Update: Intellectual Ventures has acquired Transmeta Patent Portfolio on Jan. 28, 2009
SANTA CLARA, CA - July 8, 2005 − Transmeta Corporation (NASDAQ: TMTA), the leader in efficient computing technologies, today announced that it now anticipates reporting positive operating cash flow for the second quarter ended June 30, 2005. On May 13, 2005, Transmeta had stated that it expected to reduce its negative cash flow to less than $5 million a quarter by the end of the second quarter.
"We have surpassed our first goal of substantially reducing our cash burn, and in fact I am now able to comfortably say that we will report positive operating cash flow for the 2005 second quarter," stated Mark R. Kent, chief financial officer. "We are encouraged by the positive financial and operational progress across our business."
Transmeta also announced that Ernst & Young LLP has indicated that it will resign as the Company's independent registered public accounting firm following the earlier of the completion of services related to the review of the Company's interim financial statements for the quarter ended September 30, 2005 or the filing due date of that quarterly report.
"I would like to thank E&Y for its many contributions and commend the firm for its professionalism," said Kent. The Company and its Audit Committee have initiated the process of selecting a new independent registered public accounting firm. "We expect to announce a new audit firm during the third quarter," concluded Kent.
The Company anticipates reporting its second quarter 2005 financial results in the first half of August 2005.
About Transmeta Corporation
Transmeta Corporation develops and licenses innovative computing, microprocessor and semiconductor technologies and related intellectual property. Founded in 1995, Transmeta first became known for designing, developing and selling its highly efficient x86-compatible software-based microprocessors, which deliver a balance of low power consumption, high performance, low cost and small size suited for diverse computing platforms. We also develop advanced power management technologies for controlling leakage and increasing power efficiency in semiconductor and computing devices. To learn more about Transmeta, visit www.transmeta.com.
Safe Harbor Statement
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date of this release, and we will not necessarily provide updates of our projections or other forward-looking statements. Investors are cautioned that such forward-looking statements are subject to many risks and uncertainties, and may differ materially or adversely from our actual results or future events. Important risk factors that could have material or adverse effects on our results include general economic and political conditions, specific conditions and volatility in the markets that we address, difficulties or delays in implementing our restructuring plan, the potential loss of key technical and business personnel resulting from our restructuring plan, practical challenges in modifying our business model, our ability to satisfy the continued listing requirements of the NASDAQ Stock Market, the adoption and market acceptance of our products and technologies by current and potential customers and licensees, our inability to predict or ensure that third parties will license our technologies or use our technologies to generate royalties, the rescheduling or cancellation of significant customer orders, difficulties in developing or manufacturing our products in a timely and cost effective manner, our dependence on third parties for sourcing materials and providing manufacturing services, intense competition and competitive pressures, the ability to enter strategic collaborations or raise financing on satisfactory terms, patents and other intellectual property rights, and other risk factors. We urge investors to review our filings with the Securities and Exchange Commission, including our most recent reports on Forms 10-K, 10-K/A, 10-Q and 8-K, which describe these and other important risk factors that could have an adverse effect on our results. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
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