MIPS Technologies Reports Second Quarter Fiscal 2012 Financial Results

SUNNYVALE, Calif. - January 25, 2012 - MIPS Technologies, Inc. (NASDAQ: MIPS), a leading provider of industry-standard processor architectures and cores for digital home, networking and mobile applications, today reported consolidated financial results for its second fiscal quarter of 2012 ended December 31, 2011. All financial results are reported in U.S. GAAP unless otherwise noted.

Summary Second Quarter Fiscal 2012 Financial Metrics: 

• Revenue was $15.3 million, a quarter-to-quarter decrease of 11 percent
• Licensee royalty units grew to 186 million units from 173 million units in Q1'12
• Non-GAAP net income was $0.6 million or $0.01 per share; down $0.04 per share from Q1'12
• Cash and investment balances ended the quarter at $110.7 million, representing an increase of $4.1 million from September 30, 2011

Revenue from royalties was $13.2 million, while license revenue was $2.1 million. The Company's fiscal Q2'12 GAAP net loss was $1.0 million or $0.02 per share compared to net income of $0.5 million and $0.01 per share in the first quarter of fiscal 2012. 

Non-GAAP net income in the second quarter of fiscal 2012, which excludes certain stock and non-recurring charges, was $0.6 million or $0.01 per share, compared with $2.6 million or $0.05 per share in the first quarter of fiscal 2012. The tables below provide a reconciliation of non-GAAP measures used in this press release to the corresponding GAAP results.

"Business conditions continue to be challenging in the semiconductor market, especially in the digital home and networking areas that comprise the majority of our revenue. MIPS continues to make inroads into the fast-growing mobile market, having introduced the industry's first Android 4.0 'Ice Cream Sandwich' tablet, and adding a new mobile licensee this quarter. We have new processor cores coming to market this year for which we already have advance orders. In addition, we are actively assessing alternatives to unlock the value in our portfolio of 580+ patent properties worldwide," said Sandeep Vij, chief executive officer, MIPS Technologies.

MIPS Technologies invites you to listen to management's discussion of Q2 2012 results, as well as guidance for the third quarter of fiscal 2012 in a live conference call beginning today at 1:45 p.m. Pacific:

• Live webcast: visit www.mips.com/company/investor-relations/ for a link to the listen-only webcast
• Live conference call: dial 312-470-0125; password: MIPS
• Replay call (available for 30 days shortly following the end of the conference call): dial 203-369-3229; password: MIPS

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 for digital home, networking and mobile applications. The MIPS architecture powers some of the world's most popular products, including 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.