MIPS Technologies Reports Second Quarter Fiscal 2005 Financial Results; Record License Activity Drives 7th Consecutive Quarter of Growth
MOUNTAIN VIEW, Calif., January 19, 2005 - MIPS Technologies, Inc. (NASDAQ: MIPS), today reported financial results for its second fiscal quarter ended December 31, 2004. Revenue for the second quarter of fiscal 2005 grew 45 percent compared to the same period a year ago, the result of continuing strong licensing activity in MIPS32® 24K™ cores and increases in royalties.
Total revenue for the second quarter of fiscal 2005 was $15.5 million compared to $10.7 million for the same quarter a year ago. Contract revenue was $7.9 million, an increase of 67 percent compared to $4.8 million in the comparable period in fiscal 2004. Royalties were $7.6 million, an increase of 28 percent compared to $5.9 million in the same quarter a year ago. Net income for the second quarter of fiscal 2005 was $3.5 million compared to a net income of $477,000 for the same quarter a year ago. Net income per share on a diluted basis for the second quarter of fiscal 2005 was $0.08 compared to a net income per share of $0.01 for the same quarter a year ago.
"Last quarter we saw strong demand with a record 13 contracts completed," said Casey Eichler, chief financial officer of MIPS Technologies. "The demand for all product families is strong, but adoption of the 24K core family has exceeded our expectations, with 3 new licenses signed in Q2 for a total of 14 customers. This is complemented by the continued growth trend in royalties as we continue to receive the benefits of our customers' introduction of MIPS-Based™ products in numerous embedded markets."
"Design activity in our customer base remains robust and with the well-established leadership of the 24K core family, we are attracting opportunities with customers who formerly used competitor products," said John Bourgoin, president and CEO of MIPS Technologies. "The 24K cores have shown that they can deliver up to twice the performance of competitive products at significantly lower silicon cost points. This has led to strategic design wins for MIPS Technologies during Q2, including the digital set-top box design win announced yesterday with Scientific-Atlanta."
MIPS Technologies invites you to listen to management's discussion of Q2 fiscal 2005 results and guidance for Q3 fiscal 2005 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-719-457-2650. 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 245031. An audio replay of the conference call will be posted on the Company's website (www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
Q2 FY2005 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers.
• MIPS Technologies Licenses Highest-Performance, MIPS32® 24K™ Core Family to Micronas
• MIPS Technologies Executives to Present at Lehman Brothers - T4 Conference
• Entropic -- Utilizing MIPS-Based™ c.LINK-270 chipset-- to Demonstrate Sharing of HDTV Movie Downloads from Starz Entertainment Group over In-Home Coax Network at CES
• ATI Ships More than 5 Million Chips for High Definition TVs and Set-top Boxes in 2004; Shipments include ATI's MIPS-Based™ Xilleon
• Atheros debuts MIPS-based™ single-chip 802.11g access point
• MIPS-Based™ Entropic Wins "Most Innovative New Product'' Award
• MIPS Technologies Names Vice President of Engineering
• MIPS Technologies' Highest-Performance 32-Bit Processor Core Families Supported by MontaVista® Linux®
• MIPS Announces Expansion of Architecture License with Broadcom
• MIPS Technologies Licenses Highest-Performance 32-Bit Core to TZero
• Broadcom Announces MIPS-Based™ Low Cost Digital Broadcast Satellite Chip Targeted at the Entry-level Set-Top Box Market
• High-performance, synthesizable cores gain commercial Linux support
• Funai Chooses ATI's MIPS-Based™ Xilleon for New Set-top Box
• Westell Signs New Agreement with BellSouth for Purchase of MIPS-Based™ Broadband DSL Modems
• Broadcom Announces That Its MIPS-Based™ IP Phone Chip is Now Shipping in Toshiba Enterprise IP Phones
• PMC-Sierra Announces MIPS-Based™ Multi-Service Processor Family for Voice-over-IP Gateway Applications
• New Micronas MIPS-Based™ digital decoders target set-top box market
• Toshiba and SkipJam Team Up to Provide MIPS-Based™ TX RISC-Based Complete Solutions for the Networked Digital Home (pdf file)
• Industry's Highest-Performance Cores Just Got Faster with Release of Enhanced MIPS32® 24K™ Core Family
• MIPS-Based™ Products at Fall Processor Forum Raise the Bar on Next-Generation Embedded Systems
• New DSP Extension Enables Signal and Media Processing On the Industry-Standard MIPS® Architecture
• Broadcom® MIPS-Based™ IP Phone Chips Power Inter-Tel IP Phones for the Business Communications Market
• Innova Card revolutionizes secure smart card terminals industry by launching MIPS-Based™ USIP Professional IC (pdf file)
• Sony to launch MIPS-Based™ PlayStation Portable in December
• Atheros Super AG™ Technology Used for Hitachi Cable's Outdoor Wireless LAN System
• Stretch Introduces System Optimization Platform Based on PMC-Sierra's MIPS-Powered Processors
• Broadcom's MIPS-Based™ 54g™ Wireless LAN Technology Chosen by Apple
• Toshiba Adds New MIPS-Based™ AVM49R Multimedia Reference Platform With Real-Time MPEG-1/2/4 Encoding and Decoding
• MIPS-Based™ QuickLogic Programmable SOC Family Targets Digital Media (pdf file)
• PMC-Sierra Announces Open Source Thin Client Networked Computing Initiative Combining Linux with MIPS-Powered Processors
• Broadcom Announces Industry's First MIPS-Based™ Gigahertz Quad-Core Broadband Processor, Raising the Bar in Chip Multiprocessing for Next Generation Embedded and High- Density Computing Systems
• PMC-Sierra Unveils 1.8 GHz Dual CPU 64-Bit MIPS-Powered Multiprocessor
• ViXS Systems Introduces High Quality Dual TV Tuner Reference Design, including MIPS-Based XCode II CPU, for Media Personal Computers
• ViXS' New Compact MIPS-Based™ XCode II-N Video Processor Introduces Advanced Multimedia Features for Laptop Computers
• ViXS Systems Extends MIPS-Based™ X-Code II Video Processor Family to Address New Product and Consumer Markets
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.
| MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (In thousands, except per share data) | ||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||
| 2004 | 2003 | 2004 | 2003 | |||
| (unaudited) | (unaudited) | |||||
| Revenue: | ||||||
| Royalties | $7,596 | $5,925 | $14,317 | $11,013 | ||
| Contract revenue | 7,938 | 4,763 | 15,823 | 10,088 | ||
| Total revenue | 15,534 | 10,688 | 30,140 | 21,101 | ||
| | | |||||
| Costs and expenses: | ||||||
| Research and development | 5,080 | 5,471 | 10,287 | 13,615 | ||
| Sales and marketing | 3,696 | 2,540 | 6,740 | 5,336 | ||
| General and administrative | 2,245 | 2,023 | 4,566 | 3,666 | ||
| Restructuring | - | - | 277 | 3,233 | ||
| Total costs and expenses | 11,021 | 10,034 | 21,870 | 25,850 | ||
| Operating income (loss) | 4,513 | 654 | 8,270 | (4,749) | ||
| Other income, net | 369 | 107 | 614 | 315 | ||
| Income (loss) before income taxes | 4,882 | 761 | 8,884 | (4,434) | ||
| Provision for income taxes | 1,340 | 284 | 2,221 | 852 | ||
| Net income (loss) | $3,542 | $477 | $6,663 | $(5,286) | ||
| | | | | |||
| Net income (loss) per basic share | $0.09 | $0.01 | $0.16 | $(0.13) | ||
| Net income (loss) per diluted share | $0.08 | $0.01 | $0.15 | $(0.13) | ||
| Common shares outstanding-basic | 41,221 | 40,400 | 41,003 | 40,286 | ||
| Common shares outstanding-diluted | 44,170 | 42,679 | 43,322 | 40,286 | ||
| MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (In thousands) | ||||
| December 31, | June 30, | |||
| 2004 | 2004 | |||
| (unaudited) | | |||
| | Assets | |||
| Current assets: | ||||
| Cash and cash equivalents | $79,809 | $78,335 | ||
| Short-term investments | 19,893 | 15,041 | ||
| Accounts receivable, net | 5,196 | 2,488 | ||
| Prepaid expenses and other current assets | 1,844 | 3,159 | ||
| Total current assets | 106,742 | 99,023 | ||
| Equipment and furniture, net | 3,222 | 3,578 | ||
| Other assets | 5,654 | 6,102 | ||
| $115,618 | $108,703 | |||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $484 | $1,255 | ||
| Accrued liabilities | 10,231 | 12,344 | ||
| Deferred revenue | 3,362 | 3,407 | ||
| Total current liabilities | 14,077 | 17,006 | ||
| Long-term liabilities | 2,667 | 2,038 | ||
| Stockholders' equity | 98,874 | 89,659 | ||
| $115,618 | $108,703 | |||
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