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TranSwitch Corp. (TXCC) filed Quarterly Report for the period ended 2011-09-30.
Transwitch Corp. has a market cap of $67.9 million; its shares were traded at around $2.23 with and P/S ratio of 1.3.
This is the annual revenues and earnings per share of TXCC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TXCC.
Highlight of Business Operations:
Total net revenues for the three months ended September 30, 2011 were $6.7 million as compared to $12.8 million for the three months ended September 30, 2010, a decrease of $6.1 million or 48%. Our Network Infrastructure revenues decrease of approximately 39% was a result of lower sales of Carrier Ethernet and Optical Transport products due to reduced telecom infrastructure capital expenditures. Our CPE revenues decrease of approximately 61% was attributable to the ramping down of our Mustang (gigabit Ethernet passive optical) product line towards the end of 2010 and reduced sales of our Communications Processor products. This reduction was partially offset by increased service revenues which include royalties and IP licensing of our high speed interface technology.Total net revenues for the nine months ended September 30, 2011 were $21.9 million as compared to $39.7 million for the nine months ended September 30, 2010, a decrease of $17.8 million or 45%. Our Network Infrastructure revenues decrease of approximately 43% was a result of lower sales of Optical Transport, VOIP and Carrier Ethernet products due to reduced telecom infrastructure capital expenditures. Our CPE revenues decrease of approximately 48% was attributable to the ramping down of our Mustang (gigabit Ethernet passive optical) product line towards the end of 2010 and reduced sales of our Communications Processor products. This reduction was partially offset by increased service revenues which include IP licensing of our high speed interface technology.
International net revenues represented approximately 74% of net revenues for the three months ended September 30, 2011 as compared to 84% for the three months ended September 30, 2010. Also, international net revenues represented approximately 74% of net revenues for the nine months ended September 30, 2011 as compared to 79% for the nine months ended September 30, 2010.
Total gross profit for the three months ended September 30, 2011 decreased by approximately $2.8 million or 40% as compared to the three months ended September 30, 2010 and total gross profit for the nine months ended September 30, 2011 decreased by approximately $7.1 million or 33% as compared to the nine months ended September 30, 2010. The decrease in gross profit was primarily the result of a decrease in total net revenues which was partially offset by higher gross margins on the revenues that we did have in 2011. The total gross profit as a percentage of revenue was 65% and 56% for three months ended September 30, 2011 and 2010, and 65% and 53% for the nine months ended September 30, 2011 and 2010, respectively. The changes in gross margin percentage are mostly attributable to changes in product mix, especially a larger portion of royalties and higher margin IP licensing revenues. We anticipate that gross profit will continue to be impacted by fluctuations in the volume and mix of our product shipments as well as material costs, yield and the fixed cost absorption of our product operations.
During the three and nine months ended September 30, 2011, gross profit was affected favorably in the amount of less than $0.1 million and $0.2 million, respectively, from the sales of products that had previously been written down. During the three and nine months ended September 30, 2010, gross profit was affected favorably in the amount of $0.1 million and $0.3 million, respectively, from the sales of products that had previously been written down. Also during the three months ended September 30, 2011 and 2010, we recorded provisions for excess and obsolete inventories in the amount of less than $0.1 million and $0.1 million, respectively. During the nine months ended September 30, 2011 and 2010, we recorded provisions for excess and obsolete inventories in the amount of $0.2 million and $0.7 million, respectively.
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