Quarterly Revenues Strongest in More Than a Year
Total revenue for the first quarter of fiscal 2004 was $10.4 million compared to $9.4 million for the same quarter a year ago. Royalties were $5.1 million, an increase of 44 percent compared to $3.5 million in the same quarter a year ago. Contract revenue was $5.3 million, a decrease of 10 percent compared to $5.9 million in the comparable period in fiscal 2003. Net loss for the first quarter of fiscal 2004, which included a restructuring charge of $3.2 million, was $5.8 million compared to a net loss of $3.9 million for the same quarter a year ago. Net loss per share for the first quarter of fiscal 2004 was $0.14 compared to a net loss per share of $0.10 for the same quarter a year ago.
"We progressed towards our plan to achieve break-even on an operating basis by the end of the calendar year 2003. We have successfully delivered on our customer commitments for the 20Kc and Amethyst cores and completed our restructuring plan to focus on our synthesizable cores product lines," said Casey Eichler, chief financial officer for MIPS Technologies. "Furthermore, we continue to control our expenses aggressively while investing in next-generation technologies, such as the 24K product family to ensure customers have optimized solutions that solve their design needs."
"The first fiscal quarter marked the continuation of a long-term trend of royalty growth from new license agreements since MIPS Technologies became a public company. These royalties, now 39% of total royalties are becoming a significant contributor to revenues and indicate the increasing strength in our business model," said John Bourgoin, president & CEO. "Also, with the addition of eight new licenses this quarter, MIPS Technologies has now exceeded the 100 license milestone since our IPO. Both of these events underscore the ongoing broad adoption of our industry-standard technology by market leaders."
MIPS Technologies invites you to listen to management's discussion of Q1 fiscal 2004 results and guidance for Q2 fiscal 2004 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-719-457-2693. 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 680187. An audio replay of the conference call will be posted on the Company's website (www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
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, including those regarding the ability of MIPS Technologies to achieve breakeven and the anticipated timing thereof. 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: our products may 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 filed from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2003 and subsequent Forms 10-Q and 8-K.
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MIPS is a registered trademark in the United States and other countries, and MIPS-based is a trademark of MIPS Technologies, Inc.
Q1 FY2004 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers.
| MIPS TECHNOLOGIES, INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (In thousands, except per share data)
| ||||||
| Three Months Ended September 30, | ||||||
| 2003 | 2002 | |||||
| (unaudited) | ||||||
| Revenue: | ||||||
| Royalties | $ | 5,088 | $ | 3,533 | ||
| Contract revenue | 5,325 | 5,909 | ||||
| Total revenue | 10,413 | 9,442 | ||||
| | | |||||
| Costs and expenses: | ||||||
| Research and development | 8,144 | 8,507 | ||||
| Sales and marketing | 2,796 | 3,243 | ||||
| General and administrative | 1,644 | 1,831 | ||||
| Acquired in process research and development | - | 394 | ||||
| Restructuring | 3,233 | - | ||||
| Total costs and expenses | 15,817 | 13,975 | ||||
| Operating loss | (5,404) | (4,533) | ||||
| Other income (expense), net | 208 | 655 | ||||
| Loss before income taxes | (5,196) | (3,878) | ||||
| Provision (benefit) for income taxes | 567 | - | ||||
| Net loss | $ | (5,763) | $ | (3,878) | ||
| | | |||||
| | | | | |||
| Net loss per basic and diluted share | $ | (0.14) | $ | (0.10) | ||
| | | |||||
| Common shares outstanding-basic and diluted | 40,172 | 39,619 | ||||
| MIPS TECHNOLOGIES, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | ||||||
| September 30, 2003 | June 30, 2003 | |||||
| (unaudited) | ||||||
| | Assets | |||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 73,692 | $ | 83,839 | ||
| Short-term investments | 4,975 | - | ||||
| Accounts receivable, net | 4,010 | 4,762 | ||||
| Prepaid expenses and other current assets | 2,603 | 3,648 | ||||
| Total current assets | 85,280 | 92,249 | ||||
| Equipment and furniture, net | 5,607 | 4,202 | ||||
| Other assets | 7,211 | 8,898 | ||||
| $ | 98,098 | $ | 105,349 | |||
| | | |||||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 523 | $ | 504 | ||
| Accrued liabilities | 9,034 | 10,977 | ||||
| Deferred revenue | 2,248 | 2,592 | ||||
| Total current liabilities | 11,805 | 14,073 | ||||
| | | |||||
| Long-term liabilities | 2,496 | 1,900 | ||||
| Stockholders' equity | 83,797 | 89,376 | ||||
| $ | 98,098 | $ | 105,349 | |||
| | | |||||