Thanks to a $150 million payment, resulting from a lawsuit against Intel, Transmeta has received additional time to grow its licensing business. Revenues for the fourth quarter of 2007 were just $126,000. The net loss for the quarter was $23.9 million. The company’s cash reserves were down and short-term investments were down to about $18.6 million at the end of December, which meant that the company had not enough cash to survive another quarter on its own.
Thankfully, Intel’s $150 million payment came in on January 28. Intel will continue to pay $20 million annually over the next five years for a total sum of $250 million, according to the settlement agreement between the two companies.
The positive news for Transmeta was that Q4 saw first licensing revenues from its Longrun2 technology, even if it was just $2000 for sample production of products. Another $100,000 was collected through a one-time non-LongRun2-related technology license, Transmeta said.