Transmeta Corporation (NASDAQ: TMTA) announced that the company is streamlining its operations to focus on a core business of developing and licensing intellectual property.

On Monday the Santa Clara Calif.-based chip design firm said that it cut 75 jobs, or 39 percent of its workforce to restructure, shifting away from product development and instead to research.

Shares of the Santa Clara, California-based company plummeted 10.68 percent to 92 cents while trading on the Nasdaq Stock Market.

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, said Lester Crudele, president and CEO. We continue to believe that this is the best way for us to deliver our technology to the market and monetize our investments.

The company said that over the next two quarters it will cut even more jobs, between 25 and 55 people.

In 2000, the company met eager anticipation from investors as the company's share prices nearly doubled on the first day of its initial public offering.

At the time, it was hoped that the company would compete well against Intel (NASDAQ: INTC) and AMD (NYSE: AMD) by designing microprocessors that consumed less energy.