Vitesse Closes $40.2 Million Public Offering of Its Common Stock

Vitesse Semiconductor Corporation VTSS today announced the closing of an underwritten public offering for 18,720,000 shares of its common stock, which includes the exercise in full by the underwriters of their over-allotment option, at a per share price to the public of $2.15. The Company will receive net proceeds of approximately $37.5 million after deducting the underwriting discount and estimated offering expenses. Certain officers and directors of Vitesse participated in the offering. "The success of our public offering speaks volumes to the confidence our investors have in our strategy, products, team, and growth potential. The net proceeds from this offering have considerably strengthened our balance sheet, and give us flexibility in handling the debt principal due in 2014," said Chris Gardner, CEO of Vitesse. "The proceeds from the offering will help us toward our goal of driving long-term growth and profitability." "Over the last five years, our R&D investments have been targeted at enabling next-generation networks in the fastest growing markets with ground breaking products based on the evolution of Ethernet technology. With the demonstrated market traction of our new products, we believe that our served markets are on the threshold of an extended growth cycle based on a systemic, long-term build out of Carrier and Enterprise networks." Needham & Company, LLC acted as the sole book-running manager of the offering. Craig-Hallum Capital Group LLC and Imperial Capital, LLC acted as co-managers. Counsel for Vitesse was Stubbs Alderton & Markiles, LLP.