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TranSwitch Corporation (NASDAQ: TXCC) a leading provider of semiconductor solutions for multimedia connectivity and processing today announced that effective today, the Board of the Company has appointed Mr. Richard (Dick) J. Lynch as the new Chairman of the Board and Chairman of the Executive Committee. Mr. Lynch was the Chief Technology Officer of Verizon Communications and, before that, of Verizon Wireless. He now runs a consulting and advisory business. He also sits on the board of Ruckus Wireless. Mr. Gerald F. Montry has stepped down as Chairman of the Board of TranSwitch Corporation and Chairman of the Executive Committee, while remaining as a member of the Board.
“I am grateful to the Board for having the confidence in me to elect me to the chair at this very important time in the Company’s history,” stated Mr. Lynch. “TranSwitch is a company with significant opportunities and challenges. We are on the cusp of realizing the benefits of the transition to a business based on high speed video connectivity. At the same time, we have seen a continual decline in our legacy telecom businesses which has put pressure on our financial condition. I see my key role as being the catalyst for optimizing and expediting the bridge to the value of the new products for both our customers and our shareholders.”
Dr. Ali Khatibzadeh, President and CEO of TranSwitch Corporation said “I look forward to working with Dick to realize the potential value of TranSwitch for our shareholders. His experience and track record will be invaluable in shaping our future direction. I would like to thank Mr. Montry for his service as Chairman and look forward to his continued support as a member of the Board of TranSwitch.”
The Company also announced that it immediately plans to implement a restructuring which will result in annual savings of approximately $8.0 million and that these savings will begin to be recognized in the third quarter of 2012. Of this amount, TranSwitch expects approximately $4.6 million in annual savings from reduced employee‐related costs and the remaining $3.4 million from other cost savings initiatives. The Company also estimates revenue for the second quarter of 2012 to be in the range of $3.5 million to $4.0 million.