Transmeta has said it's been hit by a sales slowdown and now expects Q3 revenues of $5 million. It had originally estimated in July that revenues for the period would be between $8.9 million and $10.5 million.

Its major customers, most of them based in Japan, have slashed orders for its power saving notebook chips.

The company's Crusoe 5800 product has also been delayed. Transmeta had expected to go volume with it in Q3, but has suffered delays in completing the 0.13-micron process qualification necessary for volume production. ®