MANHASSET, N.Y. Processor technology IP supplier Transmeta Corp. reported net earnings of $10.1 million, or 5 cents per share on sales of $27.9 million in its third quarter ended September, compared with a loss of $28.8 million, or 16 cents a share on sales of $7.0 million in the year-ago quarter.
In the previous quarter, Transmeta (Santa Clara, Calif.) earned $6.8 million, or 4 cents per share on sales of $24.7 million.
The company reported positive cash flow from operations of $9.5 million and had a cash balance of $56.9 million at the end of the third quarter.
Third-quarter 2005 revenue comprised $9.6 million from licensing, $10.3 million from services, and $7.9 million from product sales. Overall gross margin was 70.5 percent, up from 67.1 percent the previous quarter.
Transmeta expects to end 2005 with a cash balance of $53.0 million, up from a prior guidance of $47.0 million. Long struggling with profitability, the company has seen its fortunes turn for the better in recent quarters following restructuring and management changes
earlier this year and the continued shift toward a license-based revenue model.
"We are pleased with our results as they reflect the early success of our modified business model," said Arthur Swift, president and CEO of Transmeta, in a statement. "Our continuing goal is to drive Transmeta's technology into high volume market segments by leveraging licensing, customized processor development, and synergistic engineering services."