Feeds

Transmeta Q3 sales slump

May halve again during Q4...

  • alert
  • submit to reddit

Transmeta yesterday admitted its sales had fallen by almost half between the second and third quarters of its current fiscal year and almost 60 per cent down on Q3 2002.

Sales for the three months to 26 September totalled $2.7 million, down 47.1 per cent on the previous quarter's $5.1 million and 57.8 per cent on the $6.4 billion it recorded for Q3 2002.

The plunge saw the company's loss widen to $23.7 million (17 cents a share) from Q2's $22 million (16 cents a share) and the year-ago quarter's $21.8 million (16 cents a share).

The current, fourth quarter isn't going to get any better. Despite launching its new Efficeon processor on Tuesday, Transmeta reckons its sales could halve again at worst - at best, they'll stay the same - with a loss of around 15-17 cents a share. That's excluding $3 million worth of non-cash amortization and deferred compensation charges.

Q4 operating costs are likely to stay at around $18.5 million. Cash at the end of December should be approximately $52 million, after a regularly scheduled payment of $7 million to IBM in accordance with the two firms' technology licensing agreement. So the company can keep going for at least a few quarters yet. In the meantime, it needs to wish like crazy that Efficeon starts attracting a broader range of customers.

In what's almost an admission that it doesn't expect to sell too many chips, the company reiterated its plan to offer the intellectual property bound up in its processors to other chip makers. President and CEO Matthew Perry said Transmeta has seen "significant interest from several parties" for its LongRun power management technology. ®

Related Story

Transmeta plots Efficeon roadmap to 2GHz

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.