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TranSwitch Corporation Announces
Fourth Quarter 2007 Financial Results
SHELTON, CTJanuary 24, 2008TranSwitch Corporation (NASDAQ: TXCC) today announced that it posted fourth quarter 2007 net revenues of approximately $7.2 million and a net loss of ($5.6) million, or ($0.04) per basic and diluted common share as was previously guided. This compares to fourth quarter 2006 net revenues of approximately $9.3 million and a net loss of ($3.2) million, or ($0.03) per basic and diluted common share. For the twelve months ended December 31, 2007, the Company posted net revenues of approximately $32.6 million and a net loss of ($19.7) million, or ($0.15) per basic and diluted common share. This compares to net revenues of approximately $38.9 million and a net loss of ($10.9) million, or ($0.09) per basic and diluted common share in the comparable period of 2006.
During the fourth quarter of 2007, the Company reported a gross profit of $3.5 million or a gross margin of 57% on product revenues. The gross margin for TranSwitchs core product business was approximately 74%, while gross margin for other products was 13%. The gross margin for other products was negatively impacted in the fourth quarter by a one-time non-recurring engineering expense. In the fourth quarter of 2007, new and legacy products represented 67% and 33%, respectively, of total net product revenues.
While we are disappointed by this quarters results even though we anticipated these results in October, we believe that the 2007 results represent the trough and 2008 will be a stronger year for us and our industry. We expect the industry outlook to brighten as the remaining industry consolidation issues get resolved, commented Dr. Santanu Das, President and CEO of TranSwitch Corporation.
We have been designed into platforms of some of the leading equipment vendors who have contracts with the major carriers in countries such as China, India, Korea, the United Kingdom, and the United States. While the aforementioned platforms have been slow to ramp, we believe, given the needs of these carriers and their stated commitment to these programs and plans, these platforms should begin to ramp shortly. Our confidence is bolstered by the fact that a number of these carriers have publicly stated that their capital expenditure plans call for increased spending in the current fiscal year. We are also enthused by the fact that TranSwitch has not only maintained its position with these vendors, but also has gained further traction, continued Dr. Das.
The following information was filed by Transwitch Corp De (TXCCQ) on Thursday, January 24, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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