MOUNTAIN VIEW, Calif. - April 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 ended March 31, 2008. All financial results are reported in U.S. GAAP (generally accepted accounting principles) unless otherwise noted.
Revenue for the third quarter was $27.3 million, an increase of 3 percent over the prior quarter revenue of $26.5 million and an increase of 43 percent from the $19.1 million reported in the third fiscal quarter a year ago. Q3 revenue growth was driven primarily by increased license fees.
Revenue from royalties was $12.6 million, an increase of $0.1 million from the prior quarter and an increase of 17 percent from the $10.7 million reported in the third quarter a year ago. End-user product shipments containing MIPS Technologies' processor IP increased to 115 million units during Q3 from 107 million units in Q2, and 31 percent from the 87 million units recognized in the third quarter of fiscal 2007. Contract and license revenue was $14.8 million, an increase of 6 percent from the $13.9 million reported in the prior quarter and an increase of 77 percent from the $8.3 million reported in the third quarter a year ago.
Gross margin was $17.9 million, an increase of $0.8 million from Q2 FY08 and a decrease of $0.7 million from the same quarter a year ago.
Q3 operating expenses of $23.2 million declined $1.2 million from the prior quarter but increased $4.4 million from the same quarter a year ago. The Q3 reduction in operating expenses was the result of previously announced cost reduction programs implemented during that same quarter.
Net loss in the third quarter of fiscal 2008 was $4.3 million, an improvement of $7.8 million compared with the prior quarter and a decrease from the net income of $1.2 million in the third quarter a year ago. Net loss per share on a basic and diluted basis in the third quarter of 2008 was $0.10, compared with a net loss per basic and diluted share of $0.28 in the prior quarter and net income per share of $0.03 in the third quarter a year ago.
Non-GAAP net income in the third quarter of fiscal 2008, which excludes the effect of equity based compensation expense, certain costs related to the acquisition of Chipidea and the previously announced restructuring, was $2.4 million or $0.05 per diluted share, compared with a non-GAAP net loss of $2.9 million or $0.07 per basic share in the prior quarter and $3.5 million or $0.08 per basic and diluted share in the third 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.
"MIPS achieved significant progress in its third fiscal quarter by trimming costs and integrating the two sales teams," said John Bourgoin, president and CEO. "Although we saw continued weakness in overall licensing activity, the processor licensing business did rebound 28 percent from the prior quarter. In fact, unit shipments of MIPS processor-based products are at all-time highs and grew an additional 7 percent relative to the previous quarter. And with the recent announcements of our first multiprocessing core, the MIPS32® 1004KTM, and our new HDMI IP products, MIPS is generating exceptional levels of interest from customers."
MIPS Technologies invites you to listen to management's discussion of fiscal Q3 results and forward looking 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 1-203-369-0918, which will be available for 30 days following the call. The access code for both numbers is MIPS. An audio replay of the conference call will be posted on the company's website (www.mips.com) soon thereafter.
Q3 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 Appoints John Derrick President and General Manager of Processor Business Group
- Microchip Technology Unites MIPS Technologies' Analog and Processor IP in Latest 32-bit PIC32 MCU Release
- MIPS Technologies Extends Digital Consumer Leadership with Industry's First HDMI 65nm IP Solution
- MIPS Technologies Announces Strategic Alliance with NXP Semiconductors for HDMI Technology
- President and General Manager of MIPS Technologies' Analog Business Group Honored by Leading Portuguese University
- MIPS Technologies Selected as Finalist in EDN's Annual Innovation Awards Competition
- MIPS Technologies Appoints Maury Austin as Chief Financial Officer
- Altair Semiconductor Integrates MIPS Technologies' Analog and Processor IP in Ultra Low-power Mobile WiMAX Processor
- MIPS Technologies Offers Silicon-Proven Hi-Fi Quality Audio IP in Deep Submicron Processes
Third Party MIPS-BasedTM Announcements:
- AMD Displays Technology Leadership with New AMD XilleonTM Panel Processors for Outstanding LCD TV Image Quality
- NXP Powers Sling Media's New SlingCatcher Set Top Box
- RMI Launches the Fastest and Most Power-Optimized Consumer Processor in the Industry for Multifunction Portable Media Players
- Toshiba's New LCD TV SoC Delivers Single-chip Solution with Full 1080P High-Definition TV Support to North American HDTV Market
- Broadcom Announces High Definition PVR Satellite System-on-a-Chip Solution for Direct Broadcast Satellite Set-Top Boxes
- Entropic Surpasses Ten Million c.LinkTM Chipset Shipment Milestone
- Mobileye's System-on-Chip Delivers 2nd Generation Solution for Visual Recognition and Interpretation
- Microchip Technology Expands 32-bit PIC32 MCU Family With USB On-The-Go Functionality and Boosts Performance to 80 MHz
- Cavium Networks' New OCTEON CN52XX Wireless Processors Enable Converged and Scalable 3G, 4G, WiMAX Platforms
- RMI Corporation Implements Dolby Mobile Technology on Alchemy Platform to Enhance Mobile Entertainment
- RMI Corporation Launches Industry's First Quad-Core Multi-Threaded Processor with Integrated Serial RapidIO Interface and IEEE1588 Controller for Wireless Base-Stations
- Broadcom and Coship Electronics Collaborate to Deliver First Commercial High Definition Set-Top Box Solution for China, in Time for Beijing Olympics
- Infineon First to Bring Voice-over-WLAN to Low-Cost Mobile Handsets
About MIPS Technologies, Inc.
MIPS Technologies, Inc. (NasdaqGS: 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.