TranSwitch Corporation Announces First Quarter 2012 Profits And Registered Direct Offering

TranSwitch Corporation, a leading provider of semiconductor solutions for the converging voice, data and video network, today announced financial results for the first quarter ended March 31, 2012 and that it entered into securities purchase agreements with certain purchasers for the sale of in broad outline $2,779,491 of the Companys common stock.

The first quarter of 2012 were in broad outline $3

Net earnings for the first quarter of 2012 were in broad outline $3.7 million, as compared to net earnings of $6.3 million for the fourth quarter of 2011 and $8.2 million for the first quarter of 2011. Net loss for the first quarter of 2012 was million, or per basic and diluted common share, as compared to a net loss of million, or per basic and diluted common share for the fourth quarter of 2011, and a net loss of million, or per basic and diluted common share for the first quarter of 2011.

While the results of the first quarter were disappointing, we continue to make progress toward the launch of our new video connectivity business, stated Dr. M. Ali Khatibzadeh, President and CEO of TranSwitch Corporation. We are steadily expanding the list of potential clients for HDplay" products and are anticipating production start in the third quarter. Evenly important, we have introduced our first mobile product, HDmobile", with a compelling set of features for the fast growing market of smart phones and tablets.

TranSwitch Corporation designs, develops and supplies innovative integrated circuit and intellectual property solutions that provide core functionality for voice, data and video communications equipment for network, enterprise and customer premises applications. We provide integrated multi-core network processor System-on-a-Chip solutions and software solutions for Fixed, 3G and 4G Mobile, VoIP (Voice over Internet Protocol) and Multimedia Infrastructures. For the customer-premises market, we offer interoperable connectivity solutions that provide a bridge between HDMI and DisplayPort and enable the distribution and presentation of high-definition content for consumer electronic and personal computer markets and as well provide a family of communications processors that provide best-in-class performance for a range of applications. Overall, we have over 100 active clients, including the leading global telecom equipment providers, semiconductor and consumer product companies. For more information, please visit www.transwitch.com.

The non-GAAP financial measures we provide have certain limitations because they do not reflect all of the costs associated with the operation of our business as determined under GAAP. The non-GAAP measures are to boot to, and not a substitute for, or superior to, measures of financial performance prepared under GAAP and may be different from non-GAAP measures used by other companies. We endeavor to compensate for the limitations of these non-GAAP measures by providing GAAP financial statements, descriptions of the reconciling items and a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures so that investors can appropriately incorporate the non-GAAP measures and their limitations into their analyses. Please see our financial statements and "Management's Discussion and Analysis of Results of Operations and Financial Condition" that will be included in the periodic report we expect to file with the SEC with respect to the financial periods discussed herein.