Transmeta Thursday reiterated that the company's lowered revenue expectations were a result of market weakness in Japan, a day after the company said it expected revenue to decrease between 40 and 45 percent for its second quarter.
"Based on what our customers are telling us, the reduced demand you're seeing does not appear to be any one box or design, nor has it been the loss of a major customer to our competitors," Mark Allen, Transmeta's president and chief executive officer, said in a conference call with press and analysts.
After reporting revenue of US$18.6 million in the first quarter, the company said it expected second-quarter revenue to increase slightly. Transmeta said Wednesday that it now expects revenue to drop for the second quarter. [See "Transmeta cuts sales forecast almost in half," June 20.]The decreased expectations were issued because of a combination of cancelled orders, as well as cancelled shipments, but the transition from 0.18 micron technology to the smaller 0.13 micron manufacturing process was not responsible for the decrease in revenue, Allen said. "Customer sales are down," he said. "They already have inventory, and they don't even want the backlog they have."
Transmeta's (TMTA) shares on the Nasdaq were trading at a new 52-week low Thursday. At 11:00 PT, shares were down over 57 percent for the day, trading at $5.31 per share.