Vitesse loses interest in long-haul telecom
For the year ended September 30, 2002, revenues were $162.4 million, a 58% decrease from the $384.1 million for previous year.
On a generally accepted accounting principles (GAAP) basis, net income for September 2002 quarter was $3.7 million or $0.02 per share. The company would have recorded a loss without a one-time gain of $30.0 million. A restructuring charge of $3 million, relating to workforce reduction, and a charge of $5 million relating to the write-down of certain long-term investments, were also recorded during the quarter.
Vitesse expects its revenues for the December quarter to fall in the $38 million to $40 million range. The company hopes to return to profitability in the September 2003 quarter.
The company has significantly reduced its reliance on the long-haul telecom market to less than 15% of its business. "While our revenue has been essentially flat for the last five quarters," said Vitesse President and CEO, Lou Tomasetta, "the mix has dramatically changed from long-haul telecom (70% in the September 2000 quarter) to Enterprise/Storage (70% in the September 2002 quarter)."
"Our Storage business continues to do well, as the transition from 1Gbit/s to 2Gbit/s systems becomes widespread," continued Tomasetta. "We continue to secure design wins for ethernet LAN backbone applications, and products targeting this market began initial sampling in the September quarter. This further diversifies our base and moves us into areas that we believe are showing near-term growth."
