MIPS Technologies reports third quarter fiscal 2001 financial results

 

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 and Hughes Network Systems Team to Deliver Next-Generation DirecTV® Set-Top Box Systems.
• MIPS Technologies Licenses Atmel Corporation a MIPS64? 5K? Core for the Next Generation of Set-Top Box Designs
• MIPS Technologies Licenses the MIPS32? 4Kc? Core to Palmchip Corporation.
• MIPS Technologies Introduces New Processor Core for Ultra-Low Power Smart Card Applications.
• MIPS Technologies Unveils Next-Generation Smart Card Technology.
• MIPS Technologies Licenses Toshiba Corporation Products for High-Growth Automotive and Digital Consumer Embedded Markets.
• MIPS Technologies Appoints Country Manager for Japan.
• MIPS Technologies Licenses PMC-Sierra its Industry Standard 32-Bit Embedded Processor Technology.
• Toshiba Adds 64-Bit MIPS-based Embedded Microprocessor with Integrated PCI Interface.
MIPS Alliance Program Taps MontaVista Software; Hard Hat Linux to Target MIPS32 and MIPS64 CPUs and Cores for Network Appliances and Office Equipment.
• Simpod's DeskPOD Adds Support for Processor Cores from MIPS Technologies.
• Broadcom Delivers World's First Single-Chip MIPS-Based? IP Phone.
Conversay Joins MIPS Alliance Program.
• TeleCruz Interactive TV Platform to be Featured in Panasonic Televisions.
• Jungo Software Technologies Joins MIPS Alliance Program Offering IAD System Vendors Complete Residential Gateway Infrastructure.
• Offering Expands TI's DSL Portfolio to Include DSL Communications Processors.
• Industry-Leading Silicon Vendors Extend Support for Windows CE.
• Wind River Ushers in New Era of Embedded Computing with First Customer Shipment of Tornado AE Platform.
• MIPS® Licensee, Alchemy Demonstrates 400 MHz Half Watt Au1000 Processor at Microsoft Windows Embedded Developers Conference.
• NEC Electronics Launches New 64-bit MIPS® Processor Targeting Network Appliances and Portable Applications.
• Improv Joins MIPS Alliance Program; Programmable DSP Company to Deliver Application Specific Solutions.
• World's First 64-Bit RISC Processor Soars into Space.
• InterNiche Technologies Joins the MIPS Alliance Program and Announces Support for MIPS Technologies Leading Embedded Processors.

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. 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/
 
 
 

MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data)
			Three Months Ended  March31,		Nine Months Ended 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
		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
		Total costs and expenses	16,372	10,830	43,332	33,083
Operating income			11,467	16,131	26,804	34,318
Other income (expense), net			1,651	1,119	4,883	2,581
Income before income taxes			13,118	17,250	31,687	36,899
Provision for income taxes			4,767	6,900	12,194	14,809
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

 
 

MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
			March 31, 2000	June 30, 2000
			(unaudited)
Assets
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
		Total current assets	132,378	101,536
Equipment and furniture, net			8,681	6,742
Other assets			1,211	974
			$142,270	$109,252
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable		$4,363	$2,270
	Accrued liabilities		17,205	10,180
	Deferred revenue		2,677	4,598
		Total current liabilities	24,245	17,048
Stockholders' equity			118,025	92,204
			$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

Previous Page