Feeds

Transmeta loss widens as revenues miss target

But big licensing deal in the wings

  • alert
  • submit to reddit

Top three mobile application threats

Transmeta yesterday restated its Q2 loss narrowing the extent to which its Q3 losses, also reported yesterday, expanded beyond the previous quarter's figure and the company missed its revenue forecast.

In the three months to 24 September 2004, Transmeta lost $27.5m (16 cents a share). Some $5.8m of that were down to charged arising from an inventory adjustment. Similar adjustments - the company ordered too much package substrate materials - added $1.3m to Q2's $25.5m loss, taking it to the restated figure of $26.8m (15 cents a share).

The widening loss came despite a 17 per cent sequential increase in revenues, rising from Q2's $6m to Q3's $7m. That's still below the $8-8.7m the company forecast after announcing its Q2 figures. Q3's sales were split $3.3m:$3.7m, product:licensing/service revenue.

The latter looks to be a source of hope for the company: it announced an unnamed "multi-billion dollar semiconductor company" has formally said it intends to license Transmeta's LongRun 2 power-preservation technology. The deal is expected to be signed this quarter.

Product sales declined sequentially, Transmeta said, but are not expected to fall further during Q4. Licensing, on the other hand, looks set to contribute at least $6.3m to Q4's bottom line. It said its loss will shrink down to the 10-12 cents a share range, again incorporating inventory adjustment charges, on revenues between $9.8m and $10.3m.

Company CFO Mark Kent said a $16m licensing deal already signed with IBM has been restructured to allow Transmeta to pay the company $4m a quarter for the next four quarters rather than cough up the lump sum by the end of Q4, the better to ease its cashflow. ®

Related stories

Transmeta sales grow as losses mount
Transmeta: 2GHz Efficeon to offer SSE 3 support
Transmeta ships 90nm Efficeon
Orion delivers first 'personal cluster' workstation
Transmeta shows working 1.6GHz 90nm Efficeon

3 Big data security analytics techniques

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.