It might be too early to call it a turnaround, but looks like Transmeta’s decision to abandon the chip selling business in favor of licensing its technologies to all comers is finally paying off. Seven years into existence it realized, you really cannot compete with Chipzilla. The company today announced that it expects to report positive cash flow for the 2005 second quarter. Which essentially means that the company is not seeing dollars fly out of its pockets.

Still some bad news. Its auditors are saying so long and Nasdaq is warning about a de-listing. Its LongRun2 technology, however could become increasingly important as the world gets packed with miniaturized devices of all hues and forms. (Economics redefine Moore’s Law!)
> Transmeta’s LongRun2 technologies are a practical solution to the rapidly escalating industry-wide problem of transistor leakage that is challenging the semiconductor industry as process geometries continue to scale to smaller dimensions. To date, Transmeta has signed three licensing agreements for its proprietary LongRun2 power management technologies – with NEC Electronics, Fujitsu Limited and Sony Corporation.