunications market.
The Shelton, Connecticut-based company also said it would have to adjust financial statements because it would begin accounting for its investment in OptiX Networks Inc. as part of operating results, widening the loss.
Blaming severe weakness in the telecommunications market, TranSwitch said third-quarter net revenues would be $3.3 million to $3.6 million, compared with its July forecast of revenue steady on the second quarter's $4.5 million.
As a result, TranSwitch would report a loss from continuing operations in its third quarter of 20 to 22 cents per share, roughly double the range of loss of 11 cents to 12 cents it had forecast on July 17.
Restructuring charges would be $6.0 million to $7.0 million in the third quarter, and the company expected charges of $60 million to $70 million to reflect write-downs in inventory, investments and good will and $60 million to $62 million to provide for a valuation allowance on deferred tax assets