Transmeta Revenue Tanks

Updated from 5:12 p.m. EDT

SAN FRANCISCO -- Transmeta's(TMTA Quote - Cramer on TMTA - Stock Picks) revenue dried up to a trickle in the second quarter, raising questions about the company's ability to stay afloat.

The Santa Clara, Calif., company said revenue in the three months ended June 30 totaled a meager $171,000. At this time last year, Transmeta had revenue of $9.3 million.

Shares of Transmeta sank almost 14%, or 8 cents, to 50 cents in extended trading Monday.

The revenue falloff comes as troubled Transmeta moves to transform itself from a chipmaker into an intellectual property provider. The switch has meant the end of the product and service revenue that previously comprised the company's main business.

The problem is the licensing revenue that Transmeta hopes to live off in its new incarnation has yet to materialize.

The company has announced only one public licensee, Japan's NEC, which is using Transmeta's technology in a mobile-phone chip. That product is expected to go into production in the fourth quarter of the year, meaning that Transmeta cannot expect to see any revenue from the deal until the first quarter of 2008.

CEO Les Crudele said in a postearnings conference call that the company was encouraged by talks it has had with prospective licensees of its LongRun2 technology.

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