Let me start out by saying that I have been a Transwitch long for many years and I have done my best to try and share my thoughts, and where I think Transwitch was heading. I have had many conversations with the company, and based on those conversations I shared my views with the 2 Transwitch message boards. Unfortunately neither the company nor I have been very good at forecasting the future. Still I not going to give up and I will once again try to put my views on Transwitch in perspective on where we are at today.

I think the first issue that needs to be addressed is the delisting issue with NASDAQ. I talked to the company over the summer and they felt the delisting date was early November. My conversation with the company today gives me no reason to think that this date will change. I have therefore resigned myself that a reverse split is most likely going to happen to avoid delisting. I have always been against a reverse split, and as a shareholder I am not entirely happy to have our hand forced to avoid delisting. The bottom line is you can’t be taken serious as a real company and trade on the OTC. In my opinion a reverse split is best for the company at this time.

I think it is important to keep in mind that a reverse split probably would have been needed at some point in the future no matter what our stock price is. 160 million shares outstanding for a company our size is just too many outstanding shares. I also feel reducing the share count will make the company much more easier to model when the top and bottom lines start to grow. It may also be easier to attract institutional investors that have the capability to really move the stock upwards if it is truly warranted. I also feel the trading volume and liquidity on the stock has been pretty bad lately and part of the reason could have been the under a buck stock price and the delisting issue. Hopefully a reverse split will remove these 2 reasons why large investors couldn’t buy the stock. I think it is important to remember at the end of the day the market cap is the market cap, and the value of the company will not change with a reverse split. In no way do I feel it is a positive to be forced into a reverse split, but at the end of the day it has a chance to work in our favor for us over the coming months