TranSwitch Corp. today slashed its sales and profit outlook for the current quarter due to the weakening economy.
Earlier this month, the Shelton, Conn. supplier of communications chips said it expected first quarter earnings per share in the range of 16-17 cents. On Monday, the company reduced that forecast to 9-10 cents per share.
"Recent reports from the leading contract manufacturers and our OEM customers give us a strong indication that the business condition in our space in North America is still on a downward slope with increased cancellations and push-outs of orders. Our business in Asia and in Europe remains steady, but there is increased softness in North America," said Santanu Das, chairman, president, and CEO of TranSwitch, in a released statement.
"Accordingly, we are revising our financial guidance for the first quarter, 2001 as the turns business we anticipated recently has not materialized. We are reducing our first quarter, 2001 revenue forecast to approximately $38 million.
"Further, based on our current visibility, we see, at best, a flat second quarter, 2001 in revenue and net income, as compared to first quarter, 2001 results," said Das.
"Our design-win momentum in fourth quarter, 2000 was very strong, and we see similar strength in design-wins in the current quarter," he added.