TranSwitch Corp. (TXCC, Financial) filed Quarterly Report for the period ended 2009-03-31.
TranSwitch Corporation designs develops markets and supports highly integrated digital and mixed-signal semiconductor solutions for thetelecommunications and data communications markets. The company's mixed-signal and digital design capability in conjunction with its telecommunications systems expertise enables the company to determine and implement optimal combinations of design elements for desired analog and digital functionality. TranSwitch Corp. has a market cap of $58.9 million; its shares were traded at around $0.37 with and P/S ratio of 1.4.
During the three months ended March 31, 2009 and 2008, gross profit was affected favorably in the amount of $0.3 million and $0.2 million, respectively, from the sales of products that had previously been written down. Also during the three months ended March 31, 2009 and 2008, we recorded provisions for excess and obsolete inventories in the amount of $0.2 million and zero, respectively. These charges had a negative impact on our gross profit.
During the three months ended March 31, 2009, we recorded a net restructuring credit of approximately $6.2 million. During the three months ended March 31, 2008, restructuring charges were approximately $0.2 million.
During the three months ended March 31, 2008, we recorded restructuring charges of approximately $0.2 million. These charges include approximately $0.3 million related to workforce reductions partially offset by approximately $0.1 million related to adjustments to certain sub-lease agreements relating to our excess facilities.
Interest expense, net was $0.2 million in the first quarter of 2009 and 2008. Interest income decreased as a result of lower market yields due to decreased interest rates and lower cash and investment balances. At March 31, 2009 and 2008, the effective interest rate on our interest-bearing securities was approximately 1.3% and 3.1%, respectively. Interest expense decreased due to lower debt balances resulting from the extinguishment of $15.0 million of our 5.45% Convertible Notes due September 30, 2010 (the “2010 Notes”) during the fourth quarter of 2008.
As of March 31, 2009 and December 31, 2008, we had total cash, cash equivalents, restricted cash and investments in marketable securities of approximately $11.1 million and $15.3 million, respectively. This is our primary source of liquidity, as we are not currently generating positive cash flow from our operations. A summary of our cash, cash equivalents, restricted cash and investments in marketable securities and future commitments are detailed as follows:
Read the The complete ReportTXCC is in the portfolios of Arnold Schneider of Schneider Capital Management.
TranSwitch Corporation designs develops markets and supports highly integrated digital and mixed-signal semiconductor solutions for thetelecommunications and data communications markets. The company's mixed-signal and digital design capability in conjunction with its telecommunications systems expertise enables the company to determine and implement optimal combinations of design elements for desired analog and digital functionality. TranSwitch Corp. has a market cap of $58.9 million; its shares were traded at around $0.37 with and P/S ratio of 1.4.
Highlight of Business Operations:
Net revenues, including product and service revenues, were $14.2 million for the three months ended March 31, 2009. The revenues for the three months ended March 31, 2009 were up approximately 89% as compared to the first quarter of 2008, which is principally due to the acquisition of Centillium. For the first quarter of 2009 versus the comparable period of 2008, revenue from our Broadband Access products increased approximately $3.9 million, which is primarily from increased revenues from our Atlanta and Mustang products. Sales of our Optical Transport products, which includes our EtherMap family of products, were flat for the three months ended March 31, 2009 as compared to the three months ended March 31, 2008. Sales of our Carrier Ethernet products increased in the first quarter of 2009 as compared to the first quarter of 2008 by approximately $1.9 million as a result of sales of our Entropia products which we acquired from Centillium.During the three months ended March 31, 2009 and 2008, gross profit was affected favorably in the amount of $0.3 million and $0.2 million, respectively, from the sales of products that had previously been written down. Also during the three months ended March 31, 2009 and 2008, we recorded provisions for excess and obsolete inventories in the amount of $0.2 million and zero, respectively. These charges had a negative impact on our gross profit.
During the three months ended March 31, 2009, we recorded a net restructuring credit of approximately $6.2 million. During the three months ended March 31, 2008, restructuring charges were approximately $0.2 million.
During the three months ended March 31, 2008, we recorded restructuring charges of approximately $0.2 million. These charges include approximately $0.3 million related to workforce reductions partially offset by approximately $0.1 million related to adjustments to certain sub-lease agreements relating to our excess facilities.
Interest expense, net was $0.2 million in the first quarter of 2009 and 2008. Interest income decreased as a result of lower market yields due to decreased interest rates and lower cash and investment balances. At March 31, 2009 and 2008, the effective interest rate on our interest-bearing securities was approximately 1.3% and 3.1%, respectively. Interest expense decreased due to lower debt balances resulting from the extinguishment of $15.0 million of our 5.45% Convertible Notes due September 30, 2010 (the “2010 Notes”) during the fourth quarter of 2008.
As of March 31, 2009 and December 31, 2008, we had total cash, cash equivalents, restricted cash and investments in marketable securities of approximately $11.1 million and $15.3 million, respectively. This is our primary source of liquidity, as we are not currently generating positive cash flow from our operations. A summary of our cash, cash equivalents, restricted cash and investments in marketable securities and future commitments are detailed as follows:
Read the The complete ReportTXCC is in the portfolios of Arnold Schneider of Schneider Capital Management.
