Sequential Revenue Growth of 37%
MOUNTAIN VIEW, CA, January 19, 2006 - MIPS Technologies, Inc. (NASDAQ: MIPS), today reported financial results for its second fiscal quarter ended December 31, 2005. Revenue for the second quarter of fiscal 2006 increased by $4.4 million compared to the prior quarter ending September 30, 2005, the result of solid licensing activity and increases in royalties.
Total revenue for the second quarter of fiscal 2006 was $16.4 million, an increase of 5 percent compared to $15.5 million for the same quarter a year ago. Royalties were $8.9 million, an increase of 18 percent compared to $7.6 million in the same quarter a year ago. Contract revenue was $7.4 million, a decrease of 6 percent compared to $7.9 million in the comparable period in fiscal 2005. Net income for the second quarter of fiscal 2006 on a generally accepted accounting principles ("GAAP") basis was $2.4 million compared to a net income of $3.5 million for the same quarter a year ago. GAAP net income per share on a diluted basis for the second quarter of fiscal 2006 was $0.05 compared to a net income per share of $0.08 for the same quarter a year ago.
Beginning in the September 2005 quarter, the Company recognized equity-based compensation expense pursuant to the fair value method under SFAS 123R. This expense for the second quarter ending December 31, 2005 was $2.1 million. Non-GAAP net income for the second quarter of fiscal 2006, which excludes the effect of the stock option expense was $4.3 million or $0.10 per diluted share compared to net income of $3.5 million or $0.08 per share for the same quarter a year ago. A reconciliation of non-GAAP adjustments is summarized in the tables below.
"We are pleased with our second quarter results and the return to more normal levels of licensing activity," said Merv Kato, chief financial officer of MIPS Technologies. "Agreements signed this quarter indicate that our solutions are compelling for a wide range of applications the world over. This same growth trend was exhibited in our royalty stream as licensees continue to deliver numerous MIPS-based products to the consumer and networking markets."
"This quarter's solid growth in both licensing activities and royalty revenue reflect both the compelling nature of our product line, as well as the robust design activity of our licensees," said John Bourgoin, president and CEO of MIPS Technologies. "We are particularly pleased that a significant portion of our license revenue came from new technology products, indicating that our superior value proposition is well-recognized. Our royalties in the markets other than video games reached record levels, indicating ongoing and broad based growth in the production of MIPS-based products worldwide."
MIPS Technologies invites you to listen to management's discussion of Q2 fiscal 2006 results and guidance for Q3 fiscal 2006 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-719-457-2618. Replay number is 1-719-457-0820 and will be available for 5 days, beginning shortly after the end of the conference call. The access code is 4322514. An audio replay of the conference call will be posted on the Company's website (www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
Q2 FY2006 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 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.
HDTV & DTV News
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Planetweb® to Bring SpectraWorks™ for Digital TV Applications to MIPS-Based™ TAEC TX49 RISC CPU Core Based ASSPs
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Zoran and Xoceco Establish Joint Technology Laboratory In China; Zoran's MIPS-Based™ SupraHD TV Controller Key Component in Xoceco's New Products to be Launched at CES 2006
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Zoran and Thomson Announce Low Cost Digital-to-Analog Solution To Support the Transition To Digital Broadcast; Design Utilizes Zoran's MIPS-Based™ SupraHD 640 digital television processor
Media Server and Gateway News
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Actiontec's New Broadband Home Router Integrates Entropic's MIPS-Based™ c.LINK™ Chipse
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Entropic Communications and Westell Technologies Partner on Broadband Gateway for Networking of Digital Entertainment in the Home; Westell Utilizing MIPS-Based™ c.LINK 270 Chipset
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Entropic Communications' Ecosystem Helps OEMs Design for Home Networking of Digital Entertainment; Employs MIPS-Based™ c.LINK Chipset
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Texas Instruments and Ashley Laurent Team to Provide Enhanced DSL RG Software Options; Software Solution Ported to MIPS-Based™ AR7 CPU
Advanced DVD Player & Recorder News
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Sigma Designs to Work on Full-Featured Blu-ray Player with Pioneer; New Player Utilizes Sigma's Industry-Leading MIPS-Based™ SMP8630 Family of Media Processors
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Zoran Driving Convergence in the Home; DVDR+ATSC Reference Design Utilizes MIPS-Based™ SupraHD 640 CPU; DVB Reference Design Includes MIPS-Based™ SupraTV 150 CPU
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Zoran Technology Breakthrough Delivers Entire DVD Recorder Capability on A Single System-On-A-Chip; MIPS-Based™ Activa 200 Now Sampling
Broadband News
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Second Generation Integrated Software and Silicon Solution Extends Wintegra Leadership in Access Processing; MIPS-Based™ WinPath2 More than Doubles Family Performance
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Wintegra and Ikanos Offer MIPS-Based™ Joint Reference Platform for VDSL2 Line Card Designs
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Wintegra Advances its Leadership in DSL Aggregation with a New, Fully Integrated and Production Ready MIPS-Based™ Silicon & Software Solution
Data Communications and Networking News
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Entropic Communications Ships 100,000th MIPS-Based™ c.LINK Chipset
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Ample Communications and Cavium Offer Interoperable Hardware Platform for Developers of Firewalls, VPNs, and Content Switching; Utilizes MIPS-Based™ OCTEON CPU Family
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Prestigious AeA Award Given to Entropic Communications for MIPS-Based™ c.LINK-270 Chip Set
Corporate News
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MIPS Technologies Announces New Vice President of Worldwide Sales
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MIPS Technologies Announces Transition for CFO, Kevin C. Eichler
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Avnet ASIC Israel Selected as a MIPS Technologies Approved Design Center
Newly Announced Licenses
Ecosystem News
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MIPS Technologies Becomes Charter Member of RDL Alliance
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Accelerated Technology's Nucleus Products Support the MIPS32® 24KE™ Family of Processor Cores
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Sarnoff Offers H.264 Video on MIPS® Architecture
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Tektronix, Altera, and FS2 Collaborate on Real-Time Logic Debug Solution for Altera FPGAs
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Virage Logic and MIPS Technologies Accelerate Processor Performance with Core-Optimized IP Kits
Video Game and Portable Media Player News
Security
- Innova Card and Hypercom Team to Develop New Products Integrating the MIPS-Based™; USIP® Professional IC
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START Extends Its Payment Terminal Range with MIPS-Based™ USIP Professional Platform
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MIPS-Based™ USIP Essential Kit (UEK), the new versatile development kit to design secure terminals
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Innova Card Integrates Its MIPS-Based™ USIP Platform into Gemplus Healthcare Readers
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GIC Extends Its Payment Terminal Range with MIPS-Based™ USIP® Professional Platform
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M.POS Terminals Integrates Innova Card's MIPS-Based™ USIP Platform in the New Release of Its Wireless POS Terminals
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DA Sistemi and Innova Card jointly develop an integrated platform; Will Utilize USIP Professional IC
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Cavium Networks Delivers Unmatched Integration and Functionality with New Inline MIPS-Based™ Security Processor Family
Storage News
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TREK 2000 and Innova Card Partner to Enhance Biometric USB Storage Devices; TREK to Utilize MIPS-Based™ USIP™ into ThumbDrive® Devices
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Home Storage Products Based on Broadcom™ Technology Rank #1 and #2 in PC World Magazine; Products Utilize MIPS-Based™ BCM4780 CPU
SOHO and Wireless News
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Atheros Communications Launches MIPS-Based™ AR5007AP-G -- World's Most Integrated Single-Chip 802.11g Access Point Solution
Financial Tables
Click here to read financial tables
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.
