Transmeta to lay off 40 percent of workforce

Transmeta Corp. on Thursday posted a smaller-than-expected loss for its second fiscal quarter, but at the same time announced plans to lay off 200 workers, or about 40 percent of its workforce.

The company also said that it no longer planned to offer a version of its Crusoe processor called the TM6000. Transmeta will continue to improve its current model, the TM5800, and work with customers to develop "future system-on-a-chip" products, it said in a statement.

For the three months ended June 28 the company posted a net loss of $35.6 million, or $0.27 per share, on revenue of $7.5 million. The defecit was narrower than that of a year ago, when Transmeta lost $69.3 million, or $0.54 per share, but revenue was lower than last year's total of $10.5 million. The results are based on generally accepted accounting principles (GAAP), the company said in its statement.

On a pro forma basis, excluding restructuring costs, the Santa Clara, California, company lost $24.7 million, or $.18 a share, Transmeta said. Analysts polled by Thomson Financial/First Call had predicted on average a pro forma loss of $0.19 a share.

The layoffs are expected to lower the company's operating expenses to around $20 million per quarter by the fourth quarter of 2002, Transmeta said in the statement. Its operating expenses in the second quarter were $38.8 million.

"The actions will help us to streamline the company, while helping us reach our goal of profitability by the fourth quarter of 2003," said Matthew Perry, president and chief executive officer of Transmeta, in a conference call after the results were announced. "We are operating our business as if there will be no upturn in the economy, and planning very conservatively."

Crusoe is a chip for notebook PCs and other portable computers that uses very little power, producing a long battery life. Overall PC growth has been slow, but notebooks are growing at a faster rate than desktop PCs, which gives Transmeta hope for the future, Perry said.

Transmeta said it spent $19.1 million on research and development in the second quarter, up from $17 million in last year's second quarter.

Looking forward to the third quarter, Transmeta expects revenue growth of zero percent to 5 percent. The company will take a one-time restructuring charge of $4 million to $4.5 million in the third quarter for the payment of severance and benefits.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tom Krazit

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?