TranSwitch (TXCC) Appoints Dick Lynch as Chairman; to Implement Restructuring
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TranSwitch Corporation (Nasdaq: TXCC) has appointed Mr. Richard (Dick) J. Lynch as the new Chairman of the Board and Chairman of the Executive Committee. Mr. Lynch was the Chief Technology Officer of Verizon Communications and, before that, of Verizon Wireless. He now runs a consulting and advisory business. He also sits on the board of Ruckus Wireless. Mr. Gerald F. Montry has stepped down as Chairman of the Board of TranSwitch Corporation and Chairman of the Executive Committee, while remaining as a member of the Board.
The Company also announced that it immediately plans to implement a restructuring which will result in annual savings of approximately $8.0 million and that these savings will begin to be recognized in the third quarter of 2012. Of this amount, TranSwitch expects approximately $4.6 million in annual savings from reduced employeeârelated costs and the remaining $3.4 million from other cost savings initiatives. The Company also estimates revenue for the second quarter of 2012 to be in the range of $3.5 million to $4.0 million.
In connection with the restructuring, TranSwitch expects to incur pre-tax restructuring charges of approximately $1.6 million which will be primarily for employee related costs and facility lease obligations. The Company expects these charges to be recorded in the second and third quarters of 2012.
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The Company also announced that it immediately plans to implement a restructuring which will result in annual savings of approximately $8.0 million and that these savings will begin to be recognized in the third quarter of 2012. Of this amount, TranSwitch expects approximately $4.6 million in annual savings from reduced employeeârelated costs and the remaining $3.4 million from other cost savings initiatives. The Company also estimates revenue for the second quarter of 2012 to be in the range of $3.5 million to $4.0 million.
In connection with the restructuring, TranSwitch expects to incur pre-tax restructuring charges of approximately $1.6 million which will be primarily for employee related costs and facility lease obligations. The Company expects these charges to be recorded in the second and third quarters of 2012.
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