Continued Profitability; Record Quarterly Royalty Units Achieved
SUNNYVALE, Calif. - April 27, 2010 - MIPS Technologies, Inc. (Nasdaq: MIPS), a leading provider of industry-standard processor architectures and cores for digital consumer, home networking, wireless, communications and business applications, today reported consolidated financial results for its third fiscal quarter 2010 ended March 31, 2010. 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 Third Quarter Fiscal 2010 Financial Highlights:
- Revenue grew 15 percent sequentially to $17.5 million
- Quarterly royalty units grew to a record 135 million units from 126 million units in Q2'10
- GAAP net income was $3.1 million or $0.07 per share
- Non-GAAP net income was $3.9 million or $0.08 per share
- Cash and investment balances grew to $51.2 million at quarter end
Fiscal Third Quarter 2010 Details:
Revenue for the third quarter was $17.5 million, an increase of 15 percent over the prior quarter revenue of $15.2 million and a decrease of 1 percent from the $17.7 million reported in the third fiscal quarter a year ago.
Revenue from royalties was $12.1 million, an increase of 6 percent from the prior quarter and 13 percent from the third quarter a year ago. License revenue was $5.4 million, a sequential increase of 42 percent from the prior quarter and a decrease of 23 percent from the $7.0 million reported in the third quarter a year ago.
The Company's fiscal Q3 GAAP net income from continuing operations was $3.1 million or $0.07 per share, which was equal to the earnings per share in both the prior quarter and the third quarter a year ago.
Non-GAAP net income from continuing operations in the third quarter of fiscal 2010, which excludes certain costs detailed in the tables below, was $3.9 million or $0.08 per share, compared with a non-GAAP net income from continuing operations of $4.1 million or $0.09 per share in the prior quarter and $4.4 million or $0.10 per share in the third quarter a year ago. The tables below provide a reconciliation of non-GAAP measures used in this release to the corresponding GAAP results.
"I'm very encouraged with our results for this quarter, including signing our largest mobile handset customer to-date coupled with record royalty units achieved during the quarter," said Sandeep Vij, MIPS Technologies chief executive officer. "As MIPS Technologies' solutions continue to proliferate around the globe, we are focused on extending our lead in the home entertainment and networking markets, and making continued inroads into new markets such as storage and mobile handsets."
The Company also reported that it paid off its remaining debt of $8.4 million on April 7, 2010.
MIPS Technologies invites you to listen in a live conference call to management's discussion of Q3 fiscal 2010 results, as well as forward looking guidance for Q4 fiscal 2010. The conference call number is 210-839-8502 and the replay number is 203-369-0063. 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.