Print
Email
Print Edition Stories
Cable, telecom companies see net neutrality battle
MHT's Jackie Noblett: Charging station plans await surge in electric vehicle sales
MHT's Efrain Viscarolasaga: How social networking is changing business
Chipmaker for the communications market TranSwitch Corp. has won approval from its board of directors to execute a one-for-eight reverse stock split to get back into the minimum closing price requirements Nasdaq needs to keep its stock listed. The board has also approved the replacement of current CEO Santanu Das by new CEO M. Ali Khatibzadeh.
Stockholders of Shelton, Conn.-based TranSwitch authorized the reverse stock split at the company’s 2009 annual meeting on May 21, 2009. Now that it has been approved by the board, the reverse split will take effect at 11:59 p.m. (Eastern Time) on Nov. 23, 2009.
Nasdaq officials had told TranSwitch (Nasdaq: TXCC) it would be required to show its plans for compliance with the minimum closing bid price requirement by last Friday, Nov. 6, 2009. Once the reverse split occurs, the company’s trading symbol will be temporarily changed from “TXCC” to “TXCCD” for twenty trading days beginning Nov. 24, 2009.
After the split, the total number of TranSwitch shares of common stock issued and outstanding will be reduced from approximately 160 million shares to approximately 20 million shares.
In December of 2008, TranSwitch purchased $15 million worth of its $25 million in outstanding convertible notes, issued in July of 2007. The firm paid $9.9 million, plus accrued interest, for the notes. For 2008, TranSwitch lost $17 million on revenue of $42 million.
The Transwitch board also approved the appointment of new CEO Khatibzadeh, following the resignation of 20-year CEO and company founder Das.
Khatibzadeh will hold the CEO role as of Decemer 1, 2009. He was most recently senior vice president and general manager at Anadigics Inc. He graduated from North Carolina State University with a doctorate, master's and bachelor's degree in electrical engineering, as well as a bachelor's degree in physics.
RSS Feeds
Comments
Please Login/Register to post comments.
No comments have been added or approved.