Start-up microprocessor maker
had a rough time in the second quarter, and the third quarter isn't looking any better.
Transmeta lost 14 cents a share on revenue of $10.5 million for its second quarter, excluding a $41.7 million writedown of inventory and in-process technology.
The company's outlook for the third quarter wasn't any better. It says revenues will be flat to down 15% in the third quarter compared with the second quarter.
The second-quarter loss is larger than the 10-cent loss in the first quarter but narrower than the 59-cent loss Transmeta posted a year ago. Revenue fell 43% from the first quarter. The company attributed the decline to the economic climate and to the falling prices of notebook computers in Japan.
Transmeta, which went public in November, has tried to build a market for its low-power mobile microprocessor called the Crusoe at a time when the semiconductor market is in a downturn and competition is thick. Even giant
has had a tough time making its numbers this year. Transmeta, which is now launching a second version of its chip, has signed customers in the Japanese market but has practically no share of the U.S. market, where Intel dominates.
Investors haven't taken the news of Transmeta's struggle to build market share lightly. Since the end of 2000, its shares have lost 84%. Since June 20, when the company warned that revenue would fall 40% to 45% from first-quarter levels, shares have fallen 72%. In after-hours trading, shares were unchanged at $3.50.
The company's cash and short-term investments on June 29 stood at $282 million, down from $343 million on Dec. 29.