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Transmeta’s revenue falls to $171,000 in Q2

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Transmeta's revenue falls to $171,000 in Q2

Transmeta today reported revenues of $171,000 and a net loss of $11.5 million for the second quarter of this year. The revenue included $146,000 of service revenue and $25,000 of end-of-life product revenue from Crusoe and Efficeon processors. Sales are down significantly from $9.3 million in Q2 of 2006, wile the loss was reduced from $18.7 million. Transmeta said that the $7 million, which were recently received by the company through an investment by AMD, are recognized in the statement.

As of June 30, the company said it has cash and cash equivalents as well as short term investments available in the amount of $15.2 million. Including the net proceeds from the investment from AMD, the firm’s cash is more than $20 million, which should be sufficient to carry the company through the next six months.

In its Q1 report Transmeta mentioned that the company had completed engineering work for Sony and Microsoft (the main revenue sources for the company over the past years) and laid off 55 employees, down to a remaining workforce of 65, as a result.  During Q1, the company noted, it also “ceased to pursue engineering services as a separate line of business, ceased its operations relating to microprocessor production support, and exited the business of selling microprocessor products.” The primary source of business is expected to come from a business of “developing and licensing its advanced technologies and intellectual property.”

While the company has announced several customers, including NEC, from which it can expect to receive royalties, it remains unclear when Transmeta actually will see first significant revenues. Company spokesman Ralph Harms told TG Daily that “it is difficult to project” when these royalties will be received by Transmeta.

During Q2, Transmeta continued to reduce its workforce. Harms said that the company currently has 45 employees.