Transmeta Once Again To Focus On Its IP

Santa Clara, CA-based Transmeta Corp. is once again going to focus its efforts on leveraging its IP (Intellectual Property). Lester Crudele, president and CEO, was quoted saying:

   "After a critical evaluation of all our lines of businesses, 
    we have decided that IP development and licensing will be 
    our core business activity going forward."

Transmeta initiated its new business plan by reducing headcount by approximately 39%, or 75 employees. News reporting services wrote: "and its headcount will be cut by a further 25 to 55 people as it completes existing engineering services work."

     restructuring charges:  $11 million to $14 million
   total cash expenditures:  $ 7 million to $10 million
       yearly cost savings:  $17 million to $23 million 
Exercises
  1. GDT was initially confused about what was meant by "headcount will be cut by a further 25 to 55 people." Does it mean 25 more people will lose their jobs reducing the number of employess to 55 or will between 25 to 55 jobs be eliminated?

  2. Approximate how many employees Transmeta had prior to eliminating the first 75 employees.

  3. No or Yes: Assuming restructuring charges fall within the specified range, at least have of the restructuring charges will be in the form of "cash expenditures."


Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 05 February 2007

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