MIPS Technologies, Inc. reports fourth quarter and fiscal 2000 financial Results

MIPS TECHNOLOGIES, INC. REPORTS FOURTH QUARTER AND FISCAL 2000 Financial Results

MIPS Technologies Posts Record License Revenue and License Activity

 MOUNTAIN VIEW, CA (July 18, 2000) MIPS Technologies, Inc., (NASDAQ: MIPS, MIPSB) a leading provider of industry standard processor architectures and cores for the digital consumer and network applications, today reported financial results for its fourth quarter and fiscal year ended June 30, 2000. MIPS Technologies recently announced extensive expansion in Europe and is today announcing record license activity and revenue.

Revenue for the fourth quarter of fiscal 2000 was $22.4 million, an increase of 26 percent compared with the same quarter a year ago. Royalties were $12.2 million, an increase of 8 percent compared to $11.3 million in the same quarter a year ago due to higher non-Nintendo royalties. Royalties excluding royalties from Nintendo were $4.2 million, an increase of 48 percent compared to $2.8 million in the same quarter a year ago. Contract revenue was $10.2 million, an increase of 57 percent compared to $6.5 million in the comparable period in fiscal 1999.

Net income for the fourth quarter of fiscal 2000 was $5.0 million compared to $4.6 million for the same quarter a year ago. The diluted net income per share for the fourth quarter of fiscal 2000 was $0.13 compared to $0.12 for the same quarter a year ago.

?MIPS Technologies completed its strongest quarter and fiscal year since our IPO for licensing revenue and royalty revenue excluding the legacy Nintendo royalty stream,? said Casey Eichler, Chief Financial Officer. ?I am very pleased with our Q4 and fiscal 2000 financial results and the strong growth in our fundamental business. With the completion this quarter of SGI?s full divestiture of all of its remaining holdings of MIPS common stock, we now have the foundation to take MIPS to the next level as a totally independent company focused on supplying high value intellectual property.? In connection with the divestiture, two of the four SGI appointed members of the Board of Directors, Kurt Akeley and Teruyasu Sekimoto, resigned from the Board of Directors.

Total revenue for fiscal year 2000 grew 25 percent to a record $89.8 million, when compared to revenue of $71.7 million in fiscal 1999. Total revenue for fiscal year 2000 excluding royalties from Nintendo were $47.2 million an increase of 102 percent compared to $23.3 million in fiscal 1999. Contract revenue increased by $21.7 million or 176 percent to $34.0 million and accounted for 38 percent of total revenue for fiscal 2000 compared to 17 percent in fiscal 1999. Net income for fiscal 2000 was $27.1 million compared to $22.7 million for fiscal 1999. Diluted net income per share was $0.68 for fiscal 2000 compared to $0.58 for fiscal 1999.

?MIPS had an excellent quarter with nine new licensees,? said John Bourgoin, Chairman and CEO. ?MIPS? momentum in acceptance of the architecture continues to grow. Our latest product, the R20K, the highest performing processor core in the industry available for licensing which taped out in June and was announced at the Embedded Processor Forum, has already been licensed by several customers. And, during the quarter we expanded our European sales operations with four new professionals and two new offices. This gives MIPS a sales and engineering presence in Europe of over 45 people located in four countries.?
 
 

Q4 2000 Highlights: Following are selected press release headlines from MIPS Technologies, and the company?s licensees, systems vendors and third party providers.

·MIPS Technologies Introduces MIPS64 R20K/MIPS64 20Kc Highest Performing Licensable 64-bit Processor and Core with MIPS-3D Graphics Acceleration.
·Altera Licenses MIPS Technologies Core To Use In APEX Programmable Logic Devices.
·Wind River, MIPS Technologies Create Center of Excellence, Align High-Demand Embedded RISC Processors, Development Tools.
·MIPS Technologies Adopts Shareholders? Rights Plan.
·Alchemy Semiconductor Unveils MIPS-based Au1000 Internet Edge Processor.
·JEDI Technologies Delivers Java Solution for MIPS-Based Processors.
·Fabless Semiconductor Start-up SiByte Announces Breakthrough MIPS64 Microprocessor Core -- Delivers up to 1 GHz at Less than 2.5 Watts.
·NEC Licenses MIPS32 4K Family Microprocessor Cores from MIPS Technologies.
·MIPS Technologies Joins HAVi Industry Group.
·MIPS Technologies and Chartered Semiconductor Complete Architecture Verification of MIPS-based Cores in Silicon.
·New MIPS-based ICs and Systems At NetWorld+Interop 2000, Cable2000 and E3 (Electronic Entertainment Exposition) Shows Demonstrate Wide-spread Adoption of Architecture in Digital Entertainment and Networking Applications.
·IDT Announces its First Integrated MIPS-based Processor Using the RC32300 Architecture.
·EFI Introduces MIPS-based Fiery® for Epson Stylus Pro 7000 and 9000.
·Philips Semiconductors and Eldon Technology to Develop MIPS-based Low-Cost, Intelligent iDTV Solution.
·ITeX and NEC Partner to Create MIPS-based ADSL Reference Design for CPE Solutions, Accelerating Time to Market for ADSL Modems, Routers and Gateways.
·Toshiba Introduces The Industry's First Embedded 64-Bit MIPS CPU SLI ASIC Core.
·Pace First to Develop Set-top Box With Single Chip; Pace Integrates Broadcom's MIPS-based Single Chip Set into Time Warner Cable Box.
·Broadcom Delivers World's First MIPS-based Single Chip for Cable-TV Set-Top Boxes.
·Intertainer and SeaChange to Integrate Entertainment On Demand Service Into Motorola's MIPS-based DCT 5000 + Set-Top Box Using Microsoft TV Advanced Software.
·Quantum Effect Devices Inks MIPS-based HP Printer Win.
·MIPS-based 32- And 64-Bit Processors Score Highly In EEMBC Benchmarks.
·QuickLogic And MIPS Technologies Join Forces.
·Accelerated Technology Announces Complete RTOS Solution for MIPS Technologies' Newest MIPS32 4K Family of 32-bit Processor Cores.
·TeraLogic and ACCESS to Provide Innovative MIPS-based Digital TV and Internet Solution For BS Digital Broadcasting in Japan.
·V-ONE and NEC Computers Inc. Announce Agreement to Bundle SmartGate VPN in MIPS-based MobilePro Windows CE Devices.
·Symbol Technologies Announces Family of Windows-Powered MIPS-based Pocket PCs.
·Casio Introduces A Full Line Up of MIPS-based Pocket PCs To Meet Both Consumer and Corporate Needs.
·NEC Electronics Announces MIPS-based Microprocessor Support For Windows-Powered Pocket PCs.
·NEC Electronics' MIPS-based Vr4121 Selected as Microprocessor of Choice for Casio's New Pocket PC Device.
·MIPS Technologies and Microware Team Up to Provide Superior Digital Entertainment Technology.
·Toshiba Announces EEMBC Benchmark Scores For Its Embedded MIPS-based Microprocessors.
·MIPS Technologies and Lineo Announce Agreement to Expand Acceptance Of Linux® in Embedded Markets.
·HP's New Color LaserJet 8550 Printer Delivers Advanced, Creative Color-printing Solutions at an Affordable Price.

MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and network applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers, and system OEMs. MIPS Technologies, Inc. and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products.

Licensees currently include: Alchemy Microprocessor Design Group (Cadence); ATI Technologies Inc.; Broadcom Corporation; Centillium Communications, Inc.; Chartered Semiconductor Manufacturing Ltd.; CommQuest (IBM); Conexant Systems, Inc.; ESS Technology, Inc.; Excess Bandwidth Corporation; General Instrument Corporation; IDT Technologies; Lara Networks, Inc.; LSI Logic Corporation; Macronix; Metalink Ltd.; NEC Corporation; NKK Corporation; Philips Semiconductors; QuickLogic Corporation; Quantum Effect Devices, Inc. (QED); Sandcraft, Inc.; SiByte, Inc.; Sony Corporation; Synova; Texas Instruments Incorporated; Toshiba Corporation; and Taiwan Semiconductor Manufacturing Company. Numerous companies utilize MIPS-based intellectual property. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650-567-5000 or http://www.mips.com.

This press release may contain forward-looking statements regarding future events or the future financial performance of MIPS Technologies, Inc. Actual events or results may differ materially. Many important factors could cause the actual results to differ materially from those contained in such forward-looking statements, including but not limited to the risks that products will fail to achieve market acceptance, the timing of customer orders, delays in the design process, the length of MIPS Technologies? sales cycle, MIPS Technologies? ability to develop, introduce and market new products and product enhancements, the timing of new product announcements and introductions by MIPS Technologies and its licensees and their competitors, the demand for semiconductors and end-user products that incorporate semiconductors and other risks. With respect to MIPS Technologies, Inc. we refer you to the documents that it files from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 1999 and Form 10-Q for the quarters ended September 30, 1999, December 31, 1999 and March 31, 2000.
 

-end-
 MIPS is a registered trademark and MIPS-based and MIPS32, MIPS64, 4Kc, 4Km, 4Kp, 5Kc, R20K and 20Kc are trademarks of MIPS Technologies, Inc. All other trademarks are the property of their respective companies. All press materials are available on the World Wide Web via: http://www.mips.com/

                       MIPS TECHNOLOGIES, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (In thousands, except per share data)

                              Three Months Ended     Years Ended
                                    June 30,           June 30,
                               -----------------  -----------------
                                 2000     1999     2000     1999
                               -------  -------  -------  -------

Revenue:
    Royalties                 $12,208  $11,258  $55,828  $59,385
    Contract revenue           10,230    6,525   34,011   12,325
                               -------  -------  -------  -------
         Total revenue         22,438   17,783   89,839   71,710
Costs and expenses:
    Cost of contract revenue      250       --      750      125
    Research and development    8,050    6,026   28,104   21,069
    Sales and marketing         3,342    2,539   10,354    7,359
    General and administrative  2,263    2,329    7,781    7,002
                               -------  -------  -------  -------
         Total costs and
          expenses             13,905   10,894   46,989   35,555
                               -------  -------  -------  -------
Operating income                 8,533    6,889   42,850   36,155
Other income (expense), net      1,315      711    3,896    1,614
                               -------  -------  -------  -------
Income before income taxes       9,848    7,600   46,746   37,769
Provision for income taxes       4,824    3,040   19,633   15,108
                               -------  -------  -------  -------
Net income                     $ 5,024  $ 4,560  $27,113  $22,661
                               =======  =======  =======  =======

Net income per basic share     $ 0.13  $ 0.12  $ 0.71  $ 0.61
                               =======  =======  =======  =======
Net income per diluted share   $ 0.13  $ 0.12  $ 0.68  $ 0.58
                               =======  =======  =======  =======
Common shares outstanding-basic 38,404   37,307   38,032   37,258
                               =======  =======  =======  =======
Common shares outstanding-
 diluted                        39,942   39,296   39,912   38,762
                               =======  =======  =======  =======
 

                       MIPS TECHNOLOGIES, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                           (In thousands)

                                                 June 30,  June 30,
                                                   2000      1999
                                                 --------  --------
           Assets

Current assets:
     Cash and cash equivalents                  $ 84,359  $ 49,916
     Accounts receivable                           9,175       425
     Prepaid expenses and other current assets     8,002     2,989
                                                 --------  --------
          Total current assets                   101,536    53,330
Equipment and furniture, net                        6,742     5,123
Other assets                                          974       936
                                                 --------  --------
                                                 $109,252  $ 59,389
                                                 ========  ========

           Liabilities and Stockholders' Equity

Current liabilities:
     Accounts payable                           $ 2,270  $ 10,028
     Accrued liabilities                          14,778     8,265
                                                 --------  --------
          Total current liabilities               17,048    18,293
Deferred revenue                                       --       375
Stockholders' equity                              92,204    40,721
                                                 --------  --------
                                                 $109,252  $ 59,389
                                                 ========  ========
 
 
 

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