MIPS Technologies Inc. Reports Second Quarter Fiscal 1999 Financial Results.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 14, 1999--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 second fiscal quarter ended December 31, 1998. The company is the world's primary architect of embedded 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. Revenue for the second quarter of fiscal 1999 was $15.0 million, up 22 percent compared with the prior quarter and 20 percent compared with the second quarter of fiscal 1998. The increase was realized in both contract and royalty revenues. Net income in the second quarter of fiscal 1999 was $4.1 million, or $0.11 per share compared to the net income of $3.3 million, or $0.09 per share reported in the previous quarter, and a net loss of $10.4 million, or $0.29 per share in the same quarter a year ago. "The second quarter was another solid quarter for 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," said Casey Eichler, chief financial officer. "We brought in new licensing revenues and continued to see a strong stream of royalty revenue. "In addition to meeting our financial goals, we completed agreements with two of our largest strategic partners, 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. and Toshiba, which extend their commitments to the MIPS(R) architecture well into the next century. We will issue a separate press release with details on those agreements at a later date. These new license agreements reflect further progress toward our target financial model." 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. of MIPS Technologies Inc. commented, "We made excellent progress during the December quarter. During the quarter we also announced MIPS Technologies' product roadmap through the year 2000. Our roadmap now includes flexible 32- and 64-bit cores as well as a very high performance processor. These products will provide MIPS Technologies' licensees and customers with a wide range of cores and CPUs for the embedded market Refers to custom-designed, computer-based devices and applications that perform a fixed set of tasks. It may refer to cellphones and other handhelds, network appliances (routers, access points, modems) and myriad consumer electronics products. , covering very low cost points to very high performance. "Our organization grew significantly as well. On December 1, a skilled team of 24 engineers in what is now known as the MIPS Denmark Development Center joined MIPS Technologies, Inc. This team has been working with MIPS-based(tm) cores for years and brings to our company an intact, operating team operating team Surgery The participants–surgeons, nurses, etc–in a sterile surgical procedure performed under general–less commonly, local anesthesia with direct and immediate experience." Additional Q2 1999 Highlights -- MIPS Technologies Inc. introduced its first "drop-in" embedded processor cores -- MIPS Technologies Inc. unveiled its processor technology roadmap The context of product management The existence of product managers in the product software industry indicates that software is becoming more and more commercialized as a standard product. -- Casio introduced a MIPS-based(tm)8MB Windows(R)CE Palm-Size PC -- the Cassiopeia E-11 -- Vadem announced the MIPS-based Clio handheld PC -- NEC introduced the MIPS 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. VR4121 processor for the Windows CE, Handheld PC Professional Edition -- Applied Microsystems introduced CodeTAP(R)JTAG (Joint Test Action Group) An IEEE standard for boundary scan technology. See scan technology. JTAG - Joint Test Action Group emulator for the MIPS architecture -- 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 shipped its six millionth MIPS-based QPSK (Quadrature Phase Shift Keying) A phase modulation technique that transmits two bits in four modulation states. See PSK and phase modulation. Demodulator See demodulate. Demodulator A device used to recover the original modulating signal from a modulated wave. A demodulator is also known as a detector. Satellite Receiver -- Corelis Inc. announced support products for QED's MIPS-based RM57270/71 and RM7000 RISC processors on HP Logic Analyzers -- Canon unveiled an innovative MIPS-based workgroup color laser printer featuring exceptional quality, productivity and reliability -- 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. announced that GENICOM Corporation selected its MIPS-based RM5230(tm) RISC microprocessor for its next-generation Intelliprint(R) Controller Architecture -- the heart of the company's new microLaser(tm) 320 printer -- Metrowerks and MIPS Technologies, Inc. signed an agreement to provide binary code instrumentation technology tools -- Toshiba offered a high-end Windows CE development system through the Juno reference system V.90 software modem capability (the Juno reference system is part of the Toshiba TX System RISC(tm) family, and is based on Toshiba's TMPR TMPR Too Much Positive Reinforcement 3922 MIPS RISC processor) -- NEC Computer Systems division announced its newest MIPS-based MobilePro(tm) 800 handheld PC - Sony Corporation's 21st century consumer electronics toys include Toshi Doi an "entertainment robot" prototype, which utilizes IDT's MIPS-based R3052 CPU CPU in full central processing unit Principal component of a digital computer, composed of a control unit, an instruction-decoding unit, and an arithmetic-logic unit. -- Accelerated Technology and Diab Data expand support to include MIPS-based processors -- QED and IGST announced a MIPS-based multimedia platform for advanced set top boxes -- Broadcom announced a MIPS-based OpenCable silicon platform -- Philips Semiconductors unveiled a new MIPS-based set top box solution for internet TV and windows-based terminals Also, in a joint press release issued today, the company and Silicon Graphics Inc. (NYSE NYSE See: New York Stock Exchange :SGI (SGI, Sunnyvale, CA, www.sgi.com) A manufacturer of workstations and servers, founded in 1982 by Jim Clark. The company was founded as Silicon Graphics, Inc., but changed to its acronym in 1999. ) announced that MIPS Technologies Inc. will undertake a recapitalization of the company. The recapitalization establishes a path for MIPS Technologies to achieve full business independence. It also will lead to greater liquidity for MIPS Technologies common stock. The plan creates a structure to manage an orderly multistep divestiture of Silicon Graphics' ownership of MIPS Technologies, with the divestiture expected to be complete by September 30, 2000. The reduction in Silicon Graphics' equity position in MIPS Technologies is expected to occur through secondary market sales and other transactions. Please refer to the joint press release titled "MIPS Technologies Inc. and Silicon Graphics Inc. Announce Recapitalization Plan" (released over the Business Wire January 14, 1999). About MIPS Technologies Inc. MIPS Technologies Inc. is the world's primary architect of embedded 32- and 64-bit RISC processors. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. It offers the only embedded 64-bit RISC architecture for emerging digital consumer, network systems, and information management applications. The company licenses its intellectual property to semiconductor manufacturing 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. 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 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 Logic Corporation; Macronix; NEC 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); Sony Corporation; Synova; and Toshiba Corporation. 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 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. for the year ended June 30, 1998 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 1998. MIPS is a registered trademark and MIPS-based is a 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/ -0-
MIPS Technologies Inc.
Condensed Statements of Operations (unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
1998 1997 1998 1997
Revenue:
Royalties $ 13,243 $ 12,472 $ 24,854 $ 26,759
Contract revenue 1,750 77 2,400 827
Total revenue 14,993 12,549 27,254 27,586
Costs and expenses:
Cost of contract revenue 125 -- 125 375
Research and development 4,667 17,789 9,223 35,127
Sales and marketing 1,730 1,462 3,019 2,910
General and administrative 1,821 1,038 2,956 2,295
Restructuring charges -- 2,614 -- 2,614
-------- -------- -------- --------
8,343 22,903 15,323 43,321
Operating income (loss) 6,650 (10,354) 11,931 (15,735)
Interest income (expense), net 264 (4) 438 (11)
Income (loss) before income taxes 6,914 (10,358) 12,369 (15,746)
Provision for income taxes 2,766 -- 4,948 --
Net income (loss) $ 4,148 $(10,358) $ 7,421 $(15,746)
Net income (loss) per basic share $ 0.11 $ (0.29) $ 0.20 $ (0.44)
Net income (loss)
per diluted share $ 0.11 $ (0.29) $ 0.19 $ (0.44)
Common shares outstanding-basic 37,267 36,000 37,225 36,000
Common shares outstanding-diluted 38,536 36,000 38,239 36,000
MIPS Technologies Inc.
Condensed Balance Sheets
(In thousands)
December 31, June 30,
1998 1998
Assets (unaudited)
Current assets:
Cash and cash equivalents $26,052 $ 45
Accounts receivable 2,602 250
Prepaid expenses and other current assets 453 618
Total current assets 29,107 913
Equipment and furniture, net 3,155 2,787
Other assets 1,027 996
------- -------
$33,289 $ 4,696
Liabilities and
Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable $ 3,661 $ 3,087
Accrued liabilities 6,381 2,356
Total current liabilities 10,042 5,443
Deferred revenue, less current portion 375 --
Stockholders' equity (deficit) 22,872 (747)
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$33,289 $ 4,696
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