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SiliconValley.com: Chip start-up Transmeta sets course for IPO in rough seas

Nov 06, 2000, 14:29 (0 Talkback[s])

"... This week, probably Tuesday, Transmeta will go public, attempting to raise as much as $234 million by selling 13 million shares at $16 to $18 each in an initial public offering. Will investors scoop up Transmeta's shares in a buying frenzy, or will they leave the stock stranded, like the fictional sailor Robinson Crusoe, for whom the company's flagship chip is named?"

"In January, Transmeta was on top of the world. The company had just come out of hiding after operating in stealth mode for five years. It garnered the most press ever seen for the launch of a new microprocessor family. And the market for IPOs was red-hot. But the company didn't have any customers yet to entice investor interest."

"Now, Transmeta has customers, but a steady downturn in tech stocks, including chips, has left investors skittish. Intel has come up with its own line of low-power-consumption chips for laptops. Independent testers have found that Transmeta's chips, which must translate software written for Intel chips on the fly, run slower than comparable Intel chips."

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