MIPS Technologies, Inc. (Nasdaq:MIPS), a leading provider of
industry-standard processor architectures and cores for digital
consumer, home networking, wireless, communications and business
applications, today reported consolidated financial results for its
first fiscal quarter ended September 30, 2010. All financial
results are reported in U.S. GAAP unless otherwise noted.
Summary First Quarter Fiscal 2011 Financial Highlights:
- Revenue was $22.5 million, a year-to-year increase of 50
percent
- Licensee royalty units grew to 157 million units from 106
million units in Q1'10
- GAAP net income was $7.6 million or $0.16 per share; up $7.0
million year-to-year
- Non-GAAP net income was $8.5 million or $0.17 per share; up 235
percent year-to-year
- Cash and investment balances ended the quarter at $65.2
million, a year-to-year increase of $21.7 million
Revenue from royalties was $13.6 million, an increase of 40
percent from the first quarter a year ago. License revenue was $8.9
million, an increase of 71 percent from the $5.2 million reported
in the first quarter a year ago.
The Company's fiscal Q1 GAAP net income was $7.6 million or
$0.16 per share compared to $0.6 million and $0.01 per share in the
first quarter a year ago.
Non-GAAP net income in the first quarter of fiscal 2011, which
excludes certain stock and non-recurring charges, was $8.5 million
or $0.17 per share, compared with $2.5 million or $0.06 per share
in the first quarter a year ago. The tables below provide a
reconciliation of non-GAAP measures used in this press release to
the corresponding GAAP results.
"Our financial performance in the first quarter continues to
demonstrate our momentum across all of our target markets. This
momentum includes the addition of new licensees in the quarter that
are developing chips for mobile solutions. Both our royalty revenue
and our license revenue exceeded our expectations during the
quarter," said Sandeep Vij, MIPS Technologies chief executive
officer.
MIPS Technologies invites you to listen in a live conference
call to management's discussion of Q1 fiscal 2011 results, as well
as forward looking guidance for Q2 and fiscal 2011. The conference
call number is 210-839-8502 and the replay number is 203-369-3809.
The password for both calls is MIPS. The replay will be available
for 30 days shortly following the end of the conference call. An
audio replay of the conference call will also be posted on the
company's website at: www.mips.com/company/investor-relations/.
About MIPS Technologies, Inc.
MIPS Technologies, Inc. (Nasdaq:MIPS) is a leading provider of
industry-standard processor architectures and cores that power some
of the world's most popular products for the home entertainment,
communications, networking and portable multimedia markets. These
include broadband devices from Linksys, DTVs and digital consumer
devices from Sony, DVD recordable devices from Pioneer, digital
set-top boxes from Motorola, network routers from Cisco, 32-bit
microcontrollers from Microchip Technology and laser printers from
Hewlett-Packard. Founded in 1998, MIPS Technologies is
headquartered in Sunnyvale, California, with offices worldwide. For
more information, contact (408) 530-5000 or visit www.mips.com.
Forward Looking Statements
This press release contains forward-looking statements; such
statements are indicated by forward-looking language such as
"plans", "anticipates", "expects", "will", and other words or
phrases contemplating future activities including statements about
future technology and growth. These forward-looking statements
include MIPS Technologies' expectation regarding improvements in
financial results. Actual events or results may differ materially
from those anticipated in these forward-looking statements as a
result of a number of different risks and uncertainties, including
but not limited to: the fact that there can be no assurance that
our products will 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'
ability to develop, introduce and market new products and product
enhancements, the level of demand for semiconductors and end-user
products that incorporate semiconductors and our ability to compete
effectively with larger companies and other companies that are
active in our markets. For a further discussion of risk factors
affecting our business, we refer you to the risk factors section in
the documents we file from time to time with the Securities and
Exchange Commission.
MIPS is a trademark or registered trademark in the United States
and other countries of MIPS Technologies, Inc. All other trademarks
referred to herein are the property of their respective owners.
MIPS TECHNOLOGIES,
INC. CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In
thousands) |
|
September 30, 2010 |
June 30, 2010 |
|
(unaudited) |
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$42,633 |
$31,625 |
Short term investments |
22,573 |
20,736 |
Accounts receivable, net |
4,580 |
7,527 |
Prepaid expenses and other
current assets |
1,614 |
819 |
Total current assets |
71,400 |
60,707 |
Equipment, furniture and property, net |
2,204 |
2,093 |
Goodwill |
565 |
565 |
Other assets |
6,073 |
7,542 |
Total assets |
$80,242 |
$70,907 |
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$1,789 |
$1,529 |
Accrued liabilities |
9,006 |
13,911 |
Deferred revenue |
2,551 |
3,217 |
Total current liabilities |
13,346 |
18,657 |
Long-term liabilities: |
|
|
Other long term
liabilities |
4,767 |
6,116 |
Total long term
liabilities |
4,767 |
6,116 |
Liabilities of discontinued operations |
-- |
26 |
Stockholders' equity |
62,129 |
46,108 |
Total liabilities and
stockholders' equity |
$80,242 |
$70,907 |
|
MIPS TECHNOLOGIES,
INC. CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
(In thousands, except
per share data) (unaudited) |
|
Three Months
Ended September 30, |
|
2010 |
2009 |
Revenue: |
|
|
Royalties |
$13,614 |
$9,750 |
License and contract
revenue |
8,925 |
5,230 |
Total Revenue |
22,539 |
14,980 |
Costs and expenses: |
|
|
Cost of sales |
586 |
146 |
Research and development |
5,861 |
5,756 |
Sales and marketing |
3,913 |
3,399 |
General and administrative |
3,152 |
3,129 |
Total costs and expenses |
13,512 |
12,430 |
Operating income |
9,027 |
2,550 |
Other expense, net |
(64) |
(151) |
Income before income taxes |
8,963 |
2,399 |
Provision for income taxes |
1,347 |
1,804 |
Net income |
$7,616 |
$595 |
Net income per share, basic |
$0.16 |
$0.01 |
Net income per share, diluted |
$0.16 |
$0.01 |
Common shares outstanding, basic |
46,864 |
45,075 |
Common shares outstanding, diluted |
48,917 |
45,817 |
|
MIPS
TECHNOLOGIES, INC. RECONCILIATION OF GAAP
TO NON-GAAP NET INCOME and NET INCOME PER SHARE |
(In thousands, except
per share data) (unaudited) |
|
Three Months Ended
September 30, 2010 |
Three Months Ended
June 30, 2010 |
Three Months Ended
September 30, 2009 |
GAAP net income |
$7,616 |
$5,909 |
$595 |
Net income per basic share |
$0.16 |
$0.13 |
$0.01 |
Net income per diluted share |
$0.16 |
$0.12 |
$0.01 |
(a) Gain from discontinued operations,
net of tax |
$-- |
$(214) |
$-- |
(b) Stock-based compensation
expense |
894 |
864 |
933 |
(c) Restructuring |
-- |
696 |
-- |
(d) Gain on investment |
-- |
(103) |
-- |
(e) Tax adjustment |
-- |
(23) |
-- |
(f) Tax on change in legal structure |
-- |
25 |
1,009 |
Non-GAAP net income |
$8,510 |
$7,154 |
$2,537 |
Non-GAAP net income per basic share |
$0.18 |
$0.16 |
$0.06 |
Non-GAAP net income per diluted share |
$0.17 |
$0.15 |
$0.06 |
Common shares outstanding – basic |
46,864 |
45,890 |
45,075 |
Common shares outstanding – diluted |
48,917 |
47,291 |
45,817 |
These adjustments reconcile the Company's GAAP results of
operations to the reported non-GAAP results of operations. The
Company believes that presentation of net income and net income per
share excluding discontinued operations, stock-based compensation
expense, restructuring cost, gain on investment, tax adjustment and
tax on change in legal structure provides meaningful supplemental
information to investors, as well as management that is indicative
of the Company's ongoing operating results and facilitates
comparison of operating results across reporting periods. The
Company uses these non-GAAP measures when evaluating its financial
results as well as for internal planning and budgeting
purposes. These non-GAAP measures should not be viewed as a
substitute for the Company's GAAP results, and may be different
than non-GAAP measures used by other companies.
(a) This adjustment reflects the gain, net of tax, of the Analog
Business Group.
(b) This adjustment reflects the stock-based compensation
expense. For the first quarter of fiscal 2011 ending September
30, 2010, $894,000 stock-based compensation expense was allocated
as follows: $291,000 to research and development, $231,000 to sales
and marketing and $372,000 to general and administrative. For
the fourth quarter of fiscal 2010 ending June 30, 2010, $864,000 of
stock-based compensation expense was allocated as follows:
$312,000 to research and development, $230,000 to sales and
marketing and $322,000 to general and administrative. For the
first fiscal quarter of fiscal 2010 ending September 30, 2009,
$933,000 stock-based compensation expense was allocated as follows:
$393,000 to research and development, $236,000 to sales and
marketing and $304,000 to general and administrative.
(c) This adjustment reflects restructuring expense related
to reduction in workforce.
(d) This adjustment reflects a gain on an investment in a
privately held company that was acquired. This gain was
recorded in other expense.
(e) This adjustment reflects the net tax effect of the
specific items presented in the non-GAAP adjustments described
above.
(f) This adjustment reflects the withholding tax in
connection with the change in legal structure of foreign
operations.
CONTACT: MIPS Technologies, Inc.
Media Contact:
Jen Bernier-Santarini
+1 408-530-5178
jenb@mips.com
Investor Contact:
Maury Austin
+1 408-530-5200
ir@mips.com
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