Transmeta Falls Again on Recall Concerns

Author:
Publish date:

Transmeta

(TMTA)

, the newly public chipmaker, said the flawed versions of its Crusoe chips could have been used by computer makers other than Japan's

NEC

(NIPNY)

, but added that there was "no clear evidence" that other customers were affected.

Shares of the Santa Clara, Calif., company recently fell 11.6%, or $2.75, to $20.88 in trading on the

Nasdaq

. The shares have been battered since published reports on Wednesday said the company was working with NEC to recall fewer than 300 notebook computers that contained faulty versions of its Crusoe microprocessor.

The Crusoe chip uses elaborate software instructions rather than hardware to perform certain functions, cutting power consumption and giving laptops longer battery life. Transmeta said on Wednesday that the fault could cause computers to fail if a user tried to reinstall an operating system.

One report today indicated that Transmeta also supplied the chips for PCs made by

Sony

(SNE) - Get Report

,

Fujitsu

and

Hitachi

(HIT)

. According to the report, Hitachi said in a statement that it found no problems with any of its computers that used the Crusoe.