MOUNTAIN VIEW, Calif. Years of developing a strong intellectual property base for the 32- and 64-bit processor market is finally paying off at MIPS Technologies Inc., resulting in a nearly 60 percent increase in fiscal 2000 second quarter net income.
MIPS, which supplies microprocessor IP for the consumer and embedded systems industries to semiconductor manufacturers and OEMs, said it earned $6.6 million, or 17 cents per share, in the quarter ended Dec. 31, up from $4.2 million in the comparable 1998 quarter. Most of the gains came from growth in contract revenue, which more than quadrupled to $7.85 million, from $1.75 million, in the year-ago period. Total revenue increased to $21.49 million, up 43 percent, from $14.99 million in the similar 1998 quarter.
MIPS' revenue stream has increased as the company added several new licensees and as the number of chip makers and OEMs using the company's IP rose to include companies such as Broadco m Corp., General Instrument Corp., Integrated Device Technology Inc., Texas Instruments Inc., and NEC Corp. MIPS said it has now licensed its IP to a total of 12 companies.
"Eighteen months into our new embedded licensing activities, we are beginning to see the first of our new royalty streams," said John Bourgoin, chief executive of MIPS, during a conference call with analysts. "Since the beginning of the December quarter, we have announced seven new license agreements, our strongest activity period so far."
According to Bourgoin, MIPS' calendar 1999 revenue rose to $84.9 million, a 50 percent growth over the 1998 period.