Update: Intellectual Ventures has acquired Transmeta Patent Portfolio on Jan. 28, 2009
SANTA CLARA, CA. - May 8, 2008 - Transmeta Corporation (NASDAQ: TMTA) today announced financial results for the first quarter ended March 31, 2008.
Revenue for the first quarter of 2008 was $661,000 compared to $126,000 for the fourth quarter of 2007. First quarter revenue consisted of $240,000 of license revenue, $168,000 of services revenue, and $253,000 of end-of-life product revenue. For the fourth quarter of 2007, license revenue was $102,000 and service revenue was $24,000.
Total operating expenses for the first quarter of 2008 were $3.1 million, compared with $20.9 million in the fourth quarter of 2007. First quarter operating expenses included $5.9 million of income from the settlement and licensing agreement with Intel, restructuring charges of $342,000, non-cash charges of $1.5 million for amortization of intangible assets, and non-cash stock compensation charges of $1.5 million.
In the first quarter, the Company recorded interest income of $2.6 million, including $1.7 million of imputed interest income from the settlement and licensing agreement with Intel. Net loss was $41,000, or $0.00 per share, compared with a net loss of $23.9 million, or a loss of $1.99 per share, in the fourth quarter of 2007.
The Company's cash, cash equivalents and short term investments at March 31, 2008 totaled $158.8 million. Transmeta continues to be debt free.
Transmeta expects to be profitable on a GAAP net income basis in the second quarter of 2008, and for fiscal year 2008. Operating expenses in the second quarter of 2008, excluding non-cash charges, are expected to be in the range of $4.5 million to $5.0 million. In the second quarter, the Company expects to recognize $5.9 million of operating income, and $1.1 million of imputed interest income, from the settlement and licensing agreement with Intel.
"We initiated a process several months ago to actively explore a full range of strategic alternatives. With the assistance of our independent advisors, including Piper Jaffray, we have been engaged in discussions with other companies about potential ways to increase value for all of our shareholders, and we are committed to pursuing that process," stated Les Crudele, president and CEO. "At the same time, we are making progress on developing IP components and tools to help facilitate the adoption and implementation of LongRun2 technologies. In addition, we have seen renewed interest in our patent portfolio since the Intel settlement and continue to pursue opportunities to monetize those assets."
Transmeta's management will host a conference call today at 5:00 p.m. Eastern time / 2:00 p.m. Pacific time to discuss the operating performance for the quarter. The conference call will be available live over the Internet at the investor relations section of Transmeta's website at www.transmeta.com. To listen to the conference call, please dial (913) 312-0822. A recording of the conference call will be available for one week, starting one hour after the completion of the call, until 11:59 p.m. Pacific time on May 14, 2008. The phone number to access the recording is (719) 457-0820, and the passcode is 8889410.
About Transmeta Corporation
Transmeta Corporation develops and licenses innovative computing, microprocessor and semiconductor technologies and related intellectual property. Founded in 1995, we first became known for designing, developing and selling our 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 are presently focused on developing and licensing our advanced power management technologies for controlling leakage and increasing power efficiency in semiconductor and computing devices, and in licensing our computing and microprocessor technologies to other companies. To learn more about Transmeta, visit www.transmeta.com.