Lower-power processor designer Transmeta Corp. has blamed a shortage of chips and reduced demand for a sharp reduction in its revenue expectations for its third quarter to September 24.
It now expects revenue in the range of $6.8 million to $7.5 million compared with its original expectation in July of a figure between $8 million and $8.7 million. CEO Matthew Perry said sales reflected constrained product availability as it moved through the 90nm product qualification.
The company was also hit by softening demand in the enterprise sector and changes in customers’ Transmeta-based product lines.
Transmeta expects revenue from its processors to be in the $3.1 million to $3.8 million range, an increase of at least 15% on last year’s level. It will benefit from a $3.5 million license payment from NEC Electronics Corp. for its LongRun2transistor leakage management technology.
The company also began limited production shipments earlier this month of its Efficeon TM8800 processor, which has clock speeds of up to 1.6GHz compared with 1.0GHz for the previous version.
Transmeta has been a disappointment since it raised $273 million in an IPO in 2000. Revenue, which peaked at $35.6 million in 2001, fell to $17.3 million in 2003 when it recorded a net loss of $87.6 million.