MIPS Technologies, Inc. Reports Third Quarter Fiscal 2000 Financial Results.Business Editors NOTE: Q3 Earnings call live @ 1:45 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . Conference call number 913/981-5539. Replay number 719/457-0820; access no. 122543; available for 72 hours, beginning shortly after the end of the conference call. MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 13, 2000 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., (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. ) one of the world's leading suppliers of 32- and 64-bit processor intellectual property for the consumer and embedded systems Embedded systems Computer systems that cannot be programmed by the user because they are preprogrammed for a specific task and are buried within the equipment they serve. markets, today reported financial results for its third fiscal quarter ended March 31, 2000. Revenue for the third quarter of fiscal 2000 was $27.0 million, an increase of 1 percent compared with the same quarter a year ago. Royalties were $18.1 million, a decline of 22 percent compared to $23.3 million in the same quarter a year ago due to lower Nintendo 64 video game product royalties. Contract revenue was $8.8 million, an increase of 159 percent compared to $3.4 million in the comparable period in fiscal 1999. The contract revenue increase of $5.4 million was the result of technology license fees from new and existing agreements. Net income for the third quarter of fiscal 2000 was $10.4 million compared to $10.7 million for the same quarter a year ago. 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 for the third quarter of fiscal 2000 was $0.26 compared to $0.27 for the same quarter a year ago. "The strength of MIPS Technologies licensing revenue, which increases and extends our position in key markets and drives future royalty streams, led to record revenues for the company during the March quarter," said Casey Eichler, chief financial officer. "The revenue concentration from the legacy Nintendo 64 royalty stream declined to 58% of total revenue for the third quarter compared to 81% for the same period last year as we continue to diversify our sources of revenue." "MIPS Technologies has made major progress in its product offerings during the past year. We have been rewarded with strong growth in our licensing business," stated John Bourgoin, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "I am particularly pleased with our success in the communications sector including the three agreements with DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary companies announced in January. In March, we announced a strategic alliance with TSMC TSMC Taiwan Semiconductor Manufacturing Company, Ltd TSMC Taiwan Semiconductor Manufacturing Corporation TSMC Traffic Systems Management Center TSMC Toll Station Management Controller TSMC Transportation Supply Maintenance Command TSMC Technical Services Manager Code , which will dramatically increase customers access to cores from MIPS Technologies. Our recently announced QuickLogic agreement lowers the cost of access to MIPS cores integrated with random logic to levels within reach of any company. And, MIPS Technologies support for its advanced instruction set architectures has moved to a new level with the announcement of four new software agreements."
Additional Q3 2000 Highlights
-- MIPS-based(TM)processors power Replay TV to win two CES 2000
Innovation Awards with their personal video recorder.
-- The MIPS-based EchoStar DISH Player wins CES 2000 "Best of Show"
Award.
-- Mentor Graphics Corp., a market leader in hardware/software
co-verification expanded its support for MIPS-based processors
with support for MIPS Technologies' licensee, LSI Logic's family
of TinyRISC processor cores.
-- Metalink Ltd., a leading manufacturer of high performance DSL
chips sets, obtained a processor license for the MIPS Technologies
MIPS32(TM) 4Km(TM) processor core for use in their next
generation, multimode DSL solutions for North America, Europe and
ITU standards.
-- Excess Bandwidth Corp., a developer of ICs for high-bandwidth
communications systems, acquired a license for MIPS Technologies'
MIPS32 processor core technology for use in its high-speed
communication devices.
-- Centillium Communications, Inc., a developer of high-bandwidth DSL
ICs, has acquired a license to use MIPS Technologies MIPS32
4Kp(TM) 32-bit processor core in their family of communications
ICs.
-- MIPS Technologies continued its development of the European
operation with the addition of John Hall as new European Vice
President. He will head all European operations and be based near
London, England.
-- Mentor Graphics and MIPS Technologies announced a complete pre- to
post-silicon SOC development solution designed to accelerate
time-to-market for SOC developers. The new integrated development
environment from Mentor Graphics will support customers using MIPS
Technologies 32- and 64-bit processor cores in single-chip
solutions.
-- Sales of Sony PlayStation(R)2, powered by MIPS-based processor IP,
hit a record 980,000 units in the first three days of retail sales
in Japan. The system, to be released in the U.S. and Europe in
late summer or fall, eclipsed previous sales milestones during the
first three days by a factor of ten.
-- QED, a MIPS Technologies licensee, introduced the RM7000A, high
performance 64-bit MIPS-based processor with clock speeds of 450
MHz and power consumption of only 3.5 Watts. This sets
performance/power standards for 64-bit embedded processors.
-- Integrated Software & Devices Corporation and MIPS Technologies
entered a cooperative agreement that will enable ISDCorp to
provide Royal Linux(R) and ISDCorp's Linux support for users of
MIPS Technologies processor architectures.
-- Green Hills Software named a "MIPS Technologies Preferred Tools
Provider" and to provide integrated development environment for
MIPS Technologies' MIPS32 and MIPS64TM processor cores. Green
Hills is porting its integrated development environment and
optimizing compilers to MIPS Technologies' 32- and 64-bit
processor cores.
-- TSMC, the world leader in the independent foundry market, and MIPS
Technologies formed a strategic alliance that enables MIPS
Technologies to market and sell TSMC process-optimized hard core
versions of its popular 32- and 64-bit processors. These new
"drop-in" cores simplify the development of high performance SOCs
and are the first hardened cores that MIPS Technologies will sell
directly.
-- Lineo and MIPS Technologies announced a cooperative agreement for
Lineo to port its Embedix line of embedded Linux system software
to the MIPS Technologies' MIPS32 and MIPS64 processor
architectures.
-- QuickLogic and MIPS Technologies joined forces to enable the first
programmable logic implementation of the MIPS32 and MIPS64
architectures. QuickLogic obtained a license for MIPS
Technologies' MIPS32 4Kc and an option for a MIPS64 5Kc processor
and will deliver a standard ESP (Embedded Standard Product)
platform that includes the QuickLogic programmable logic and a
MIPS-based processor core.
About MIPS Technologies, Inc. MIPS Technologies, Inc. is one of the world's primary architects of embedded Inserted into. See embedded system. 32- and 64-bit RISC processors 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. . The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC RISC in full Reduced Instruction Set Computing Computer architecture that uses a limited number of instructions. RISC became popular in microprocessors in the 1980s. solutions. The company licenses its intellectual property to semiconductor companies, ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. 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. Licensees currently include: Alchemy alchemy (ăl`kəmē), ancient art of obscure origin that sought to transform base metals (e.g., lead) into silver and gold; forerunner of the science of chemistry. Microprocessor Design Group (Cadence cadence, in music, the ending of a phrase or composition. In singing the voice may be raised or lowered, or the singer may execute elaborate variations within the key. ); ATI Technologies “ATI” redirects here. For other uses, see Ati. ATI Technologies U.L.C. ATI is a major Canadian designer and supplier of graphics processing units, motherboard chipsets, and video display cards. Inc.; Broadcom Corporation; Centillium Communications, Inc.; Chartered Semiconductor Manufacturing Chartered Semiconductor Manufacturing SGX: C27 NASDAQ: CHRT (abbreviated CSM) is the world's fourth largest dedicated independent semiconductor foundry, with its headquarters and main operations located in the Woodlands Industrial Park, Kranji Singapore. Ltd.; 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) ); ESS (1) (Electronic Switching System) A large-scale computer from Lucent used to route telephone calls in a telephone company office. The 5ESS is a Class 5 central office switch, and the 4ESS is a Class 4 tandem office switch. Technology, Inc.; Excess Bandwidth Corporation; General Instrument Corporation; 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 Technologies; Lara Networks, Inc.; 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; Metalink Ltd.; 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; QuickLogic Corporation; Quantum Effect Devices Quantum Effect Devices was a company originally named Quantum Effect Design, incorporated in 1991. The three founders, Tom Riordan, Earl Killian and Ray Kunita were senior managers at MIPS Computer Systems Inc.. , 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. ); Sandcraft, Inc.; SiByte, Inc.; Sony Corporation; Synova; Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. Incorporated; 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, ; and Taiwan Semiconductor Manufacturing Company. Numerous companies utilize MIPS-based 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 MIPS Technologies, Inc. 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 products will fail to achieve market acceptance, the timing of customer orders, delays in the design process, the length of MIPS Technologies' sales cycle, MIPS Technologies' ability to develop, introduce and market new products and product enhancements, the timing of new product announcements and introductions by MIPS Technologies and its licensees and their competitors, the demand for semiconductors and end-user products that incorporate semiconductors and other risks. With respect to MIPS Technologies, Inc. we refer you to the documents that it files from time to time with the Securities and Exchange Commission, including its 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. for the year ended June 30, 1999 and Form 10-Q Form 10-Q See 10-Q. for the quarters ended September 30, 1999 and December 31, 1999. Note to Editors: MIPS is a registered trademark and MIPS-based and MIPS32, MIPS64, 4Km and 4Kp are trademarks 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/
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
-------- -------- -------- --------
Revenue:
Royalties $18,149 $23,274 $43,620 $48,127
Contract revenue 8,812 3,400 23,781 5,800
-------- -------- -------- --------
Total revenue 26,961 26,674 67,401 53,927
Costs and expenses:
Cost of contract revenue -- -- 500 125
Research and development 6,801 5,824 20,054 15,047
Sales and marketing 2,642 1,801 7,011 4,820
General and administrative 1,387 1,718 5,518 4,673
-------- -------- -------- --------
Total costs and expenses 10,830 9,343 33,083 24,665
-------- -------- -------- --------
Operating income 16,131 17,331 34,318 29,262
Interest income(expense), net 1,119 469 2,581 908
-------- -------- -------- --------
Income before income taxes 17,250 17,800 36,899 30,170
Provision for income taxes 6,900 7,120 14,809 12,068
-------- -------- -------- --------
Net income $10,350 $10,680 $22,090 $18,102
======== ======== ======== ========
Net income per basic share $ 0.27 $ 0.29 $ 0.58 $ 0.49
======== ======== ======== ========
Net income per diluted share $ 0.26 $ 0.27 $ 0.55 $ 0.47
======== ======== ======== ========
Common shares
outstanding - basic 38,196 37,277 37,908 37,242
======== ======== ======== ========
Common shares
outstanding - diluted 40,437 39,275 39,901 38,584
======== ======== ======== ========
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, June 30,
2000 1999
-------- --------
Assets (unaudited)
Current assets:
Cash and cash equivalents $79,120 $49,916
Accounts receivable 7,488 425
Prepaid expenses and other current assets 3,394 2,989
-------- --------
Total current assets 90,002 53,330
Equipment and furniture, net 5,908 5,123
Other assets 848 936
-------- --------
$96,758 $59,389
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,877 $10,028
Accrued liabilities 16,307 8,265
-------- --------
Total current liabilities 20,184 18,293
Deferred revenue 375 375
Stockholders' equity 76,199 40,721
-------- --------
$96,758 $59,389
======== ========
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