Transmeta Q2 sales slip as forecast

Oh, and it spent $13.6m licensing AMD's Hammer technology

Transmeta said its Q2 revenue would be down 40-45 per cent on the previous quarter's figure, and sho' nuff it was.

The chip maker yesterday reported Q2 revenue of $10.5 million, a 44 per cent fall on Q1's $18.6 million. Q2 2001's figure was nevertheless considerably higher than Q2 2000's $354,000.

Losses for the quarter - the three months to 29 June - totalled $17.8 million (14 cents a share), down from the $19.1 million loss (59 cents a share) Transmeta posted this time last year.

Add to that inventory write-offs ($28.1 million of it, all down to producing rather more processors than the company's Japanese customers eventually ordered) and other one-off items, and Transmeta left its most recently completed quarter in the red to the tune of $69.3 million.

One of those items was a $13.6 million technology acquisition from AMD, presumably the cost of licensing AMD's x86-64 architecture, aka Hammer.

For the first half of Transmeta's fiscal year, the company lost $92 million (72 cents a share), compared with a net loss of $43.8 million ($1.42 a share) for the first six months of fiscal 2000. Revenue for the half was $29.1 million, compared with $358,000 for the first six months of fiscal 2000.

Looking ahead, Transmeta said it expects to report third quarter revenues of between $8.9 million and $10.5 million - in other words, no better than Q2 at best. The company expects Q3's gross margins to be around 44 per cent, the same as Q2 and the quarter before it. ®

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