Transmeta (Semiconductor) (TMTA)

[DewDiligence]

WSH: I can give you a partial, albeit unsatisfactory, answer. The 4Q02 QoQ guidance for INTC and AMD is based in part on seasonal patterns. Worldwide, Q4 is a stronger period for PC’s (and semis in general) than Q3.

However, in Japan, China, and the rest of Asia, the peak season for PC sales is summer. Because the large majority of TMTA’s sales are still in Asia, TMTA does not experience a seasonal spurt going from Q3 to Q4.

In spite of the above, I still consider the Q4 guidance to be a serious disappointment. Regards, Dew