Transmeta (Semiconductor) (TMTA)

[weaksidehelp]

wbmw, there may be more to TMTA than revs from NREs and the licensing/engineering of LR2, namely,
"New revenues from specialized versions of our 90 nanometer Efficeon products."

This is a veiled reference to the Microsoft project and the eventual production and sale of specialized E* chips for inclusion in certain MSFT products (as yet undivulged.) There have been hints that specialized versions of the chip might be produced for others as well.

During the cc, there also was mention that in 4Q TMTA intends to produce quantities of the E* with LR2 to drum up business with customers who are willing to buy such chips with healthy margins.

In short, the chip business may be merely dormant and not dead. Of course, this business is impossible to value at this point.

The CultureCom deal appears to be on track, and I was glad to hear that TMTA will receive license fees which M Kent characterized as acceptable to the company (the actual fees were redacted in the 2Q report).

There also remains the potential for enormous one-time-only revs from an anti-trust settlement with INTC. I put a significant value on this possiblity, but it is hard to figure when it might be realized.

Lots of unknowns, but TMTA has the potential of very large revenues going forward.

regards, wsh