Transmeta (Semiconductor) (TMTA)

[DewDiligence]

When it rains, it pours:

3Q miss and 4Q guidance down…ouch. As bad as the numbers are, the stock price is so low I’m still a buyer at these levels.

Regarding the path to profitability, there was no change in the guidance for either the timing (end 2003) or the amount of cash remaining at that point ($50M+).

They emphasized that most of the revenue growth will take place in 2H03. Models by some of us which assumed a relatively uniform growth rate over the 6-quarter period from 2Q02-4Q03 were evidently way off the mark. They will obviously need a humongous growth rate during 2H03 to pull this off.

Disappointed but still optimistic. Dew