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EE Times: Transmeta alters plans, buys back technology licenses

Sep 06, 2000, 08:02 (0 Talkback[s])
(Other stories by Ian Cameron)

"Microprocessor startup Transmeta Inc. (Santa Clara, Calif.) has quietly changed its business plan. The company has bought back its two main technology-licensing agreements from IBM Corp. and Toshiba Corp., and now plans to market products on its own as a fabless chip supplier...."

"Under the technology license agreements it had reached with IBM in 1997 and with Toshiba in 1998, Transmeta gave those companies the right to make and market X86-compatible products based on its technology. Revenue from these deals constituted "substantially all" of Transmeta's revenue in 1997, 1998 and 1999, the company said."

"By amending its agreement with IBM in November 1999 and with Toshiba in February 2000, Transmeta is now dependent solely on its own product sales - which have only just begun, and not yet in volume - through OEMs and distributors...."

"Analysts said the move will benefit Transmeta in the long-run, but question its short-term prospects on the technology-heavy NASDAQ exchange."

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