Transmeta sees slow ramp for 90-nm processors amid losses

SANTA CLARA, Calif. " Amid a slower-than-expected ramp for its new 90-nm processor products, Transmeta Corp. Thursday said revenue for the second quarter of fiscal 2004 was $6.0 million. The figure is up 15 percent from $5.2 million in the first quarter of 2004 and up 18 percent from $5.1 million in the second quarter of 2003.

GAAP net loss for the second quarter of 2004 was $25.5 million, or a loss of $0.15 per share. This compares with a GAAP net loss of $23.4 million, or a loss of $0.14 per share in the first quarter of 2004 and a GAAP net loss of $22.0 million, or a loss of $0.16 per share in the second quarter of 2003.

Despite the losses, the company claims it's making progress with its new 90-nm processors, dubbed Efficeon. The chips are made on a foundry basis by Fujitsu Ltd.

However, the products are taking longer-than-expected to ramp. "Our demonstration of 1.6-GHz 90-nanometer Efficeon processors at Computex in June was well received by existing as well as potential customers and partners," said Matthew R. Perry, president and CEO of Transmeta, in a statement.

"In fact, our first 90-nanometer customer plans to launch its product late in the third quarter," he said. "We also sampled our first 1.7 GHz 90-nanometer Efficeon during the second quarter. We expect some additional Efficeon systems to ship in 2004; however, due to market dynamics and customer resource constraints, the majority of the Efficeon designs are expected to ship in 2005."