Transmeta releases details of IPO

Transmeta Corp. released terms for an initial public offering of 13 million common shares in a range of $11-$13 per share, potentially raising $144 million for the chip manufacturer.

Transmeta Corp. on Monday released terms for an initial public offering of 13 million common shares in a range of $11-$13 per share, potentially raising $144 million for the chip manufacturer.

Transmeta, whose competitors include Intel Corp. and Advanced Micro Devices Inc. disclosed the terms in a filing with the Securities and Exchange Commission. It originally filed for an IPO in August.

It plans to use the proceeds for working capital and other corporate purposes.

Underwriters, led by Morgan Stanley Dean Witter and Deutsche Banc Alex Brown, have an overallotment option of 1.95 million shares.

Transmeta, which plans to list on Nasdaq under the symbol TMTA, will have more than 126 million common shares outstanding when the IPO is completed.

Crusoe notebooks due
The company's Crusoe line of microprocessors is aimed at the notebook and Internet appliance segments of the mobile Internet computer market.

Transmeta introduced its first line of Crusoe microprocessors in January and recognized its first revenues from the products in the first half of the year.

The company said it has a history of substantial losses and expects more in the near future. It posted net losses of $10.1 million in 1998, $41.1 million in 1999 and $43.4 million in the first half of 2000.

At June 30, it had an accumulated deficit of $119.4 million, according to the SEC filing.

Sony Corp. and Fujitsu Ltd. have said they will use Crusoe chips in some of their notebook computers, while Hitachi Ltd. will incorporate Crusoe into three notebook computers and an Internet appliance, Transmeta said.

Some of Transmeta's biggest backers include Microsoft Corp. co-founder Paul Allen, who will hold a 6.3 percent stake once the IPO is completed.

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