Vitesse reported net revenues of $168.2M in fiscal year 2009 compared with $228.5M in fiscal year 2008

December 14, 2009

2 Min Read

CAMARILLO, Calif. -- Vitesse Semiconductor Corporation (Pink Sheets:VTSS - News), a leading provider of advanced IC solutions for Carrier and Enterprise networks, today reported its audited financial results for the fourth quarter and fiscal year ended September 30, 2009.

Recent Operating and Financial Highlights

  • Completed debt restructuring transaction, closed in October 2009, resulting in a significantly improved balance sheet and operating flexibility in fiscal 2010.

  • Reported net revenues of $168.2 million in fiscal year 2009 compared with $228.5 million in fiscal year 2008, reflecting weak global economic conditions and cyclical industry downturn.

  • Generated positive cash flow from operations of $19.2 million in fiscal year 2009, compared with negative cash flow from operations of $22.6 million in fiscal year 2008.

  • Reported a net loss of $194.0 million in fiscal year 2009, compared with net income of $16.6 million in fiscal year 2008. 2009 results include non-cash expenses of $191.4 million for goodwill impairment and a $12.2 million fair value adjustment to our derivative liability.

  • Introduced 16 new products, exceeding 2009 target of 12.

CEO Commentary

“While 2009 was a challenging year for Vitesse, and for the industry as a whole, we delivered on the majority of our key goals,” said Chris Gardner, CEO of Vitesse. “Importantly, we resolved our debt issues with the completion of our debt restructuring in October, and move forward with a stronger balance sheet. We generated positive cash flow from operations in 2009 in spite of lower than expected revenue. We also took aggressive action to improve our operations and reduce operating expenses, while continuing our investment level in R&D.”

“Market conditions are beginning to improve and Vitesse is well positioned for 2010 with improved financial stability and a particularly strong new product cycle. In the coming year, we will focus on optimizing the value of our operations by continuing to invest in R&D and by transitioning our Camarillo, California test facility to our subcontractors in Asia. We believe these investments will position Vitesse for improved operating efficiencies and returns in 2011 and beyond,” Mr. Gardner concluded.

Vitesse Semiconductor Corp. (Nasdaq: VTSS)

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