Transmeta (Semiconductor) (TMTA)

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I hope that Transmeta sees, now that they have covered their base somewhat, the time to make bigger leaps instead of smaller steps is here.

In specific, I would love to see them max out their internal growth possibilities. So when Culturecom in Q1 and maybe another LR2 licensee fee comes in Q2, they will probably have $10-20 mill profit in the 1H06. That could be spent on new personal or projects to support more LR2 licensees or step up product sales or any new project that could result in increased revenue starting in 2H06.

They stated in the CC that they are going to do that at least partially, and we have to expect the R&D position on the balance sheet to increase to around $3 mill due to Efficion support in Q4. However, considering that it probably takes new engineers 3-9 months to get into the "loop", this might not be the "maxed out" policy that is possible.

Of course, these investment would only make sense if there really are results from them in a short time period. Sure they know that, but sometimes companies who come out of extreme cost saving periods tend to be too timid on the beginning of growth cycles. I just don't like them rejecting customers now, because they "can't support them".

All the opinion of an outsider...