MIPS Technologies Reports First Quarter 2007 Revenue and Expected Restatement
October 25 2006 - 5:20PM
PR Newswire (US)
Contract and Royalty Revenues Show Strong Growth MOUNTAIN VIEW,
Calif., Oct. 25 /PRNewswire-FirstCall/ -- MIPS Technologies, Inc.
(NASDAQ:MIPS), a leading provider of industry-standard processor
architectures and cores for digital consumer, networking, personal
entertainment, communications and business applications, today
reported revenue results for its first quarter of fiscal 2007,
ended Sept. 30, 2006 and also provided an update on the
investigation of historical stock-based compensation practices by a
special committee of independent directors. First Quarter Revenue
Revenue in the first quarter was $19.7 million, an increase of 8
percent over the prior quarter revenue of $18.3 million, and an
increase of 65 percent from the $11.9 million in revenue reported
in the first fiscal quarter a year ago. Revenue from royalties was
$11.2 million, an increase of 8 percent over the $10.4 million
reported in the prior quarter and an increase of 39 percent from
the $8.1 million reported in the first quarter a year ago. Contract
revenue was $8.5 million, an increase of 7 percent from the $7.9
million reported in the prior quarter and an increase of 119
percent from the $3.9 million reported in the first quarter a year
ago. As previously announced, MIPS formed a special committee of
independent members of its Board of Directors to review the
Company's historical option grant practices and the Company's
accounting for its option grants. Due to the continuing internal
investigation, MIPS is not releasing first quarter fiscal 2007
earnings at this time. "We had an excellent first quarter, with
revenue up 65 percent year-over- year; this is the highest revenue
level since early 2001," said John Bourgoin, president and CEO.
"MIPS earned strong royalties from three key market segments:
digital TV, consumer, and broadband. Our strength in those and
other markets drove MIPS-Based(TM) unit shipments to 90 million
last quarter, continuing our impressive royalty growth." MIPS
Technologies invites you to listen to management's discussion of Q1
fiscal 2007 revenue results and guidance for Q2 fiscal 2007 in a
live conference call today beginning at 1:45 p.m. Pacific time. The
conference call number is 210-234-0004, and the replay number is
203-369-3426, which will be available for 7 days, beginning shortly
after the end of the conference call. The password is MIPS. An
audio replay of the conference call will be posted on the company's
website (
http://www.mips.com/content/Corporate/InvestorRelations/ir ) soon
thereafter. Stock Option Investigation Update and Expected
Restatement Though the investigation by the special committee
remains ongoing, the special committee has reached a determination
that, different measurement dates should have been used for
computing compensation costs for certain historic stock option
grants than those used in the preparation of the Company's
historical financial statements. The special committee has not yet
completed its investigation to allow for the final determination of
the proper measurement dates, and, therefore, the Company has not
determined the amount of additional compensation expenses that will
be recorded. Nonetheless, the Company has determined that its
historical financial statements included in reports that it has
previously filed with the Securities and Exchange Commission
("SEC") will need to be restated. Consequently, such financial
statements, and the Company's earnings releases reporting periodic
operating results and financial conditions for such periods should
no longer be relied upon. To date, there is no basis to conclude
that there was any intentional misconduct by current management.
The Company has not filed its Annual Report on Form 10-K for the
year ended June 30, 2006, pending the completion of the special
committee's investigation. The Company plans to file the Annual
Report as soon as practicable after the investigation is completed.
The Company voluntarily contacted the SEC to inform them about the
ongoing review, and the SEC has recently requested that the Company
provide them with certain information relating to the Company's
stock option practices. MIPS Technologies issued a press release on
September 19, 2006 that the Company will request a hearing before
the NASDAQ Listing Qualifications Panel in response to the receipt
of a NASDAQ Staff Determination letter that the Company is not in
compliance with the filing requirements for continued listing as
set forth in Marketplace Rule 4310(c)(14). The notice was issued in
accordance with standard NASDAQ procedures due to the delayed
filing of the Company's Annual Report on Form 10-K for the fiscal
year ended June 30, 2006. Pending a decision of the Panel, the
Company's shares will continue to be listed on the NASDAQ Global
Market. The Company has since requested and was granted a hearing
which is scheduled for November 9, 2006, in which the Company's
management will present in person its plan to regain compliance
with NASDAQ's filing requirements. There can be no assurance that
the hearing panel will grant the Company's request for an extension
that would allow the continued listing of the Company's common
stock on the NASDAQ Global Market. Q1 FY2007 News Highlights: From
its founding more than 20 years ago, the MIPS(R) architecture has
represented innovation and performance. Today, MIPS Technologies
and its licensees continue to lead in system-performance and
innovative solutions for established and emerging markets. With
multiple design teams actively developing the architecture,
hundreds of successful implementations throughout the world, and a
vibrant ecosystem of third-party tools and software-MIPS continues
to be at the core of the user experience. Following are selected
press release headlines from MIPS Technologies, and the company's
licensees, systems vendors and third party providers. Ikanos
Communications Selects MIPS Technologies MIPS32(R) 24KEc(TM)
Processor Cores for Next-Generation Broadband SoCs Dolby
Laboratories and MIPS Technologies Poised to Deliver
Next-Generation Audio Technology for Set-Top Box, HD DVD, and
Blu-ray Disc Markets Esmertec and MIPS Technologies Announce
Optimal Java(TM) Solution on MIPS32(R) 24Kc(TM) Processor for
Blu-ray Disc(TM) Products ATI Selects MIPS Technologies for
Next-Generation DTV and PC Multimedia SoCs MIPS Technologies
Introduces MIPS-Verified(TM) Program to Authenticate Licensed
MIPS-Based(TM) Products Worldwide MIPS Technologies Wins Top Honors
from Electronique Magazine for Multi- threading Innovation Atheros
Launches XSPAN Value Solutions Featuring the Company's First
Advanced Network Processor, MIPS-Based(TM) AR7100 Sigma
MIPS-Based(TM) Media Processors Proliferate Across Europe With the
Launch of IPTV Services by Deutsche Telekom, Neuf, and Others
Broadcom Gains Momentum in Draft-802.11n Market as MIPS-Based(TM)
Intensi- fi(TM) Technology Expands into Notebook PCs Infineon
Introduces Highly Integrated MIPS-Based(TM) SoC Solutions to Enable
Higher Performance, Cost-Optimized VoIP Solutions for Next
Generation Residential Gateways Zoran Powers Sanyo's New High
Volume Flat-Panel High Definition Televisions for US Market;
Features MIPS-Based(TM) SupraHD Processor Actions Semiconductor
Expands Product Portfolio with the introduction of its Series 13
product family Cavium Networks Introduces New OCTEON Plus
Multi-core MIPS64(R) Processors with World's Highest Networking,
Wireless and Security Performance New ATI MIPS-Based(TM) Xilleon'R'
260 Chip Supports Full HD For Worldwide Standards Atheros
Introduces Highly Optimized Platform for Next-Generation Wireless
IP Phones -- MIPS-Based(TM) AR6101 Solution Syntax-Brillian
Announces Three New Lines of Olevia LCD TVs; TVs Utilize
MIPS-Based(TM) Xilleon CPU Fraunhofer IIS Licenses Most Advanced
MPEG-4 Audio Codec to NXP Semiconductors for MIPS-Based(TM)
Nexperia Systems About MIPS Technologies MIPS Technologies, Inc. is
a leading provider of industry-standard processor architectures and
cores for digital consumer, networking, personal entertainment,
communications and business applications. The company drives the
broadest architectural alliance that delivers 32- and 64-bit
embedded RISC solutions to the embedded market, and in combination
with its licensees, offers the widest range of robust, scalable
processors in standard, custom, semi-custom and
application-specific products worldwide. MIPS Technologies licenses
its intellectual property (IP) to today's leading semiconductor
companies, ASIC developers and system OEMs. Today, MIPS-Based
designs are integrated in millions of products around the world,
including broadband devices from Linksys, digital cameras from
Canon, DTVs and entertainment systems from Sony, DVD Recordable
devices from Pioneer, digital set-top boxes from Motorola, network
routers from Cisco and laser printers from Hewlett-Packard. Founded
in 1998, MIPS Technologies is based in Mountain View, California,
with offices worldwide. For more information, please contact (650)
567-5000 or visit http://www.mips.com/ . Forward Looking Statements
This press release contains forward-looking statements; such
statements are indicated by forward looking language such as
"plans," "anticipates," "expects," "will," and other words or
phrases contemplating future activities including statements
regarding the restatement of historical financial statements.
Actual events or results may differ materially from those
anticipated in these forward-looking statements as a result of a
number of different risks and uncertainties, including but not
limited to: the fact that there can be no assurance as to the
length, cost, or outcome of the special committee's review of
historical option grant practices and the Company's accounting for
its option grants, or as to the potential impact of that review
(including possible accounting impact); 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. For a further
discussion of risk factors affecting our business, we refer you to
the risk factors section in the documents we file from time to time
with the Securities and Exchange Commission. DATASOURCE: MIPS
Technologies, Inc. CONTACT: Media Contact, Jodi Guilbault of MIPS
Technologies, Inc., +1-650-567-5035, or ; or Investor Contact,
Deborah Stapleton of Stapleton Communications Inc., +1-650
470-0200, or , or MIPS Technologies, Inc. Web site:
http://www.mips.com/
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