Attached files
| file | filename |
|---|---|
| 8-K - TRANSWITCH CORP /DE | v166116_8k.htm |
| EX-99.2 - TRANSWITCH CORP /DE | v166116_ex99-2.htm |
EXHIBIT
99.1
News
Release
TranSwitch
Receives Delisting Notice from NASDAQ
Company
Anticipates To Maintain Listing Following
the
Announced Reverse Stock Split
SHELTON, CT – November 12,
2009 – TranSwitch® Corporation (NASDAQ: TXCC), a leading provider of
semiconductor solutions for the converging data, video and voice wireline and
wireless networks, today announced that it has received a NASDAQ Staff
determination letter dated November 9, 2009, notifying the Company that it has
not complied with NASDAQ Marketplace Rule 5550(a)(2).
In
anticipation of such notice and in connection with the Company’s plan to regain
compliance, TranSwitch announced on November 9, 2009 that its Board of Directors
approved the implementation of a one-for-eight reverse stock split of the
Company's common stock. The reverse stock split, which was authorized
by stockholders at the Company's 2009 annual meeting of stockholders on May 21,
2009, will take effect at 11:59 p.m. (Eastern time) on November 23,
2009.
TranSwitch
had initially been notified by NASDAQ on January 28, 2008 that the bid price of
its common stock had closed at less than $1.00 per share over the previous 30
consecutive business days. On July 30, 2008, TranSwitch received
notice from the Listing Qualifications Department of The NASDAQ Stock Market
that its application to list common stock on The NASDAQ Capital Market was
approved and its common stock began trading on the NASDAQ Capital Market on that
date. As a result of suspensions by NASDAQ of enforcement of the bid
price and market value of publicly held shares as required pursuant to NASDAQ
Marketplace Rule 4450(a)(5) between October 22, 2008 and July 31, 2009, the
Company had until November 6, 2009 to regain compliance. As
TranSwitch has not regained compliance, the NASDAQ Staff has determined to
delist its securities from the Capital Market.
Accordingly,
unless TranSwitch requests an appeal of this determination, trading of its
common stock will be suspended at the opening of business on November 16, 2009
and its common stock will be removed from listing and registration on The NASDAQ
Stock Market. TranSwitch has filed the required appeal of the Staff's
determination to a NASDAQ Hearings Panel (“Panel”), pursuant to the procedures
set forth in the NASDAQ Marketplace Rule 5800 Series. A hearing request
will stay the delisting of TranSwitch’s securities pending the Panel's decision.
Although there can be no assurances that the Hearings Panel will grant such
request, TranSwitch anticipates that, if granted, the implementation
of its announced reverse stock split will provide the Company with
the opportunity to be in compliance with the Marketplace Rule by
early December.
About
TranSwitch Corporation
TranSwitch
Corporation (NASDAQ: TXCC) designs, develops and markets innovative
semiconductors and technologies that provide core functionality and complete
solutions for voice, data and video communications network equipment. As a
leading supplier to telecom, datacom, cable television and wireless markets,
TranSwitch customers include the major OEMs that serve the worldwide public
network, the Internet, and corporate Wide Area Networks (WANs). TranSwitch
devices are inherently flexible, many incorporating embedded programmable
microcontrollers to rapidly meet customers’ new requirements or evolving network
standards by modifying a function via software instruction. TranSwitch
implements global communications standards in its VLSI solutions and is
committed to providing high-quality products and services. TranSwitch, Shelton,
CT, is an ISO 9001 registered company. For more information, visit
www.transwitch.com.
Forward-looking
statements in this release, including statements regarding management's
expectations for future financial results, continued listing and the markets for
TranSwitch's products, are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are cautioned that
these forward-looking statements regarding TranSwitch, its operations and its
financial results involve risks and uncertainties, including without limitation
risks associated with acquiring new businesses; of downturns in economic
conditions generally and in the telecommunications and data communications
markets and the semiconductor industry specifically; risks in product
development and market acceptance of and demand for TranSwitch's products and
products developed by TranSwitch's customers; risks relating to TranSwitch's
indebtedness; risks of failing to attract and retain key managerial and
technical personnel; risks associated with foreign sales and high customer
concentration; risks associated with competition and competitive pricing
pressures; risks associated with investing in new businesses; risks of
dependence on third-party VLSI fabrication facilities; risks related to
intellectual property rights and litigation; risks in technology development and
commercialization; and other risks detailed in TranSwitch's filings with the
Securities and Exchange Commission.
TranSwitch
is a registered trademark of TranSwitch Corporation.
For
More Information Contact:
TranSwitch
Corporation
Robert A.
Bosi
Vice-President
and Chief Financial Officer
Phone:
203-929-8810 ext 2465
Robert.Bosi@transwitch
.com