Feeds

Transmeta loss widens as revenues miss target

But big licensing deal in the wings

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

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

Choosing a cloud hosting partner with confidence

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.