Investor Contact: Media Contact:
MIPS Technologies, Inc. MIPS Technologies, Inc.
Investor Relations Corporate Communications
Bonnie Gardiner Lee Garvin Flanagin
+650 567 7007 +650 567 5180
bonnieg@mips.com flanagin@mips.com
MIPS TECHNOLOGIES REPORTS THIRD QUARTER
FISCAL 2003 FINANCIAL RESULTS
MOUNTAIN VIEW, Calif., April 16, 2003 - MIPS Technologies, Inc. (NASDAQ: MIPS,
MIPSB) today reported financial results for its third fiscal quarter ended March
31, 2003. Revenue for the third quarter of fiscal 2003 was $9.5 million, a 26
percent decline compared to $12.7 million for the same quarter a year ago.
Contract revenue was $5.1 million, a decrease of 40 percent compared to $8.6
million in the comparable period in fiscal 2002. Royalties were $4.3 million,
an increase of 5 percent compared to $4.1 million in the same quarter a year
ago notwithstanding the continuing decline in royalties from Nintendo video
game products. Net loss for the third quarter of fiscal 2003 was $4.1 million
compared to a net loss of $1.7 million for the same quarter a year ago. Net
loss per share for the third quarter of fiscal 2003 was $0.10 compared to a
net loss per share of $0.04 for the same quarter a year ago.
Casey Eichler, chief financial officer for MIPS Technologies, said, "In
response to the general business environment for processor intellectual
property, we continue to manage our discretionary spending."
John Bourgoin, chairman and CEO of MIPS Technologies, commented, "Although the
business environment remains very weak, there are a few bright spots. The
emergence of new royalty streams from our partner base has grown for the third
straight quarter. Our partners are also reporting significant success in winning
designs for their MIPS-based products."
MIPS invites you to listen to management's discussion of Q3 fiscal 2003 results
and guidance for Q4 fiscal 2003 in a live conference call today beginning at
1:45 p.m. Pacific. Conference call number is 1-719-457-2638. Replay number is
1-719-457-0820 and will be available for 5 days, beginning shortly after the
end of the conference call. The access code is 438670. An audio replay of the
conference call will be posted on the Company's website
(www.mips.com/content/Corporate/InvestorRelations/ir) soon thereafter.
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 www.mips.com.
This press release contains forward-looking statements regarding future events
or the future financial performance of MIPS Technologies, Inc., including those
relating to relationships with our strategic partners and industry trends.
Actual events or results may differ materially. Many factors could cause the
actual results to differ materially from those contained in such forward-
looking statements, including but not limited to: that 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. With respect to MIPS
Technologies, we refer you to the documents filed from time to time with
the Securities and Exchange Commission, including its Annual Report on Form
10-K for the year ended June 30, 2002 and subsequent Forms 10-Q and 8-K.
###
MIPS(r) is a registered trademark in the United States and other countries, and
MIPS-based(tm) is a trademark of MIPS Technologies, Inc.
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
2003 2002 2003 2002
(unaudited) (unaudited)
Revenue:
Royalties $4,336 $4,135 $12,002 $13,580
Contract revenue 5,141 8,607 17,295 23,635
Total revenue 9,477 12,742 29,297 37,215
Costs and expenses:
Cost of contract revenue - - 250 250
Research and development 7,636 8,446 25,250 25,315
Sales and marketing 3,403 4,916 10,505 13,270
General and administrative 2,321 1,948 6,167 5,506
Acquired in process
research and development - - 394 1,737
Restructuring (16) - 7,618 437
Total costs and expenses 13,344 15,310 50,184 46,515
Operating loss (3,867) (2,568) (20,887) (9,300)
Other income (expense), net 249 510 (12) 2,415
Loss before income taxes (3,618) (2,058) (20,899) (6,885)
Provision (benefit) for
income taxes 443 (380) 1,299 (780)
Net loss $(4,061) $(1,678) $(22,198) $(6,105)
Net loss per basic and
diluted share $(0.10) $(0.04) $(0.56) $(0.16)
Common shares
outstanding-basic
and diluted 39,530 39,014 39,384 38,969
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, June 30,
2003 2002
(unaudited)
Assets
Current assets:
Cash and cash equivalents $76,051 $90,712
Short-term investments 11,475 5,000
Accounts receivable 2,880 6,046
Prepaid expenses and other
current assets 4,861 9,883
Total current assets 95,267 111,641
Equipment and furniture, net 5,055 7,481
Other assets 7,778 9,866
$108,100 $128,988
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $539 $1,203
Accrued liabilities 10,330 8,979
Deferred revenue 2,369 2,911
Total current liabilities 13,238 13,093
Stockholders' equity 94,862 115,895
$108,100 $128,988