Transmeta sees Q2 sales down, share plunges
finance.yahoo.com
(UPDATE: Updates to include fall in after-hours share price, background)
SANTA CLARA, Calif., June 20 (Reuters) - Transmeta Corp.(NasdaqNM:TMTA - news), which designs power-saving chips for notebook computers, on Wednesday slashed its sales projection because of a slowdown in shipments to Japan, its major market.
The company, which counts Japan's NEC Corp. , Toshiba Corp. , and Sony Corp. among the customers for its Crusoe chip, said that revenues for its fiscal second quarter would fall by 40-45 percent from the $18.6 million recorded in the first quarter.
Santa Clara, Calif.-based Transmeta also said it would take an unspecified inventory charge in the current quarter.
Transmeta shares fell sharply in after-hours trade in reaction to the warning, dropping by almost 36 percent to $8.10 on the Instinet system from a regular-hours Nasdaq close of $12.60.
In a statement, the company, which has followed a ``Japan-first'' strategy of targeting design wins with Japanese notebook makers, said customers were cutting back on the volume of their orders in the current quarter.
``(Japan) appears to be experiencing the economic weakness that affected other parts of the world earlier this year,'' Mark Allen, Transmeta CEO and President said in a statement. |
