MIPS TECHNOLOGIES, INC. REPORTS THIRD QUARTER FISCAL 2001 FINANCIAL RESULTS
Record Quarterly Revenue
MOUNTAIN VIEW, CA (April 12, 2001) - MIPS Technologies, Inc., (NASDAQ: MIPS, MIPSB) a leading provider of industry standard processor architectures and cores for digital consumer and network applications, today reported financial results for its third fiscal quarter ended March 31, 2001.
Revenue for the third quarter of fiscal 2001 was a record $27.8 million compared to $27.0 million for the same quarter a year ago and represents a 40 percent growth in total revenue when royalties from Nintendo 64 products are excluded. Contract revenue was $11.7 million, an increase of 33 percent compared to $8.8 million in the comparable period in fiscal 2000. Royalties were $16.1 million, a decrease of 11 percent compared to $18.1 million in the same quarter a year ago due to lower royalties from Nintendo 64 video game products. Royalties excluding royalties from Nintendo 64 were $4.1 million, an increase of 65 percent compared to $2.5 million in the same quarter a year ago.
Net income for the third quarter of fiscal 2001 was $8.4 million compared to $10.3 million for the same quarter a year ago. The income tax rate provision for the first nine months of fiscal 2001 was reduced from 40 percent to a 38.5 percent effective annual rate. The diluted net income per share for the third quarter of fiscal 2001 was $0.21 compared to $0.26 for the same quarter a year ago. Pro-forma diluted EPS excluding Nintendo 64 revenue for the third quarter of fiscal 2001 was $0.02 compared to $0.02 for the same quarter a year ago.
"We are pleased with our third quarter results in what continues to be a difficult technology environment." said Casey Eichler, Chief Financial Officer. "Although we are cautious when looking at the short term environment we continue to be optimistic about our long term business model and the markets we are focused on with our product strategy. Consequently, MIPS continues to invest in its product roadmap and the supporting infrastructure to capitalize on what we believe is an exciting high growth market opportunity as one of the leading providers of licensable intellectual property to the embedded markets."
"MIPS' third fiscal quarter was, by several metrics, our best quarter ever," said John Bourgoin, Chairman and CEO. "In addition to record revenues, our licensing activity reached a record 9 new agreements signed during the quarter. During the last 4 quarters, we entered into a total of 28 new license agreements for MIPS cores and architectures, an 87% growth from the 4 prior quarters. Royalty levels excluding royalties from Nintendo have risen despite difficult market conditions. Internally, MIPS has seized the opportunity presented by weak performance at other companies to add key technical personnel to its staff. Clearly there are revenue challenges ahead due to weak market conditions, but MIPS remains on track for strengthening its product offering and its position as a leading IP supplier."
MIPS invites you to listen to management's discussion of Q3 results and Q4 outlook and initial guidance for fiscal 2002 in a conference call live beginning at 1:45 p.m. Pacific DST. Conference call number is 1-913-981-5510. 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 734523.
Q3 2001 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers.
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. 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 and December 31, 2000.
MIPS is a registered trademark and MIPS-based and MIPS32, MIPS64, 4Kc, 4Km, 4Kp, 5Kc, R20K and 20Kc are trademarks of MIPS Technologies, Inc. All other trademarks are the property of their respective companies. All press materials are available on the World Wide Web via: http://www.mips.com/
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| March31, | March 31, | |||||
| 2001 | 2000 | 2001 | 2000 | |||
| Revenue: | ||||||
| Royalties | $16,106 | $18,149 | $34,204 | $43,620 | ||
| Contract revenue | 11,733 | 8,812 | 35,932 | 23,781 | ||
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| Total revenue | 27,839 | 26,961 | 70,136 | 67,401 | ||
| Costs and expenses: | ||||||
| Cost of contract revenue | - | - | 250 | 500 | ||
| Research and development | 9,543 | 6,801 | 24,867 | 20,054 | ||
| Sales and marketing | 4,272 | 2,642 | 11,414 | 7,011 | ||
| General and administrative | 2,557 | 1,387 | 6,801 | 5,518 | ||
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| Total costs and expenses | 16,372 | 10,830 | 43,332 | 33,083 | ||
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| Operating income | 11,467 | 16,131 | 26,804 | 34,318 | ||
| Other income (expense), net | 1,651 | 1,119 | 4,883 | 2,581 | ||
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| Income before income taxes | 13,118 | 17,250 | 31,687 | 36,899 | ||
| Provision for income taxes | 4,767 | 6,900 | 12,194 | 14,809 | ||
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| Net income | $8,351 | $10,350 | $19,493 | $22,090 | ||
| Net income per basic share | $0.22 | $0.27 | $0.50 | $0.58 | ||
| Net income per diluted share | $0.21 | $0.26 | $0.48 | $0.55 | ||
| Common shares outstanding-basic | 38,778 | 38,196 | 38,659 | 37,908 | ||
| Common shares outstanding-diluted | 40,262 | 40,437 | 40,585 | 39,901 | ||
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| March 31, 2000 | June 30, 2000 | |||
| (unaudited) | ||||
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| Current assets: | ||||
| Cash and cash equivalents | $110,730 | $84,359 | ||
| Accounts receivable | 12,629 | 9,175 | ||
| Prepaid expenses and other current assets | 9,019 | 8,002 | ||
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| Total current assets | 132,378 | 101,536 | ||
| Equipment and furniture, net | 8,681 | 6,742 | ||
| Other assets | 1,211 | 974 | ||
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| $142,270 | $109,252 | |||
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| Current liabilities: | ||||
| Accounts payable | $4,363 | $2,270 | ||
| Accrued liabilities | 17,205 | 10,180 | ||
| Deferred revenue | 2,677 | 4,598 | ||
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| Total current liabilities | 24,245 | 17,048 | ||
| Stockholders' equity | 118,025 | 92,204 | ||
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| $142,270 | $109,252 | |||
Investor Contact:
MIPS Technologies, Inc.
Investor Relations
Bonnie Gardiner
+1 650 567 7007
bonnieg@mips.com
Media Contact
MIPS Technologies, Inc.
Corporate Communications
Lee Garvin Flanagin
+ 1 650 567 5180
flanagin@mips.com