TranSwitch Corporation Provides Revised Guidance
Fourth Quarter Results; and
Announces Extension to Agreement To
Sublease Office Space
SHELTON, CT – January 6, 2012 ─ TranSwitch Corporation
(NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, 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.
About TranSwitch Corporation
TranSwitch Corporation (NASDAQ: TXCC) designs, develops
and supplies innovative semiconductor and intellectual property (IP) solutions that provide core functionality for voice, data
and video communications equipment for network, enterprise and customer premises applications. Founded in 1988, TranSwitch®
is headquartered in Shelton, CT. The Company provides integrated multi-core network processor System-on-a-Chip (SoC) solutions
and software solutions for fixed, 3G and 4G Mobile, VoIP and Multimedia Infrastructures. For the customer premises market
the Company offers a family of communications processors that provide best-in-class performance for a range of applications and
also provide interoperable connectivity solutions that enable the reliable distribution and presentation of high-definition (HD)
content for consumer electronics and personal computer markets. Our intellectual property (IP) products are compliant
with global industry standards such as HDMI and DisplayPort and also feature our proprietary HDP™ and AnyCable™ technologies.
For more information, please visit www.transwitch.com
Forward-looking statements in this
release, including statements regarding management's expectations for future financial results and the markets for TranSwitch's
products, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that these forward-looking statements regarding TranSwitch, its operations and its financial results, involve risks and
uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, including
without limitation the risks associated with downturns
in economic conditions generally and in the telecommunications and data communications markets and the semiconductor industry specifically;
risks in product development and market acceptance of and demand for TranSwitch’s products and products developed by TranSwitch’s
customers; risks associated with foreign sales and high customer concentration; risks associated with competition and competitive
pricing pressures; risks in technology development and commercialization; risks of failing to attract and retain key
managerial and technical personnel; risks relating to TranSwitch’s available cash; risks associated with acquiring new businesses;
risks of dependence on third-party VLSI fabrication facilities; risks related to intellectual property rights and litigation; and
other risks detailed in TranSwitch's filings with the Securities and Exchange Commission.
TranSwitch expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any such statements to reflect any change in expectations or any change in events,
conditions or circumstances on which any such statement is based.
TranSwitch is a registered trademark of TranSwitch Corporation.