Troubled Transmeta To Cut More Jobs
By Mark LaPedus | 05/14/2007 - 9:00 AM EST
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Courtesy of
EE Times
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SAN JOSE, Calif. — Troubled Transmeta Corp. expects more job cuts amid growing losses. The firm, which has announced several layoffs, is also officially exiting the processor business.
Revenue for the firm in the first quarter of 2007 was $2.1 million, which included $2.0 million of service revenue and $140,000 of end-of-life product revenue. This compared with revenue of $2.4 million in the fourth quarter of 2006, which included $2.2 million of service revenue and $220,000 of end-of-life product revenue.
Net loss for the first quarter of 2007 was $18.7 million, or a loss of $0.09 per share, compared with a net loss of $15.9 million, or a loss of $0.08 per share, in the fourth quarter of 2006. The first quarter of 2007 results included restructuring charges totaling $6.7 million, and an impairment charge on long-lived and other assets of $290,000, as well as non-cash charges of $1.7 million for amortization of intangible assets and $300,000 for stock-based compensation expenses.
''In the first quarter of 2007 we made the difficult, but necessary, decision to reduce our spending by restructuring the company to focus on developing and licensing our technologies and intellectual property,'' said Les Crudele, president and CEO, in a statement.
''The restructuring is proceeding according to plan and, in some cases, is ahead of schedule. We expect to further reduce our headcount by 15 to 20 percent during the second quarter, mainly affecting general and administrative positions,'' he said. ''As a result of the restructuring, we are no longer pursuing engineering services as a separate line of business and have also exited the business of selling microprocessor products.''
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