You see TMTA guiding 40-to 50% lower, halted
Transmeta Corporation Updates Second Quarter 2001 Financial Outlook
Business Editors/High-Tech Writers
SANTA CLARA, Calif.--(BUSINESS WIRE)--June 20, 2001--Transmeta
Corporation (Nasdaq:TMTA) today announced that it is updating its
outlook for its financial performance for the second quarter ending
June 30, 2001.
"We have achieved new design wins this quarter with key companies
in our target markets including Toshiba, Sharp and RLX, and we've seen
continued introductions of Crusoe-based notebooks into the U.S. and
Europe. However, we are also seeing reductions in unit volume
shipments to major customers this quarter," said Mark K. Allen,
President and CEO of Transmeta. "Our business is presently based
primarily in Japan, which now appears to be experiencing the economic
weakness that affected other parts of the world earlier this year.
Accordingly, we are decreasing our revenue expectation for the second
quarter of 2001 by 40-45 percent compared with our revenue of $18.6
million for the first quarter of 2001."
"In conjunction with this projected revenue decrease and our
planned transition to a new manufacturing process for the second half
of 2001 using 0.13 micron technology, we are also analyzing our
inventory levels of existing products and expect that we will take an
inventory charge during the second quarter."
"We remain committed to the continued deployment of our family of
Crusoe microprocessors targeted at the notebook and Internet appliance
segments of the Mobile Internet Computer market, as well as
ultra-dense, low power servers." Said Allen, "We remain committed to
the continued deployment of Crusoe into our target markets, including
mobile computing, high density, low power servers, and information
appliances. We are pleased with the market reception of our Crusoe
brand and the acceptance that our customers are experiencing in the
market. We are also pleased that our major customers are actively
working with our new 0.13 micron TM5800 processor. We believe that we
are well positioned to compete effectively and resume our growth plans
as the economy recovers."
About Transmeta Corporation
Transmeta is a publicly traded company located in Santa Clara,
California. Transmeta develops and sells software-based
microprocessors and develops additional hardware and software
technologies that enable computer manufacturers to build computers
that simultaneously offer long battery life, high performance and x86
compatibility. Transmeta's family of Crusoe microprocessors is
targeted at the notebook and Internet appliance segments of the Mobile
Internet Computer market, as well as ultra-dense servers.
To learn more about Transmeta and the Crusoe Smart Processor,
visit our website at www.transmeta.com.
Note to Editors: Transmeta and Crusoe are trademarks and/or
registered trademarks of Transmeta Corporation in the United States
and/or other countries. All other trademarks are the properties of
their respective owners. |
