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Transmeta deep in the red

Transmeta deep in the red

The processor manufacturer Transmeta, which specializes in energy-saving CPUs, had to disappoint its shareholders with far worse quarterly figures than hoped and is now in a bind.

In the 3rd quarter that ended on September 28th, sales increased by only 1.5 million US dollars to 5 million US dollars compared to the same period last year. The loss is $ 20.5 million, or 16 cents per share, excluding special charges; otherwise, it would be $ 29.4 million, or 22 cents per share. Thus, the expectations of the analysts, who expected a loss of 15 cents per share, were exceeded on the downside. For comparison: In the third quarter of last year, the loss amounted to 27.7 million US dollars, even though, as I said, sales were only 3.5 million US dollars. The reasons are production problems with the new Crusoe processor 5800 and the Crusoe's sales figures, which are far below expectations. Transmeta is now focusing on the market for embedded systems, which is made clear by processors with integrated graphics solutions and peripheral control.