Vitesse Reports Results for Third Quarter Fiscal 2001
Source; Vitesse Semiconductor
CAMARILLO, Calif. Vitesse Semiconductor Corporation today reported results for the third quarter of fiscal 2001 ended June 30, 2001. Revenues in the third quarter of fiscal 2001 were $60.1 million, a decrease of 47% from the $114.1 million in the third quarter of fiscal 2000 and a decrease of 51% from the $121.8 million in the second quarter of fiscal 2001. For the nine month period ended June 30, 2001, revenues were $347.0 million, a 14% increase over the $303.7 million for the nine month period ended June 30, 2000.
Pro forma net loss for the third quarter of fiscal 2001, which excludes the amortization of goodwill and deferred compensation and various non-recurring charges discussed below, as well as an extraordinary gain on the extinguishment of debt, was $11.9 million or $0.06 per share, compared to pro forma net income of $32.1 million or $0.17 per share in the third quarter of fiscal 2000 and pro forma net income of $18.8 million or $0.10 per share in the prior quarter. Pro forma net income for the nine month period ended June 30, 2001 was $54.6 million or $0.30 per share, compared to pro forma net income of $76.6 million or $0.41 per share for the nine month period ended June 30, 2000.
In the third quarter of fiscal 2001, the Company recorded non-recurring charges in the amount of $83.2 million. These charges consisted of a $50.6 million write-off for excess and obsolete inventories (excluding the reversal of the inventory reserve of approximately $9.0 million), a $7.2 million charge for the impairment of certain fixed assets and investments, a $22.9 million charge for the impairment of goodwill related to certain acquisitions and a $2.5 million restructuring charge in connection with a workforce reduction and office closures implemented in May 2001. The Company also recorded an extraordinary gain on the extinguishment of debt, net of taxes, of $7.0 million upon the repurchase of $64.4 million face value of its subordinated convertible debt for $52.1 million in cash.
Vitesse President and CEO, Lou Tomasetta, said: ``Revenues dropped sharply in the current quarter as a result of continued weakness in carrier spending. Inventories in our customers channels remain at high levels and the process of reducing excess inventories is taking much longer than anticipated. However, even amidst this downturn we have continued to secure design wins, particularly for our upper-layer products. We believe that new products and new design wins are the most important actions we can take to begin the recovery process.
Vitesse Semiconductor Corporation is a leading designer and supplier of innovative, high performance semiconductors utilizing state-of-the-art processes for the manufacturers of next generation DWDM and optical networking communications equipment. Vitesse also develops storage area networking ICs and enclosure management products that monitor and communicate critical reliability and availability information. The Company s products address the needs of Core, Access, Optical and Enterprise network equipment manufacturers who demand a combination of high speed, high complexity and low power dissipation. Vitesse is headquartered in Camarillo, California, and operates two fabrication facilities in Camarillo and Colorado Springs. Company/product information can be found on the web at www.vitesse.com.
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expected financial results for future periods and market acceptance of our products. Our actual results could differ materially from our forward looking statements for a variety of reasons, including, among other things, delays or cancellations of orders by our customers, competition in our markets and difficulties in bringing new products to market. For a more complete discussion of the risks and uncertainties that may cause our actual results to differ materially from our forward looking statements, please read the reports we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2000 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2001.
Contact: Vitesse Semiconductor Corporation, Camarillo Eugene F. Hovanec, 805/388-3700
Vitesse Semiconductor
Corporation, Camarillo Eugene F. Hovanec, 805/388-3700
Web site: http://www.vitesse.com
