Transmeta narrows loss on cost cuts
Improves loss-limitation lookout
Transmeta lost $21.1m (11 cents a share) on sales of $6.9m during the three months to 31 March 2005, the processor technology developer said late last week.
By comparison, Transmeta lost $28.1m (15 cents a share) on Q4 FY2004 revenues of $11.2m, and $23.4m (14 cents a share) on Q1 FY2004 sales of $5.2m.
Almost all of the most-recent quarter's revenues - $6.4m to be precise - came from product sales. The rest, $450,000, arose from licensing technology. That might appear to call Transmeta's move away from products to licensing, but the company noted deferred revenue of $14.5m made during the quarter by licensing its LongRun 2 power-conservation technology to Sony and Fujitsu. Alas it will not be able to record that sum as quarterly revenue until the work with the two Japanese firms is complete, and its invoices have been paid.
Transmeta took a $1.3m hit during the quarter to cover the cost of laying off 67 employees on 31 March. Former CEO Matt Perry quit on that date too.
CFO Mark Kent noted the company had cut its "negative cash-flow" to $11.7m during the quarter and is well on its way to getting that that down to $5m by the end of Q2 rather than Q3, as indicated in the company's previous guidance. ®
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