Transmeta Issues Sales Warning, Blames Weak Japanese Market

Transmeta's sales for the quarter ending June 30 will fall 40 to 50 percent below the prior quarter, officials for the microprocessor manufacturer said Wednesday.

Transmeta had $18.6 million in sales in the first quarter.

The plunge in revenue comes from a drop in unit volume shipments, said Mark Allen, president and CEO, in a statement. He attributed the drop in volume to a new economic weakness in Japan, which is the company's biggest market.

Allen also said the company will take an inventory charge during the second quarter due to a planned transition to a 0.13-micron manufacturing process.

Last week, Intel officials said that company's revenue for the quarter would fall at the lower end of its range of revenue projections, but Intel expected higher seasonal sales for the second half of the year.