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TMTA
Transmeta Corporation Nasdaq-NM
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Transmeta Corporation Reports Fiscal Q3 2002 Financial Results; Design Win Momentum Increases Across Geographies; Profitability Goal Remains Q4 of 2003
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 16, 2002--Transmeta Corporation (Nasdaq:TMTA), designer and supplier of the energy-efficient Crusoe processor, today announced financial results for its third quarter ended September 27, 2002.
Net revenue for the third quarter of fiscal 2002 was $6.4 million, compared with $7.5 million reported in the second quarter of 2002 and $5.0 million in the third quarter of 2001. In accordance with generally accepted accounting principles (GAAP), net loss for the third quarter of 2002 was $21.8 million, or a GAAP loss of $0.16 per share. This compares with a GAAP net loss of $35.6 million, or a GAAP loss of $0.27 per share in the second quarter and a GAAP net loss of $29.6 million, or a GAAP loss of $0.22 per share a year ago.
On a pro forma basis, excluding a one-time restructuring charge for the payment of severance and benefits related to the July workforce reduction, the benefit from previously recorded inventory-related charges, and other non-cash charges, the net loss for the quarter was $17.8 million, or a pro forma loss of $0.13 per share. This compares with a pro forma net loss of $25.3 million or a pro forma loss of $0.19 per share in the second quarter and a pro forma net loss of $23.1 million or a pro forma loss of $0.18 a year ago.
"We are disappointed with the slowdown in our third quarter revenues," said Dr. Matthew R. Perry, president and CEO of Transmeta. "The overall economic picture continued to constrain end-user spending on computing devices. Our results were affected by adjustments our customers made to their short-term forecasts late in the quarter," he said.
"However, design win activity gained momentum across many geographies in the third quarter. We began our first major shipments to China, and we gained new design wins with other Chinese customers. Interest in Crusoe is very strong in Taiwan, where we won numerous designs for our TM5800 and are seeing very strong interest in our next-generation processor. We also continued to win new designs in Japan," he said. "Customers everywhere tell us they are choosing Crusoe processors because they like the balance only we can provide of low maximum power, low cost, long battery life and high performance--in that order."
The company said that its first processor based on the next-generation 256-bit Crusoe architecture, the TM8000, remains on plan to ship in the third quarter of next year. "Customers are very excited about the value proposition this product offers over competing technologies. We are already in discussions with several potential customers regarding design-ins," Dr. Perry said.
"Our goal remains to be profitable by the fourth quarter of next year, as we believe we are well positioned with our new products and market focus to achieve growth in the second half of 2003," Dr. Perry said.
On November 7, Transmeta will join Microsoft and Hewlett-Packard in New York as Microsoft officially introduces the Windows XP Tablet PC Edition software, and as Hewlett-Packard debuts its HP Compaq Tablet PC, which is powered by Transmeta's 1-GHz Crusoe TM5800 processor. Later in the month, the company will be showcasing its technology at Comdex in Las Vegas. Transmeta's products will be featured both at its suites and at some of its customers' and partners' booths, including those of Microsoft, Hewlett-Packard and Antelope Technologies.
Highlights:
China
-- Transmeta won new designs from Chinese customers in the third
quarter. The company believes that China, with its rapidly
growing electronics marketplace, is a key part of its
geographic expansion strategy.
-- SVA Group, a leading Chinese electronics manufacturer, is
using Crusoe TM5800 processors in its new Classic Silver
3.3-pound notebook computer. This is the second Crusoe-based
product to be introduced in China, and will help to continue
to increase Transmeta's presence in the fast-growing Chinese
marketplace.
Japan
-- Transmeta's Crusoe processors continue to generate interest in
Japan. In the third quarter, several customers designed the
Crusoe TM5800 processor into their products.
-- Sharp recently introduced its Mebius Muramasa mobile computer
in Japan. Using the Crusoe TM5800 processor, this sub-notebook
weighs only 950 grams.
-- Sony introduced the autumn models of its VAIO C1 and VAIO U
notebooks, which use Transmeta's Crusoe TM5800 processors.
-- Fujitsu announced new models of its LOOX-T and LOOX-S mobile
computers in Japan, which use Crusoe TM5800 processors.
-- JMnet announced its Wake blade style compact server and Ultra
PC-X board, which use Crusoe TM5800 processors.
U.S.
-- NEC Solutions America announced that its PowerMate eco(TM)
desktop computer is now available in the U.S. The PowerMate
eco, which won PC Magazine's Editor Choice award in October
2002, uses the Crusoe TM5800 processor.
-- Casio, Inc. recently introduced the Cassiopeia Fiva MPC-701
series of pen tablet computers to the U.S. market. The pen
tablets are powered by the Crusoe TM5800 processor and weigh
only 3.1 pounds.
Taiwan
-- Transmeta gained significant traction into Taiwan-based
products in Q3. Many customers incorporated the Crusoe TM5800
processor into their designs and expressed very strong
interest in the company's Crusoe TM8000 processor. Taiwan
remains a very important region for Transmeta and the company
expects momentum for its processors there to continue to grow.
-- PaceBlade upgraded its three-in-one PC PaceBook, which uses
the Crusoe TM5600 processor.
Corporate
-- Transmeta shipped its one millionth Crusoe processor.
-- Microsoft Corporation certified Transmeta's Crusoe processors
for the Windows CE .NET operating system, which enables
Transmeta to attract new opportunities for mobile and embedded
markets.
-- Transmeta began shipping the Crusoe TM5800 System Development
Kit that enables design engineers to quickly develop new
mobile and embedded computing platforms using the Crusoe
processor.
Current Financial Outlook for Fourth Quarter 2002
The following outlook statements are based upon current expectations. These statements are forward looking, and actual results could differ materially.
Currently, the company expects that market demand in the fourth quarter will continue to be sluggish. Consequently, the company anticipates that its Q4 financial results will be as follows:
-- Q4 2002 revenue is expected to be in the range of $5 million
to $6 million.
-- Pro forma net loss per share is expected to be $0.13 to $0.15.
-- Operating expenses will remain flat at approximately $20
million.
-- Cash at the end of December should be approximately $129
million after a scheduled $6 million payment to IBM in
accordance with our technology license agreement.
Conference Call
The company will hold a conference call at 2 p.m. Pacific Time today, October 16, 2002, to discuss the third quarter results. To participate, please dial (719) 457-2625 at approximately 1:50 p.m. A live webcast of the conference call will be available via the company's website at www.transmeta.com. A replay of the call will be available one hour after the completion of the call for one week. To access the recording, please dial 888 203-1112, passcode 361383. For callers outside the U.S., please dial 719 457-0820, with the same passcode.
About Transmeta Corporation
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, Tablet PC and Internet appliance segments of the mobile Internet computer market, as well as a range of embedded applications.
To learn more about Transmeta visit www.transmeta.com.
Safe Harbor Statement
This release contains forward-looking statements regarding future events or the future financial performance of the company, which statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements are only predictions, which may differ materially from actual results or future events. All such forward-looking statements are based upon our current expectations but involve inherent risks and uncertainties. Such forward-looking statements speak only as of the date of this release, and the company will not necessarily provide updates of its forward-looking projections or forecasts. Risks and uncertainties that may have material effects on our future performance include general economic conditions, including the significant continuing slowdowns in the technology sector and semiconductor industry, the timing, rescheduling or cancellation of significant customer orders, potential fluctuations in our quarterly results, dependence on increasing demand for our Crusoe products, difficulties in developing or manufacturing new products in a timely and cost effective manner, market acceptance of our new products and of our customers' systems using our products, the growth of emerging markets, our customer concentration, the loss of revenue if a major customer were to cancel, reduce or delay a product order, inventory write-offs from a failure to forecast product demand accurately, our dependence on third parties for sourcing materials and providing manufacturing services, delays in product deliveries as we transition to smaller geometry process technologies, intense competition from Intel and others, rapid technological change, patents and intellectual property rights, volatility of our stock price, and the cyclical nature of the semiconductor market. We urge investors to review our regular filings with the Securities and Exchange Commission, including specifically our most recently filed reports on Form 10-K and 10-Q, which identify and describe many of these and other important risk factors that could cause our actual results to differ from those contained in these forward-looking statements.
TRANSMETA CORPORATION
PRO FORMA CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
The following pro forma supplemental information excludes the
amortization of deferred charges and intangible assets, non-cash stock
compensation awards, in-process research and development, inventory
related charges, restructuring charges, and effects of previously
recorded inventory purchase commitments.
Three Months Ended Nine Months Ended
--------------------- ---------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2002 2001 2002 2001
----------- --------- ----------- ---------
(unaudited) (unaudited)
Net revenue $6,443 $5,027 $18,129 $34,129
Cost of sales 5,296 5,377 14,332 21,653
----------- --------- ----------- ---------
Gross margin 1,147 (350) 3,797 12,476
Operating expenses
Research and development 13,707 17,029 50,971 51,388
Selling, general and
administrative 6,255 8,776 22,926 26,625
----------- --------- ----------- ---------
Total operating
expenses 19,962 25,805 73,897 78,013
----------- --------- ----------- ---------
Operating loss (18,815) (26,155) (70,100) (65,537)
Interest and other, net 1,045 3,105 3,823 11,542
----------- --------- ----------- ---------
Loss before provision
(benefit) for income taxes (17,770) (23,050) (66,277) (53,995)
Provision (benefit) for
income taxes (2) 5 23 22
----------- --------- ----------- ---------
Net loss $(17,768) $(23,055) $(66,300) $(54,017)
=========== ========= =========== =========
Net loss per share--basic
and diluted $(0.13) $(0.18) $(0.49) $(0.42)
Weighted average shares
outstanding--basic and
diluted 135,561 131,560 134,079 128,582
The pro forma amounts have been adjusted to
eliminate the following:
Stock compensation $(1,651) $4,046 $595 $15,823
Amortization of deferred
charges and
intangible assets 2,848 5,024 8,544 12,512
Restructuring charges 4,102 - 14,726 -
In-process research and
development - - - 13,600
Excess inventory and
purchase commitment
charge $(1,302) $(2,540) $(1,885) $25,591
TRANSMETA CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
--------------------- ----------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2002 2001 2002 2001
----------- --------- ----------- ----------
(unaudited) (unaudited)
Net revenue $6,443 $5,027 $18,129 $34,129
Cost of sales 3,994 2,837 12,447 47,244
----------- --------- ----------- ----------
Gross margin 2,449 2,190 5,682 (13,115)
Operating expenses
Research and development 13,707 17,029 50,971 51,388
In-process research and
development - - - 13,600
Selling, general and
administrative 6,255 8,776 22,926 26,625
Restructuring charges 4,102 - 14,726 -
Amortization of deferred
charges and intangible
assets 2,848 5,024 8,544 12,512
Stock compensation (1,651) 4,046 595 15,823
----------- --------- ----------- ----------
Total operating
expenses 25,261 34,875 97,762 119,948
----------- --------- ----------- ----------
Operating loss (22,812) (32,685) (92,080) (133,063)
Interest and other, net 1,045 3,105 3,823 11,542
----------- --------- ----------- ----------
Loss before provision
(benefit) for income
taxes (21,767) (29,580) (88,257) (121,521)
Provision (benefit) for
income taxes (2) 5 23 22
----------- --------- ----------- ----------
Net loss $(21,765) $(29,585) $(88,280) $(121,543)
=========== ========= =========== ==========
Net loss per share--basic
and diluted $(0.16) $(0.22) $(0.66) $(0.95)
Weighted average shares
outstanding--basic and
diluted 135,561 131,560 134,079 128,582
TRANSMETA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 27, Dec. 28,
2002 2001 (1)
----------- ---------
Assets (unaudited)
Current assets
Cash and short-term investments $155,751 $241,688
Accounts receivable, net 4,082 1,749
Inventories 8,329 1,388
Prepaid and other current assets 3,546 7,091
----------- ---------
Total current assets 171,708 251,916
Property and equipment, net 8,790 11,622
Other assets 40,330 45,486
----------- ---------
Total assets $220,828 $309,024
=========== =========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and other current liabilities $11,739 $17,103
Current portion of accrued restructuring costs 2,964 -
Current portion of long-term obligations 15,640 17,661
----------- ---------
Total current liabilities 30,343 34,764
Long-term accrued restructuring costs 5,947 -
Long-term payables 23,313 29,295
Stockholders' equity 161,225 244,965
----------- ---------
Total liabilities and stockholders' equity $220,828 $309,024
=========== =========
(1) Derived from audited financial statements included in the
Company's Form 10-K for the fiscal year 2001 filed with the Securities
and Exchange Commission.
CONTACT: Transmeta Corporation
S. Olav Carlsen, 408/919-3000
or
Stapleton Communications Inc.
Deborah Stapleton, 650/470-0200
TMTA
Transmeta Corporation Nasdaq-NM
Back to Headlines | Previous Story
Transmeta Corporation Reports Fiscal Q3 2002 Financial Results; Design Win Momentum Increases Across Geographies; Profitability Goal Remains Q4 of 2003
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 16, 2002--Transmeta Corporation (Nasdaq:TMTA), designer and supplier of the energy-efficient Crusoe processor, today announced financial results for its third quarter ended September 27, 2002.
Net revenue for the third quarter of fiscal 2002 was $6.4 million, compared with $7.5 million reported in the second quarter of 2002 and $5.0 million in the third quarter of 2001. In accordance with generally accepted accounting principles (GAAP), net loss for the third quarter of 2002 was $21.8 million, or a GAAP loss of $0.16 per share. This compares with a GAAP net loss of $35.6 million, or a GAAP loss of $0.27 per share in the second quarter and a GAAP net loss of $29.6 million, or a GAAP loss of $0.22 per share a year ago.
On a pro forma basis, excluding a one-time restructuring charge for the payment of severance and benefits related to the July workforce reduction, the benefit from previously recorded inventory-related charges, and other non-cash charges, the net loss for the quarter was $17.8 million, or a pro forma loss of $0.13 per share. This compares with a pro forma net loss of $25.3 million or a pro forma loss of $0.19 per share in the second quarter and a pro forma net loss of $23.1 million or a pro forma loss of $0.18 a year ago.
"We are disappointed with the slowdown in our third quarter revenues," said Dr. Matthew R. Perry, president and CEO of Transmeta. "The overall economic picture continued to constrain end-user spending on computing devices. Our results were affected by adjustments our customers made to their short-term forecasts late in the quarter," he said.
"However, design win activity gained momentum across many geographies in the third quarter. We began our first major shipments to China, and we gained new design wins with other Chinese customers. Interest in Crusoe is very strong in Taiwan, where we won numerous designs for our TM5800 and are seeing very strong interest in our next-generation processor. We also continued to win new designs in Japan," he said. "Customers everywhere tell us they are choosing Crusoe processors because they like the balance only we can provide of low maximum power, low cost, long battery life and high performance--in that order."
The company said that its first processor based on the next-generation 256-bit Crusoe architecture, the TM8000, remains on plan to ship in the third quarter of next year. "Customers are very excited about the value proposition this product offers over competing technologies. We are already in discussions with several potential customers regarding design-ins," Dr. Perry said.
"Our goal remains to be profitable by the fourth quarter of next year, as we believe we are well positioned with our new products and market focus to achieve growth in the second half of 2003," Dr. Perry said.
On November 7, Transmeta will join Microsoft and Hewlett-Packard in New York as Microsoft officially introduces the Windows XP Tablet PC Edition software, and as Hewlett-Packard debuts its HP Compaq Tablet PC, which is powered by Transmeta's 1-GHz Crusoe TM5800 processor. Later in the month, the company will be showcasing its technology at Comdex in Las Vegas. Transmeta's products will be featured both at its suites and at some of its customers' and partners' booths, including those of Microsoft, Hewlett-Packard and Antelope Technologies.
Highlights:
China
-- Transmeta won new designs from Chinese customers in the third
quarter. The company believes that China, with its rapidly
growing electronics marketplace, is a key part of its
geographic expansion strategy.
-- SVA Group, a leading Chinese electronics manufacturer, is
using Crusoe TM5800 processors in its new Classic Silver
3.3-pound notebook computer. This is the second Crusoe-based
product to be introduced in China, and will help to continue
to increase Transmeta's presence in the fast-growing Chinese
marketplace.
Japan
-- Transmeta's Crusoe processors continue to generate interest in
Japan. In the third quarter, several customers designed the
Crusoe TM5800 processor into their products.
-- Sharp recently introduced its Mebius Muramasa mobile computer
in Japan. Using the Crusoe TM5800 processor, this sub-notebook
weighs only 950 grams.
-- Sony introduced the autumn models of its VAIO C1 and VAIO U
notebooks, which use Transmeta's Crusoe TM5800 processors.
-- Fujitsu announced new models of its LOOX-T and LOOX-S mobile
computers in Japan, which use Crusoe TM5800 processors.
-- JMnet announced its Wake blade style compact server and Ultra
PC-X board, which use Crusoe TM5800 processors.
U.S.
-- NEC Solutions America announced that its PowerMate eco(TM)
desktop computer is now available in the U.S. The PowerMate
eco, which won PC Magazine's Editor Choice award in October
2002, uses the Crusoe TM5800 processor.
-- Casio, Inc. recently introduced the Cassiopeia Fiva MPC-701
series of pen tablet computers to the U.S. market. The pen
tablets are powered by the Crusoe TM5800 processor and weigh
only 3.1 pounds.
Taiwan
-- Transmeta gained significant traction into Taiwan-based
products in Q3. Many customers incorporated the Crusoe TM5800
processor into their designs and expressed very strong
interest in the company's Crusoe TM8000 processor. Taiwan
remains a very important region for Transmeta and the company
expects momentum for its processors there to continue to grow.
-- PaceBlade upgraded its three-in-one PC PaceBook, which uses
the Crusoe TM5600 processor.
Corporate
-- Transmeta shipped its one millionth Crusoe processor.
-- Microsoft Corporation certified Transmeta's Crusoe processors
for the Windows CE .NET operating system, which enables
Transmeta to attract new opportunities for mobile and embedded
markets.
-- Transmeta began shipping the Crusoe TM5800 System Development
Kit that enables design engineers to quickly develop new
mobile and embedded computing platforms using the Crusoe
processor.
Current Financial Outlook for Fourth Quarter 2002
The following outlook statements are based upon current expectations. These statements are forward looking, and actual results could differ materially.
Currently, the company expects that market demand in the fourth quarter will continue to be sluggish. Consequently, the company anticipates that its Q4 financial results will be as follows:
-- Q4 2002 revenue is expected to be in the range of $5 million
to $6 million.
-- Pro forma net loss per share is expected to be $0.13 to $0.15.
-- Operating expenses will remain flat at approximately $20
million.
-- Cash at the end of December should be approximately $129
million after a scheduled $6 million payment to IBM in
accordance with our technology license agreement.
Conference Call
The company will hold a conference call at 2 p.m. Pacific Time today, October 16, 2002, to discuss the third quarter results. To participate, please dial (719) 457-2625 at approximately 1:50 p.m. A live webcast of the conference call will be available via the company's website at www.transmeta.com. A replay of the call will be available one hour after the completion of the call for one week. To access the recording, please dial 888 203-1112, passcode 361383. For callers outside the U.S., please dial 719 457-0820, with the same passcode.
About Transmeta Corporation
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, Tablet PC and Internet appliance segments of the mobile Internet computer market, as well as a range of embedded applications.
To learn more about Transmeta visit www.transmeta.com.
Safe Harbor Statement
This release contains forward-looking statements regarding future events or the future financial performance of the company, which statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements are only predictions, which may differ materially from actual results or future events. All such forward-looking statements are based upon our current expectations but involve inherent risks and uncertainties. Such forward-looking statements speak only as of the date of this release, and the company will not necessarily provide updates of its forward-looking projections or forecasts. Risks and uncertainties that may have material effects on our future performance include general economic conditions, including the significant continuing slowdowns in the technology sector and semiconductor industry, the timing, rescheduling or cancellation of significant customer orders, potential fluctuations in our quarterly results, dependence on increasing demand for our Crusoe products, difficulties in developing or manufacturing new products in a timely and cost effective manner, market acceptance of our new products and of our customers' systems using our products, the growth of emerging markets, our customer concentration, the loss of revenue if a major customer were to cancel, reduce or delay a product order, inventory write-offs from a failure to forecast product demand accurately, our dependence on third parties for sourcing materials and providing manufacturing services, delays in product deliveries as we transition to smaller geometry process technologies, intense competition from Intel and others, rapid technological change, patents and intellectual property rights, volatility of our stock price, and the cyclical nature of the semiconductor market. We urge investors to review our regular filings with the Securities and Exchange Commission, including specifically our most recently filed reports on Form 10-K and 10-Q, which identify and describe many of these and other important risk factors that could cause our actual results to differ from those contained in these forward-looking statements.
TRANSMETA CORPORATION
PRO FORMA CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
The following pro forma supplemental information excludes the
amortization of deferred charges and intangible assets, non-cash stock
compensation awards, in-process research and development, inventory
related charges, restructuring charges, and effects of previously
recorded inventory purchase commitments.
Three Months Ended Nine Months Ended
--------------------- ---------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2002 2001 2002 2001
----------- --------- ----------- ---------
(unaudited) (unaudited)
Net revenue $6,443 $5,027 $18,129 $34,129
Cost of sales 5,296 5,377 14,332 21,653
----------- --------- ----------- ---------
Gross margin 1,147 (350) 3,797 12,476
Operating expenses
Research and development 13,707 17,029 50,971 51,388
Selling, general and
administrative 6,255 8,776 22,926 26,625
----------- --------- ----------- ---------
Total operating
expenses 19,962 25,805 73,897 78,013
----------- --------- ----------- ---------
Operating loss (18,815) (26,155) (70,100) (65,537)
Interest and other, net 1,045 3,105 3,823 11,542
----------- --------- ----------- ---------
Loss before provision
(benefit) for income taxes (17,770) (23,050) (66,277) (53,995)
Provision (benefit) for
income taxes (2) 5 23 22
----------- --------- ----------- ---------
Net loss $(17,768) $(23,055) $(66,300) $(54,017)
=========== ========= =========== =========
Net loss per share--basic
and diluted $(0.13) $(0.18) $(0.49) $(0.42)
Weighted average shares
outstanding--basic and
diluted 135,561 131,560 134,079 128,582
The pro forma amounts have been adjusted to
eliminate the following:
Stock compensation $(1,651) $4,046 $595 $15,823
Amortization of deferred
charges and
intangible assets 2,848 5,024 8,544 12,512
Restructuring charges 4,102 - 14,726 -
In-process research and
development - - - 13,600
Excess inventory and
purchase commitment
charge $(1,302) $(2,540) $(1,885) $25,591
TRANSMETA CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
--------------------- ----------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2002 2001 2002 2001
----------- --------- ----------- ----------
(unaudited) (unaudited)
Net revenue $6,443 $5,027 $18,129 $34,129
Cost of sales 3,994 2,837 12,447 47,244
----------- --------- ----------- ----------
Gross margin 2,449 2,190 5,682 (13,115)
Operating expenses
Research and development 13,707 17,029 50,971 51,388
In-process research and
development - - - 13,600
Selling, general and
administrative 6,255 8,776 22,926 26,625
Restructuring charges 4,102 - 14,726 -
Amortization of deferred
charges and intangible
assets 2,848 5,024 8,544 12,512
Stock compensation (1,651) 4,046 595 15,823
----------- --------- ----------- ----------
Total operating
expenses 25,261 34,875 97,762 119,948
----------- --------- ----------- ----------
Operating loss (22,812) (32,685) (92,080) (133,063)
Interest and other, net 1,045 3,105 3,823 11,542
----------- --------- ----------- ----------
Loss before provision
(benefit) for income
taxes (21,767) (29,580) (88,257) (121,521)
Provision (benefit) for
income taxes (2) 5 23 22
----------- --------- ----------- ----------
Net loss $(21,765) $(29,585) $(88,280) $(121,543)
=========== ========= =========== ==========
Net loss per share--basic
and diluted $(0.16) $(0.22) $(0.66) $(0.95)
Weighted average shares
outstanding--basic and
diluted 135,561 131,560 134,079 128,582
TRANSMETA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 27, Dec. 28,
2002 2001 (1)
----------- ---------
Assets (unaudited)
Current assets
Cash and short-term investments $155,751 $241,688
Accounts receivable, net 4,082 1,749
Inventories 8,329 1,388
Prepaid and other current assets 3,546 7,091
----------- ---------
Total current assets 171,708 251,916
Property and equipment, net 8,790 11,622
Other assets 40,330 45,486
----------- ---------
Total assets $220,828 $309,024
=========== =========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and other current liabilities $11,739 $17,103
Current portion of accrued restructuring costs 2,964 -
Current portion of long-term obligations 15,640 17,661
----------- ---------
Total current liabilities 30,343 34,764
Long-term accrued restructuring costs 5,947 -
Long-term payables 23,313 29,295
Stockholders' equity 161,225 244,965
----------- ---------
Total liabilities and stockholders' equity $220,828 $309,024
=========== =========
(1) Derived from audited financial statements included in the
Company's Form 10-K for the fiscal year 2001 filed with the Securities
and Exchange Commission.
CONTACT: Transmeta Corporation
S. Olav Carlsen, 408/919-3000
or
Stapleton Communications Inc.
Deborah Stapleton, 650/470-0200
