Transmeta wants to sell IP, not chips

January 7, 2005 – Transmeta Corp., Santa Clara, CA, a developer of x86-compatible energy-efficient semiconductors for portable computers, is shifting its business focus from designing and selling chips to licensing the IP.

The developer of expects to complete a critical evaluation of its current business model by month’s end. Focusing on its IP portfolio and R&D capabilities will “reduce our cash needs substantially” as well as improve results for shareholders, stated president and CEO Matthew Perry. Transmeta sold licenses in 2004 to NEC Electronics and Fujitsu Ltd. for its LongRun2 power management technologies, and hopes to add more licensees in 2005 for LongRun2 as well as other designs.

Investors responded with doubt to the news, dropping Transmeta’s stock 24% on the news.

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