Needham & Company Maintains a 'Buy' on Transwitch (TXCC); Suspends Quarterly Guidance, But High Speed Video Interface Products On Track

Needham & Company maintains a 'Buy' on Transwitch (NASDAQ: TXCC) price target raised from $3.00 to $3.50.

Analyst, N. Quinn Bolton, said, "TranSwitch reported 4Q11 sales in-line with revised guidance reflecting a contractual dispute on a service agreement with a customer, but gross margin was lower than expected due to costs associated with the contract under dispute. Management suspended quarterly guidance as the legacy telecom business remains volatile and as near-term revenue does not reflect the company’s strategic focus on high speed video interconnect products. With the first announced design win for HDplay and the announcement of HDwire, the industry’s highest speed video interface over copper, we believe TXCC continues to execute on its strategic initiatives."

For an analyst ratings summary and ratings history on Transwitch click here. For more ratings news on Transwitch click here.

Shares of Transwitch closed at $2.84 yesterday.

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