Replies to post #5354 on Transmeta (Semiconductor) (TMTA)

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When Transmeta entered the original service agreement with Sony in March 2005, they agreed on 4 projects if I remember right. One of them was to create and service debugging and software emulation tools for the CELL processor and derivatives.

Since Sony expects to use the CELL and derivatives for at least 10 years, and if they are satisfied with Transmetas work (todays news is a hint for that), this one project could as well go on 10 years, absorbing maybe 15-40 engineers. And maybe this lays the groundwork for similar projects with different companies or even be the start of Transmeta growing a "software leg" bringing out their own tools for non-CELL logic and market them independently.

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SEC filing

Item 1.01 Entry into a Material Definitive Agreement.
On April 3 and April 6, 2006, Transmeta Corporation, a Delaware corporation ("Transmeta"), entered into a series of new project agreements for Transmeta to continue providing design and engineering services to Sony Computer Entertainment Inc. and Sony Corporation (collectively, the "Sony Group") during the second year of the two-year design services agreement between Transmeta and the Sony Group first announced in March 2005. Transmeta's first set of project agreements with the Sony Group expired by their terms on March 31, 2006, corresponding to the Sony Group's fiscal year end. The new project agreements provide for Transmeta to perform a variety of design and engineering services for the Sony Group over project periods ranging from three months to one year, ending March 31, 2007. Under the new project agreements, Transmeta initially will provide the services of more than 100 engineers in the second quarter of 2006 to work on advanced projects for Sony Group. Transmeta and the Sony Group are currently discussing additional potential engineering projects for Transmeta to perform for the Sony Group under the design services agreement, but there can be no assurance that the parties will enter into any additional project agreements.

http://www.sec.gov/Archives/edgar/data/1001193/000095013406006847/f19404e8vk.htm