MOUNTAIN VIEW, Calif. - January 30, 2008 - MIPS Technologies, Inc. (NasdaqGS: MIPS), a leading provider of industry-standard architectures, processor cores and analog IP for digital consumer, home networking, wireless, communications and business applications, today reported consolidated financial results for the quarter ending December 31, 2007. Second quarter results include financials from Chipidea Microelectronica, S.A. (Chipidea) following the completion of the acquisition on August 27, 2007.
Revenue for the second quarter was $26.5 million, an increase of 19 percent over the prior quarter revenue of $22.2 million, and an increase of 26 percent from the $21.0 million reported in the second fiscal quarter a year ago.
Revenue from royalties was $12.5 million, an increase of 19 percent from the $10.5 million reported in the prior quarter and an increase of 12 percent from the $11.2 million reported in the second quarter a year ago. Contract revenue was $13.9 million, an increase of 20 percent from the $11.6 million reported in the prior quarter and an increase of 42 percent from the $9.8 million reported in the second quarter a year ago.
Net loss in the second quarter of fiscal 2008 on a generally accepted accounting principles (GAAP) basis was $12.1 million compared to net loss of $7.0 million in the prior quarter and net income of $2.6 million in the second quarter a year ago. GAAP net loss per share on a basic and diluted basis in the second quarter of 2008 was $0.28, compared with GAAP net loss per diluted share of $0.16 in the prior quarter and net income per share of $0.06 in the second quarter a year ago.
Non-GAAP net loss in the second quarter of fiscal 2008, which excludes the effect of equity based compensation expense and certain costs and expenses related to the acquisition of Chipidea, was $2.9 million or $0.07 per basic and diluted share, compared with net income of $3.9 million or $0.08 per diluted share in the prior quarter and $4.4 million or $0.10 per diluted share in the second quarter a year ago. A reconciliation of non-GAAP measures used in this release to the corresponding GAAP results is provided in the tables below.
"Two of our three major revenue sources had record numbers in the December quarter, however, our processor license shortfall, coupled with an extraordinary tax provision, pushed us to a loss position," said John Bourgoin, president and CEO. "As previously announced, we are taking restructuring steps to help assure that our financial targets will be met during the coming quarters."
"I believe that both our analog and processor business groups have excellent underlying strength as evidenced by strong growth in analog last year (>40%) and growing strength in processor shipments-now surpassing the 100 million unit mark in the December quarter," said Bourgoin. "As we work our way through the acquisition issues and begin to reap the benefits of cost reduction activities, I expect improvements in our results."
MIPS Technologies invites you to listen to management's discussion of Q2 results and Q3 guidance in a live conference call today beginning at 1:45 p.m. Pacific time. The conference call number is 1-210-839-8502 and the replay number is 1-203-369-3287, which will be available for seven days following the call. The access code for both numbers is MIPS. An audio replay of the conference will be posted on the company's website (www.mips.com) soon thereafter.
Q2 FY 2008 News Highlights:
From its founding more than 20 years ago, the MIPS® architecture has represented innovation and performance. Today, MIPS Technologies and its licensees continue to lead in system performance and innovative solutions for established and emerging markets-especially in the digital living room and connected home. With multiple design teams actively developing the architecture, more than 900 MIPS-BasedTM implementations throughout the world, and a vibrant ecosystem of third-party tools and software, MIPS continues to be at the core of the user experience.
Following are selected press release headlines from MIPS Technologies and the company's licensees, systems vendors and third party providers:
- MIPS Technologies Hits EDN Magazine's 'Hot 100 Products' List
- MIPS Technologies Enters 32-bit Microcontroller Market
- Microchip Technology Chooses Industry-Leading MIPS32® Architecture for Entrance into 32-bit Microcontroller Market
- MIPS Technologies Wins Leading Product Award from EDN China
- MIPS Technologies Joins the Multicore Association to Drive Standards for Next-Generation Embedded Designs
- Chipidea Introduces Industry's First Class D Audio Driver IP for Portable Consumer Applications
- AMIMON Chooses the MIPS32® M4K® Core for Wireless High Definition Multimedia Applications
- MIPS Technologies Builds on Leadership Position in Products for the Digital Living Room with SiS License
- Sigma Designs Selects MIPS® Cores for Next-Generation Home Entertainment SoCs
- ALI Corporation, Global Leader in Digital Entertainment Solutions Licenses Power-efficient MIPS32® 24KEcTM Pro Core
- Chipidea Achieves Certification for USB High-Speed PHY IP on Chartered's 90nm and 65nm Customer-ready Technologies
- Entropic Licenses MIPS32® 24KcTM Core for Next-Generation Broadband and Residential Gateway Applications
- MIPS Technologies Appoints Stuart Nichols Vice President and General Counsel
Third Party Announcements
- Samsung's New Home Theater-in-a-Box (HTiB) Powered by Sigma Designs MIPS-BasedTM SMP8634 Media Processor
- Broadcom's Satellite MIPS-BasedTM System-On-A-Chip Provides the Highest Level of System Integration for Low Cost, High Definition Satellite Set-Top Boxes
- PMC-Sierra Introduces MIPS-BasedTM MSP7160 Integrated GPON Fiber Access Gateway Device
- Harris Corporation Selects RMI's Professional Services Group to Unleash MIPS-BasedTM XLR Processor as Foundation for Data Plane Processing Program
- Entropic Communications and Hannet Telecom Partner to Deliver Innovative MIPS-BasedTM Broadband Solutions to Korea
- Cavium Networks MIPS-BasedTM OCTEON Processors Power H3C's SMB and Internet Café Router Products
- CipherOptics, Leading Innovator of Compliance Grade Data Protection Solutions, Selects RMI's MIPS-BasedTM XLR Processor to Further Innovation
- Aruba Networks Selects Cavium Networks' MIPS-BasedTM OCTEON Processors for Enterprise Networking Solutions
- Broadcom and RaisingSun Collaborate to Deliver Industry's First Digital TV Solution for China's Television Market
- Ralink's MIPS-BasedTM 802.11n APSOC/iNIC RT2880 Passes DFS Testing
- Mobile Phone Leader Selects RMI's MIPS-BasedTM Alchemy Au1250 Media Processor for Sophia Nani - Full-Featured PMP with Touchscreen Display
- TimeSys Introduces LinuxLink Subscriptions for MIPS32® 74KTM Processor Cores
- Cavium Networks' New MIPS-BasedTM OCTEON Plus CN58XX Low-Power Series Breaks the 1 Watt per Core Barrier
- Entropic Communications Announces Availability of Industry's First MoCA 1.1-Enabled Chipset
- D2 Technologies and Ikanos Unveil Integrated Design for VoIP-Enabled Quadruple Play Devices
Click here to read financial tables
About MIPS Technologies, Inc.
MIPS Technologies, Inc. (NASDAQ: MIPS) is the world's second largest semiconductor design IP company and the number one analog IP company worldwide. With more than 250 customers around the globe, MIPS Technologies powers some of the world's most popular products for the digital consumer, broadband, wireless, networking and portable media markets-including broadband devices from Linksys, DTVs and entertainment systems from Sony, DVD recordable devices from Pioneer, digital set-top boxes from Motorola, network routers from Cisco, 32-bit microcontrollers from Microchip Technology and laser printers from Hewlett-Packard. Today, the company owns more than 400 patent properties (patents and applications) worldwide. Founded in 1998, MIPS Technologies is headquartered in Mountain View, California, with offices worldwide. For more information, contact (650) 567-5000 or visit www.mips.com.