SUNNYVALE, Calif. - January 30, 2013 - MIPS Technologies, Inc. (NASDAQ: MIPS), a leading provider of industry-standard processor architectures and cores for home entertainment, networking, mobile and embedded applications, today reported consolidated financial results for its second fiscal quarter of 2013 ended December 31, 2012. All financial results are reported in U.S. GAAP unless otherwise noted.
Summary Second Quarter Fiscal 2013 Financial Metrics:
- Revenue was $14.6 million
- Licensee royalty units grew to 194 million units from 182 million units in Q1 '13
- GAAP net loss was $6.4 million or $0.12 per share; non-GAAP net loss was $0.5 million or $0.01 per share
- Cash and investment balances ended the quarter at $131.3 million
As previously announced, on November 5, 2012, MIPS entered into a patent sale agreement with Bridge Crossing, LLC ("Bridge Crossing"), an acquisition vehicle of Allied Security Trust ("AST"), and a merger agreement with Imagination Technologies Group plc (LSE: IMG) ("Imagination"), with anticipated net proceeds of approximately $7.31 per share in cash to each holder of MIPS common stock. On December 9, 2012, MIPS entered into an amendment to its merger agreement with Imagination that increased the purchase price being paid by Imagination to $80 million and removed the conditions to closing requiring the approval of the Committee on Foreign Investment in the United States and that MIPS is not a real property holding corporation. As a result of the amendment, the net proceeds to each holder of MIPS common stock following the consummation of the proposed patent sale transaction with Bridge Crossing, the proposed recapitalization and the proposed merger, increased to approximately $7.64 per share in cash. On December 16, 2012, MIPS entered into a second amendment to its merger agreement with Imagination that increased the purchase price being paid by Imagination to $100 million. As a result of the amendment, the net proceeds to each holder of MIPS common stock, following the consummation of the proposed patent sale transaction with Bridge Crossing, the proposed recapitalization and the proposed merger, increased to approximately $7.94 per share in cash.
Both the patent sale transaction and the merger transaction are subject to customary closing conditions, including the approval of MIPS Technologies' shareholders, who will vote separately on each of the transactions and the recapitalization. Approval of the patent sale transaction is not subject to stockholder approval of the Imagination merger transaction. The merger is subject to stockholder approval of the patent sale transaction and the recapitalization. The proceeds of the transactions, which are subject to a fixed holdback of approximately $100 million to cover tax and other liabilities, will be distributed to MIPS' stockholders on a pro-rata basis through a recapitalization of MIPS common stock. MIPS expects the transactions to close during the month of February 2013.
For more information on the proposed transactions, please visit www.mips.com/company/investor-relations/.
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Conference Call and Webcast
In light of the pending transactions with Bridge Crossing and Imagination, MIPS will not conduct an investor conference call or webcast following the release of this earnings information, nor provide financial guidance. To access the Company's first quarter results and other financial information, please visit www.mips.com/company/investor-relations/.
About MIPS Technologies, Inc.
MIPS Technologies, Inc. (NASDAQ: MIPS) is a leading provider of industry-standard processor architectures and cores for home entertainment, networking, mobile and embedded applications. The MIPS architecture powers some of the world's most popular products. Our technology is broadly used in products such as digital televisions, set-top boxes, Blu-ray players, broadband customer premises equipment (CPE), WiFi access points and routers, networking infrastructure and portable/mobile communications and entertainment products. 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.