MIPS Technologies Reports Third Quarter Fiscal 2004 Financial Results; Continued Profitability; Record Number of Licenses.Business Editors/High-Tech Writers MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 21, 2004 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. ), today reported financial results for its third fiscal quarter ended March 31, 2004. Total revenue grew 33% over the same quarter a year ago, with increases in both royalty and contract revenue. Total revenue for the third quarter of fiscal 2004 was $12.6 million compared to $9.5 million for the same quarter a year ago. Royalties were $5.9 million, an increase of 37% compared to $4.3 million in the same quarter a year ago. Contract revenue was $6.7 million, an increase of 29% compared to $5.1 million in the same quarter a year ago. Net income for the third quarter of fiscal 2004 was $1.2 million compared to a net loss of $4.1 million for the same quarter a year ago. Net income per diluted share for the third quarter of fiscal 2004 was $0.03 compared to a net loss per share of $0.10 for the same quarter a year ago. "As the market continues to recover, we have again posted strong financial results and exceeded our guidance for revenue and profitability for the quarter," said Casey Eichler, chief financial officer at MIPS Technologies. "Moving forward, the company is well positioned to take advantage of the ongoing demand in the consumer market, which is helping to drive our better-than-expected contract revenue growth." "This was the fourth consecutive quarter of revenue growth for MIPS Technologies," said John Bourgoin, president 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. "We closed a record number of license agreements and continued to see demand for multi-product licenses from customers. During the third quarter the company not only exceeded financial expectations but also delivered the 24K core family for general availability and licensing on time and to a welcoming market. To date, the 24K product line has experienced the fastest rate of licensing of any product in the company's history and is gaining broad support from third parties. We expect the 24K core products will be key to our ability to deliver improved financial results." MIPS Technologies invites you to listen to management's discussion of Q3 fiscal 2004 results and guidance for Q4 fiscal 2004 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-913-981-4913. Replay number is 1-719-457-0820 and will be available for 5 days, beginning shortly after the end of the conference call. The access code is 407654. An audio replay of the conference call will be posted on the Company's website (www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter. Q3 FY2004 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers. ATI's MIPS-Based XILLEON Offers Comprehensive Suite of Graphics and Video Solutions for Windows Media Center Extender Windows Media Center Extenders are set-top boxes that are configured to connect via an Ethernet or Wireless network to a computer running Microsoft Windows XP Media Center Edition or Windows Vista Home Premium/Ultimate to stream the computer's media center functions to the Extender Products AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. and Mediabolic to Enhance Functionality of Mobile Entertainment Devices Broadcom Introduces New MIPS-Based IP Phone Chips Targeted at the Rapidly Emerging Residential and SOHO Soho (sōhō`, sə–), district of Westminster, London, England, known for its continental restaurants. Once a fashionable quarter, it became popular among writers and artists in the 19th cent. VoIP Markets Broadcom Enters Consumer Television Market with Highly Integrated MIPS-Based HDTV/PVR Chip Centillium Communications Attacks Global ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line Market with Launch of MIPS-Based StreetFighter Product Line Entropic's Breakthrough MIPS-Based c.LINK-270 Chipset A group of chips designed to work as a unit to perform a function. For example, a modem chipset contains all the primary circuits for transmitting and receiving. A PC chipset provides the electronic interfaces between all subsystems (see PC chipset for illustration). Uses Coax Wiring to Simplify Home Networking -- Rollout at CES 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 Expands its MIPS-Based(TM) Portfolio with MIPS32(TM) 4KEc(TM) Core to Meet Demand for High-Performance SoC Solutions Kawasaki Microelectronics Adds MIPS Technologies' Proven Cores to Its 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. IP Portfolio Metalink's MIPS-Based Total-VDSL Technology Incorporated into Tellion's Broadband Access See broadband and wireless broadband. Products MIPS Technologies CEO Addresses "The Killer User Experience" Phenomenon in Consumer Devices MIPS(R) Architecture Driving High-Growth Digital Still and Digital Video Camera Markets MIPS-Based(TM) Solutions from 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. Adopted by World-Leading Digital Consumer Companies MIPS Technologies Processor Core Powers Entropic Communications Coax-Based Home Networking Solution MIPS Technologies Licenses Highest Performance MIPS32(TM) 24K(TM) Processor Core Family to 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 MIPS Technologies and WIS Technologies Enter into Strategic Licensing Agreement for MIPS-Based(TM) Technology PhatNoise Selects PMC-Sierra's MIPS-Based Microprocessor to Power Next-Generation Car Entertainment System OASIS SiliconSystems and QuickLogic Partner to Develop QuickMIPS-Based Platforms for In-Car Infotainment Systems 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. and i3 micro technology Provide Advanced Broadband Telephony See VoIP. and Video Media Products for Residential Market TI Brings Voice to 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 ; New MIPS-Based AR7 Router Designs Integrate VoIP and Wi-Fi(R) for Home Networking Toshiba MIPS-Based TMPR TMPR Too Much Positive Reinforcement 4926 Microprocessor Selected by Coventive Technologies to Enable New Gemini Set-Top Box The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. Toshiba Adds New MIPS-Based WVM WVM White Van Man 49RX TX System 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. Platform for Residential Home Gateway Applications ViXS and Daewoo Demonstrate the Latest in Wireless Home Entertainment Technology at CES ViXS' MIPS-Based(TM) XCode II Selected by Arcadyan for its High-Performance Digital Home Entertainment Product Line Zoran's MIPS-Based Generation9(TM) HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates Processor Solutions in Volume Production with Worldwide OEMs: Sony, Funai, JVC JVC Victor Company of Japan (or Japan's Victor Company) JVC Jewelers Vigilance Committee JVC Jesuit Volunteer Corps JVC Jet Vane Control (directs VLS-launched missiles) JVC Jonker-Volgenant-Castanon , Pioneer Zoran's MIPS-Based Generation9(TM) ICs, Software and Platforms Enable New Concept Model of Digital Home Media Server from Toshiba Zoran's MIPS-Based Generation9(TM) Digital TV and Set-Top Box ICs in Motorola Broadband Digital Cable-Ready Products Zoran Demonstrates Seventh Generation MIPS-Based Digital Camera Processor with Affordable DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. Quality Video Recording at PMA PMA (papillary-marginal-attached), n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation. PMA Progressive muscular atrophy in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. Zoran's MIPS-Based(TM) Generation9(TM) Digital TV ICs Power New High-Performance LCoS(R)-Based HDTVs from Brillian Zoran's MIPS-Based COACH Processor Powers New Affordable High Quality Samsung Digimax Cameras Displayed at PMA MIPS Technologies, Inc. MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and business applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded Inserted into. See embedded system. RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC 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. MIPS Technologies, Inc. is based in Mountain View, Calif., and can be reached at 650-567-5000 or www.mips.com. This press release contains 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. , including those regarding its 24K core product family, expected financial results, growth in its markets and changing consumer demand for products. Actual events or results may differ materially. Many factors could cause the actual results to differ materially from those contained in such forward-looking statements, including but not limited to: our products may fail to achieve market acceptance, changes in our research and development expenses, the anticipated benefits of our partnering relationships may be more difficult to achieve than expected, the timing of or delays in 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, and the level of demand for semiconductors and end-user products that incorporate semiconductors. With respect to MIPS Technologies, we refer you to the documents filed 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, 2003 and subsequent Forms 10-Q and 8-K. MIPS is a registered trademark in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries, and MIPS-Based is a trademark of MIPS Technologies, Inc.
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------ ------------------
2004 2003 2004 2003
------- ------- ------- -------
(unaudited) (unaudited)
Revenue:
Royalties $5,941 $4,336 $16,954 $12,002
Contract revenue 6,656 5,141 16,744 17,295
------- ------- ------- -------
Total revenue 12,597 9,477 33,698 29,297
Costs and expenses:
Cost of contract revenue - - - 250
Research and development 5,117 7,636 18,732 25,250
Sales and marketing 3,016 3,403 8,352 10,505
General and
administrative 2,361 2,321 6,027 6,167
Acquired in process
research and development - - - 394
Restructuring - (16) 3,233 7,618
------- ------- ------- -------
Total costs and expenses 10,494 13,344 36,344 50,184
------- ------- ------- -------
Operating income (loss) 2,103 (3,867) (2,646) (20,887)
Other income (expense), net 182 249 497 (12)
------- ------- ------- -------
Income (loss) before
income taxes 2,285 (3,618) (2,149) (20,899)
Provision for income taxes 1,098 443 1,950 1,299
------- ------- ------- -------
Net income (loss) $1,187 $(4,061) $(4,099) $(22,198)
======= ======= ======== =======
Net income (loss) per
basic share $0.03 $(0.10) $(0.10) $(0.56)
======= ======= ======== =======
Net income (loss) per
diluted share $0.03 $(0.10) $(0.10) $(0.56)
======= ======= ======== =======
Common shares
outstanding-basic 40,530 39,530 40,367 39,384
======= ======= ======== =======
Common shares
outstanding-diluted 43,192 39,530 40,367 39,384
======= ======= ======== =======
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, 2004 June 30, 2003
-------------- -------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 67,278 $ 83,839
Short-term investments 19,951 -
Accounts receivable, net 5,167 4,762
Prepaid expenses and other
current assets 1,294 3,648
------- -------
Total current assets 93,690 92,249
Equipment and furniture, net 4,182 4,202
Other assets 6,421 8,898
------- -------
$ 104,293 $ 105,349
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 284 $ 504
Accrued liabilities 9,533 10,977
Deferred revenue 6,144 2,592
------ ------
Total current liabilities 15,961 14,073
Long-term liabilities 1,584 1,900
Stockholders' equity 86,748 89,376
------ ------
$ 104,293 $ 105,349
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