TranSwitch
Corporation (OTCQB:TXCC),
a leading provider of semiconductor solutions in the rapidly growing
consumer electronics and telecommunications markets, today confirmed the
closing of its previously announced $2.5 million equity investment from
Ilex Partners, LLC (“Ilex”), managed by Mr. Michael Steinhardt.
“We welcome this new equity investment by our largest shareholder, a
legendary investor, and appreciate the confidence he has placed in our
company’s new direction,” stated Dr. M. Ali Khatibzadeh, President and
CEO of TranSwitch Corporation. “This equity investment comes at a
critical juncture of the company’s transformation and will have a
significant impact on the growth of our new video connectivity business
without taking on debt.” As previously announced, the Company also
granted to Ilex the right to make a further equity investment of $ 2.5
million within six months.
Proceeds from this transaction will be used for general corporate and
working capital purposes.
About TranSwitch Corporation
TranSwitch Corporation (OTCQB: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.
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