Fiscal Year Return to Profitability with Revenue Growth of 28 Percent
MOUNTAIN VIEW, Calif., July 27, 2005 - MIPS Technologies, Inc. (NASDAQ: MIPS), today reported financial results for its fourth quarter and fiscal year ended June 30, 2005. Revenue for the fiscal year 2005 grew 28 percent in both royalties and contract revenue compared to fiscal year 2004.
Total revenue for the fourth quarter of fiscal 2005 was $14.3 million compared to $14.2 million for the same quarter a year ago. Royalties were $7.1 million, an increase of nine percent compared to $6.5 million in the same quarter a year ago. Contract revenue was $7.2 million, a decrease of six percent compared to $7.7 million in the comparable period in fiscal 2004. Net income for the fourth quarter of fiscal 2005 was $2.7 million compared to a net income of $2.6 million for the same quarter a year ago. Net income per share on a diluted basis for the fourth quarter of fiscal 2005 was $0.06 compared to a net income per share on a diluted basis of $0.06 for the same quarter a year ago.
Total revenue for fiscal year 2005 was $61.2 million, an increase of 28 percent compared to $47.9 million in fiscal 2004. Royalties were $30.0 million, an increase of 28 percent compared to $23.4 million in fiscal 2004. Contract revenue was $31.2 million, an increase of 28 percent compared to $24.4 million in 2004. Net income for fiscal 2005 was $13.4 million compared to a net loss of $1.5 million in fiscal 2004. Fiscal 2005 net income per share on a diluted basis was $0.30 compared to a net loss per share of $0.04 in fiscal 2004.
"We are pleased with our annual revenue growth and return to fiscal year profitability. With ten new licenses this quarter, bringing our total to 43 for the fiscal year, we realized 28 percent growth in our annual contract revenue," said Casey Eichler, chief financial officer of MIPS Technologies. "Although license fees were lower than expected this last quarter, the digital consumer and networking markets in which the MIPS architecture is so successful, continue to offer growth from which we expect to benefit."
"Fiscal year 2005 was marked by the strongest revenue growth in our seven year history, despite a soft fourth quarter," said John Bourgoin, president and CEO of MIPS Technologies. "Our 24K core family continues to beat the competition in the market, and our new multithreading technology has strong promise as a winner and driver of growth in fiscal year 2006."
MIPS Technologies invites you to listen to management's discussion of Q4 and fiscal 2005 results and guidance for Q1 fiscal 2006 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-719-457-2642. Replay number is 1-719-457-0820 and will be available for five days, beginning shortly after the end of the conference call. The access code is 3917430. An audio replay of the conference call will be posted on the Company's website (www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
Q4 FY2005 Highlights:
From its inception over 20 years ago, the MIPS® 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 ten 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.
HDTV & DTV News
- JVC Reaffirms ATI's Digital TV Technology Leadership; High-Definition Displays Feature ATI's MIPS-Based™ Xilleon 226 and other Products
Set Top Box News
- NEC Electronics Introduces MIPS-Based™ Single-Chip Secure MPEG Decoder for Set Top Boxes
- Broadcom MIPS-Based™ IPTV Set-Top Box Silicon Used in World's First Demonstration of MPEG-4 High Definition Live TV Broadcasting Over an ADSL2+ Network
- Philips Announces Single Chip Solution for Satellite Set-Top Boxes; Solution Contains MIPS-Based™ Philips PR1910 CPU
- Equator Introduces Sailfish Set-Top Box Reference Platform at NAB; Utilizes MIPS-Based Alchemy™ Au1550™ CPU
- Alpha Networks Unveils High-Definition VC-1 and H.264/AVC Set-top Box at NAB 2005 Utilizing MIPS-Based™ Equator Set-Top Box Reference Platform
Broadband News
- Corecess Chooses Wintegra for Next Generation IP-DSLAM Line Card; Will Utilize MIPS-Based™ WinPath CPUs
- Cavium Networks Announces Customer Sampling of OCTEON™ Multi-core MIPS64™ Processors; Demonstrates OCTEON at SuperComm 2005
VoIP News
- D2 Technologies to Provide Optimized VoIP Algorithms for New High-Performance MIPS32® 24KE™ Cores
- Z-Com Selects Texas Instruments Embedded WLAN and MIPS-Based™ Voice over IP Solutions for Next Generation USB Adapters and Residential Gateway Modules
- 3Com Selects Texas Instruments' Voice over IP Technology to Power 3Com IP Phones; MIPS-Based TNETV1050 IP Phone Chip Utilized
- PMC-Sierra Announces MIPS-Based™ Wireless-Capable Voice Over IP 'Router On A Chip'
Office Automation
- MIPS-Based™ TX99/H4 RISC Microprocessor from Toshiba to Power New Canon Multi-function Digital Copier
SOHO and Wireless News
- Z-Com Selects Texas Instruments Embedded WLAN and MIPS-Based™ Voice over IP Solutions for Next Generation USB Adapters and Residential Gateway Modules
- Metalink Unveils MIPS-Based™ Chipset For Emerging 802.11n Standard Supporting Breakthrough 240Mbps Wireless LAN Speed
- Atheros MIPS-Based™ USB2.0 802.11a/g WLAN Technology Unwires Desktop PCs in Japan
- Cavium Networks Delivers Highest Performance Airgo True MIMO™ Based 802.11 Secure Wireless Gateway Reference Design Utilizing MIPS-Based™ NITROX™ Soho Processors
- Cavium Networks & Atheros Communications Introduce Combined 802.11 a/b/g Reference Design for Wireless Broadband Gateways; Design Utilizes MIPS-Based™ NITROX™ Soho Processors
Corporate News
- EDA Consortium Appoints MIPS Technologies CEO to Board
- Wintegra Enters Into Strategic Relationship With PMC-Sierra to Develop MIPS-Based™ Multi-Service Access Systems Solutions
- CoWare, Magma Design Automation, MIPS Technologies and Virage Logic to Co-Host Hands-On Tutorial Session at Design Automation Conference
- MIPS Technologies Names Wind River as its Premier Device Software Optimization Solution Provider
Security
- Uniform Industrial Corporation (UIC) selected USIP® Professional platform for its new range of secure PINPADs powered by the MIPS32 4KSd Innova Card Solution
- Elliptic Semiconductor launches Digital Rights Management Security Products
Newly Announced Licenses
- Raza Microelectronics Licenses the MIPS64® Architecture for Next Generation Processors
- MIPS Technologies and ITE Technology, Inc. Announce Agreement to License MIPS32® 4KE™ Pro Core Family
Product News
- MIPS Technologies Introduces the MIPS32® 24KE™ Core Family - the First DSP ASE Enabled MIPS® Cores
- Accelerated Technology's Nucleus EDGE Embedded Development Environment Supports MIPS Architecture
- Accelerated Technology's Nucleus PLUS Support for MIPS32 24K Core Family Supports Developers of Digital Consumer Devices
Ecosystem News
- Toshiba Announces Availability of Reference Board for the MIPS-Based™ TX4939XBG-400 Embedded PCI-Based Microprocessor, Its Newest 64-Bit RISC Processor
- CoWare and MIPS Technologies to Automate Application-Optimized Processor Creation
- Virage Logic Accelerates Silicon Success with Integrated Partner Solutions at 2005 Design Automation Conference
- TSMC and RMI Collaborate on 90nm Process for New Throughput-Optimized MIPS-Based™ Thread Processor Solutions
- Wind River VxWorks 6.1 Delivers Unprecedented Interoperability and Compatibility Across Software Platforms and Hardware Architectures
- Wind River Raises the Bar in Linux Device Software Development; Introduces New Products, Services and Partnerships to Speed Linux Adoption in the Device Software Optimization Market
- Wind River Transforms Consumer Device Industry; Announces Comprehensive Suite of Products and Service Offerings, Expanded Partner Ecosystem and Reference Design Systems
- PMC-Sierra Demonstrates Micro Multi-Service Provisioning Platform Capabilities with New Evaluation System; Powered by PMC-Sierra's 64-bit MIPS-Based™ CPU
Financial Tables To read financial tables, click here 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 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, California, and can be reached at 650-567-5000 or www.mips.com.
