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Transmeta Earnings Call Notes Q2:2002

Transmeta Earnings Call Notes Q2:2002 - PCSTATS
Abstract: Despite the gain of 83% over Q1:2002 Transmeta will be laying off approximately 40% of the company, or about 200 people in order to reduce operating expenses.
Filed under: Business / Industry Published:  Author: 
External Mfg. Website: Transmeta Jul 18 2002   Max Page  
Home > Reviews > Business / Industry > Transmeta

Transmeta Earnings Call Notes Q2:2002

Despite the gain of 83% over Q1:2002 Transmeta will be laying off approximately 40% of the company, or about 200 people in order to reduce operating expenses. Transmeta have stated that they are seeking to reduce quarterly expenses by $20 million dollars. Q2 operating expenses were $27 million.

Transmeta are focusing efforts on achieving profitability by fourth quarter 2002 and expect revenue for Q3 to be flat or up by just 5%. New VP of sales will be coming on board the start up chip maker to cover Japan and European markets - a sign that Transmeta is looking to foreign markets for sales in light of the slumping US economy.

The TM6000 "Solo" system on a chip is getting shelved as it doesn't appear Transmeta will realistically be able to get market in large enough volumes. So far, all the eggs are piled in the TM5800 basket - which the rumor mill says Sony might be leaving for the Intel Banias processor.

Regarding Astro, expected to called by TM8000 when it is officially announced Transmeta have said that the 256-bit processor with be available sometime in Q4:2003, or about 1 year after it taps out. The TM8000 processor will be manufactured on 0.13 micron copper process at TSMC. In the mean time the Crusoe TM5800 will have to carry the weight of the company and Transmeta expect to improve it incrementally over the next few quarters - with a primary focus on extending power savings.

There were no sales of the TM5600 parts in Q2:2002. No news of any CMS updates were made public either. CMS is the software layer which surrounds the Crusoe processor. Previously, advancements of 10-20% had be netted by updated versions of CMS which enabled the Crusoe processor to operate more efficiently.


Contents of Article: Transmeta

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