Here comes another profit warning, this time from Transmeta, designer of the low-power Crusoe CPU. Sales in Q2 (ending June 30) will be 40-45 per cent down on Q1's $18.6 million turnover. The company is also transitioning in the second half of the year to 0.13 micron production. The upshot will be an inventory charge - amount so far unspecified.

Transmeta blames a slowdown in Japan - most of its customers are Japanese hardware vendors and, presumably, most of their customers are Japanese also.

Transmeta points to design wins and Crusoe-powered notebook launches in the US and Europe. It also says it is well-placed to resume growth as per forecasts when the economy picks up.

Even so, this profit warning reminds us once again just how small this company is. ®