Transmeta Corporation Reports Results For Fourth Quarter And Fiscal
2001
SANTA CLARA, California (January 17, 2002) - Transmeta Corporation (Nasdaq: TMTA) today reported net revenue of $1.5
million for its fourth quarter of fiscal 2001 ended December 28, 2001.
Net revenue for the fourth quarter of fiscal 2001 was $1.5 million, compared
with $12.4 million for the same period last year. Pro forma net loss, which
excludes the effects of non-cash charges of $26.7 million, was $23.0 million, or
$0.18 per share, for the fourth quarter of fiscal 2001. This compares to pro
forma net loss of $17.3 million, or $0.20 per share, for the same period of
fiscal 2000, which excludes $8.9 million in non-cash charges.
During the fourth quarter of fiscal 2001, as a result of applying its policy
for measuring the impairment of long-lived assets, Transmeta recorded a charge
of $16.6 million related to its license agreements with IBM and Toshiba.
Including this charge, actual net loss for the fourth quarter of fiscal 2001 was
$49.7 million, or $0.38 per share, compared with actual net loss of $26.2
million, or $0.30 per share, for the same period last year.
Net revenue for the fiscal year 2001 was $35.6 million, compared with $16.2
million for the fiscal year 2000. Pro forma net loss, which excludes the effects
of non-cash charges of $55.1 million, in-process research and development
charges of $13.6 million and net excess inventory charges of $25.6 million, was
$77.0 million, or $0.60 per share, for the fiscal year 2001. This compares with
pro forma net loss of $74.2 million, or $1.66 per share, for the fiscal year
2000, which excludes $23.5 million of non-cash charges.
Actual net loss for the fiscal year 2001 was $171.3 million, or $1.33 per
share, compared with actual net loss of $97.7 million, or $2.18 per share, for
the fiscal year 2000.
"Transmeta is meeting the milestones of the recovery plan that resolve the
issues that caused changes to our Crusoe TM5800 shipping schedule," said Murray
Goldman, chairman and CEO, Transmeta Corporation. "Based on the data we have
received to date, the plan continues to contemplate volume shipments to our
customers beginning in early February."
Quarterly Highlights
In October, Transmeta announced on its roadmap a highly integrated
system-on-a-chip, the Crusoe TM6000 series, designed for emerging computing
platforms that place a premium on PC compatibility, low power, space efficiency
and cost savings. The Crusoe TM6000 will use about one-third the board space and
less power than current Crusoe microprocessor solutions, important factors with
the proliferation of smaller, thinner and lighter computer products and those
with requirements for high computing density and energy efficiency. The Crusoe
TM6000 microprocessor integrates on a single chip the functions of a typical
three- or four-chip x86 microprocessor solution requiring a separate chipset and
graphics. With its high level of integration, the Crusoe TM6000 is anticipated
to be more power efficient than the Crusoe TM5800, as LongRun power management
extends to the integrated features of the chip, including Northbridge,
Southbridge and graphics.
In addition, several of our customers announced new Crusoe-based products
during the fourth quarter as follows:
In October, Sony announced a new VAIO C1MV PictureBook notebook PC that
incorporates high quality video-capturing capabilities and the newest
energy-saving Crusoe TM5800 microprocessor. The unit is one-inch thin and weighs
2.2 lbs. The C1MV PC incorporates a 20GB hard drive and is powered by the Crusoe
TM5800 microprocessor, allowing the system to run more efficiently while still
maintaining a high level of performance. In November, the new Fujitsu LifeBook P
Series was named “Best Notebook” and overall “Best of Show” winner at COMDEX
Fall 2001. By using Transmeta’s new 0.13 micron TM5800 Crusoe processor, Fujitsu
was able to build the world’s smallest full-featured, two-drive notebook,
weighing as little as 3.4 lbs. The notebook can house either a modular DVD/CD-RW
combo drive or a second battery for up to 14.5 hours of battery life.
In November, Toshiba announced a limited release Libretto Adidas edition
notebook commemorating the 2002 FIFA World Cup. The Toshiba Libretto Adidas
Edition (L3/060 TN2L) features the Crusoe TM5600 microprocessor, 128MB memory, a
20GB hard drive, a 10" 1280x600 pixel screen and runs with Windows 2000
Professional. This commemorative model features a unique Toshiba/Adidas
nameplate and began selling in December. In November, Casio Computer Co.,
Ltd. announced a new Cassiopeia Fiva model, the MPC-216XL, a 2.2 lb notebook
powered by the Crusoe TM5600 microprocessor. The new Cassiopeia Fiva allows
users to switch between two operating systems -- Windows or Linux.
In December, RLX Technologies announced new second-generation RLX
ServerBlades that extend its advantage to 5X the number of Web pages served per
square foot vs. traditional 1U servers. The new RLX ServerBlade 667 offers up to
36% greater performance than the first-generation RLX ServerBlade 633 and
supports up to 1.125GB of memory. In December, Twinhead International
Corporation (TIC) of Taiwan introduced the first Crusoe based notebook in China,
the Efio 1200, which is powered by the Crusoe TM5600 microprocessor. The Efio
1200 weighs 3.2 lbs and is less than an inch thick. The notebook incorporates a
20GB hard drive, 128MB of memory and a 10.4” screen and has an expected battery
life of up to five hours with a standard battery and 10 hours with an extended
battery. The next generation will incorporate the Crusoe TM5800 microprocessor
and is expected to be available in China and Taiwan in 2002.
Current Financial Outlook for First Quarter 2002
The following outlook statements are based upon current expectations.
These statements are forward looking, and our actual results could differ
materially.
1. Transmeta expects revenue for the first quarter of fiscal 2002 to be
between $3.5 million and $4.0 million.
2. Transmeta expects gross margin percentage for the first quarter of fiscal
2002 to be between 30% and 35%. Our gross margin will be impacted by ongoing
manufacturing costs in bringing the TM5800 into volume production.
3. Transmeta expects total dollar spending in operating expenses for the
first quarter of fiscal 2002 to be $26 million.
