The company that has never been profitable announced its financial results for the year 2002. There is no surprise that the company again declares huge losses and even revenue decline compared to the year before. There is no surprise in that – personal computer market in general was very weak in 2002, while Transmeta cannot offer something very competitive in terms of price, features, performance and power consumption. Basically, we know almost nothing about Transmeta’s processors, except the fact that they consume less power than competitors and perform not really fast. Will we buy something we do not have idea? I do not think so.

Transmeta’s net revenue for the fourth quarter of fiscal 2002 was $6.1 million, compared with $6.4 million reported in the third quarter of 2002 and $1.5 million in the fourth quarter of 2001. GAAP net loss for the fourth quarter of 2002 was $21.7 million, or a loss of $0.16 per share. This compares with a GAAP net loss of $21.8 million, or a loss of $0.16 per share in the third quarter and a GAAP net loss of $49.7 million, or a loss of $0.38 per share in the fourth quarter of 2001. On a pro forma basis, excluding the effects of non-cash charges of $4.1 million, the net loss for the quarter was $17.6 million, or a loss of $0.13 per share. This compares with a pro forma net loss of $17.8 million or a loss of $0.13 per share in the third quarter and a pro forma net loss of $23.0 million or a loss of $0.18 per share in the fourth quarter of 2001.

Net revenue for fiscal 2002 was $24.2 million, compared with $35.6 million for fiscal 2001. GAAP net loss for fiscal 2002 was $110.0 million, or a loss of $0.82 per share. This compares with a GAAP net loss of $171.3 million, or a loss of $1.33 per share in 2001. Pro forma net loss for fiscal 2002 was $83.9 million, or a loss of $0.62 per share, which excludes non-cash charges totaling $13.2 million, charges related to the company's restructuring totaling $14.7 million and the benefit of previously recorded inventory-related charges of $1.9 million. This compares with a pro forma net loss of $77.0 million, or a loss of $0.60 per share for fiscal 2001, which excludes the effects of non-cash charges, in-process research and development charges and net excess inventory charges.

As for the bright side of Transmeta’s business, we have to say that they managed to expand their market presence, not as substantially as they might dream, but still something. Currently numerous vendors utilise Transmeta’s processors and sell their products in the USA, Canada, Europe, Japan, China and Taiwan.

Since the notorious TM8000 aka Astro processor will not be available until the third quarter, the company does not expect that their financial results will be a lot better in the first quarter 2003 compared to the fourth quarter 2002. Frankly speaking, I hardly believe that the second quarter results will be better. It looks like the company continues to loose money in the first half, as for the second half, we should wait for Astro.