MIPS Technologies, Inc. Reports First Quarter Fiscal 2001 Financial Results
MOUNTAIN VIEW, Calif.--Oct. 12, 2000--MIPS Technologies, Inc., (Nasdaq:MIPS - news, MIPSB - news) a leading provider of industry standard processor architectures and cores for digital consumer and network applications, today reported financial results for its first fiscal quarter ended September 30, 2000.
Revenue for the first quarter of fiscal 2001 was $21.1 million, an increase of 11 percent compared with the same quarter a year ago, which represents a 60 percent growth in total revenue when royalties from Nintendo are excluded. Contract revenue was $12.2 million, an increase of 71 percent compared to $7.1 million in the comparable period in fiscal 2000. Royalties were $8.9 million, a decrease of 25 percent compared to $11.8 million in the same quarter a year ago due to lower royalties from Nintendo 64 video game products. Royalties excluding royalties from Nintendo 64 were $3.4 million, an increase of 30 percent compared to $2.6 million in the same quarter a year ago.
Net income for the first quarter of fiscal 2001 was $5.6 million compared to $5.1 million for the same quarter a year ago. The diluted net income per share for the first quarter of fiscal 2001 was $0.14 compared to $0.13 for the same quarter a year ago.
``This is our best ever September quarter revenue and EPS results,'' said Casey Eichler, Chief Financial Officer. ``Continued strong licensing activities led the way. We have had consecutive quarterly increases in license revenues since our IPO, and this quarter the growth was 19 percent over our previous record last quarter helping offset declines in Nintendo 64 royalties.''
``Record licensing revenues indicate the growing acceptance of MIPS Technologies products,'' said John Bourgoin, Chairman and CEO. ``We announced six new license agreements during the quarter. Our agreement with Gemplus is perhaps the most significant. Gemplus is the leader in the smart card market. The smart card market today is 1.5 billion units. As such, this is the largest single unit opportunity for MIPS cores. Additionally, initial silicon runs are in fabrication on the MIPS R20K product, the highest performance licensable core available. Success with this product will demonstrate the capability of our design team to create very high performance advanced processors. Also during the quarter, our MIPS Alliance Program, which provides a range of tools and applications, grew to 34 announced partners. This kind of support coupled with the wide range of processors available from MIPS Technoloies and its licensees further solidifies MIPS as the architecture of choice in the marketplace.''
Q1 2001 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers.
-- MIPS Technologies Kicks Off New Alliance Program Giving 32- and 64-Bit Designers Key Tools and Applications Choices.
-- Kyoto Micro Computer Co., Ltd. Joins the MIPS Alliance Program.
-- MIPS Technologies and ITeX Sign License Agreement for 32-Bit Cores.
-- Philips Semiconductors Targets Digital Video and Information Appliances with MIPS Technologies' 64-Bit Cores.
-- Green Hills Software's ThreadX RTOS and MULTI Integrated Development Environment Available for MIPS32 4Kc, 4Km, and 4Kp Cores.
-- Green Hills Software's MULTI IDE Available for MIPS Technologies' MIPS64 5Kc and 20Kc Cores.
-- TimeSys Corporation Announces Agreement with MIPS Technologies to Port Its Leading Linux Based Real-Time Solution.
-- Toshiba's 32-Bit MIPS Processor with Integrated PCland SDRAM Controllers Selected for Lexmark's Newest Laser Printer.
-- Altera Unveils Technical Details of Its ARM- and MIPS-Based Excalibur(TM)Product Offerings.
-- Philips Semiconductors Ignites the Residential Broadband Market With Low-Cost Single Chip Cable Modem IC.
-- Aisys Inc. Announces Cooperative Agreement with MIPS Technologies to Deliver Embedded Design Automation Solution.
-- Broadcom Adds VoIP Telephony and Home Networking Technology to Industry-Leading DOCSIS Cable Modem Chip.
-- Philips Semiconductors Introduces Industry's Most Integrated Chipset For 2 Megapixel Digital Cameras.
-- MIPS Technologies Pact with Ampro®Computers to Drive Board Standards, Speed Time to Market for MIPS-Based Embedded Systems.
-- Microsoft and Industry Partners Announce Next-Generation Windows-Powered Handheld PC's.
-- NeoMagic Licenses MIPS Technologies 4K(TM)Family Processor Cores for use in Advanced Internet Appliances.
-- NCD Redefines the High-End Network Computer With Announcement of Next-Generation MIPS-Based(TM)NC900.
-- MIPS Technologies and Gemplus Form Strategic Relationship to Create A New Industry Standard for Smart Card Microprocessors.
-- Philips Semiconductors Licenses MIPS Technologies' 64-Bit Core in Multimillion Dollar Deal for Use in Advanced Digital Consumer Applications.
-- Conexant Licenses MIPS Technologies 64-Bit Core for use in Advanced Communications and Consumer Applications.
-- inSilicon and MIPS Technologies Pair to Streamline Systems-on-a-Chip Platform Solutions.
-- Accelerated Technology Announces Complete RTOS Solution for MIPS Technologies' MIPS32 4K(TM)Family of 32-Bit Processor Cores using Green Hills Software Tools.
MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and network 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.
Licensees currently include: Alchemy Semiconductor, Inc.; Altera Corporation; ATI Technologies Inc.; Broadcom Corporation; Centillium Communications, Inc.; Chartered Semiconductor Manufacturing Ltd.; Conexant Systems, Inc.; EmpowerTel Networks (formally known as Lara Technology, Inc.); ESS Technology, Inc.; Gemplus International S.A.; Integrated Device Technology (IDT), Inc.; InSilicon Corporation; Integrated Telecom Express (ITeX), Inc.; LSI Logic Corporation; Macronix America, Inc.; Metalink Ltd.; General Instrument Corporation (acquired by Motorola, Inc.); NEC Corporation; NeoMagic Corporation; NKK Corporation; Philips Semiconductors International B.V.; Quantum Effect Devices, Inc. (acquired by PMC-Sierra, Inc.); QuickLogic Corporation; Sandcraft, Inc.; SiByte, Inc.; Sony Corporation; Synova Incorporated; Taiwan Semiconductor Manufacturing Company; Texas Instruments Incorporated; Toshiba Corporation; and Excess Bandwidth Corporation (acquired by Virata Corporation). Numerous companies utilize MIPS-based intellectual property. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650/567-5000 or http://www.mips.com.
This press release may contain forward-looking statements regarding future events or the future financial performance of MIPS Technologies, Inc. Actual events or results may differ materially. Many important factors could cause the actual results to differ materially from those contained in such forward-looking statements, including but not limited to the risks that products will fail to achieve market acceptance, the timing of 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, the timing of new product announcements and introductions by MIPS Technologies and its licensees and their competitors, the demand for semiconductors and end-user products that incorporate semiconductors and other risks. With respect to MIPS Technologies, Inc. we refer you to the documents that it files from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2000.
Note to Editors: MIPS is a registered trademark and MIPS-based and MIPS32, MIPS64, 4Kc, 4Km, 4Kp, 5Kc, R20K and 20Kc are trademarks of MIPS Technologies, Inc. All other trademarks are the property of their respective companies. All press materials are available on the World Wide Web via: http://www.mips.com/
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except per share data)
Three Months Ended
September 30,
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2000 1999
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Revenue:
Royalties $ 8,864 $ 11,830
Contract revenue 12,191 7,117
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Total revenue 21,055 18,947
Costs and expenses:
Cost of contract revenue - 500
Research and development 7,653 6,109
Sales and marketing 3,493 2,286
General and administrative 2,218 2,167
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Total costs and expenses 13,364 11,062
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Operating income 7,691 7,885
Other income (expense), net 1,568 638
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Income before income taxes 9,259 8,523
Provision for income taxes 3,703 3,409
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Net income $ 5,556 $ 5,114
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Net income per basic share $ 0.14 $ 0.14
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Net income per diluted share $ 0.14 $ 0.13
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Common shares outstanding-basic 38,520 37,627
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Common shares outstanding-diluted 41,134 39,448
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MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, June 30,
2000 2000
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Assets (unaudited)
Current assets:
Cash and cash equivalents $ 91,291 $ 84,359
Accounts receivable 12,453 9,175
Prepaid expenses and other current assets 8,578 8,002
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Total current assets 112,322 101,536
Equipment and furniture, net 7,031 6,742
Other assets 1,430 974
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$120,783 $109,252
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,953 $ 2,270
Accrued liabilities 13,778 10,180
Deferred revenue 4,408 4,598
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Total current liabilities 20,139 17,048
Stockholders' equity 100,644 92,204
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$120,783 $109,252
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Contact:
MIPS Technologies, Inc.
Bonnie Gardiner, 650/567-7007 (Investor Contact)
bonnieg@mips.com
Lee Garvin Flanagin, 650/567-5180 (Media Contact)
flanagin@mips.com
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