US-based Transmeta, designer and supplier of the Crusoe processor, decreased its net loss but also slid in revenues for its fiscal third quarter (ended September 27), as compared to the previous quarter.
The company posted a net loss of US$21.8 million (US$0.16 per share) for the third quarter, an improvement from net losses of US$35.6 million (US$0.27 per share) in the second quarter and US$29.6 million (US$0.22 per share) a year earlier.
Revenues came to US$6.4 million for the third quarter, down from US$7.5 million in the second quarter but up from US$5.0 million in the third quarter of 2001.
The company noted a one-time restructuring charge for the payment of severance and benefits related to its July workforce reduction, the benefit from previously recorded inventory-related charges, and other non-cash charges that have impacted results.
“We are disappointed with the slowdown in our third-quarter revenues,” said Transmeta president and CEO Matthew R. Perry. “The overall economic picture continued to constrain end-user spending on computing devices. Our results were affected by adjustments our customers made to their short-term forecasts late in the quarter,” he said.
Perry added, however, that the company has gained new design wins in China, where it has begun shipments, as well as in Japan. “Interest in Crusoe is very strong in Taiwan, where we won numerous designs for our TM5800 and are seeing very strong interest in our next-generation processor,” he said.
With expectations of sluggish demand in the fourth quarter, the company expects revenues of US$5 million to US$6 million and operating expenses to remain flat at about US$20 million. Cash at the end of December should be approximately US$129 million after a scheduled US$6 million payment to IBM in accordance with the company’s technology licensing agreement.
“Our goal remains to be profitable by the fourth quarter of next year,” said Perry.
China
* Transmeta won new designs from Chinese customers in the third quarter. The company believes that China, with its rapidly growing electronics marketplace, is a key part of its geographic expansion strategy.
* SVA Group, a leading Chinese electronics manufacturer, is using Crusoe TM5800 processors in its new Classic Silver 3.3-pound notebook computer. This is the second Crusoe-based product to be introduced in China, and will help to continue to increase Transmeta’s presence in the fast-growing Chinese marketplace.
Japan
* Transmeta’s Crusoe processors continue to generate interest in Japan. In the third quarter, several customers designed the Crusoe TM5800 processor into their products.
* Sharp recently introduced its Mebius Muramasa mobile computer in Japan. Using the Crusoe TM5800 processor, this sub-notebook weighs only 950 grams.
* Sony introduced the autumn models of its VAIO C1 and VAIO U notebooks, which use Transmeta’s Crusoe TM5800 processors.
* Fujitsu announced new models of its LOOX-T and LOOX-S mobile computers in Japan, which use Crusoe TM5800 processors.
* JMnet announced its Wake blade style compact server and Ultra PC-X board, which use Crusoe TM5800 processors.
US
* NEC Solutions America announced that its PowerMate eco desktop computer is now available in the U.S. The PowerMate eco, which won PC Magazine’s Editor Choice award in October 2002, uses the Crusoe TM5800 processor.
* Casio recently introduced the Cassiopeia Fiva MPC-701 series of pen tablet computers to the US market. The pen tablets are powered by the Crusoe TM5800 processor and weigh only 3.1 pounds.
Taiwan
* Transmeta gained significant traction into Taiwan-based products in Q3. Many customers incorporated the Crusoe TM5800 processor into their designs and expressed very strong interest in the company’s Crusoe TM8000 processor. Taiwan remains a very important region for Transmeta and the company expects momentum for its processors there to continue to grow.
* PaceBlade upgraded its three-in-one PC PaceBook, which uses the Crusoe TM5600 processor.
Corporate
* Transmeta shipped its one millionth Crusoe processor.
* Microsoft certified Transmeta’s Crusoe processors for the Windows CE .NET operating system, which enables Transmeta to attract new opportunities for mobile and embedded markets.
* Transmeta began shipping the Crusoe TM5800 System Development Kit that enables design engineers to quickly develop new mobile and embedded computing platforms using the Crusoe processor.
Article translated by Jane Wang and edited by Jane Wang
