SUNNYVALE, Calif., Aug. 12, 2009 (GLOBE NEWSWIRE) -- MIPS Technologies, Inc. (Nasdaq:MIPS), a leading provider of industry-standard processor architectures and cores for home entertainment, communications, networking and portable multimedia markets, today reported consolidated financial results for the quarter and fiscal year ended June 30, 2009. All financial results are reported in U.S. GAAP unless otherwise noted and compare current results with historical results recast to reflect the disposition of MIPS' Analog Business Group.
Summary Fiscal 2009 Highlights:
* FY'09 revenue from continuing operations was $70.2 million, a decrease of 7% from FY'08 revenue of $75.6 million * FY'09 operating expense from continuing operations reduced $22.5 million from fiscal 2008 levels * FY'09 GAAP net income from continuing operations was $10.9 million or $0.24 per share compared to a GAAP net loss of $5.3 million or a loss of $0.12 per share from FY'08 * MIPS Technologies licensees shipped a record 427 million units containing MIPS(r) technology * Analog Business Group divested in May for $22 million in cash * Cash balances up $31.8 million from Q4FY'08 to $44.5 million
Fiscal Q4 Details:
Revenue for the fourth quarter was $12.6 million, a decrease of 29 percent over the prior quarter revenue of $17.7 million and a decrease of 40 percent from the $20.9 million reported in the fourth fiscal quarter a year ago.
License revenue was $4.9 million, a decrease of 29 percent from the $7.0 million reported in the prior quarter and a decrease of 51 percent from the $10.2 million reported in the fourth quarter a year ago. Revenue from royalties was $7.7 million, a decrease of $3.0 million or 28 percent both from the prior quarter and from the $10.7 million reported in the fourth quarter a year ago.
During Q4, a charge of $1.7 million associated with the reduction in value of an investment in a private technology company was recorded in Other Income and Expenses. Additionally, the Company recorded a tax benefit of $4.3 million in its continuing operations which was triggered by the sale of its Analog Business Group.
In light of these charges and the operating results of the quarter, the Company's fiscal Q4 GAAP net income from continuing operations was $2.7 million or $0.06 per share of which approximately $0.10 was a result of the tax benefit recorded during the quarter. This compares with a net income of $3.2 million or $0.07 per share from continuing operations in the prior quarter and a net loss of $1.9 million or $0.04 per share in the fourth quarter a year ago.
The Company sold its Analog Business Group on May 7, 2009. In connection with this divestiture, a gain on the disposition of $1.7 million was recorded along with a loss from operations of discontinued operations of $11.0 million.
Including the impact of discontinued operations, the Company's fiscal Q4 GAAP net loss was $6.7 million or $0.15 per share. This compares with a net loss of $0.8 million or $0.02 per share in the prior quarter and a net loss of $108.5 million or $2.45 per share in the fourth quarter a year ago.
Non-GAAP net income from continuing operations in the fourth quarter of fiscal 2009, which excludes certain costs detailed in the tables below, was $5.5 million or $0.12 per share, compared with a non-GAAP net income from continuing operations of $4.5 million or $0.10 per share in the prior quarter and $4.3 million or $0.09 per share in the fourth quarter a year ago. Approximately $0.10 of this non-GAAP net income is a result of the tax benefit recorded during the quarter. The tables below provide a reconciliation of non-GAAP measures used in this release to the corresponding GAAP results.
The Company's fiscal 2009 GAAP net loss was $9.5 million or $0.21 per share. This compares favorably with a GAAP net loss of $131.8 million or $3.00 per share in the prior year.
Fiscal 2009 non-GAAP net income from continuing operations, which excludes certain costs detailed in the tables below, was $17.6 million or $0.39 per share, compared with a non-GAAP net loss from continuing operations of $10.2 million or $0.22 per share in fiscal 2008. The tables below provide a reconciliation of non-GAAP measures used in this release to the corresponding GAAP results.
"Fiscal 2009 was a challenging year for both MIPS Technologies and for the broad consumer electronics industry. However, MIPS enters fiscal 2010 poised to take advantage of an improving economic outlook, a broad industry-leading suite of products and a very strong financial foundation including over $44 million in cash," said John Bourgoin, president and CEO. "We plan to continue to deliver comprehensive solutions that take full advantage of the Android architecture over the coming quarters."
MIPS Technologies invites you to listen in a live conference call to management's discussion of Q4 and fiscal 2009 results, as well as guidance for Q1 fiscal 2010. The conference call number is 210-839-8502 and the replay number is 203-369-1470. 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. (Nasdaq:MIPS) is a leading provider of industry-standard processor architectures and cores that power some of the world's most popular products for the home entertainment, communications, networking and portable multimedia markets. These include 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 Sunnyvale, California, with offices worldwide. For more information, contact (408) 530-5000 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 about future technology and growth. 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, 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' 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 is a trademark or registered trademark 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)
June 30, June 30,
2009 2008
(unaudited)
Assets
Current assets:
Cash and cash equivalents $44,507 $12,713
Accounts receivable, net 2,461 4,950
Prepaid expenses and other current assets 1,223 1,133
-------- --------
Total current assets 48,191 18,796
Equipment, furniture and property, net 2,608 4,290
Goodwill 565 565
Other assets 11,699 13,037
Assets of discontinued operations 4,479 116,056
-------- --------
Total assets $67,542 $152,744
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $2,305 $1,037
Accrued liabilities 8,225 9,821
Debt - short term 4,986 16,000
Deferred revenue 2,011 2,152
-------- --------
Total current liabilities 17,527 29,010
Long-term liabilities:
Debt - long term 7,813 --
Other long term liabilities 9,603 8,443
-------- --------
Total long term liabilities 17,416 8,443
Liabilities of discontinued operations 5,938 70,371
Stockholders' equity 26,661 44,920
-------- --------
Total liabilities and stockholders' equity $67,542 $152,744
======== ========
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
Royalties $7,672 $10,740 $42,521 $45,593
Contract revenue 4,942 10,172 27,672 29,984
--------- --------- --------- ---------
Total revenue 12,614 20,912 70,193 75,577
Cost of sales 137 541 667 1,833
--------- --------- --------- ---------
Gross margin 12,477 20,371 69,526 73,744
Operating expenses:
Research and development 5,449 6,767 21,496 30,150
Sales and marketing 3,247 4,834 11,015 18,151
General and administrative 3,586 4,575 15,523 19,588
Impairment of intangibles -- 1,704 -- 1,704
Restructuring 15 281 659 1,559
--------- --------- --------- ---------
Total operating
expenses 12,297 18,161 48,693 71,152
--------- --------- --------- ---------
Operating income 180 2,210 20,833 2,592
Other income (expense), net (1,837) (2,592) (2,381) (4,113)
--------- --------- --------- ---------
Income (loss) before
income taxes (1,657) (382) 18,452 (1,521)
Provision for (benefit
from) income taxes (4,345) 1,520 7,529 3,811
--------- --------- --------- ---------
Income (loss) from
continuing operations 2,688 (1,902) 10,923 (5,332)
--------- --------- --------- ---------
Loss from discontinued
operations, net of tax (11,026) (106,560) (22,059) (126,503)
Gain on disposition,
net of tax 1,654 -- 1,654 --
--------- --------- --------- ---------
Net loss $(6,684) $(108,462) $ (9,482) $(131,835)
========= ========= ========= =========
Net income (loss) per
share, basic - from
continuing operations $0.06 $(0.04) $0.24 $(0.12)
========= ========= ========= =========
Net loss per share,
basic - from discontinued
operations $(0.21) $(2.41) $(0.45) $(2.88)
========= ========= ========= =========
Net loss per share, basic $(0.15) $(2.45) $(0.21) $(3.00)
========= ========= ========= =========
Net income (loss) per
share, diluted - from
continuing operations $0.06 $(0.04) $0.24 $(0.12)
========= ========= ========= =========
Net loss per share,
diluted - from
discontinued operations $(0.21) $(2.41) $(0.45) $(2.88)
========= ========= ========= =========
Net loss per share,
diluted $(0.15) $(2.45) $(0.21) $(3.00)
========= ========= ========= =========
Common shares outstanding,
basic 44,936 44,193 44,634 43,964
========= ========= ========= =========
Common shares outstanding,
diluted 45,465 44,193 44,935 43,964
========= ========= ========= =========
MIPS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
(LOSS) and NET INCOME (LOSS) PER SHARE
(In thousands, except per share data)
(unaudited)
--------------------------------------------------------------------
Three Three Three
Months Months Months
Ended Ended Ended
June 30, Mar 31, June 30,
2009 2009 2008
--------- --------- ---------
GAAP net loss $(6,684) $(807) $(108,462)
--------------------------------------------------------------------
Net loss per basic share $(0.15) $(0.02) $(2.45)
========= ========= =========
--------------------------------------------------------------------
Net loss per diluted share $(0.15) $(0.02) $(2.45)
========= ========= =========
--------------------------------------------------------------------
(a) Loss from discontinued
operations, net of tax 11,026 4,027 $106,560
--------------------------------------------------------------------
(b) Gain on disposition, net of tax (1,654) -- --
--------------------------------------------------------------------
(c) Equity-based compensation expense 1,031 1,086 1,617
under SFAS 123R
--------------------------------------------------------------------
(d) Equity write-down 1,723 -- 2,276
--------------------------------------------------------------------
(e) Restructuring 15 374 281
--------------------------------------------------------------------
(f) Loan related cost -- -- 280
--------------------------------------------------------------------
(g) Impairment of acquired intangible -- -- 1,704
assets
--------------------------------------------------------------------
(h) Tax adjustment (5) (150) --
--------------------------------------------------------------------
Non-GAAP net income $5,452 $4,530 $4,256
========= ========= =========
--------------------------------------------------------------------
Non-GAAP net income per basic
share $0.12 $0.10 $0.10
========= ========= =========
--------------------------------------------------------------------
Non-GAAP net income per diluted
share $0.12 $0.10 $0.09
========= ========= =========
--------------------------------------------------------------------
Common shares outstanding -
basic 44,936 44,682 44,193
========= ========= =========
--------------------------------------------------------------------
Common shares outstanding -
diluted 45,465 44,719 44,869
========= ========= =========
--------------------------------------------------------------------
These adjustments reconcile the Company's GAAP results of operations
to the reported non-GAAP results of operations. The Company believes
that presentation of net income (loss) and net income (loss) per
share excluding discontinued operations, gain on the disposition,
equity-based compensation, loan origination fees, restructuring cost,
equity write-down, and impairment of acquired intangible assets
provides meaningful supplemental information to investors, as well as
management that is indicative of the Company's ongoing operating
results and facilitates comparison of operating results across
reporting periods. The Company uses these non-GAAP measures when
evaluating its financial results as well as for internal planning and
budgeting purposes. These non-GAAP measures should not be viewed as
a substitute for the Company's GAAP results, and may be different
than non-GAAP measures used by other companies.
(a) This adjustment reflects the loss, net of tax, of the Analog
Business Group.
(b) This adjustment reflects the gain, net of tax, on the divestiture
of the Analog Business Group.
(c) This adjustment reflects the equity-based compensation expense
related to SFAS No. 123 revised (SFAS 123R). For the fourth
fiscal quarter of fiscal 2009 ending June 30, 2009, $1.0 million
of equity-based compensation was allocated as follows: $399,000
to research and development, $319,000 to sales and marketing and
$313,000 to general and administrative. For the third fiscal
quarter of fiscal 2009 ending March 31, 2009, $1.1 million of
equity-based compensation was allocated as follows: $438,000 to
research and development, $281,000 to sales and marketing and
$367,000 to general and administrative. For the fourth quarter of
fiscal 2008 ending June 30, 2008, $1.6 million equity-based
compensation expense was allocated as follows: $478,000 to
research and development, $592,000 to sales and marketing and
$547,000 to general and administrative. Management believes that
it is useful to investors to understand how the expenses
associated with the adoption of SFAS 123R are reflected in net
income.
(d) This adjustment reflects certain equity write down under other
income (expense) related to investment associated with an equity
position in a private company.
(e) This adjustment reflects restructuring expense related to
reduction in workforce and facilities exit costs.
(f) This adjustment reflects the amortization of loan origination
fees under other income (expense) in connection with certain bridge
loan obtained for prior acquisition.
(g) This adjustment reflects the impairment charge of acquired
intangible assets.
(h) This adjustment reflects the net tax effect of the specific items
presented in the non-GAAP adjustments described above.
MIPS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) and
NET INCOME (LOSS) PER SHARE
(In thousands, except per share data)
(unaudited)
Twelve Twelve
Months Months
Ended Ended
June 30, June 30,
2009 2008
--------- ---------
--------------------------------------------------------------------
GAAP net loss $(9,482) $(131,835)
--------------------------------------------------------------------
Net loss per basic share $(0.21) $(3.00)
========= =========
--------------------------------------------------------------------
Net loss per diluted share $(0.21) $(3.00)
========= =========
--------------------------------------------------------------------
(i) Loss from discontinued operations,
net of tax 22,059 126,503
--------------------------------------------------------------------
(j) Gain on disposition, net of tax (1,654) --
--------------------------------------------------------------------
(k) Equity-based compensation expense
under SFAS 123R 4,589 7,889
--------------------------------------------------------------------
(l) Equity write-down 1,723 2,277
--------------------------------------------------------------------
(m) Restructuring 659 1,559
--------------------------------------------------------------------
(n) Loan related cost -- 2,095
--------------------------------------------------------------------
(o) Impairment of acquired intangible assets -- 1,704
--------------------------------------------------------------------
(p) Tax adjustment (263) --
--------------------------------------------------------------------
Non-GAAP net income $17,631 $10,192
========= =========
--------------------------------------------------------------------
Non-GAAP net income per basic share $0.40 $0.23
========= =========
--------------------------------------------------------------------
Non-GAAP net income per diluted share $0.39 $0.22
========= =========
--------------------------------------------------------------------
Common shares outstanding - basic 44,634 43,964
========= =========
--------------------------------------------------------------------
Common shares outstanding - diluted 44,935 45,477
========= =========
--------------------------------------------------------------------
These adjustments reconcile the Company's GAAP results of operations
to the reported non-GAAP results of operations. The Company believes
that presentation of net income (loss) and net income (loss) per
share excluding discontinued operations, gain on the disposition,
equity-based compensation, loan related, restructuring cost, equity
write-down, and impairment of acquired intangible assets provides
meaningful supplemental information to investors, as well as
management that is indicative of the Company's ongoing operating
results and facilitates comparison of operating results across
reporting periods. The Company uses these non-GAAP measures when
evaluating its financial results as well as for internal planning and
budgeting purposes. These non-GAAP measures should not be viewed as
a substitute for the Company's GAAP results, and may be different
than non-GAAP measures used by other companies.
(i) This adjustment reflects the loss, net of tax, of the Analog
Business Group.
(j) This adjustment reflects the gain, net of tax, on the divestiture
of the Analog Business Group.
(k) This adjustment reflects the equity-based compensation expense
related to SFAS No. 123 revised (SFAS 123R). For the twelve
months ending June 30, 2009, $4.6 million of equity-based
compensation was allocated as follows: $1.5 million to research
and development, $1.4 million to sales and marketing and $1.7
million to general and administrative. For the twelve months
ending June 30, 2008, $7.9 million of equity-based compensation
was allocated as follows: $2.7 million to research and
development, $2.5 million to sales and marketing and $2.7 million
to general and administrative. Management believes that it is
useful to investors to understand how the expenses associated
with the adoption of SFAS 123R are reflected in net income.
(l) This adjustment reflects certain equity write down under other
income (expense) related to investment associated with an equity
position in a private company.
(m) This adjustment reflects restructuring expense related to
reduction in workforce and facilities exit costs.
(n) This adjustment reflects the amortization of loan origination
fees of $1.8 million under other income (expense) and legal fees of
$335,000 incurred under general and administrative in connection
with certain bridge loan obtained for prior acquisition.
(o) This adjustment reflects the impairment charge of acquired
intangible assets.
(p) This adjustment reflects the net tax effect of the specific items
presented in the non-GAAP adjustments described above.