Transmeta (Semiconductor) (TMTA)

[wbmw]

Re: it's good to know that one LR2 License pays $3Mill per Q. ($3.5Mill in Q3)

No, this is not good. $3M represents 50% of TMTA's revenue, and the cost of revenue is still $8M frickin' dollars. Their total costs for the quarter were $23.7M, so excluding this licensing, they are losing $8 for every $1 they make. An 8:1 loss ratio for their core products? For crying out loud, how can anyone spin this positively?? Huge, negative losses, not to mention that they lost 30% of their cash reserves this quarter, *and* they still managed to increase their inventory by 37% (which suggests pretty low demand, given the current market growth).

Sorry guys, because I'd love for people to make some money on an up-and-coming stock, but these figures are *by far* the worst I've seen from a company in a long time. There is zero value in this stock, as far as the balance sheet goes, and that's too bad, because TMTA came up with some pretty good innovations.