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8-K - TRANSWITCH CORP /DE | v197820_8-k.htm |
Exhibit
99.1
TranSwitch Corporation
Provides Update on Q3 2010
Business
Outlook
SHELTON, CT – September 29,
2010 ─
TranSwitch Corporation (NASDAQ: TXCC ), a leading provider of semiconductor
solutions for the converging IP-based voice and video network, today announced
an update to its business outlook for the third quarter of 2010. The
Company now expects revenues for the third quarter ending September 30, 2010 to
be approximately $12.8 million due to a softening in demand. The
Company’s previous outlook for third quarter revenues announced on July 29, 2010
was for revenues between $13.5 million and $14.5 million. The Company
continues to expect its non-GAAP gross margin to be approximately
53%. Non-GAAP operating expenses in the third quarter of 2010 are
expected to be approximately $6.8 million, down from the prior outlook of
approximately $7.1 million. Non-GAAP operating income for the third
quarter is expected to be approximately break-even.
TranSwitch
is scheduled to release its earnings results for the third quarter of 2010 on
Thursday, October 28, 2010. A conference call will be held at 5:30 PM
Eastern Time that day to review the quarterly results and provide an outlook for
the fourth quarter of 2010.
To listen
to the live call, investors can dial 719-325-4748 and reference confirmation
code: 1558041. The call will be recorded and a replay will be
available two hours after the conclusion of the live broadcast through November
7, 2010. To access the replay, dial 719-457-0820 and enter
confirmation code: 1558041. Investors can also access an audio
webcast via www.investorcalendar.com by clicking on the TranSwitch Corporation
conference call link. This audio webcast will also be available on a
replay basis for 10 business days.
About
TranSwitch Corporation
TranSwitch
Corporation designs, develops and markets innovative semiconductors 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, with 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 9001:2000 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 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 that could cause actual
results to differ materially from those contained in the forward-looking
statements, including without limitation the risks associated with acquiring new
businesses; the risk 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
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statements to reflect any change in
expectations or any change in events, conditions or circumstances on which any
such statement is based.
TranSwitch
is a registered trademark of TranSwitch Corporation.
Generally
Accepted Accounting Principles
The
Company reports its financial results in accordance with
GAAP. Additionally, the Company supplements reported GAAP financials
with non-GAAP measures which are included in related press releases and reports
furnished to the SEC, copies of which are available at the Company’s website:
http://www.transwitch.com
or the SEC’s website at: http://www.sec.gov
The
non-GAAP measures used in this press release differ from GAAP in that they
exclude expenses related to stock-based compensation, amortization of intangible
assets, the effects of special charges such as asset impairments, restructuring
charges and benefits and gain on extinguishment of debt. The Company’s basis for
these adjustments is described below. Management uses these non-GAAP measures
for internal reporting and forecasting purposes. The Company has provided these
non-GAAP financial measures in addition to GAAP financial results because it
believes that these non-GAAP financial measures provide useful information to
certain investors and financial analysts for comparison across accounting
periods not influenced by certain non-cash items that are not used by management
when evaluating the Company’s historical and prospective financial
performance.
Management
uses these non-GAAP financial measures when evaluating the Company’s operating
performance and believes that such measures are useful to investors and
financial analysts in assessing the Company’s operating performance due to the
following factors:
·
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The
Company believes that the presentation of non-GAAP measures that adjust
for the impact of stock-based compensation expenses, amortization of
intangible assets, the effects of special charges such as asset
impairments and restructuring charges and benefits and gain on
extinguishment of debt provides investors and financial analysts with a
consistent basis for comparison across accounting periods and, therefore,
are useful to investors and financial analysts in helping them to better
understand the Company’s operating results and underlying operational
trends.
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We do not
provide forward-looking GAAP measures or a reconciliation of the forward-looking
non-GAAP measures to GAAP measures because of our inability to project special
charges, asset impairments, employee separation costs and stock-based
compensation related expenses.
The
non-GAAP financial measures we provide have certain limitations because they do
not reflect all of the costs associated with the operation of our business as
determined in accordance with GAAP. The non-GAAP measures are in addition to,
and not a substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP and may be different from non-GAAP measures
used by other companies. We endeavor to compensate for the limitations of these
non-GAAP measures by providing GAAP financial statements, descriptions of the
reconciling items and a reconciliation of the non-GAAP measures to the most
directly comparable GAAP measures so that investors can appropriately
incorporate the non-GAAP measures and their limitations into their analyses.
Please see our financial statements and "Management's Discussion and Analysis of
Results of Operations and Financial Condition" that will be included in the
periodic report we expect to file with the SEC with respect to the financial
periods discussed herein.
For
more information contact:
Robert
Bosi
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Ted
Chung
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Vice
President and Chief Financial Officer
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Vice
President Business Development
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TranSwitch
Corporation
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TranSwitch
Corporation
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Phone:
203/929-8810 ext.2465
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Phone:
203/929-8810 ext.2004
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Fax:
203/926-9453
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Fax:
203/926-9453
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robert.bosi@transwitch.com
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tchung@transwitch.com
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