14 DAY TRIAL // Transmeta announced its financial results for the second quarter of the fiscal year 2007 and the news isn't good. During the second quarter, the company registered revenues of $171.000, including "146,000 of service revenue and $25,000 of end-of-life product revenue", much lower than the revenues registered during the first quarter when the company received a total of $2.1 million. In the first quarter they registered "$2.0 million of service revenue and $140,000 of end-of-life product revenue", according to a company press release. Compared to the loss registered during the first quarter, the situation looks marginally better, Transmeta reducing the negative balance from $18.7 million to $11.5 million.
"In the first half of 2007 we made significant progress to reduce our spending by streamlining our operations to focus on developing and licensing our technologies and intellectual property," said Les Crudele, president and CEO. "In addition, we continue to focus our efforts on strengthening our balance sheet, which was recently improved by the strategic investment by AMD. We are pleased with AMD's investment in the future of Transmeta, and we will continue to explore additional opportunities to finance our operations. The progress we have made enables us to now bring even greater focus on developing our technology, building our licensing business and expanding our customer base. We continue to have a number of LongRun2 licensing opportunities in various stages of discussion and are pleased that our first royalty licensee, NEC Electronics, expects to move to volume production of its M2 mobile phone chip in the fourth quarter of this year," said Mr. Crudele.
At the end of the second quarter of the fiscal year, according to Transmeta, the company was debt free and it had the cash and several short term investments in a total amount of $15.2 million. As AMD decided some time ago to invest the sum of $7 million in Transmeta, the company's total cash is somewhere around $20 million, sum that should be enough to support the whole company for the next six months. While Transmeta is no longer developing and manufacturing any processors, the main source of income is expected to be from the licensing and continual development of its technologies. There are several announced customers like NEC, Sony and Microsoft, from which Transmeta expects to receive some royalties but the data when the first significant payment will be made is not yet known.