MIPS Technologies, Inc. Reports First Quarter Fiscal 1999 Financial Results.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 15, 1998--MIPS Technologies, Inc. (Nasdaq:MIPS (Million Instructions Per Second) The execution speed of a computer. For example, .5 MIPS is 500,000 instructions per second; 100 MIPS is a hundred million instructions per second. ) today reported financial results for its first fiscal quarter ended September September: see month. 30, 1998. The Company is the world's primary architect of embedded Inserted into. See embedded system. 32- and 64-bit RISC processor RISC processor [Reduced Instruction Set Computer], computer arithmetic-logic unit that uses a minimal instruction set, emphasizing the instructions used most often and optimizing them for the fastest possible execution. intellectual property and core technology for the digital consumer and networking and information management markets. Income before taxes in the first quarter of fiscal 1999 was $5.5 million compared to $4.6 million in the fourth quarter of fiscal 1998. Net income in the first quarter of fiscal 1999 was $3.3 million compared to $4.6 million in the prior quarter. The diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share was $0.09 compared to a diluted net income per share of $0.13 in the prior quarter. For the first quarter of fiscal 1999 both net income and net income per share reflect a provision for income taxes of $2.2 million, whereas the prior period reflects no tax effect. Total revenue in the first quarter of fiscal 1999 was $12.3 million. This represents a 12 percent increase over the fourth quarter of fiscal 1998, driven by an increase in both contract and royalty revenues. "This quarter's results reflect the strength of our core markets and our commitment to manage the Company's operations," said Casey Casey is an Irish surname, and may refer to
Total revenue, net loss and diluted net loss per share were $15.0 million, $5.4 million and $0.15, respectively in the first quarter of the prior fiscal year. The decline in revenue year over year is attributable to royalties from the graphics chip included in the Nintendo64 game player which reached its cap in the first half of fiscal 1998. This fiscal 1999 decline was offset in part by an increase in royalties generated from game cartridge (1) See phono cartridge. (2) A removable storage module that contains magnetic disks, optical discs, magnetic tape or memory chips. Cartridges are inserted into slots in the drive, printer or computer. sales by Nintendo. "This quarter we saw exciting progress for our new company," said John Bourgoin, Chief Executive Officer. "In August we forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. an alliance with Broadcom Corporation. Our strategy is to partner with leaders in our target markets, and Broadcom is such a leader. Because of their outstanding technical acumen acumen Astuteness, perception, perspicacity , they are exactly the kind of company we want to see adopt the MIPS architecture MIPS (originally an acronym for Microprocessor without Interlocked Pipeline Stages) is a RISC microprocessor architecture developed by MIPS Technologies. By the late 1990s it was estimated that one in three RISC chips produced were MIPS-based designs. . We believe that Broadcom will push the frontier of lowering the cost to bring broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communications into the home, and their new products will result in substantial benefits to consumers. This affirms our value proposition of high performance, cost effective, flexible embedded processor A CPU chip used in a system other than a general purpose workstation, desktop or laptop computer. Such chips are used by the billions every year in a myriad of products. See embedded system. solutions for emerging consumer markets." Bourgoin added, "As we continue to watch the successful expansion of the MIPS architecture into new applications and developing markets, we will pay close attention to protecting our intellectual property rights including trademarks and patents. This is a fundamental responsibility we take very seriously in order to ensure our licensees that their investments in the MIPS architecture will contribute to their long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. business goals." -0-
Additional Q1 1999 Highlights
-- MIPS Technologies, Inc. announced that more than one hundred
million processors have now been shipped throughout the world
using its MIPS RISC architecture.
-- MIPS-based products won c/net's Editor's Choice award:
-- The Casio Cassiopeia Palm PC E-10(tm) running Windows CE 2.0,
powered by an NEC VR4111(tm) MIPS RISC processor.
-- NEC's MobilePro 750c running Windows CE, powered by a
high-speed, low-power NEC 64-bit VR4101 MIPS RISC processor.
-- Philips Semiconductors and Sharp partnership won a Design-in
Excellence Award for the Mobilon(tm) handheld PC running Windows
CE 2.0, with a Philips Semiconductors two-chip HCG architecture
based on the MIPS R3000 processor.
-- LSI Logic's Single-Chip Digital Image Processing Engine, based on
the MIPS architecture, was selected by Minolta for the Dimage(tm)
EX Zoom 1500 Digital Camera.
-- LSI Logic and Flashpoint Technology formed an alliance to create
a standard platform for next-generation digital cameras. LSI
Logic will use its DCAM(tm) 101 Single-Chip image processor,
based on the MIPS architecture.
-- QED, Inc. announced the RM7000 next-generation MIPS processor,
the first high-performance embedded processor with on-chip L2
cache memory. Lucent Technologies selected the RM7000 for the
cutting-edge PathStar(tm) Access Server.
-- NEC introduced the new SuperScript 4400 Series of premium color
laser printers based on IDT's MIPS-based 4700 Premium CPU.
-- IDT's RC4640 MIPS-based processor selected for Extreme Networks'
award-winning Summit 47 Enterprise Desktop Switch.
-- IDT extended its RISController Family with the introduction of a
new high-performance 64-bit RISC processor based on the MIPS III
Instruction Set Architecture.
-0- About MIPS Technologies (MIPS Technologies, Inc., Mountain View, CA, www.mips.com) Founded in 1984 as MIPS Computer Systems Inc., the company merged with SGI in 1992 and spun off as an independent entity once again in 2000. , Inc. MIPS Technologies, Inc. is the world's primary architect of embedded 32- and 64-bit RISC processor intellectual property and core technology for the digital consumer and networking and information management markets. The company licenses its intellectual property to semiconductor design and manufacturing companies, as well as to 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. Developers can choose from a broad menu of price/performance options that include execution units, clock speeds, instruction widths (16-, 32- or 64-bit), cache sizes, memory bandwidths Memory bandwidth is the rate at which data can be read from or stored into a semiconductor memory by a processor. Memory bandwidth is usually expressed in units of bytes/second, though this can vary for systems with natural data sizes that are not a multiple of the commonly used , memory protection schemes, system interfaces, and on-chip system logic. Licensees currently include: Broadcom Corporation; CommQuest (IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) ); Integrated Device Technology IDT (NASDAQ: IDTI) was founded in 1980 as a semiconductor vendor. Employing approximately 2500 people worldwide, headquartered in San Jose, California and operating a fab in Hillsboro, Oregon, the company both designs and fabricates semiconductor components. , Inc. (IDT IDT Integrated Device Technology, Inc. (Santa Clara, CA, USA) IDT I Don't Think IDT Identity Theft IDT Interrupt Descriptor Table IDT Integrated DNA Technologies IDT Inactive Duty Training IDT Instructional Design & Technology ); LSI LSI: see integrated circuit. (Large Scale Integration) Between 3,000 and 100,000 transistors on a chip. See SSI, MSI, VLSI and ULSI. Logic Corporation; Macronix; NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Corporation; NKK NKK Nippon Kaiji Kyokai NKK Norwegian Kennel Klub NKK Nordisk Kemiteknolog Konferens (conference for engineering students from Norway, Denmark, Sweden and Finland) NKK Navta Kriejtiv Kru Corporation; Philips Semiconductors; Quantum Effect Design, Inc. (QED QED abbr. Latin quod erat demonstrandum (which was to be demonstrated) QED which was to be shown or proved [Latin quod erat demonstrandum] Noun 1. ); Sony Corporation; Synova; and Toshiba Corporation (company) Toshiba Corporation - A Japanese technology manufacturer with 364 subsidiaries worldwide. Toshiba makes and sells electronics for home, office, industry and health care including information and communication systems, electronic components, heavy electrical apparatus, . Numerous companies utilize MIPS intellectual property. MIPS Technologies, Inc. is based in Mountain View, California For the census-designated place, see Mountain View, Contra Costa County, California. For other places called "Mountain View", see . Mountain View is a city in Santa Clara County, in the U.S. state of California. The city gets its name from the views of the Santa Cruz Mountains. , and can be reached at 650/567-5000 or http://www.mips.com. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events or the future financial performance of the Company. 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 the Company's products will fail to achieve market acceptance, the timing of customer orders, delays in the design process, the length of the Company's sales cycle, the Company's ability to develop, introduce and market new products and product enhancements, the timing of new product announcements and introductions by the Company and its competitors, the demand for semiconductors and end-user products that incorporate semiconductors, general economic conditions particularly in the markets of Asia, including Japan where a large portion of the Company's revenues are derived, and other risks. We refer you to the documents that the Company files from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . -0-
MIPS TECHNOLOGIES, INC
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
September 30,
--------------------
1998 1997
------ ------
(unaudited)
Revenue:
Royalties $ 11,611 $ 14,287
Contract revenues 650 750
Total revenue 12,261 15,037
Costs and expenses:
Cost of contract revenue -- 375
Research and development 4,552 17,338
Sales and marketing 1,289 1,448
General and administrative 1,135 1,257
------- -------
6,976 20,418
------- -------
Operating income (loss) 5,285 (5,381)
Interest income (expense) 170 (7)
------- -------
Income (loss) before income taxes 5,455 (5,388)
Provision for income taxes 2,182 --
------- -------
Net income (loss) $ 3,273 $ (5,388)
======= =======
Net income (loss) per
basic share $ 0.09 $ (0.15)
======= =======
Net income (loss) per
diluted share $ 0.09 $ (0.15)
======= =======
Common shares
outstanding - basic 37,250 36,000
======= =======
Common shares
outstanding - diluted 38,009 36,000
======= =======
MIPS TECHNOLOGIES, INC.
CONDENSED BALANCE SHEETS
(In thousands)
September 30 June 30
1998 1998
_____________________________
Assets (unaudited)
Current assets:
Cash $ 21,043 $ 45
Accounts receivable 1,309 250
Prepaid expenses and
other current assets 585 618
_____________________________
Total current assets 22,937 913
Equipment and furniture, net 2,549 2,787
Other assets 1,081 996
_____________________________
$ 26,567 $ 4,696
Liabilities and Stockholder's Equity (Deficit)
Current liabilities:
Accounts payable $ 4,197 $ 3,087
Accrued liabilities 3,564 2,356
Deferred revenue 33 -
_____________________________
Total current liabilities 7,794 5,443
Deferred revenue 375 -
Stockholder's equity (deficit) 18,398 (747)
_____________________________
$ 26,567 $ 4,696
_____________________________
Note to Editors: MIPS is a registered trademark 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/ |
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