Transmeta (Semiconductor) (TMTA)

[DewDiligence]

Astro ASP = $120?

In a recent press interview, Matt Perry stated that the CPU for a mobile-computing device should sell for no more than $120 to stay competitive in the end-user price range for such devices.

Perry was supposedly lambasting the high prices for Banias, but he may also have been giving us a clue about the anticipated ASP for Astro.

Given the recent disclosures about Astro’s impressive application throughput, an ASP of $120 seems entirely reasonable. This would be almost double the $64 ASP of the TM5800 during 3Q02.

The second half of 2003 could see some serious ramping in revenues based on the multiplicative effect of higher chip volume and a much higher ASP. Profitability on or ahead of schedule is looking more and more likely with each passing day. Dew