Needham & Company Maintains a 'Buy' on Transwitch (TXCC); Story Remains Contingent Upon The 2012 Ramp of Video Interconnect Products

Needham & Company maintains a 'Buy' on Transwitch (NASDAQ: TXCC), price target cut from $4 to $3.

Needham analyst says, "TXCC reported 2Q11 results at the low end of guidance and issued soft 3Q11 guidance, each stemming from further weakness in its telecom business. 2Q11 telecom revenue fell 25% Q/Q, but the company remains upbeat that its telecom business will (finally) recover in 4Q11 as backlog coverage has improved...We encourage investors to look beyond the near term volatility and take a patient approach to HDplay, for which we expect design win announcements beginning late 2011."

Needham lowers FY11 EPS from (0.23) to (0.35) and FY12 from $0.04 to (0.05)

For more ratings news on Transwitch click here and for the rating history of Transwitch click here.

Shares of Transwitch closed at $2.32 yesterday.

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