Transmeta Pulls Itself Out of the Fire

Online staff -- Electronic News, 7/8/2005

Surpassing even its own goals, Transmeta Corp. expects to report positive operating cash flow for the quarter ended June 30.

The once ailing semiconductor technology company underwent a major restructuring in March and had hoped to reduce its negative cash flow to less than $5 million by the end of Q2. Transmeta has managed to pull itself out of the red, reporting negative operating cash flow of $11.7 million for Q1, and into the black in record time.

"We have surpassed our first goal of substantially reducing our cash burn, and in fact I am now able to comfortably say that we will report positive operating cash flow for the 2005 second quarter," said Transmeta CFO Mark R. Kent, in a statement. "We are encouraged by the positive financial and operational progress across our business."

Separately, the company announced that Ernst & Young LLP has indicated it will resign as Transmeta’s independent registered public accounting firm after completing Q3 services.

"I would like to thank E&Y for its many contributions and commend the firm for its professionalism," said Kent. "We expect to announce a new audit firm during the third quarter."

Transmeta looks to report detailed Q2 financial results in the first half of August.