MIPS Technologies Reports Fourth Quarter and Fiscal 2005 Financial
Results Fiscal Year Return to Profitability with Revenue Growth of
28 Percent MOUNTAIN VIEW, Calif., July 27 /PRNewswire-FirstCall/ --
MIPS Technologies, Inc. (NASDAQ:MIPS), today reported financial
results for its fourth quarter and fiscal year ended June 30, 2005.
Revenue for the fiscal year 2005 grew 28 percent in both royalties
and contract revenue compared to fiscal year 2004. Total revenue
for the fourth quarter of fiscal 2005 was $14.3 million compared to
$14.2 million for the same quarter a year ago. Royalties were $7.1
million, an increase of nine percent compared to $6.5 million in
the same quarter a year ago. Contract revenue was $7.2 million, a
decrease of six percent compared to $7.7 million in the comparable
period in fiscal 2004. Net income for the fourth quarter of fiscal
2005 was $2.7 million compared to a net income of $2.6 million for
the same quarter a year ago. Net income per share on a diluted
basis for the fourth quarter of fiscal 2005 was $0.06 compared to a
net income per share on a diluted basis of $0.06 for the same
quarter a year ago. Total revenue for fiscal year 2005 was $61.2
million, an increase of 28 percent compared to $47.9 million in
fiscal 2004. Royalties were $30.0 million, an increase of 28
percent compared to $23.4 million in fiscal 2004. Contract revenue
was $31.2 million, an increase of 28 percent compared to $24.4
million in 2004. Net income for fiscal 2005 was $13.4 million
compared to a net loss of $1.5 million in fiscal 2004. Fiscal 2005
net income per share on a diluted basis was $0.30 compared to a net
loss per share of $0.04 in fiscal 2004. "We are pleased with our
annual revenue growth and return to fiscal year profitability. With
ten new licenses this quarter, bringing our total to 43 for the
fiscal year, we realized 28 percent growth in our annual contract
revenue," said Casey Eichler, chief financial officer of MIPS
Technologies. "Although license fees were lower than expected this
last quarter, the digital consumer and networking markets in which
the MIPS architecture is so successful, continue to offer growth
from which we expect to benefit." "Fiscal year 2005 was marked by
the strongest revenue growth in our seven year history, despite a
soft fourth quarter," said John Bourgoin, president and CEO of MIPS
Technologies. "Our 24K core family continues to beat the
competition in the market, and our new multithreading technology
has strong promise as a winner and driver of growth in fiscal year
2006." MIPS Technologies invites you to listen to management's
discussion of Q4 and fiscal 2005 results and guidance for Q1 fiscal
2006 in a live conference call today beginning at 1:45 p.m.
Pacific. Conference call number is 1-719-457-2642. Replay number is
1-719-457-0820 and will be available for five days, beginning
shortly after the end of the conference call. The access code is
3917430. 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. Q4 FY2005 Highlights: From its inception over 20 years
ago, the MIPS(R) architecture has represented innovation and
performance. Today, MIPS Technologies and its licensees continue to
lead in system-performance and innovative solutions for established
and emerging markets. With ten design teams actively developing the
architecture, hundreds of successful implementations throughout the
world, and a vibrant ecosystem of third-party tools and software --
MIPS continues to be at the core of the user experience. Following
are selected press release headlines from MIPS Technologies, and
the company's licensees, systems vendors and third party providers.
HDTV & DTV News * JVC Reaffirms ATI's Digital TV Technology
Leadership; High- Definition Displays Feature ATI's MIPS-Based(TM)
Xilleon 226 and other Products Set Top Box News * NEC Electronics
Introduces MIPS-Based(TM) Single-Chip Secure MPEG Decoder for Set
Top Boxes * Broadcom MIPS-Based(TM) IPTV Set-Top Box Silicon Used
in World's First Demonstration of MPEG-4 High Definition Live TV
Broadcasting Over an ADSL2+ Network * Philips Announces Single Chip
Solution for Satellite Set-Top Boxes; Solution Contains
MIPS-Based(TM) Philips PR1910 CPU * Equator Introduces Sailfish
Set-Top Box Reference Platform at NAB; Utilizes MIPS-Based
Alchemy(TM) Au1550(TM) CPU * Alpha Networks Unveils High-Definition
VC-1 and H.264/AVC Set-top Box at NAB 2005 Utilizing MIPS-Based(TM)
Equator Set-Top Box Reference Platform Broadband News * Corecess
Chooses Wintegra for Next Generation IP-DSLAM Line Card; Will
Utilize MIPS-Based(TM) WinPath CPUs * Cavium Networks Announces
Customer Sampling of OCTEON(TM) Multi-core MIPS64(TM) Processors;
Demonstrates OCTEON at SuperComm 2005 VoIP News * D2 Technologies
to Provide Optimized VoIP Algorithms for New High- Performance
MIPS32(R) 24KE(TM) Cores * Z-Com Selects Texas Instruments Embedded
WLAN and MIPS-Based(TM) Voice over IP Solutions for Next Generation
USB Adapters and Residential Gateway Modules * 3Com Selects Texas
Instruments' Voice over IP Technology to Power 3Com IP Phones;
MIPS-Based TNETV1050 IP Phone Chip Utilized * PMC-Sierra Announces
MIPS-Based(TM) Wireless-Capable Voice Over IP 'Router On A Chip'
Office Automation * MIPS-Based(TM) TX99/H4 RISC Microprocessor from
Toshiba to Power New Canon Multi-function Digital Copier SOHO and
Wireless News * Z-Com Selects Texas Instruments Embedded WLAN and
MIPS-Based(TM) Voice over IP Solutions for Next Generation USB
Adapters and Residential Gateway Modules * Metalink Unveils
MIPS-Based(TM) Chipset For Emerging 802.11n Standard Supporting
Breakthrough 240Mbps Wireless LAN Speed * Atheros MIPS-Based(TM)
USB2.0 802.11a/g WLAN Technology Unwires Desktop PCs in Japan *
Cavium Networks Delivers Highest Performance Airgo True MIMO(TM)
Based 802.11 Secure Wireless Gateway Reference Design Utilizing
MIPS-Based(TM) NITROX(TM) Soho Processors * Cavium Networks &
Atheros Communications Introduce Combined 802.11 a/b/g Reference
Design for Wireless Broadband Gateways; Design Utilizes
MIPS-Based(TM) NITROX(TM) Soho Processors Corporate News * EDA
Consortium Appoints MIPS Technologies CEO to Board * Wintegra
Enters Into Strategic Relationship With PMC-Sierra to Develop
MIPS-Based(TM) Multi-Service Access Systems Solutions * CoWare,
Magma Design Automation, MIPS Technologies and Virage Logic to
Co-Host Hands-On Tutorial Session at Design Automation Conference *
MIPS Technologies Names Wind River as its Premier Device Software
Optimization Solution Provider Security * Uniform Industrial
Corporation (UIC) selected USIP(R) Professional platform for its
new range of secure PINPADs powered by the MIPS32 4KSd Innova Card
Solution * Elliptic Semiconductor launches Digital Rights
Management Security Products Newly Announced Licenses * Raza
Microelectronics Licenses the MIPS64(R) Architecture for Next
Generation Processors * MIPS Technologies and ITE Technology, Inc.
Announce Agreement to License MIPS32(R) 4KE(TM) Pro Core Family
Product News * MIPS Technologies Introduces the MIPS32(R) 24KE(TM)
Core Family - the First DSP ASE Enabled MIPS(R) Cores * Accelerated
Technology's Nucleus EDGE Embedded Development Environment Supports
MIPS Architecture * Accelerated Technology's Nucleus PLUS Support
for MIPS32 24K Core Family Supports Developers of Digital Consumer
Devices Ecosystem News * Toshiba Announces Availability of
Reference Board for the MIPS- Based(TM) TX4939XBG-400 Embedded
PCI-Based Microprocessor, Its Newest 64-Bit RISC Processor * CoWare
and MIPS Technologies to Automate Application-Optimized Processor
Creation * Virage Logic Accelerates Silicon Success with Integrated
Partner Solutions at 2005 Design Automation Conference * TSMC and
RMI Collaborate on 90nm Process for New Throughput- Optimized
MIPS-Based(TM) Thread Processor Solutions * Wind River VxWorks 6.1
Delivers Unprecedented Interoperability and Compatibility Across
Software Platforms and Hardware Architectures * Wind River Raises
the Bar in Linux Device Software Development; Introduces New
Products, Services and Partnerships to Speed Linux Adoption in the
Device Software Optimization Market * Wind River Transforms
Consumer Device Industry; Announces Comprehensive Suite of Products
and Service Offerings, Expanded Partner Ecosystem and Reference
Design Systems * PMC-Sierra Demonstrates Micro Multi-Service
Provisioning Platform Capabilities with New Evaluation System;
Powered by PMC-Sierra's 64- bit MIPS-Based(TM) CPU 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. MIPS TECHNOLOGIES, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per
share data) Three Months Ended Twelve Months Ended June 30, June
30, 2005 2004 2005 2004 Revenue: Royalties $7,062 $6,485 $29,988
$23,439 Contract Revenue 7,222 7,702 31,231 24,446 Total revenue
14,284 14,187 61,219 47,885 Costs and expenses: Research and
development 5,853 5,230 21,911 23,962 Sales and marketing 4,211
3,525 14,851 11,878 General and administrative 2,552 2,459 10,029
8,486 Restructuring -- -- 277 3,233 Total costs and expenses 12,616
11,214 47,068 47,559 Operating income 1,668 2,973 14,151 326 Other
income, net 1,217 93 2,412 591 Income before income taxes 2,885
3,066 16,563 917 Provision for income taxes 191 498 3,200 2,448 Net
income (loss) $2,694 $2,568 $13,363 $(1,531) Net income (loss) per
basic share $0.06 $0.06 $0.32 $(0.04) Net income (loss) per diluted
share $0.06 $0.06 $0.30 $(0.04) Common shares outstanding - basic
42,121 40,634 41,501 40,434 Common shares outstanding - diluted
45,003 43,562 44,465 40,434 MIPS TECHNOLOGIES, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands) June 30, June 30, 2005
2004 Assets Current assets: Cash and cash equivalents $91,686
$78,335 Short-term investments 19,825 15,041 Accounts receivable,
net 2,544 2,488 Prepaid expenses and other current assets 2,813
3,159 Total current assets 116,868 99,023 Equipment and furniture,
net 2,899 3,578 Other assets 7,779 6,102 $127,546 $108,703
Liabilities and Stockholders' Equity Current liabilities: Accounts
payable $1,346 $1,255 Accrued liabilities 13,604 12,344 Deferred
revenue 2,825 3,407 Total current liabilities 17,775 17,006
Long-term liabilities 2,938 2,038 Stockholders' equity 106,833
89,659 $127,546 $108,703 DATASOURCE: MIPS Technologies, Inc.
CONTACT: investors, Bonnie Gardiner, Investor Relations,
+1-650-567-7007, or , or media, Kathleen Matthews, Corporate
Communications, +1-650-567-5035, or , both of MIPS Technologies,
Inc. Web site: http://www.mips.com/
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