Transmeta Tumbles on Warning

By TSC Staff ,

Updated from 8:37 a.m.

Transmeta

(TMTA)

was down 56.9% by early afternoon, falling steadily during the session after it warned revenue for the second quarter would be $10.2 million to $11.2 million 40% to 45% below first quarter revenue of $18.6 million.

The power-saving chip maker also said it would take an inventory charge in the current quarter.

Salomon Smith Barney

said the reduced outlook was attributable to continued weakness in ultralight notebook computers. Salomon cut its price target for the stock to $10 from $25.

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