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75 employees cast away as Transmeta restructures its business

Transmeta Corporation on Monday announced that it is giving up on its engineering services to focus on developing and licensing intellectual property. The news follows the company’s initial phase of its re-alignment earlier this week by decreasing its worldwide workforce by approximately 39 percent, or 75 employees, most of whom worked in the engineering services business.

“Transmeta has a long history of pioneering innovative technologies that have resulted in a very strong intellectual property portfolio,” said Lester Crudele, president and CEO. “After a critical evaluation of all our lines of businesses, we have decided that IP development and licensing will be our core business activity going forward. We continue to believe that this is the best way for us to deliver our technology to the market and monetize our investments. Therefore, we have initiated a restructuring plan to re-align our headcount and expenses accordingly.”

The troubled chip designer also took the initial steps to close its sales and support offices in Taiwan and Japan. Over the next two quarters, as the company completes its existing engineering services work, the company expects to further reduce its headcount by about 25 to 55 people, depending on the level of support required for the Microsoft FlexGo program, the company said.

Shares of the Santa Clara company fell near a 52-week low at about 13 percent to 90 cents upon release of the news, but has since slightly recovered to 95 cents.

“We believe that by focusing our time and resources on our IP licensing, we can better serve the IDM (integrated device manufacturer) customer base and continue to develop additional IP to make our technologies accessible to a much larger customer base,” Crudele added.

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By Roy2001 on 2/7/2007 2:34:34 PM , Rating: 2
I am just kidding.

By Brassbullet on 2/7/2007 4:12:37 PM , Rating: 2
In other news, Transmeta is now officially a law firm.

By casket on 2/7/2007 10:38:59 PM , Rating: 2
117 employees left.

It sound like they are in a death-spiral. Engineers to support the current products. Lawyers to support IP. Salesmen to sell the current products. I'd be surprised if they every come out with a new product.

RE: Death-Spiral?
By casket on 2/7/2007 10:54:47 PM , Rating: 2
Transmetta is an interesting company... what have they done... why do they matter?

Although practically nobody owns their chips/devices... they heped promote low-power devices.

In addition, they translate x86 code to 128-bit code and execute it.

For those paying attention to intel... the core 2 duo's big invention, hence the big speed improvement... was to translate x86 code to 64-bit... and in the process... combine instructions . (Anybody want to correct me?)

Maybe not so bad news
By rawlic on 2/7/2007 11:13:26 PM , Rating: 2
If (and a BIG IF, I know) they approach this the right way, it could be a good thing for everyone. Think of the innovation that came out of Bell Labs, IBM, PARC, and the like. Transmeta can focus on developing products and let companies like Intel, AMD, and IBM focus on how to use them.

However this will most likely all go to hell in a handbasket once the lawyers get involved.

have patents , will sue
By mforce2 on 2/8/2007 7:17:27 AM , Rating: 2
So is Transmeta going to do this for a living from now on ? I guess it could , there are several companies that take advantage of their IP portofolio and sue everyone about almost anything. Sure it's a way to make a living but not a very nice one IMO.
If they'd about it the way ARM does for instance now that's a different story. They develop a product and license the technology.

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