MOUNTAIN VIEW, Calif., October 22, 2002 - MIPS Technologies, Inc., (NASDAQ: MIPS, MIPSB) a leading provider of industry standard processor architectures and cores for digital consumer and business applications, today reported financial results for its first fiscal quarter ended September 30, 2002.
Revenue for the first quarter of fiscal 2003 was $9.4 million, a 24 percent decline compared to $12.5 million for the same quarter a year ago. Revenue excluding revenue from Nintendo 64 video game products declined by 16 percent compared to the same quarter a year ago. Contract revenue was $5.9 million, a decrease of 24 percent compared to $7.8 million in the comparable period in fiscal 2002. Royalties were $3.5 million, a decrease of 25 percent compared to $4.7 million in the same quarter a year ago, due to lower royalties from Nintendo 64 video game products.
Net loss for the first quarter of fiscal 2003 was $3.9 million compared to a net loss of $927,000 for the same quarter a year ago. The diluted net loss per share for the first quarter of fiscal 2003 was $0.10 compared to a diluted net loss share of $0.02 for the same quarter a year ago.
Casey Eichler, chief financial officer for MIPS Technologies, said, "Our management team made significant organizational changes, including the decision to close our Denmark design center, to reduce our overall spending levels given our revenue expectations. These actions will better position us to endure the market recession and emerge as strongly as possible when conditions improve."
John Bourgoin, chairman and CEO of MIPS Technologies, commented, "The first quarter was the most challenging we've experienced in our four year history. These conditions led us to make difficult choices in our engineering, sales and marketing organizations. However, our focus on our top strategic imperatives remains strong and our commitment to our customers remains unsurpassed."
MIPS invites you to listen to management's discussion of Q1 fiscal 2003 results and guidance for Q2 fiscal 2003 in a conference call live beginning at 1:45 p.m. Pacific DT. Conference call number is (913) 981-5543. Replay number is (719) 457-0820 and will be available for 5 days, beginning shortly after the end of the conference call. The access code is 623368.
MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and business applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers, and system OEMs. MIPS Technologies, Inc. and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650-567-5000 or www.mips.com.
This press release contains forward-looking statements regarding future events or the future financial performance of MIPS Technologies, Inc. Actual events or results may differ materially. Many factors could cause the actual results to differ materially from those contained in such forward-looking statements, including but not limited to: that products will fail to achieve market acceptance, increases in our research and development expenses, the anticipated benefits of our partnering relationships may be more difficult to achieve than expected, the timing of or delays in customer orders, delays in the design process, the length of MIPS Technologies' sales cycle, MIPS Technologies' ability to develop, introduce and market new products and product enhancements, and the level of demand for semiconductors and end-user products that incorporate semiconductors. With respect to MIPS Technologies, we refer you to the documents that it files from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2002.
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| MIPS TECHNOLOGIES, INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (In thousands, except per share data)
| ||||||
| Three Months Ended September 30, | ||||||
| 2002 | 2001 | |||||
| (unaudited) | ||||||
| Revenue: | ||||||
| Royalties | $ | 3,533 | $ | 4,728 | ||
| Contract revenue | 5,909 | 7,767 | ||||
| Total revenue | 9,442 | 12,495 | ||||
| | | |||||
| Costs and expenses: | ||||||
| Cost of contract revenue | - | - | ||||
| Research and development | 8,507 | 8,796 | ||||
| Sales and marketing | 3,243 | 4,282 | ||||
| General and administrative | 1,831 | 1,625 | ||||
| Acquired in process research and development | 394 | - | ||||
| Total costs and expenses | 13,975 | 14,703 | ||||
| Operating income (loss) | (4,533) | (2,208) | ||||
| Other income (expense), net | 655 | 1,078 | ||||
| Income (loss) before income taxes | (3,878) | (1,130) | ||||
| Provision (benefit) for income taxes | - | (203) | ||||
| Net income (loss) | $ | (3,878) | $ | (927) | ||
| | | |||||
| | | | | |||
| Net income (loss) per basic share | $ | (0.10) | $ | (0.02) | ||
| | | |||||
| Net income (loss) per diluted share | $ | (0.10) | $ | (0.02) | ||
| | | |||||
| Common shares outstanding-basic | 39,619 | 38,912 | ||||
| Common shares outstanding-diluted | 39,619 | 38,912 | ||||
| MIPS TECHNOLOGIES, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | ||||||
| September 30, 2002 | June 30, 2002 | |||||
| (unaudited) | ||||||
| | Assets | |||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 84,210 | $ | 90,712 | ||
| Short-term investments | 10,000 | 5,000 | ||||
| Accounts receivable | 2,949 | 6,046 | ||||
| Prepaid expenses and other current assets | 7,675 | 9,883 | ||||
| Total current assets | 104,834 | 111,641 | ||||
| Equipment and furniture, net | 7,290 | 7,481 | ||||
| Other assets | 10,105 | 9,866 | ||||
| $ | 122,229 | $ | 128,988 | |||
| | | |||||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 666 | $ | 1,203 | ||
| Accrued liabilities | 6,379 | 8,979 | ||||
| Deferred revenue | 3,106 | 2,911 | ||||
| Total current liabilities | 10,151 | 13,093 | ||||
| | | |||||
| Stockholders' equity | 112,078 | 115,895 | ||||
| $ | 122,229 | $ | 128,988 | |||
| | | |||||