Total revenue for the fourth quarter of fiscal 2004 was $14.2 million compared to $9.8 million for the same quarter a year ago. Royalties were $6.5 million, an increase of 76 percent compared to $3.7 million in the same quarter a year ago. Contract revenue was $7.7 million, an increase of 26 percent compared to $6.1 million in the same quarter a year ago. Net income for the fourth quarter of fiscal 2004 was $2.6 million compared to a net loss of $6.7 million for the same quarter a year ago. Net income per diluted share for the fourth quarter of fiscal 2004 was $0.06 compared to a net loss per share of $0.17 for the same quarter a year ago.
Total revenue for fiscal year 2004 was $47.9 million, an increase of 22 percent compared to $39.1 million in fiscal 2003. Royalties were $23.4 million, an increase of 49 percent compared to $15.7 million in fiscal 2003. Contract revenue was $24.4 million, an increase of 4 percent compared to $23.4 million in 2003. Net loss for fiscal 2004 was $1.5 million compared to a net loss of $28.9 million in fiscal 2003. Fiscal 2004 net loss per share was $0.04 compared to a net loss per share of $0.73 in fiscal 2003.
"The achievement of our fifth consecutive quarter of revenue growth resulted from increases in both royalties and contract revenue," said Casey Eichler, chief financial officer at MIPS Technologies. "In particular, we are encouraged that royalties from our post IPO agreements contributed more than half our royalty revenue in the quarter. Furthermore, our three consecutive quarters of profitability has boosted our cash position to over $90 million."
"The dramatic improvements in our financials, our product base, and our licensing to customers in key markets such as digital TV, broadband communications products, and DVD recorders were hallmarks of our recently completed fiscal year," said John Bourgoin, president and CEO of MIPS Technologies. "Our newly introduced 24K core family experienced the fastest rate of licensing of any new product in MIPS Technologies' history. We expanded our product offering through optimized software solutions in audio and tools. We believe we made significant progress in the Greater China region, a key area for future growth in embedded consumer markets. MIPS is well positioned for future growth."
MIPS Technologies invites you to listen to management's discussion of Q4 and fiscal 2004 results and guidance for Q1 fiscal 2005 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-719-457-2634. 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 337987. An audio replay of the conference call will be posted on the Company's website (www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
FY 2004 Highlights: During the recent fiscal year, MIPS Technologies and its customers and partners solidified the leadership position of the industry-standard MIPS® architecture in key high-growth markets. Below is a partial listing of key design wins and new MIPS-Basedâ„¢ silicon from a variety of licensees, which were announced during the past twelve months. Close to 200 MIPS-Based announcements from fiscal year 2004 can be viewed by visiting our website at www.mips.com.
MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and business 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. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650-567-5000 or www.mips.com.
This press release contains forward-looking statements, including those regarding growth in its markets. Actual events or results may differ materially. Many factors could cause the actual results to differ materially from those contained in such forward-looking statements, including but not limited to: our products may fail to achieve market acceptance, changes in our research and development expenses, the anticipated benefits of our partnering relationships may be more difficult to achieve than expected, the timing of or delays in 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, and the level of demand for semiconductors and end-user products that incorporate semiconductors. With respect to MIPS Technologies, we refer you to the documents filed from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2003 and subsequent Forms 10-Q and 8-K.
| MIPS TECHNOLOGIES, INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (In thousands, except per share data)
| ||||||
| Three Months Ended June 30, | Twelve Months Ended June 30, | |||||
| 2004 | 2003 | 2004 | 2003 | |||
| Revenue: | ||||||
| Royalties | $6,485 | $3,691 | $23,439 | $15,693 | ||
| Contract revenue | 7,702 | 6,102 | 24,446 | 23,397 | ||
| Total revenue | 14,187 | 9,793 | 47,885 | 39,090 | ||
| | | |||||
| Costs and expenses: | ||||||
| Cost of contract revenue | - | - | - | 250 | ||
| Research and development | 5,230 | 7,613 | 23,962 | 32,863 | ||
| Sales and marketing | 3,525 | 3,253 | 11,878 | 13,759 | ||
| General and administrative | 2,459 | 2,341 | 8,486 | 8,508 | ||
| Aquired in process research and development | - | - | - | 394 | ||
| Restructuring | - | 2,665 | 3,233 | 10,282 | ||
| Total costs and expenses | 11,214 | 15,872 | 47,559 | 66,056 | ||
| Operating income (loss) | 2,973 | (6,079) | 326 | (26,966) | ||
| Other income (expense), net | 93 | 315 | 591 | 303 | ||
| Income (loss) before income taxes | 3,066 | (5,764) | 917 | (26,663) | ||
| Provision for income taxes | 498 | 945 | 2,448 | 2,244 | ||
| Net income (loss) | $2,568 | $(6,709) | $(1,531) | $(28,907) | ||
| | | | | |||
| Net income (loss) per basic share | $.06 | $(0.17) | $(0.04) | $(0.73) | ||
| Net income (loss) per diluted share | $.06 | $(0.17) | $(0.04) | $(0.73) | ||
| Common shares outstanding-basic | 40,634 | 39,866 | 40,434 | 39,505 | ||
| Common shares outstanding-diluted | 43,562 | 39,866 | 40,434 | 39,505 | ||
| MIPS TECHNOLOGIES, INC. | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (In thousands) | ||||
| June 30, 2004 | June 30, 2003 | |||
| | Assets | | ||
| Current assets: | ||||
| Cash and cash equivalents | $78,335 | $83,839 | ||
| Short-term investments | 15,041 | - | ||
| Accounts receivable, net | 2,488 | 4,762 | ||
| Prepaid expenses and other current assets | 3,159 | 3,648 | ||
| Total current assets | 99,023 | 92,249 | ||
| Equipment and furniture, net | 3,578 | 4,202 | ||
| Other assets | 6,102 | 8,898 | ||
| $108,703 | $105,349 | |||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $1,255 | $504 | ||
| Accrued liabilities | 12,344 | 10,977 | ||
| Deferred revenue | 3,407 | 2,592 | ||
| Total current liabilities | 17,006 | 14,073 | ||
| | | |||
| Long-term liabilities | 2,038 | 1,900 | ||
| Stockholders' equity | 89,659 | 89,376 | ||
| $108,703 | $105,349 | |||