MIPS Technologies Announces Divestiture of Its Analog Business Group
May 08 2009 - 8:30AM
PR Newswire (US)
Bolsters Balance Sheet; Refocuses on Core Competencies MOUNTAIN
VIEW, Calif., May 8 /PRNewswire-FirstCall/ -- MIPS Technologies,
Inc. (NASDAQ:MIPS), a leading provider of industry-standard
processor architectures and cores for home entertainment,
communications, networking and portable multimedia markets, today
announced the divestiture of its Analog Business Group. Synopsys,
Inc. (NASDAQ:SNPS) acquired the business unit in an all-cash
transaction for $22 million, effective immediately. This
transaction enables MIPS Technologies to focus exclusively on its
core competencies in microprocessor IP, continuing to build on its
leadership position in markets like the digital home and
networking, while expanding its presence in other key markets. The
Analog Business Group was formed through MIPS' acquisition of
Chipidea Microelectronica S.A. in August 2007. "We believe this
action will improve shareholder value, increase profitability,
boost our competitive position and enable us to focus all of our
resources on solving our customers' most immediate design
challenges," said John Bourgoin, MIPS Technologies president and
CEO. "MIPS has tremendous opportunities in our industry-leading
processor IP, development tools and robust ecosystem, and we are
laser-focused on growing our business in these areas. Synopsys has
a long-term mixed-signal IP business that will be significantly
stronger as a result of this deal." MIPS Technologies invites you
to listen in a live conference call to management's discussion of
this news. The conference call will be held today, May 8, 2009, at
6:00 a.m. Pacific Time. The conference call number is 212-519-0814,
and the replay number is 203-369-0099. The password for both calls
is MIPS. The replay will be available for 30 days shortly following
the end of the conference call. About MIPS Technologies, Inc. MIPS
Technologies, Inc. (NasdaqGS: MIPS) is a leading provider of
industry-standard processor architectures and cores that power some
of the world's most popular products for the home entertainment,
communications, networking and portable multimedia markets. These
include broadband devices from Linksys, DTVs and digital consumer
devices from Sony, DVD recordable devices from Pioneer, digital
set-top boxes from Motorola, network routers from Cisco, 32-bit
microcontrollers from Microchip Technology and laser printers from
Hewlett-Packard. Founded in 1998, MIPS Technologies is
headquartered in Mountain View, California, with offices worldwide.
For more information, 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 MIPS Technologies'
expectations regarding customers' use of MIPS' products. These
forward-looking statements include MIPS' expectation regarding
improvements in financial results. 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 that our products will achieve market
acceptance, difficulties that may be encountered in the divesting
of the Chipidea business, 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, in particular
the level of demand in these markets during the recessionary period
currently affecting global economies. 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. MIPS and MIPS-Based are
trademarks or registered trademarks in the United States and other
countries of MIPS Technologies, Inc. All other trademarks referred
to herein are the property of their respective owners. DATASOURCE:
MIPS Technologies, Inc. CONTACT: Media, Jen Bernier,
+1-650-567-5178, , or Investors, Juli Dowhan, +1-650-567-5100, ,
both of MIPS Technologies, Inc. Web Site: http://www.mips.com/
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