Royalty Revenue Increases 27% Sequentially
SUNNYVALE, Calif. - October 29, 2009 - MIPS Technologies, Inc. (Nasdaq: MIPS), a leading provider of industry-standard processor architectures and cores for home entertainment, communications, networking and portable multimedia markets, today reported consolidated financial results for its first fiscal quarter 2010 ended September 30, 2009. All financial results are reported in U.S. GAAP unless otherwise noted, and compare current results with historical results recast to reflect the disposition of MIPS' Analog Business Group.
Summary First Quarter Fiscal 2010 Highlights:
- Revenue was $15.0 million, a sequential increase of 19% or $2.4 million
- Licensee royalty units grew to 106 million units from 82 million units in Q4'09
- Costs and operating expenses were $12.4 million, unchanged from fourth quarter 2009
- GAAP net income from continuing operations was $0.6 million or $0.01 per share
- Non GAAP net income from continuing operations was $2.5 million or $0.06 per share
- Cash balances ended the quarter at $43.5 million
Fiscal First Quarter 2010 Details:
Revenue for the first quarter was $15.0 million, an increase of 19 percent over the prior quarter revenue of $12.6 million and a decrease of 23 percent from the $19.6 million reported in the first fiscal quarter a year ago.
Revenue from royalties was $9.8 million, an increase of $2.1 million or 27 percent from the prior quarter and a decrease of 1.9 million from the $11.6 million reported in the first quarter a year ago. License revenue was $5.2 million, an increase of 6 percent from the $4.9 million reported in the prior quarter and a decrease of 34 percent from the $7.9 million reported in the first quarter a year ago. The sequential increases generally reflect the improving semiconductor market from its low point in the first half of the calendar year.
Including a $1.0 million accrual for estimated taxes which relates to a one time change in the legal structure of our foreign operations, the Company's fiscal Q1 GAAP net income from continuing operations was $0.6 million or $0.01 per share. This compares with a net income of $2.7 million or $0.06 per share from continuing operations in the prior quarter, and a net income of $5.0 million or $0.11 per share from continuing operations in the first quarter a year ago.
Non-GAAP net income from continuing operations in the first quarter of fiscal 2010, which excludes certain costs detailed in the tables below, was $2.5 million or $0.06 per share, compared with a non-GAAP net income from continuing operations of $5.5 million or $0.12 per share in the prior quarter and $6.1 million or $0.14 per share in the first quarter a year ago. The tables below provide a reconciliation of non-GAAP measures used in this release to the corresponding GAAP results.
"Revenues and operating margins improved as expected in the first quarter," said John Bourgoin, president and CEO. "We are pleased to see continued improvements in the market as demonstrated by our strong royalty growth. We are optimistic that we have passed the low point in revenues. We also made excellent progress in taking the Android platform into digital home devices and joined the Open Handset Alliance to contribute to continued development of Android for mobile devices. MIPS is positioned for a strong year."
MIPS Technologies invites you to listen in a live conference call to management's discussion of Q1 fiscal 2010 results, as well as guidance for Q2 fiscal 2010. The conference call number is 210-839-8502 and the replay number is 203-369-3522. The password for both calls is MIPS. The replay will be available for 30 days shortly following the end of the conference call. An audio replay of the conference call will also be posted on the company's website at: www.mips.com/company/investor-relations/.
To read financial tables, click here
About MIPS Technologies, Inc.
MIPS Technologies, Inc. (Nasdaq: 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 Sunnyvale, California, with offices worldwide. For more information, contact (408) 530-5000 or visit www.mips.com.