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 the integration of 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. 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 TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, 2008 June 30, 2007
(unaudited)
Assets
Current assets:
Cash and cash equivalents $15,180 $119,039
Short-term investments - 25,845
Accounts receivable, net 16,715 5,212
Prepaid expenses and other current assets 18,090 2,472
Total current assets 49,985 152,568
Equipment, furniture and property, net 16,627 5,781
Goodwill 123,978 565
Other assets 71,027 15,948
$261,617 $174,862
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $4,064 $503
Accrued liabilities 51,879 16,118
Debt - short term 21,261 -
Deferred revenue 4,553 2,633
Total current liabilities 81,757 19,254
Long-term liabilities 29,790 5,726
Stockholders' equity 150,070 149,882
$261,617 $174,862
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2008 2007 2008 2007
Revenue:
Royalties $12,556 $10,733 $35,590 $33,128
License and Contract
Revenue - PBG 5,804 8,342 19,812 26,502
License and Contract
Revenue - ABG 8,963 - 20,524 -
Total revenue 27,323 19,075 75,926 59,630
Costs and expenses:
Costs of contract revenue 9,407 492 22,110 1,261
Research and development 9,315 8,159 27,821 24,185
Sales and marketing 6,056 5,345 17,796 15,314
General and administrative 6,559 4,978 21,437 13,867
Acquired in-process research
and development - - 6,350 -
Restructuring 1,279 - 1,279 -
Total costs and expenses 32,616 18,974 96,793 54,627
Operating income (loss) (5,293) 101 (20,867) 5,003
Other income (expense), net (762) 1,844 (1,488) 4,817
Income (loss) before income
taxes (6,055) 1,945 (22,355) 9,820
Provision for income taxes (1,798) 708 1,018 3,672
Net income (loss) $(4,257) $1,237 $(23,373) $6,148
Net income (loss) per
basic share $(0.10) $0.03 $(0.53) $0.14
Net income (loss) per
diluted share $(0.10) $0.03 $(0.53) $0.13
Common shares
outstanding-basic 43,992 43,535 43,887 43,510
Common shares
outstanding-diluted 43,992 46,384 43,887 45,729
MIPS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME and NET INCOME PER SHARE
(In thousands, except per share data)
(unaudited)
Three Three Three
Months Months Months
Ended Ended Ended
March 31, December 31, March 31,
2008 2007 2007
GAAP net income (loss) $(4,257) $(12,086) $1,237
Net income (loss)per basic share $(0.10) $(0.28) $0.03
Net income (loss) per diluted share $(0.10) $(0.28) $0.03
(a) Equity-based compensation expense
under SFAS 123R 1,799 $2,082 $2,251
(b) Amortization of intangibles 2,438 2,232 -
(c) Acquisition related cost 2,386 2,138 -
(d) Integration cost 120 1,280 -
(e) Acquired in-process research
and development - 910 -
(f) Restructuring 1,279 - -
(g) Tax adjustment (1,323) 551 -
Non-GAAP net income (loss) $2,442 $(2,893) $3,488
Non-GAAP net income (loss)
per basic share $0.06 $(0.07) $0.08
Non-GAAP net income (loss) per
diluted share $0.05 $(0.07) $0.08
Common shares outstanding - basic 43,992 43,902 43,535
Common shares outstanding - diluted 44,620 43,902 46,384
