Transmeta experienced modest sales growth during its second quarter of fiscal 2004. But in a reference to 90nm demand issues, the company warned that it is not expecting large-scale adoption of its second-generation Efficeon processor to take place until 2005.

During Q2, Transmeta racked up sales totalling $6m, up 18 per cent on the year-ago quarter's $5.1m and 15 per cent on Q1 2004's $5.2m. Unit shipments of Efficeons in both the 130nm and 90nm nodes were up by 130 per cent, the company said.

"The majority of our second quarter revenue came from the thin client and notebook markets, and the overall revenue was spread over a broader base of customers than in the past few quarters," said company CEO and President Matthew Perry in a statement.

The company lost $25.5m (15 cents a share) during the period, widening from Q1's $23.4m (14 cents a share) loss and the $22m (16 cents a share) deficit reported this time last year.

The non-GAAP net loss for Q2 was $22.9m (13 cents a share). This compares with a non-GAAP net loss of $19.6m (11 cents a share) in Q1 and a non-GAAP net loss of $18.3m (13 cents a share) for Q2 2003.

Perry declared himself please with the 90nm ramp, noting keen interest in - but not necessary sales of - the 1.6GHz Efficeon. However, the company's first 90nm customer isn't planning to ship until late Q3, and while "we expect some additional Efficeon systems to ship in 2004", said Perry, the "majority" of the Efficeon designs are not expected to ship until 2005. He blamed that on "market dynamics and customer resource constraints".

Looking ahead to Q3's figures, Transmeta said it expects sales to come in between $8m and $8.7m, making for a 33-45 per cent sequential jump in sales. But that's less about chips than chip technologies - $3.5m of that figure will come from licensing its LongRun 2 power-preservation technology.

Transmeta also forecast a net GAAP loss of 11-13 cents a share. ®

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