backtop


Print 8 comment(s) - last by S3anister.. on Feb 8 at 11:59 AM

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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

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.




"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA











botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki