Bolsters Balance Sheet; Refocuses on Core Competencies
MOUNTAIN VIEW, Calif. - May 8, 2009 - MIPS Technologies, Inc. (NasdaqGS: MIPS), a leading provider of industry-standard processor architectures and cores for home entertainment, communications, networking and portable multimedia markets, today announced the divestiture of its Analog Business Group. Synopsys, Inc. (Nasdaq: SNPS) acquired the business unit in an all-cash transaction for $22 million, effective immediately. This transaction enables MIPS Technologies to focus exclusively on its core competencies in microprocessor IP, continuing to build on its leadership position in markets like the digital home and networking, while expanding its presence in other key markets. The Analog Business Group was formed through MIPS' acquisition of Chipidea Microelectronica S.A. in August 2007.
"We believe this action will improve shareholder value, increase profitability, boost our competitive position and enable us to focus all of our resources on solving our customers' most immediate design challenges," said John Bourgoin, MIPS Technologies president and CEO. "MIPS has tremendous opportunities in our industry-leading processor IP, development tools and robust ecosystem, and we are laser-focused on growing our business in these areas. Synopsys has a long-term mixed-signal IP business that will be significantly stronger as a result of this deal."
MIPS Technologies invites you to listen in a live conference call to management's discussion of this news. The conference call will be held today, May 8, 2009, at 6:00 a.m. Pacific Time. The conference call number is 212-519-0814, and the replay number is 203-369-0099. The password for both calls is MIPS. The replay will be available for 30 days shortly following the end of the conference call.
About MIPS Technologies, Inc.
MIPS Technologies, Inc. (NasdaqGS: MIPS) is a leading provider of industry-standard processor architectures and cores that power some of the world's most popular products for the home entertainment, communications, networking and portable multimedia markets. These include broadband devices from Linksys, DTVs and digital consumer devices 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. 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.