SAN FRANCISCO --
income statement slipped into absurdist territory Wednesday, with the company generating less revenue in its third quarter than the average compensation of a funeral director.
But the Santa Clara, Calif., company said it is poised to come back from the dead, thanks to its recent legal settlement with
and an investment from
Advanced Micro Devices
Transmeta posted a net loss of $12.7 million, or $1.24 a share, in the three months ended Sept. 30, including more than $5 million in charges for restructuring, amortization and the conversion of preferred stock that it sold to AMD.
At this time a year ago, Transmeta had a net income of $2.5 million, or 25 cents a share.
Revenue plummeted from $17.3 million at this time last year to $44,000. That's less than the average annual salary of a funeral director, which the U.S. Department of Labor's most recent figures peg at $45,960.
The stunning change in the topline is the result of Transmeta's move to transform itself from a chipmaker to a company that makes its revenue by licensing its intellectual property to chipmakers. The switch has meant the end of the product and service revenue that previously comprised the company's main business.
Last month Transmeta achieved a huge milestone in its transformation, with the announcement that Intel would settle an intellectual property infringement lawsuit Transmeta filed against it. Under the terms of the settlement, Intel agreed to pay Transmeta a one-time payment of $150 million, and future payments of $20 million per year for the next five years.
"Having completed our restructuring, resolved our patent litigation and taken steps to significantly strengthen our balance sheet, we can now concentrate our attention on developing our technology, building our licensing business, putting the building blocks in place to expand our customer base and creating long-term shareholder value," said CEO Les Crudele in a statement Wednesday.
Shares of Transmeta dropped 9.3%, or $1.23, to $12.10 in extended trading Wednesday.