MIPS to take $2 million charge for acquiring Lexra's R&D

MIPS to take $2 million charge for acquiring Lexra's R&D
By Semiconductor Business News
January 4, 2002 (4:02 a.m. EST)
URL: http://www.eetimes.com/story/OEG20020102S0018

MOUNTAIN VIEW, Calif.-- MIPS Technologies Inc. here today announced it will take a one-time charge of $2.0 million for the purchase of in-process R&D from Lexra Inc. as part of a settlement in its patent infringement suit against the San Jose-based company.

MIPS said its pro-forma operating results for the company's second fiscal quarter, ended Dec. 31, will result in a net loss of $0.05 per share, before the one-time charge. That estimate is in line with the earnings consensus on Wall Street, according to First Call/Thomson Financial.

On late Monday, Lexra announced it was shifting its business model to become a fabless semiconductor supplier and turning over its processor intellectual property (IP) to MIPS as part of the suit settlement (see Dec. 31 story). Lexra will serve communications applications supplying ICs, based on MIPS technology.

Mountain View-based MIPS sa id it expects financial results for the second fiscal quarter to be in line with guidance provided at the beginning of the period. The company is scheduled to report its results on Jan. 15.