Transmeta sees light at the end of the tunnel

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Transmeta sees light at the end of the tunnel

Looks like Transmeta’s massive job cuts, Sony’s commitment to pay for more than half of Transmeta’s staff and the strategy to refocus the company from processor manufacturing into IP license are paying off: In May, the company had set a goal to reduce quarterly cash losses to less than $5 million by the end of the second quarter. Now it appears that the rather dramatic measures have turned into a positive operating cash flow for the quarter ended June 30, Transmeta said today. This would be the first positive cash flow quarter since the company went public in 2001.

“We have surpassed our first goal of substantially reducing our cash burn, and in fact I am now able to comfortably say that we will report positive operating cash flow for the 2005 second quarter,” stated Mark Kent, chief financial officer. “We are encouraged by the positive financial and operational progress across our business.”

The Company anticipates reporting its second quarter 2005 financial results in the first half of August 2005. (THG)