Transmeta posted a smaller-than-expected loss for its second fiscal quarter yesterday, but at the same time announced plans to lay off 200 workers, or about 40 per cent of its workforce.
The company also said that it no longer planned to offer a version of its flagship Crusoe processor called the TM6000. Transmeta will continue to improve its current model, the TM5800, and work with customers to develop "future system-on-a-chip" products, it said in a statement.
For the three months ending June 28, Transmeta posted a net loss of $35.6 million, or $0.27 per share, on revenue of $7.5 million. The deficit was narrower than that of a year ago, when it lost $69.3 million, or $0.54 per share, but revenue was lower than last year's total of $10.5 million. The results are based on generally accepted accounting principles (GAAP), the company said in its statement.
On a pro forma basis, excluding restructuring costs, the Santa Clara, California, company lost $24.7 million, or $0.18 a share, Transmeta said. Analysts polled by Thomson Financial/First Call had predicted on average a pro forma loss of $0.19 a share.
The layoffs are expected to lower the company's operating expenses to around $20 million per quarter by the fourth quarter of 2002, Transmeta said in the statement. Its operating expenses in the second quarter were $38.8 million.
Looking forward to the third quarter, Transmeta expects revenue growth of zero to 5 per cent.