News Release from: MIPS Technologies
Edited by the Electronicstalk Editorial Team on 17 January 2002
MIPS buoyed by new licences after weakest quarter
MIPS Technologies has reported financial results for its second fiscal quarter ended 31st December 2001.
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MIPS Technologies has reported financial results for its second fiscal quarter ended 31st December 2001. Revenue for the second quarter was $12.0 million, a 37% decline compared with $19.0 million for the same quarter a year ago. Revenue excluding revenue from Nintendo 64 video game products declined by 22% compared with the same quarter a year ago.
Contract revenue was $7.3 million, a decrease of 25% compared with $9.7 million in the comparable period in fiscal 2001.
Royalties were $4.7 million, a decrease of 49% compared with $9.2 million in the same quarter a year ago, due primarily to lower royalties from Nintendo 64 video game products.
Royalties excluding royalties from Nintendo 64 were $3.1 million, a decrease of 13% compared with the same quarter a year ago.
Pro forma net loss, excluding a one-time charge for acquired in process research and development costs related to the acquisition of processor IP assets announced at the end of December, was $1.8 million for the second quarter of fiscal 2002.
The actual net loss for the quarter was $3.5 million compared with net income of $4.2 million for the same quarter a year ago.
Pro forma net loss per share was $0.05.
The diluted net loss per share for the second quarter of fiscal 2002 was $0.09 compared with net income of $0.10 per share for the same quarter a year ago.
"Though in line with expectations, Q2 was the weakest earnings quarter in MIPS' history.
We took actions in October to reduce our expenses in anticipation of reduced revenues from licensing activity and delayed royalty growth", said Casey Eichler, chief financial officer.
"These actions will help position MIPS to recover more quickly as the market recovers".
"I am encouraged that during the quarter we signed nine new licenses - an increase over last quarter - which brings the total post-IPO licensing agreements to more than 60.
Of these, there were five new licensees who joined the MIPS community, bringing the total post-IPO licensee base to more than 40", said John Bourgoin, chairman and CEO of MIPS Technologies.
"The closure rate on new license agreements for MIPS products has increased for two consecutive quarters and has returned to the level of a year ago.
While we still see reluctance from many companies to make larger upfront financial commitments associated with multiple use rights, we are securing more per use agreements which should ultimately result in more license fees to MIPS".
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