MIPS Technologies, Inc. (Nasdaq:MIPS), a leading provider of
industry-standard processor architectures and cores for digital
home, networking and mobile applications, today reported
consolidated financial results for its third fiscal quarter ended
March 31, 2011. All financial results are reported in U.S. GAAP
unless otherwise noted.
Summary Third Quarter Fiscal 2011 Financial Highlights:
- Revenue was $20.0 million, a year-to-year increase of 15
percent
- Licensee royalty units grew to 163 million units from 135
million units in Q3'10
- Non-GAAP net income was $4.7 million or $0.09 per share; up 21
percent year-to-year
- Cash and investment balances ended the quarter at $108.4
million, a year-to-year increase of $57.1 million
Revenue from royalties was $13.4 million, an increase of 11
percent from the third quarter a year ago, driven by a 20 percent
increase in units. License revenue was $6.6 million, an increase of
23 percent from the $5.4 million reported in the third quarter a
year ago.
Q3'11 GAAP costs and operating expenses were $16.0 million, an
increase of $2.4 million over Q3'10. The increase compared with
Q3'10 was due mainly to higher R&D and marketing costs.
Non-GAAP net income in the third quarter of fiscal 2011, which
excludes certain stock and non-recurring charges, was $4.7 million
or $0.09 per share, compared with $3.9 million or $0.08 per share
in the third quarter a year ago. The tables below provide a
reconciliation of non-GAAP measures used in this press release to
the corresponding GAAP results.
"We announced the first MIPS-Based mobile handsets and tablets
during the quarter, and also received our first mobile-related
royalties for these devices. These are significant milestones for
MIPS as we continue to make inroads into the mobile device market,"
said Sandeep Vij, chief executive officer, MIPS Technologies.
MIPS Technologies invites you to listen to management's
discussion of Q3 fiscal 2011 results, as well as forward-looking
guidance for Q4 and fiscal 2011:
- Live webcast (listen-only): visit
https://e-meetings.verizonbusiness.com; conference number 6570107;
passcode: MIPS
- Live conference call: dial 517-308-9038; password MIPS
- Replay call (available for 30 days shortly following the end of
the conference call): dial 203-369-0710; password: MIPS
An audio replay of the conference call will also be posted on
the company's website at
www.mips.com/company/investor-relations/.
About MIPS Technologies, Inc.
MIPS Technologies, Inc. (Nasdaq:MIPS) is a leading provider of
industry-standard processor architectures and cores that power some
of the world's most popular products for the digital home,
networking and mobile device 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 Sunnyvale,
California, with offices worldwide. For more information, contact
(408) 530-5000 or visit 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 about
future technology and growth. These forward-looking statements
include MIPS Technologies' 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, 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'
ability to develop, introduce and market new products and product
enhancements, the level of demand for semiconductors and end-user
products that incorporate semiconductors and our ability to compete
effectively with larger companies and other companies that are
active in our markets. 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 is a trademark or registered trademark in the United States
and other countries of MIPS Technologies, Inc. All other trademarks
referred to herein are the property of their respective owners.
MIPS TECHNOLOGIES,
INC. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(In
thousands) |
|
|
|
|
March 31, 2011 |
June 30, 2010 |
|
(unaudited) |
|
Assets |
|
|
Current assets: |
|
|
Cash and cash
equivalents |
$73,130 |
$31,625 |
Short-term
investments |
35,223 |
20,736 |
Accounts receivable,
net |
4,575 |
7,527 |
Prepaid expenses and
other current assets |
1,178 |
819 |
Total current assets |
114,106 |
60,707 |
Equipment, furniture and property, net |
2,108 |
2,093 |
Goodwill |
565 |
565 |
Other assets |
6,330 |
7,542 |
Total assets |
$123,109 |
$70,907 |
Liabilities and
Stockholders' Equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$1,793 |
$1,529 |
Accrued liabilities |
11,888 |
13,911 |
Deferred revenue |
2,636 |
3,217 |
Total current
liabilities |
16,317 |
18,657 |
Long-term liabilities: |
|
|
Other long-term
liabilities |
5,230 |
6,116 |
Total long-term
liabilities |
5,230 |
6,116 |
Liabilities of discontinued operations |
-- |
26 |
Stockholders' equity |
101,562 |
46,108 |
Total liabilities and
stockholders' equity |
$123,109 |
$70,907 |
MIPS TECHNOLOGIES,
INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
|
(In thousands, except
per share data) |
(unaudited) |
|
|
|
|
Three Months
Ended March 31, |
Nine Months
Ended March 31, |
|
2011 |
2010 |
2011 |
2010 |
Revenue: |
|
|
|
|
Royalties |
$13,415 |
$12,100 |
$41,846 |
$33,244 |
License and contract
revenue |
6,633 |
5,406 |
22,597 |
14,431 |
Total Revenue |
20,048 |
17,506 |
64,443 |
47,675 |
Costs and expenses: |
|
|
|
|
Cost of sales |
163 |
75 |
1,060 |
309 |
Research and
development |
7,073 |
6,315 |
20,024 |
17,913 |
Sales and marketing |
5,377 |
3,889 |
14,215 |
10,840 |
General and
administrative |
3,362 |
3,282 |
10,253 |
9,993 |
Total costs and
expenses |
15,975 |
13,561 |
45,552 |
39,055 |
Operating income |
4,073 |
3,945 |
18,891 |
8,620 |
Other income (expense), net |
137 |
(136) |
894 |
201 |
Income before income taxes |
4,210 |
3,809 |
19,785 |
8,821 |
Provision for income taxes |
845 |
748 |
2,968 |
1,889 |
Income from continuing operations |
3,365 |
3,061 |
16,817 |
6,932 |
Income from discontinued operations, net of
tax |
-- |
-- |
212 |
-- |
Net income |
$3,365 |
$3,061 |
$17,029 |
$6,932 |
Net income per share, basic – from continuing
operations |
$0.06 |
$0.07 |
$0.34 |
$0.15 |
Net income per share, basic – from
discontinued operations |
$-- |
$-- |
$0.00 |
$-- |
Net income per share, basic |
$0.06 |
$0.07 |
$0.34 |
$0.15 |
Net income per share, diluted – from
continuing operations |
$0.06 |
$0.07 |
$0.32 |
$0.15 |
Net income per share, diluted – from
discontinued operations |
$-- |
$-- |
$0.00 |
$-- |
Net income per share, diluted |
$0.06 |
$0.07 |
$0.32 |
$0.15 |
Common shares outstanding, basic |
52,254 |
45,560 |
49,820 |
45,339 |
Common shares outstanding, diluted |
54,889 |
46,472 |
53,036 |
46,148 |
|
MIPS
TECHNOLOGIES, INC. |
RECONCILIATION OF GAAP
TO NON-GAAP NET INCOME and NET INCOME PER SHARE |
|
(In thousands, except
per share data) |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended
March 31, 2011 |
Three Months Ended
December 31, 2010 |
Three Months Ended
March 31, 2010 |
|
GAAP net income |
$3,365 |
$6,048 |
$3,061 |
|
Net income per basic share |
$0.06 |
$0.12 |
$0.07 |
|
Net income per diluted share |
$0.06 |
$0.11 |
$0.07 |
(a) |
Gain from discontinued operations, net of
tax |
$-- |
$(212) |
$-- |
(b) |
Stock-based compensation expense |
1,474 |
1,249 |
800 |
(c) |
Severance adjustment |
36 |
-- |
-- |
(d) |
Gain on investment |
(64) |
(547) |
-- |
(e) |
Tax on change in legal structure |
(126) |
937 |
-- |
|
Non-GAAP net income |
$4,685 |
$7,475 |
$3,861 |
|
|
|
|
|
|
Non-GAAP net income per basic share |
$0.09 |
$0.15 |
$0.08 |
|
Non-GAAP net income per diluted share |
$0.09 |
$0.14 |
$0.08 |
|
Common shares outstanding – basic |
52,254 |
50,394 |
45,560 |
|
Common shares outstanding – diluted |
54,889 |
53,703 |
46,472 |
|
|
|
|
|
|
|
|
|
|
These adjustments reconcile the Company's GAAP results of
operations to the reported non-GAAP results of operations. The
Company believes that presentation of net income and net income per
share excluding discontinued operations, stock-based compensation
expense, severance adjustment, gain on investment, and tax on
change in legal structure provides meaningful supplemental
information to investors, as well as management that is indicative
of the Company's ongoing operating results and facilitates
comparison of operating results across reporting periods. The
Company uses these non-GAAP measures when evaluating its financial
results as well as for internal planning and budgeting
purposes. These non-GAAP measures should not be viewed as a
substitute for the Company's GAAP results, and may be different
than non-GAAP measures used by other companies.
(a) This adjustment reflects the gain,
net of tax, of the Analog Business Group.
(b) This adjustment reflects the
stock-based compensation expense. For the third quarter of
fiscal 2011 ending March 31, 2011, $1.5 million stock-based
compensation expense was allocated as follows: $395,000 to research
and development, $462,000 to sales and marketing and $617,000 to
general and administrative. For the second quarter of fiscal
2011 ending December 31, 2010, $1.2 million stock-based
compensation expense was allocated as follows: $364,000 to research
and development, $304,000 to sales and marketing and $581,000 to
general and administrative. For the third fiscal quarter of
fiscal 2010 ending March 31, 2010, $800,000 stock-based
compensation expense was allocated as follows: $297,000 to research
and development, $221,000 to sales and marketing and $282,000 to
general and administrative.
(c) This adjustment reflects the
severance payment to the Company's former employees allocated to
sales and marketing.
(d) This adjustment reflects a gain on
an investment in a privately held company that was
acquired. This gain was recorded in other income
(expense).
(e) This adjustment reflects the
withholding tax in connection with the change in legal structure of
foreign operations.
MIPS
TECHNOLOGIES, INC. |
RECONCILIATION OF GAAP
TO NON-GAAP NET INCOME and NET INCOME PER SHARE |
|
(In thousands, except
per share data) |
(unaudited) |
|
|
|
|
|
|
Nine Months Ended
March 31, 2011 |
Nine Months Ended
March 31, 2010 |
|
GAAP net income |
$17,029 |
$6,932 |
|
Net income per basic share |
$0.34 |
$0.15 |
|
Net income per diluted share |
$0.32 |
$0.15 |
(f) |
Gain from discontinued operations, net of
tax |
$(212) |
-- |
(g) |
Stock-based compensation expense |
3,617 |
2,696 |
(h) |
Severance adjustment |
36 |
476 |
(i) |
Gain on investment |
(611) |
(611) |
(j) |
Tax on change in legal structure |
811 |
1,009 |
|
Non-GAAP net income |
$20,670 |
$10,502 |
|
Non-GAAP net income per basic share |
$0.41 |
$0.23 |
|
Non-GAAP net income per diluted share |
$0.39 |
$0.23 |
|
Common shares outstanding - basic |
49,820 |
45,339 |
|
Common shares outstanding – diluted |
53,036 |
46,148 |
These adjustments reconcile the Company's GAAP results of
operations to the reported non-GAAP results of operations. The
Company believes that presentation of net income and net income per
share excluding discontinued operations, stock-based compensation
expense, severance adjustment, gain on investment, and tax on
change in legal structure provides meaningful supplemental
information to investors, as well as management that is indicative
of the Company's ongoing operating results and facilitates
comparison of operating results across reporting periods. The
Company uses these non-GAAP measures when evaluating its financial
results as well as for internal planning and budgeting
purposes. These non-GAAP measures should not be viewed as a
substitute for the Company's GAAP results, and may be different
than non-GAAP measures used by other companies.
(f) This adjustment reflects the
gain, net of tax, of the Analog Business Group.
(g) This adjustment reflects the
stock-based compensation expense. For the nine months ending
March 31, 2011, $3.6 million of stock-based compensation was
allocated as follows: $1.0 million to research and development,
$1.0 million to sales and marketing and $1.6 million to general and
administrative. For the nine months ending March 31, 2010,
$2.7 million of stock-based compensation was allocated as follows:
$1.0 million to research and development, $0.7 million to sales and
marketing and $1.0 million to general and administrative.
(h) This adjustment reflects the
severance payment to the Company's former employees allocated to
sales and marketing in fiscal 2011 and allocated to general and
administrative in fiscal 2010.
(i) This adjustment reflects
a gain on an investment in a privately held company that was
acquired. This gain was recorded in other income
(expense).
(j) This adjustment reflects the
withholding tax in connection with the change in legal structure of
foreign operations.
CONTACT: Media Contact:
Jen Bernier-Santarini
MIPS Technologies, Inc.
+1 408-530-5178
jenb@mips.com
Investor Contact:
Maury Austin
MIPS Technologies, Inc.
+1 408-530-5000
ir@mips.com
Mips Technologies, Inc. (MM) (NASDAQ:MIPS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mips Technologies, Inc. (MM) (NASDAQ:MIPS)
Historical Stock Chart
From Jul 2023 to Jul 2024