MIPS32(R) 24K Core Family Drives 6th Consecutive Quarter of Growth
Total revenue for the first quarter of fiscal 2005 was $14.6 million compared to $10.4 million for the same quarter a year ago. Contract revenue was $7.9 million, an increase of 48 percent compared to $5.3 million in the comparable period in fiscal 2004. Royalties were $6.7 million, an increase of 32 percent compared to $5.1 million in the same quarter a year ago. Net income for the first quarter of fiscal 2005 was $3.1 million compared to a net loss of $5.8 million for the same quarter a year ago. Net income per share on a diluted basis for the first quarter of fiscal 2005 was $0.07 compared to a net loss per share of $0.14 for the same quarter a year ago.
"Although the overall environment has slowed in the second half of 2004, we are seeing strong demand and revenue growth," said Casey Eichler, chief financial officer of MIPS Technologies. "The demand for all product families is strong, but the 24K core family is driving the top line as the 'right product at the right time' as it is very competitive in many markets. This is complemented by a continued growth in royalties as we continue to receive the benefits of our customers' introduction of MIPS-Based(TM) products in numerous embedded markets."
"The dramatic cost and performance advantage of our 24K core family is now well established," said John Bourgoin, president and CEO of MIPS Technologies. "Customers around the world, including companies with long alliances to competitor products, are recognizing that this core family will bring significant advantages to their new products. With eleven licenses completed in only six months following introduction, the 24K core family is by far the fastest growing MIPS' product in our history. This sets the stage for continued proliferation of the MIPS architecture into consumer and communications markets."
MIPS Technologies invites you to listen to management's discussion of Q1 fiscal 2005 results and guidance for Q2 fiscal 2005 in a live conference call today beginning at 1:45 p.m. Pacific. Conference call number is 1-719-457-2693. 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 984766. An audio replay of the conference call will be posted on the Company's website ( http://www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
Q1 FY2005 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers.
-- Adimos Utilizes MIPS32(R) 4KEp(TM) Core from MIPS Technologies in Wireless Video Module(TM) -- Atheros Communications Introduces First MIPS-Based(TM) Video Chipset for Affordable HDTV- Quality Wireless -- Broadcom(R) MIPS-Based(TM) Dual-Band WLAN Access Point and Client Solutions Wi-Fi CERTIFIED(TM) for Wi-Fi Multimedia(TM) (WMM(TM)) -- Cavium Networks Acquires Brecis Communications' MIPS-Based(TM) Secure Communication Processor Product Line -- Cavium Networks Introduces OCTEON(TM) Family of Integrated Network Services Processors With up to 16 MIPS64(R)-Based Cores for Internet Services, Content and Security Processing -- Cavium Networks OCTEON(TM) Network Services Processor for Internet Services and Security Processing to Gain MontaVista Linux Support -- Cavium Networks Standardizes Upon the MIPS(R) Architecture and Announces cnMIPS(TM) Core for Secure Network Services -- Cavium Forms Partnership With Wind River Systems -- Centillium's MIPS-Based(TM) StreetFighter Product Line Selected as One of EE Times' "Ultimate Products" -- Cirrus Logic MIPS-Based(TM) DVD Processor Enables Playback of More Digital Multimedia Content with DivX Technology, MPEG-4-Based Codecs -- CoWare ConvergenSC Helps MIPS Customers Beat Price/Performance Targets for Highly Competitive Designs Incorporating MIPS32 24K Cores -- EPI Supports Cavium Networks MIPS64-based OCTEON(TM) Network Services Processor -- Fujitsu Access and Metalink Announce Commercial Availability of MIPS-Based(TM) 100 Mbps VDSL Plus(TM) Platform - Trials Underway in Japan -- Highest Java(TM) Performance Achieved by the MIPS32(R) 24Kc(TM) Core -- Industry-Standard MIPS(R) Architecture Adopted by NEC Electronics for Enhanced Single-Chip DVD Recorder Solution -- Intoto to Deliver iGateway Security Software Platforms for Cavium Networks' OCTEON Network Services Processors -- i3 micro's IP Set-Top Box Integrates AMD Alchemy MIPS-Based(TM) Au1550 Processor for Embedded Network Security -- MIPS(R) Architecture Enabling Growing List of Mobile Application Processors -- MIPS-Based(TM) Cell Phones and Digital Cameras Examples of Battery- Powered Devices Targeted by MegaChips -- MIPS Technologies and Agilent Technologies Announce Agreement on 32- and 64-Bit MIPS-Based(TM) Embedded Processor Cores -- MIPS Technologies and Magma Announce Reference Methodology for High-Performance 24K(TM) Core Family -- MIPS Technologies Announces Availability of Hard Intellectual Property Cores -- MIPS Technologies Introduces New System Controller for 24K(TM) Core Family -- MIPS Technologies Licenses Pro Series(TM) Processor Core to SiNett -- MIPS Technologies' 24K(TM) Core Family Supported by Microsoft Windows CE Operating System -- Pixelworks Selects MIPS(R) Architecture for Upcoming ICs -- PMC-Sierra Broadens MIPS-Based(TM) CPU Offering with Newest 32-Bit Synthesizeable Core Families from MIPS Technologies -- QuickLogic Announces Windows CE Support for the QuickMIPS Family of Programmable SoCs -- SonicWALL selects Cavium Networks OCTEON(TM) Network Services Processors for Next Generation Content and Security Platforms -- Toshiba Launches New 64-Bit RISC Microprocessor, its First Standard Processor Based on High-Performance TX99/H4 Core and Industry-Leading 90nm Process Technology -- Wintegra's WinPath Processors Integrated into Texas Instruments' Newest DSL Central Office Solution -- Zarlink Semiconductor Selects Processor from MIPS Technologies for Advanced Digital Television Applications -- Zoran Announces New MIPS-Based(TM) Generation9 Elite HDTV Processor Sampling to Leading Worldwide Digital TV Makers -- Zoran's MIPS-Based(TM) SupraTV CPU Powers DVN's Set Top Box Products for China Cable Television Market 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 http://www.mips.com/.
This press release contains forward-looking statements, including those regarding MIPS Technologies' market growth. Actual events or results may differ materially from those anticipated in these forward looking statements as a result of a number of different risk and uncertainties, including but not limited to: our products may fail to 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 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. For a further discussion of risk factor affecting our business, we refer you to the documents we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended June 30, 2004 and subsequent Forms 10-Q and 8-K.
NOTE: MIPS, MIPS32, 24K and MIPS-Based are either registered trademarks or trademarks of MIPS Technologies, Inc. in the United States and/or other countries. All other trademarks referred to herein are the property of their respective owners.
MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended September 30, 2004 2003 (unaudited) Revenue: Royalties $6,721 $5,088 Contract revenue 7,885 5,325 Total revenue 14,606 10,413 Costs and expenses: Research and development 5,207 8,144 Sales and marketing 3,045 2,796 General and administrative 2,321 1,644 Restructuring 277 3,233 Total costs and expenses 10,850 15,817 Operating income (loss) 3,756 (5,404) Other income (expense), net 245 208 Income (loss) before income taxes 4,001 (5,196) Provision for income taxes 880 567 Net income (loss) $3,121 $(5,763) Net income (loss) per basic share $0.08 $(0.14) Net income (loss) per diluted share $0.07 $(0.14) Common shares outstanding-basic 40,695 40,172 Common shares outstanding-diluted 42,384 40,172 MIPS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, June 30, 2004 2004 (unaudited) Assets Current assets: Cash and cash equivalents $74,106 $78,335 Short-term investments 19,990 15,041 Accounts receivable, net 3,250 2,488 Prepaid expenses and other current assets 2,008 3,159 Total current assets 99,354 99,023 Equipment and furniture, net 3,177 3,578 Other assets 5,828 6,102 $108,359 $108,703 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,025 $1,255 Accrued liabilities 8,701 12,344 Deferred revenue 3,056 3,407 Total current liabilities 12,782 17,006 Long-term liabilities 2,515 2,038 Stockholders' equity 93,062 89,659 $108,359 $108,703