MIPS TECHNOLOGIES, INC. ANNOUNCES FOURTH QUARTER REVENUE TO BE BELOW EXPECTATION
MOUNTAIN VIEW, Calif., July 2, 2001 - MIPS Technologies, Inc., (NASDAQ: MIPS, MIPSB) a leading provider of industry standard processor architectures and cores for digital consumer and network applications, today announced that fiscal fourth quarter revenue is anticipated to be below the company's previous expectations. The company expects revenue for the fourth quarter ended June 30, 2001 to be $14 million to $15 million and is projecting earnings per share to be near breakeven. Expenses are expected to be near flat when compared to expenses in the March 2001 quarter.
"The disappointing Q4 results are primarily due to the weak technology markets that have adversely affected our existing and potential customers," noted Casey Eichler, chief financial officer. "In addition, these conditions have made it increasingly difficult for us to predict period-to-period revenues as customers in this environment are frequently postponing investment decisions, often with very little notice to us." The company will provide more guidance for fiscal 2002 in its quarterly earnings conference call scheduled for July 17, 2001.
"We continue to see strong interest in the MIPS architecture and our core technology products," said John Bourgoin, chairman and CEO, "but we are also seeing an absolutely extraordinary number of decision postponements. We are in the right long-term markets and we are focused on high-growth segments within these markets. In this challenging business climate, we are managing short-term costs and expenses, while continuing to make investments in R&D to ensure our long-term success. Clearly there are revenue challenges ahead due to weak market conditions, but MIPS remains on track to strengthen its product offering and its position as a leading provider of licensable intellectual property to the embedded markets."
MIPS results for the fourth quarter of fiscal 2001 will be released on July 17, 2001 after the close of the market. The company invites you to listen to management's discussion of Q4 and fiscal 2001 results and Q1 outlook and guidance for fiscal 2002 in a conference call live on July 17, 2001 beginning at 1:45 p.m. Pacific DST. Conference call number is 719-457-2661. 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 588386.
MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and network 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 may contain forward-looking statements regarding future events or the future financial performance of MIPS Technologies, Inc., including projections of our fourth fiscal quarter operating results. Actual events or results may differ materially. Many important factors could cause the actual results to differ materially from those contained in such forward-looking statements, including but not limited to the risks that products will fail to achieve market acceptance, the timing of 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, the timing of new product announcements and introductions by MIPS Technologies and its licensees and their competitors, the demand for semiconductors and end-user products that incorporate semiconductors and other risks. With respect to MIPS Technologies, Inc. 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, 2000 and Form 10-Q for the quarters ended September 30, 2000, December 31, 2000 and March 31, 2001.
As previously noted in our SEC filings, the company is evaluating the impact, if any, of the adoption of SAB 101 on the Company's reported operating results. If, as a result of the adoption of SAB 101, the company is required to make a change in accounting principles regarding revenue recognition, such change will be reflected in the reported results for the quarter and year ended June 30, 2001. The expected operating results provided in this press release are based on the company's historic revenue recognition policy.
MIPS® is a registered trademark in the U.S. and one or more other countries. All press materials are available on the World Wide Web via: http://www.mips.com
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MIPS Technologies, Inc.
+ 650 567 7007
MIPS Technologies, Inc.
Lee Garvin Flanagin
+650 567 5180