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TranSwitch Corporation Announces Voluntary Delisting From NASDAQ

  TranSwitch Corporation Announces Voluntary Delisting From NASDAQ

Business Wire

SHELTON, Conn. -- August 19, 2013

TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor
solutions in the rapidly growing consumer electronics and telecommunications
markets, today announced its intention to voluntarily delist its common stock
from the NASDAQ Stock Market LLC (“Nasdaq”), in part due to the Company’s
non-compliance with the minimum closing bid and stockholders’ equity
requirements for continued listing on The NASDAQ Capital Market.

On December 4, 2012, the Company received a letter from Nasdaq notifying it
that the closing bid price of its common stock was below the $1.00 minimum bid
price requirement for 30 consecutive business days and, as a result, the
Company no longer complied with the minimum bid price requirement under
Listing Rule 5550(a)(2). On February 26, 2013, the Company received a letter
from Nasdaq notifying it that the Company was no longer in compliance with the
minimum stockholders’ equity requirement of at least $2.5 million under
Listing Rule 5550(b)(1). On June 6, 2013, the Company received a letter from
the Listing Qualifications Department of Nasdaq advising it that, unless it
appealed the determination by June 13, 2013, its securities would be scheduled
for delisting and would be suspended at the opening of business on June 17,
2013 for failure to comply with Listing Rules 5550(a)(2) and 5550(b)(1). The
Company appealed the determination to a Hearings Panel (the “Panel”), which
automatically stayed the delisting of the Company’s securities pending the
issuance of a decision by the Panel. The Company made a presentation to the
Panel on July 11, 2013.

The voluntary decision to delist from Nasdaq was taken following the Board of
Directors’ detailed review of numerous factors including the aforementioned
Nasdaq letters and hearing, the applicable Nasdaq rules and regulations, the
benefits generated by the maintenance of the listing, the Company’s current
share price and stockholders’ equity, and the feasibility of ongoing
compliance with the Nasdaq listing requirements in light of the Company’s
pressing cash needs and limited financing opportunities.

The Company intends to file a Form 25 with the Securities and Exchange
Commission (“SEC”) on or about August 30^, 2013 to effect the voluntary
delisting of its common stock from Nasdaq. The official delisting of the
Company’s common stock will become effective approximately ten days
thereafter. The Company will continue to file periodic reports with the SEC
pursuant to the requirements of Section 12(g) of the Securities Exchange Act
of 1934, as amended.

The Company is working with several market makers and anticipates that
following its Nasdaq delisting, the Company’s common stock will be quoted on
the OTCQB tier of OTC Markets. The OTCQB is a market tier for OTC-traded
companies that are registered and reporting with the Securities and Exchange
Commission.

About TranSwitch Corporation

TranSwitch Corporation (Nasdaq:TXCC) provides innovative integrated circuit
(IC) and intellectual property (IP) solutions that deliver core functionality
for video, voice, and data communications equipment for the customer premises
and network infrastructure markets. For the customer-premises market, we offer
multi-standard, high-speed interconnect solutions enabling the distribution
and presentation of high-definition (HD) video and data content for consumer
electronics applications. We also provide a family of best-in-class
communications processors. For the network infrastructure market we provide
integrated multi-core network processor System-on-a-Chip (SoC) solutions for
Fixed, 3G and 4G Mobile, VoIP and Multimedia applications. TranSwitch’s
customers are leading consumer electronics and telecom equipment companies
around the globe. 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.

Contact:

TranSwitch Corporation
Robert A. Bosi, 203-929-8810 ext. 2465
Vice President and Chief Financial Officer
or
Investor Relations
Mary Lombardo, 203-929-8810 ext. 2254