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TranSwitch (TXCC) Issues Guidance Following Anticipation of its Pending Merger with Centillium Communications (CTLM)

October 6, 2008 8:35 AM EDT
TXCC Hot Sheet
EPS Growth %: -80.0%

Financial Fact:
Other (expense) income: -101K

Today's EPS Names:
TARO, BRLI, TLB, More
TranSwitch Corporation (NASDAQ: TXCC) announced the following in anticipation of its pending merger with Centillium Communications, Inc. (NASDAQ: CTLM).

TranSwitch now expects revenues to be in the range of $10.3 million to $10.5 million for the third quarter ended September 30, 2008. The Company's previous outlook for Q3 revenues, as announced on its July 29, 2008 conference call, was to be around $10.2 million.

The Company is also revising its expectations for potential expense savings, assuming the completion of the merger, from at least $10.5 million annually to around $14 million, compared to the two companies' current expenses. In addition to $10.5 million of previously identified expense savings at
Centillium, TranSwitch has identified an additional $3.5 million of potential annual savings for 2009 through restructuring of its current operations along with other expense reduction steps already initiated.

As a result of the restructuring, TranSwitch expects to record a one-time restructuring charge of approximately $400,000 in the fourth quarter of 2008, in addition to other anticipated one-time restructuring charges related to the merger.

Transwitch Corporation designs, develops and markets semiconductor solutions that provide core functionality for voice, data and video communications network equipment.[SM]

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