Continued Royalty Revenue and Earnings Growth
SUNNYVALE, Calif.- January 28, 2010- 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 second fiscal quarter 2010 ended December 31, 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 Technologies'Analog Business Group.
Summary Second Quarter Fiscal 2010 Highlights:
- Revenue grew to $15.2 million
- Licensee royalty units grew to 126 million units from 106 million units in Q1'10
- GAAP net income from continuing operations was $3.3 millionor $0.07 per share
- Non-GAAP net income from continuing operations was $4.1 million or $0.09 per share
- Cash and investment balances grew $4.5million to $48 million at quarter end
Fiscal Second Quarter 2010 Details:
Revenue for the second quarter was $15.2 million, an increase of 1 percent over the prior quarter revenue of $15.0 million and a decrease of 25 percent from the $20.3 million reported in the second fiscal quarter a year ago.
Revenue from royalties was $11.4 million, an increaseof $1.6 million or 17 percent from the prior quarter and a decrease of $1.2million from the $12.6 million reported in the second quarter a year ago. License revenue was $3.8 million, a decreaseof 27 percent from the $5.2 million reported in the prior quarter and a decreaseof 51 percent from the $7.8 million reported in the second quarter a year ago.
The Company's fiscal Q2 GAAP net income from continuingoperations was $3.3 million or $0.07 per share. This compares with a net incomeof $0.6 million or $0.01 per share from continuing operations in the priorquarter, and a net income of $0.1 million continuing operations in the secondquarter a year ago.
Non-GAAP netincome from continuing operations in the second quarter of fiscal 2010, whichexcludes certain costs detailed in the tables below, was $4.1 million or $0.09 pershare, compared with a non-GAAP net income from continuing operations of $2.5million or $0.06 per share in the prior quarter and $1.2 million or $0.03 pershare in the second quarter a year ago. The tables below provide areconciliation of non-GAAP measures used in this release to the correspondingGAAP results.
"Royalty revenues and earnings per share improved as expected in the secondquarter despite a challenging European and North American licensing environment," said Maury Austin, MIPS Technologies chief financial officer."With the CEO search now behind us, we are focused on growing our licenserevenue. We are well-positioned for growth as we look ahead, with anaccomplished new CEO, innovative technology, and a management team that is veryfocused on winning."
MIPS Technologies announced on January 25, 2010 that Sandeep Vij has joinedthe Company as president and CEO.
MIPS Technologies invites you to listen in a live conferencecall to management's discussion of Q2 fiscal 2010 results, as well as forwardlooking guidance for Q3 fiscal 2010. The conference call number is 210-839-8502and the replay number is 203-369-0632. The password for both calls is MIPS. The replay will be available for 30 daysshortly following the end of the conference call. An audio replay of theconference 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.
MIPSTechnologies, Inc. (Nasdaq: MIPS)is a leading provider of industry-standard processor architectures and coresthat power some of the world's most popular products for the homeentertainment, communications,networking and portable multimediamarkets. These include broadband devices from Linksys, DTVs and digital consumerdevices from Sony, DVD recordabledevices from Pioneer, digital set-top boxes from Motorola, network routers fromCisco, 32-bit microcontrollers from Microchip Technology and laser printersfrom Hewlett-Packard. Founded in 1998, MIPSTechnologies is headquartered in Sunnyvale, California, with officesworldwide. For more information, contact (408) 530-5000 or visit www.mips.com.