Feeds

Transmeta profit warning clouds positive Q3

Net loss coming in Q4

Boost IT visibility and business value

Transmeta's decision to stop making and selling microprocessors and focus on licensing chip-design technology was once again validated during the company's most recently completed quarter.

However, the company warned it expects to make a loss in its current quarter.

For the three months to 30 September 2005 - the third quarter of Transmeta's current fiscal year - revenues of $27.9m yielded a net income of $10.1m (five cents a share).

During Q2, Transmeta made $6.8m (four cents a share) on sales of $24.7m. For the year-ago quarter, it reported revenues of $7m and a loss of $28.8m (16 cents a share).

Back to the most recently completed quarter, and the company reported gross margins of 70.5 per cent, up from 67.1 per cent in Q2. Revenues were split $9.6m from licensing, $10.3m from services and $7.9m from product sales. Transmeta quit the quarter with $56.9m in the bank. It had a positive cash flow from operations of $9.5m.

Looking to Q4, Transmeta said it expects its cash flow to go negative to the tune of $3-3.5m, which will leave it with $53m in the bank - though that's still up from the company's previous forecast, $47m.

It said it expects Q4 revenues to total $12-13m, less than half Q3's figure and ending the company's profit streak: it will lose $5.4-5.9m (three cents a share) the company said. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.