TranSwitch Corporation Expects Q4 Rev to be $6.3M from $7M Prior Guidance; $6.98M Est
TranSwitch Corporation (NASDAQ: TXCC) today announced that it now expects its fourth quarter 2011 revenue to be roughly $6.3 million compared to the guidance provided on November 1, 2011 of roughly $7 million principally due to a contractual dispute on a service agreement with a North America customer. The Company expects to report complete fourth quarter and full year 2011 financial results in early February 2012 and will announce details when they are available.
“We continue to make progress on our strategic plan of creating value through innovative products for HD multimedia connectivity and processing,” said Dr. M. Ali Khatibzadeh, President & CEO of TranSwitch. “With the introduction of HDwire™, the fastest video transport technology for flat-panel displays, TranSwitch substantially increases its addressable market.”
Separately, on December 28, 2011 the company entered into an amendment to its sublease agreement with an unaffiliated company to sublease 92,880 square feet of office space located in Shelton, Connecticut. The sublease agreement amendment extends the sublease through May 2017. As a result of this amendment, TranSwitch expects to reverse approximately $7.0 million of its previously accrued restructuring liability during the fourth quarter of 2011.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.