TMTA

[LiveLife]

Both TMTA and SANM seem to be "flat" today.

I sold TMTA this morning (26,000 shares at $1.70 on limit sell) and bought PAX on an "extremely short speculative" trade at $0.97 - $1.02 (43,600 shares!).  I thought about daytrading PAX before I left for work this morning, but after reading fousc's post about the new CEO, I will hold for now.

TMTA and PAX are David's 3SOF picks (PAX being his "fast" 3SOF).

I am still writing the draft for "Knowledge Center" swing trading lessons and I'll post later this week.

Good trading!

[nightshade81]

TMTA results in and they look good  .  Afterhours seems to agree at the moment:

"DJ Transmeta Reports Rev Of $27.9 M And Positive Cash Flow From Ops For Q3 2005; Raises Cash Guidance To $53 M At 2005 Fiscal Yr End Guides To Rev Of $71 M To $72 M For Full Yr 2005"

"DJ Transmeta 3Q Net 5c/Shr Vs Loss 16c"

http://biz.yahoo.com/bw/051108/20051108006097.html?.v=1

[dwest718]

GREAT QUARTER!!!... but guidance could cause a few problems.

At http://biz.yahoo.com/bw/051108/20051108006097.html?.v=1:

Transmeta Reports Revenue of $27.9 Million and Positive Cash Flow from Operations for Q3 2005
Tuesday November 8, 4:10 pm ET 
Raises Cash Guidance to $53 Million at 2005 Fiscal Year End Guides to Revenue of $71 Million to $72 Million for Full Year 2005


SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 8, 2005--Transmeta Corporation (Nasdaq:TMTA - News), the leader in efficient computing technologies, today announced financial results for the third quarter ended September 30, 2005.
Highlights for the Third Quarter 2005

Net revenue of $27.9 million
Net income of $10.1 million, or $0.05 per share
Positive cash flow from operations of $9.5 million
Cash balance of $56.9 million at September 30, 2005
Deferred income of $6.0 million
Engineering services projects with Sony and Microsoft continue to progress well
Business Update

"We are pleased with our results as they reflect the early success of our modified business model," commented Arthur L. Swift, president and CEO. "Our continuing goal is to drive Transmeta's technology into high volume market segments by leveraging licensing, customized processor development, and synergistic engineering services. As an early innovator in the fields of microprocessor design and power reduction for leading edge chips, as well as a pioneer in addressing the challenge of power leakage, we have a solid technology base on which to build a sustainable competitive advantage. This year, we will have successfully transformed our business, and as we look to 2006, we are well positioned to capitalize on our solid financial progress and key strategic customer relationships."

Net revenue for the third quarter of 2005 was $27.9 million, compared to $24.7 million in the second quarter of 2005, and $7.0 million in the third quarter of 2004. Net revenue in the third quarter comprised $9.6 million of license revenue, $10.3 million of service revenue and $7.9 million of product revenue. This compares with $10.0 million of license revenue, $7.6 million of service revenue, and $7.1 million of product revenue in the second quarter of 2005. The product revenue reflects end-of-life (EOL) product sales as well as customer product programs which have reached or are reaching the end of their respective product life. In addition, the Company reported deferred income of $6.0 million as of September 30, 2005, as compared to $15.5 million for the second quarter of 2005.

The Company reported gross margin of 99.5% for the license business, 41.6% for the service business and 72.7% for the product business. On a consolidated basis, the Company's gross margin was 70.5% for the 2005 third quarter, compared to 67.1% for the second quarter of 2005, and a negative 62.2% for the third quarter of 2004.

The Company's net income for the third quarter of 2005 was $10.1 million, or $0.05 per share compared with a net income of $6.8 million, or $0.04 per share in the second quarter of 2005, and a net loss of $28.6 million, or a loss of $0.16 per share in the third quarter of 2004.

The Company had positive cash flow from operations of $9.5 million in the third quarter of 2005, as compared to positive cash flow of $4.8 million in the second quarter of 2005 and negative cash flow of $21.2 million in the third quarter of 2004. The Company's cash, cash equivalents and short term investments at September 30, 2005 totaled $56.9 million.

"Our licensing and services businesses, with their varying times to revenue recognition, coupled with our present high degree of customer concentration, can result in a variable revenue profile from quarter to quarter," continued Swift. "Looking forward, our goal is to generate new sources of revenue in 2006, including new licensees for our LongRun2 technologies, our first royalties from our previous LongRun2 licensees, and new revenues from specialized versions of our 90 nanometer Efficeon products."

Beat all estimates, greatly outperformed last year's same quarter.  Not the best guidance though so we could see a bit of a selloff... I'm still watchin this though and I'm stayin long.

[la-onda]

AH up:

Transmeta Reports Revenue of $27.9 Million and Positive Cash Flow from Operations for Q3 2005; Raises Cash Guidance to $53 Million at 2005 Fiscal Year End Guides to Revenue of $71 Million to $72 Million for Full Year 2005
Tuesday , November 08, 2005 16:10 ET

SANTA CLARA, Calif., Nov 08, 2005 (BUSINESS WIRE) -- Transmeta Corporation (Nasdaq:TMTA), the leader in efficient computing technologies, today announced financial results for the third quarter ended September 30, 2005.

Highlights for the Third Quarter 2005

-- Net revenue of $27.9 million

-- Net income of $10.1 million, or $0.05 per share

-- Positive cash flow from operations of $9.5 million

-- Cash balance of $56.9 million at September 30, 2005

-- Deferred income of $6.0 million

-- Engineering services projects with Sony and Microsoft continue to progress well

Business Update

"We are pleased with our results as they reflect the early success of our modified business model," commented Arthur L. Swift, president and CEO. "Our continuing goal is to drive Transmeta's technology into high volume market segments by leveraging licensing, customized processor development, and synergistic engineering services. As an early innovator in the fields of microprocessor design and power reduction for leading edge chips, as well as a pioneer in addressing the challenge of power leakage, we have a solid technology base on which to build a sustainable competitive advantage. This year, we will have successfully transformed our business, and as we look to 2006, we are well positioned to capitalize on our solid financial progress and key strategic customer relationships."

Net revenue for the third quarter of 2005 was $27.9 million, compared to $24.7 million in the second quarter of 2005, and $7.0 million in the third quarter of 2004. Net revenue in the third quarter comprised $9.6 million of license revenue, $10.3 million of service revenue and $7.9 million of product revenue. This compares with $10.0 million of license revenue, $7.6 million of service revenue, and $7.1 million of product revenue in the second quarter of 2005. The product revenue reflects end-of-life (EOL) product sales as well as customer product programs which have reached or are reaching the end of their respective product life. In addition, the Company reported deferred income of $6.0 million as of September 30, 2005, as compared to $15.5 million for the second quarter of 2005.

The Company reported gross margin of 99.5% for the license business, 41.6% for the service business and 72.7% for the product business. On a consolidated basis, the Company's gross margin was 70.5% for the 2005 third quarter, compared to 67.1% for the second quarter of 2005, and a negative 62.2% for the third quarter of 2004.

The Company's net income for the third quarter of 2005 was $10.1 million, or $0.05 per share compared with a net income of $6.8 million, or $0.04 per share in the second quarter of 2005, and a net loss of $28.6 million, or a loss of $0.16 per share in the third quarter of 2004.

The Company had positive cash flow from operations of $9.5 million in the third quarter of 2005, as compared to positive cash flow of $4.8 million in the second quarter of 2005 and negative cash flow of $21.2 million in the third quarter of 2004. The Company's cash, cash equivalents and short term investments at September 30, 2005 totaled $56.9 million.

"Our licensing and services businesses, with their varying times to revenue recognition, coupled with our present high degree of customer concentration, can result in a variable revenue profile from quarter to quarter," continued Swift. "Looking forward, our goal is to generate new sources of revenue in 2006, including new licensees for our LongRun2 technologies, our first royalties from our previous LongRun2 licensees, and new revenues from specialized versions of our 90 nanometer Efficeon products."

Guidance

For the 2005 fourth quarter and FYE 2005, we expect:

-- Positive operating cash flow of $6.0 to $6.5 million in the second half of 2005, increased from prior guidance of breakeven cash flow for the second half

-- Fourth quarter negative operating cash flow of $3.0 to $3.5 million

-- FYE 2005 year end cash of $53.0 million, increased from prior guidance of $47.0 million

-- Fourth quarter total revenue of $12.0 to $13.0 million

-- Fourth quarter net loss of $5.4 to $5.9 million, or a loss of $0.03 per share

"In the third quarter, we continued to build on the operational and financial success of the second quarter, and we expect to exceed our stated key objective of achieving break-even or better cash flow from operations for the second half of 2005," commented Mark R. Kent, chief financial officer. "For the full year, we are expecting revenues of at least $71 million, which includes product revenue of approximately $24 million. This product revenue includes EOL and legacy customer sales which we expect to substantially conclude this year."

"Looking forward, we expect to replace this transitioning product revenue with new revenue from licensing, services, and our specialized 90 nanometer Efficeon product business," continued Kent. "As we move into next year, we expect to continue growing our Sony services business. In addition, we expect to achieve key program milestones and the recognition of related revenue for a significant development services contract in the first half of 2006."

[nightshade81]

Now it's dropping like a rock in AH.... were people expecting a better report?

Any ideas?

[Leaira]

I almost bought some TMTA today, but decided not to buy anything cuz of market conditions.  I had 4 stocks I was watching, and by 10:00 they were all down anywhere from 3-7 percent.  Anyway I'm glad I decided not to buy it.  Look at the way it's trading after hours.  It's set to go down over 10% tomorrow.  It's interesting how a bad day on the market can take down even the strongest stocks.

Leaira

[Amarens]

I just do not get this  Great results. Is this the guidance? Does anybody know what's up here?

Really frustrating! 

Amarens

[jpm]

well.....well....welll....


I WARNING....

always that a stock goes up 1/2 days before the exit of the after results... the stock goes down..

big exemple:Bidu.com,Amazon,Taser.

[wisebuys]

LiveLife you sure do seem to have made an art of swing trading.  Nice moves.

I'm anxiously awaiting your teaching thread.  I need to especially learn when to sell.

Thanks for all your hard work.  This newbie appreciates it.

[dhiraj19]

Guys,
Here is my take. It is not technical but more from technology field where I work day in and out.

TMTA future guidance is there problem. Today, they retriated the same from last quarter but didnt get any new contracts in 4th quarter. There product revenue increased which is dying line, hence discontinuation of line would have caused real issues for 4th quarter results.
The cash they have is from anti-trust settlement with other companies. Currently they MSFT and SNE using their existing technology but they need to show some progress with other existing partner or bring new partners.
- Dhiraj

[shawFund]

Next quarter guidance: revenue $12 mil and loss $0.01.

That is the real problem.

I don't think that the stock will go down much lower,

but I don't think that it will go up to $2.00 either.

That is why I did not take position before their earning release.

The company announced the revenue volatility long time ago.

[hudsonsgrill]

Big OUCH!!!!       It's okay, after a while the monkey doesn't even feel the pinch anymore.

[Terliso]

I am still writing the draft for "Knowledge Center" swing trading lessons and I'll post later this week.

Good trading!

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One Triggers:  (Patent Pending)
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http://www.optionsxpress.com/welcome/tour/advanced.aspx?sessionid=&nav=quick

[tokyopua]

Hi, new here, saw a big pullback in the stock today, thinking about getting in tomorrow AM.  Anyone have any advice on timing? 

[tokyopua]

Hi, new here, saw a big pullback in TMTA today, thinking about getting in tomorrow or sometime soon. 

Anyone have any advice on timing?