07:39 AM EDT, 07/03/2012 (MidnightTrader) -- TranSwitch (TXCC) disclosed in a regulatory filing late Monday that it expects to incur pre-tax charges of $1.6 mln as a result of the restructuring measures it has implemented, which has primarily affected its telecom product unit. Of these charges, $0.9 mln will be for employee related costs and $0.7 mln will be facility lease obligations. The cash expenditures related to these charges will be $0.5 mln for employee related costs and $0.7 mln for facility lease obligations. The company will record these charges in the second and third quarters of 2012.
TXCC also projects annual savings of $8 mln beginning in the third quarter. Of this amount, the company expects annual savings of $4.6 mln in reduced employee related costs, including base salary reductions, and $3.4 mln from other cost savings initiatives.
The company estimates revenue for Q2 to be in the range of $3.5 mln to $4 mln . The Capital IQ consensus estimate for Q2 revenue is $3.58 mln.
Shares closed at $1.09, with a 52-week range of $1.05 - $3.65.
Price: 1.09, Change: 0, Percent Change: 0