Transmeta Corporation to Increase Focus on Intellectual
Property Licensing in 2005
Transmeta Corporation, the leader in efficient computing, today announced
that it will increase its business focus on the licensing of its intellectual
property and advanced technologies in 2005. Transmeta also announced that it
will complete a critical evaluation of the economics of its current business
model of designing, developing and selling x86-compatible microprocessor
products, including its Crusoe(R) and Efficeon(TM) families, in January 2005.
"Transmeta has spent a decade developing world class microprocessor
technology, microprocessor products and related intellectual property," stated
Matthew R. Perry, president and CEO, Transmeta Corporation. "By modifying our
business model to focus more on our licensing opportunities, leveraging our
substantial IP portfolio and our R&D capabilities, we would expect to reduce
our cash needs substantially and to improve our results for our shareholders."
Over the last two years, Transmeta has worked to establish a revenue stream
based upon the licensing of its proprietary technology and intellectual
property. During 2004, Transmeta granted licenses to NEC Electronics and Fujitsu
Limited to use Transmeta's proprietary LongRun2(TM) technologies for power
management and transistor leakage control. Those licensing agreements include
deliverable-based technology transfer fees, maintenance and service fees, and
subsequent royalties on products incorporating the licensed technologies.
Transmeta is engaged in active discussions with various industry leaders to
license its advanced power management technologies in 2005. In addition, the
company has entered into active discussions toward the potential licensing of
other proprietary technologies, including its microprocessor designs.
The company's management is completing a critical review of its current
business model, including an evaluation of its customer requirements and the
economics and competitive conditions in the market for x86-compatible
microprocessors. Transmeta is actively engaged in discussions regarding
strategic alliance opportunities for leveraging the company's industry-leading
microprocessor design and development capabilities to increase shareholder
value. Transmeta has been working with Perseus Group LLC, a San Francisco-based
investment banking firm, and other advisors, in that effort.
Transmeta management expects to complete its business model evaluation and
planning with the company's Board of Directors in January 2005. The company
presently expects to make an announcement and hold a conference call regarding
its 2005 business model on January 21, 2005.