Lack of licensing revenue puts Transmeta back in the red

Posted by Wolfgang Gruener

Transmeta exceeded its previously provided guidance for its second quarter with revenues of $9.3 million and a net loss of about $8.5 million. Both numbers are sharp decreases from Q2 of 2005 when the company was able to report $24.7 million and a profit of $6.8 million as a result of licensing its Long Run 2 technology.

However, Transmeta's future looks much better than a few quarters ago. The company continues to reduce its negative operating cash flow, which came in at a (negative) $7.9 million for the first half of the year.

The company also expanded its business into new territories such as Microsoft's "FlexGo" that aims affordable PCs at emerging markets. Transmeta announced a cooperation with AMD, which will revive Transmeta's Efficeon processor. AMD will build and market a FlexGo-enabled Efficeon under its own brand in emerging markets, Transmeta said.