SHELTON, Conn. — (BUSINESS WIRE) — August 14, 2013 — TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for multimedia connectivity and processing, today announced financial results for the second quarter ended June 30, 2013.
Net revenues for the second quarter of 2013 were approximately $2.8 million, as compared to net revenues of $4.6 million for the first quarter of 2013 and $3.8 million for the second quarter of 2012. Net loss for the second quarter of 2013 was ($3.8) million, or ($0.08) per basic and diluted common share, as compared to a net loss of ($3.1) million, or ($0.08) per basic and diluted common share for the first quarter of 2013, and a net loss of ($6.0) million, or ($0.19) per basic and diluted common share for the second quarter of 2012.
The GAAP gross margin for the second quarter was 73%. This is compared to the Company's GAAP gross margin of 81% for the first quarter of 2013, and 67% for the second quarter of 2012.
Total non-GAAP operating expenses for the second quarter of 2013 were $5.2 million, as compared to $5.9 million in the first quarter of 2013 and $7.4 million in the second quarter of 2012. Non-GAAP operating expenses for the second quarter of 2013 exclude $0.1 million in amortization of purchase price intangibles, $0.4 million in stock-based compensation and $0.6 million in restructuring charges, along with a benefit of $0.4 million from the reversal of accrued royalties. Total GAAP operating expenses for the second quarter of 2013 were $5.9 million, as compared to $6.6 million in the first quarter of 2013 and $8.5 million in the second quarter of 2012.
Non-GAAP operating loss for the second quarter of 2013 was ($3.1) million, compared to a non-GAAP operating loss of ($2.2) million for the first quarter of 2013 and a non-GAAP operating loss of ($4.9) million for the second quarter of 2012. On a GAAP basis, the operating loss for the second quarter of 2013 was ($3.8) million, compared to an operating loss of ($2.9) million for the first quarter of 2013 and an operating loss of ($5.9) million for the second quarter of 2012.
Non-GAAP net loss for the second quarter of 2013 was ($3.1) million, or ($0.07) per share, compared with a non-GAAP net loss of ($2.4) million, or ($0.07) per share, for the first quarter of 2013 and a non-GAAP net loss of ($5.0) million, or ($0.16) per share, for the second quarter of 2012.
Further information about non-GAAP measures is provided below and a reconciliation of the non-GAAP measures to the comparable GAAP results is provided after the financial statements attached to this release.
“We had lower than anticipated sales in the second quarter due to the push out of some IP licensing opportunities,” stated Dr. M. Ali Khatibzadeh, President and CEO of TranSwitch Corporation. “We continue to negotiate these opportunities with prospective customers towards reaching agreements soon. As a result of lower sales in the quarter, we have taken decisive restructuring actions to further reduce our operating expenses. Starting in the current quarter, we now estimate our quarterly non-GAAP operating expenses to run in the range of $4.3-$4.8 million. On the business front, we continued to make progress in expanding our HDplay™ traction with 13 customers so far reaching design-win stage and we anticipate orders from many of them in the second half of this year. In addition to the current design wins, our new HDplay™ products with MHL and MyDP video connectivity features are getting designed in by a number of new customers, including tier-1 electronics OEMs for pico-projectors, active cables, tablets and digital TVs. Based on customer projections, we expect these opportunities to reach the design-win stage and production starting as early as the fourth quarter of 2013.”
Additional details on TranSwitch’s second quarter 2013 financial results will be discussed during a conference call regarding this announcement today at 5:30 pm Eastern time. To listen to the live call, investors can dial 785-830-7992 and reference confirmation code: 7201860. The call will be recorded and a replay will be available two hours after the conclusion of the live broadcast through August 24, 2013. To access the replay, dial 719-457-0820 and enter confirmation code: 7201860. Investors can also access an audio webcast which will be broadcast through Vcall’s Investor Calendar at www.investorcalendar.com or the Company’s website at www.transwitch.com. This audio webcast will also be available on a replay basis for 10 business days.
About TranSwitch Corporation
TranSwitch Corporation (Nasdaq:
TXCC) provides innovative
integrated circuit (IC) and intellectual property (IP) solutions that
deliver core functionality for video, voice, and data communications
equipment for the customer premises and network infrastructure markets.
For the customer-premises market, we offer multi-standard, high-speed
interconnect solutions enabling the distribution and presentation of
high-definition (HD) video and data content for consumer electronics
applications. We also provide a family of best-in-class communications
processors. For the network infrastructure market we provide
integrated multi-core network processor System-on-a-Chip (SoC) solutions
for Fixed, 3G and 4G Mobile, VoIP and Multimedia applications. TranSwitch’s
customers are leading consumer electronics and telecom equipment
companies around the globe. For more information, please visit
www.transwitch.com .
