MOUNTAIN VIEW, Calif., April 30 /PRNewswire-FirstCall/ -- MIPS Technologies, Inc. (NASDAQ: MIPS), a leading provider of industry-standard architectures, processors and analog IP for digital consumer, home networking, wireless, communications and business applications, today reported consolidated financial results for its third quarter fiscal 2009 ended March 31, 2009. All financial results are reported in U.S. GAAP unless otherwise noted.
Revenue for the third quarter was $22.7 million, a 14% decline compared with the prior quarter revenue of $26.4 million and a 17% decline from the $27.3 million reported in the third fiscal quarter a year ago. The Q3 sequential revenue decrease was anticipated and reflects the softness in the consumer electronics and semiconductor industry.
Revenue from royalties was $10.9 million, a decrease of $2.1 million or 16 percent from the prior quarter and $1.7 million or 13 percent from the $12.6 million reported in the third quarter a year ago. The sequential decrease in royalty revenue was a result of lower licensee unit volumes compared with the prior quarter and is consistent with lower consumer electronics spending. Licensee units declined 15 percent sequentially to 107 million units and also declined 7 percent on a year to year basis. Contract and license revenue was $11.8 million, a decrease of 12 percent from the $13.4 million reported in the prior quarter and a 20 percent decrease from the $14.8 million reported in the third quarter a year ago.
Total costs of sales and operating expense, excluding restructuring charges, increased $0.2 million to $21.1 million from $20.9 million in the previous quarter mainly reflecting the absence of certain one-time credits incurred in Q2 fiscal 2009.
The Company's fiscal Q3 2009 GAAP net loss was $0.8 million or $0.02 per share on a diluted basis. This compares with a net income of $5.0 million or $0.11 per basic and diluted share in the prior quarter and a net loss of $4.3 million or $0.10 per share in the third quarter a year ago.
Non-GAAP net income in the third quarter of fiscal 2009, which excludes the effect of equity based compensation expense, restructuring costs, and certain costs related to the acquisition of Chipidea, was $2.8 million or $0.06 per diluted share. This compares to the non-GAAP net income of $8.5 million or $0.19 per diluted share in the prior quarter and a net income of $2.4 million or $0.05 per diluted share in the third quarter a year ago. The tables below provide a reconciliation of non-GAAP measures reported in this release to the corresponding GAAP results.
The Company's Q3 2009 ending cash balance was $21.1 million, an improvement of $0.6 million and $5.9 million from the previous quarter and the period ending one year ago respectively. Included in the positive net cash inflows were certain net liability and debt repayments of $3.4 million and outflows related to restructurings of $1.1 million.
"Q3 marks the third quarter in a row of positive cash flow for MIPS as we continue strengthening our financial position despite a weakening market," said John Bourgoin, president and CEO. "MIPS is well positioned with an excellent and unique product line leveraging advanced multi-threading, multicore, and high performance single core products that are generating good profits," said Bourgoin.
MIPS Technologies invites you to listen in a live conference call to management's discussion of Q3 fiscal 2009 results, as well as guidance for Q4 fiscal 2009. The conference call number is 210-839-8502 and the replay number is 203-369-0164. The password for both calls is MIPS. The replay will be available for 30 days shortly following the end of the conference call. 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. (NasdaqGS: MIPS) is the world's second largest semiconductor design IP company and the number one analog IP company worldwide. With more than 250 customers around the globe, MIPS Technologies is the only company that provides a combined portfolio of processors, analog IP and software tools for the embedded market. The company powers some of the world's most popular products for the digital entertainment, home networking, wireless, and portable media markets--including 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 Mountain View, California, with offices worldwide. For more information, contact (650) 567-5000 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 regarding MIPS Technologies' expectations regarding customers' use of MIPS' products. These forward-looking statements include MIPS' 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, difficulties that may be encountered in integrating the Chipidea business, 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, in particular the level of demand in these markets during the recessionary period currently affecting global economies. 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 and MIPS-Based are trademarks or registered trademarks 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, 2009 June 30, 2008
(unaudited)
Assets
Current assets:
Cash and cash equivalents $21,064 $13,938
Accounts receivable, net 9,401 14,462
Prepaid expenses and other current assets 21,084 24,803
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Total current assets 51,549 53,203
Equipment, furniture and property, net 11,594 16,307
Goodwill 29,336 40,624
Other assets 29,533 42,610
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Total assets $122,012 $152,744
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $2,055 $3,441
Accrued liabilities 35,746 51,963
Debt - short term 6,587 18,641
Deferred revenue 4,079 4,283
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Total current liabilities 48,467 78,328
Long-term Liabilities:
Debt - long term 8,750 -
Other long term liabilities 23,209 29,496
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Total long term liabilities 31,959 29,496
Stockholders' equity 41,586 44,920
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Total liabilities and stockholders'
equity $122,012 $152,744
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