MIPS Technologies Returns to Profitability
Total revenue for the second quarter of fiscal 2004 was $10.7 million compared to $10.4 million for the same quarter a year ago. Royalties were $5.9 million, an increase of 43% compared to $4.1 million in the same quarter a year ago. Contract revenue was $4.8 million, a decrease of 24% compared to $6.2 million in the comparable period in fiscal 2003. Net income for the second quarter of fiscal 2004 was $477,000 compared to a net loss of $14.3 million, which included a restructuring charge of $7.6 million, for the same quarter a year ago. Net income per share on a diluted basis for the second quarter of fiscal 2004 was $0.01 compared to a net loss per share of $0.36 for the same quarter a year ago.
"MIPS Technologies has exceeded its goal of reaching breakeven on an operational basis and is pleased to report a profit for the second fiscal quarter," said Casey Eichler, chief financial officer for MIPS Technologies. "Solid quarter-on-quarter and year-over-year growth in royalties has helped return a profit to stockholders with an EPS of $0.01. We became cash flow positive in the quarter adding $4.8 million to our cash balance. For the remainder of the fiscal year, we will continue to manage expenses in line with revenue expectations."
"MIPS' December quarter was the strongest quarter we have seen in nearly two years," said John Bourgoin, president & CEO. "Our royalty revenues are benefiting from our broadening base of licensees and generally improved business conditions, and our licensing efforts generated more new licenses than in any quarter in our history. An important element of our licensing success was the first agreements for our 24K core family. We expect to make the first 24K core generally available this quarter to a broad base of customers. I am pleased that we executed well to our internal objectives including our expense goals and the 24K core product line, thereby strengthening both our Q2 financials and our prospects."
MIPS Technologies invites you to listen to management's discussion of Q2 fiscal 2004 results and guidance for Q3 fiscal 2004 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-913-981-5509. Replay number is 1-719-457-0820 and will be available for 5 days, beginning shortly after the end of the conference call. The access code is 119035. An audio replay of the conference call will be posted on the Company's website (www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
Q2 FY2004 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers.
| MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (In thousands, except per share data) | ||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||
| 2003 | 2002 | 2003 | 2002 | |||
| (unaudited) | (unaudited) | |||||
| Revenue: | ||||||
| Royalties | $5,925 | $4,134 | $11,013 | $7,667 | ||
| Contract revenue | 4,763 | 6,244 | 10,088 | 12,153 | ||
| Total revenue | 10,688 | 10,378 | 21,101 | 19,820 | ||
| | | |||||
| Costs and expenses: | ||||||
| Cost of contract revenue | - | 250 | - | 250 | ||
| Research and development | 5,471 | 9,107 | 13,615 | 17,614 | ||
| Sales and marketing | 2,540 | 3,859 | 5,336 | 7,102 | ||
| General and administrative | 2,023 | 2,015 | 3,666 | 3,846 | ||
| Aquired in process research and development | - | - | - | 394 | ||
| Restructuring | - | 7,634 | 3,233 | 7,634 | ||
| Total costs and expenses | 10,034 | 22,865 | 25,850 | 36,840 | ||
| Operating income (loss) | 654 | (12,487) | (4,749) | (17,020) | ||
| Other income (expense), net | 107 | (916) | 315 | (261) | ||
| Income (loss) before income taxes | 761 | (13,403) | (4,434) | (17,281) | ||
| Provision for income taxes | 284 | 856 | 852 | 856 | ||
| Net income (loss) | $477 | $(14,259) | $(5,286) | $(18,137) | ||
| | | | | |||
| Net income (loss) per basic share | $0.01 | $(0.36) | $(0.13) | $(0.46) | ||
| Net income (loss) per diluted share | $0.01 | $(0.36) | $(0.13) | $(0.46) | ||
| Common shares outstanding-basic | 40,400 | 39,421 | 40,286 | 39,311 | ||
| Common shares outstanding-diluted | 42,679 | 39,421 | 40,286 | 39,311 | ||
| MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (In thousands) | ||||
| December 31, | June 30, | |||
| 2003 | 2003 | |||
| (unaudited) | | |||
| | Assets | |||
| Current assets: | ||||
| Cash and cash equivalents | $63,467 | $83,839 | ||
| Short-term investments | 19,957 | - | ||
| Accounts receivable, net | 2,603 | 4,762 | ||
| Prepaid expenses and other current assets | 1,815 | 3,648 | ||
| Total current assets | 87,842 | 92,249 | ||
| Equipment and furniture, net | 4,817 | 4,202 | ||
| Other assets | 6,855 | 8,898 | ||
| $99,514 | $105,349 | |||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $618 | $504 | ||
| Accrued liabilities | 9,181 | 10,977 | ||
| Deferred revenue | 3,084 | 2,592 | ||
| Total current liabilities | 12,883 | 14,073 | ||
| Long-term liabilities | 1,518 | 1,900 | ||
| Stockholders' equity | 85,113 | 89,376 | ||
| $99,514 | $105,349 | |||