Transmeta Posts Loss, Plans to Cut 200 Jobs

Transmeta Corp., an upstart chip maker trying to compete with giant Intel Corp., reported a second-quarter loss and said it plans to cut its work force by 40%, or 200 employees.

The company lost $35.6 million, or 27 cents a share, compared with a loss of $69.3 million, or 54 cents, a year ago, as sales dropped 28% to $7.54 million. Revenue for the third quarter will be flat to up 5%, the company said.

Transmeta, whose Crusoe processor is used mostly by Japanese computer makers, also said it canceled plans to release its next-generation chip.

The Santa Clara, Calif.-based company said it will take a third-quarter charge between $4 million and $4.5 million as a result of the staff cuts.

Transmeta fell 27 cents to $1.88 on Nasdaq before the news was announced.