Sequential revenue growth & one time charges
MOUNTAIN VIEW, Calif., January 16, 2003 - MIPS Technologies, Inc. (NASDAQ: MIPS, MIPSB) today reported financial results for its second fiscal quarter ended December 31, 2002 which resulted in 10 percent sequential revenue growth from an increase in both royalties and license fees. In addition, the company recorded charges related to restructuring and an impairment charge related to an equity investment.
Revenue for the second quarter of fiscal 2003 was $10.4 million, a 13 percent decline compared to $12.0 million for the same quarter a year ago. Contract revenue was $6.2 million, a decrease of 14 percent compared to $7.3 million in the comparable period in fiscal 2002 and an increase of 6 percent over the prior quarter. Royalties were $4.1 million, a decrease of 12 percent compared to $4.7 million in the same quarter a year ago, due to lower royalties from Nintendo 64 video game products and an increase of 17 percent over the prior quarter. Royalties excluding royalties from Nintendo video game products increased 27 percent compared to the same quarter a year ago.
Net loss for the second quarter of fiscal 2003, which included a restructuring charge of $7.6 million and a $1.4 million charge for an equity investment, was $14.3 million compared to a net loss of $3.5 million for the same quarter a year ago. The diluted net loss per share for the second quarter of fiscal 2003 was $0.36 compared to a diluted net loss share of $0.09 for the same quarter a year ago.
Casey Eichler, chief financial officer for MIPS Technologies, said, "While we are encouraged by the growth in revenues compared with the prior quarter, we continue to be cautious in managing our business in a difficult semiconductor environment."
John Bourgoin, chairman and CEO of MIPS Technologies, commented, "We continued to build upon our portfolio of leading 32-bit products by introducing a new smart card/secure data product, which is licensed by three of the industry leaders. In addition, we are rolling out a new 32-bit family, which will provide licensees with the capability of creating major performance enhancements in their applications. I am also encouraged that the number of licensees paying royalties continued to ramp as it has for the past several quarters."
MIPS invites you to listen to management's discussion of Q2 fiscal 2003 results and guidance for Q3 fiscal 2003 in a conference call live beginning at 1:45 p.m. Pacific DT. Conference call number is 1-719-457-2622. Replay number is 1-719-457-0820 and will be available for 5 days, beginning shortly after the end of the conference call. The access code is 242882
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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., including those relating to product introductions. 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, changes 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 and subsequent Forms 10-Q and 8-K.
MIPS® is a registered trademark in the United States and other countries, and MIPS-based™ is a trademark of MIPS Technologies, Inc.