Vitesse Semiconductor Reiterates Guidance
Vitesse Semiconductor Corp. (Camarillo, CA) announced that it expects revenue for the fourth quarter of fiscal 2002 ending September 30, 2002, to be approximately $38.0 million, which is within the range provided during the last earnings conference call on July 18, 2002.
Lou Tomasetta, president and CEO, stated, "Normally we do not comment on analyst reports. However, in recent weeks a number of analyst and media reports have contained errors and misunderstandings that must be clarified for our shareholders. First, over 80 percent of our revenue in the last two quarters has been from storage, enterprise and metro applications. Analysts have left the impression that we remain heavily dependent on the core transport market. While this was true several years ago, it has not been the case lately."
"Second, operating expenses for the December 2002 quarter are expected to be approximately $39.0 million, down substantially from the $51.0 million reported for the June quarter, as a result of cost reductions and the restructuring discussed in the July earnings conference call. Additional cost reductions are expected in subsequent quarters as a result of the already announced restructurings. Some analysts continue to project future expenses at the June quarter levels."
"Third, net cash has been positive for all of fiscal 2002. At June 30, 2002, this balance was $472.0 million. While we have explained this in detail, some reports have left the impression that we have less cash than convertible debt. We expect to utilize cash in operations at a substantially lower rate over the next few quarters and we anticipate ending fiscal 2002 and 2003 with positive net cash."