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 FOURTH QUARTER
AND FISCAL 2003 FINANCIAL RESULTS
Sequential Growth in Contract Revenue
MOUNTAIN VIEW, Calif., July 23, 2003 - MIPS Technologies, Inc.
(NASDAQ: MIPS, MIPSB) today reported financial results for its fourth
quarter and fiscal year ended June 30, 2003. Revenue for the fourth
quarter of fiscal 2003 grew by 3 percent over the third quarter of
fiscal 2003, primarily as a result of an increase in contract revenues.
In addition, as previously announced in May 2003, the company implemented
a restructuring plan that is expected to be concluded by September 2003.
Total revenue for the fourth quarter of fiscal 2003 was $9.8 million, a
7 percent decline compared to $10.5 million for the same quarter a year
ago. Contract revenue was $6.1 million, a decrease of 17 percent compared
to $7.3 million in the comparable period in fiscal 2002. Royalties were
$3.7 million, an increase of 15 percent compared to $3.2 million in the
same quarter a year ago. Net loss for the fourth quarter of fiscal 2003,
which included a restructuring charge of $2.7 million, was $6.7 million
compared to a net loss of $3.3 million for the same quarter a year ago.
Net loss per share for the fourth quarter of fiscal 2003 was $0.17
compared to a net loss per share of $0.08 for the same quarter a year
Sago.
Total revenue for fiscal year 2003 was $39.1 million, a decrease of 18
percent compared to $47.8 million in fiscal 2002. Contract revenue was
$23.4 million, a decline of 25 percent compared to $31.0 million in 2002.
Royalties were $15.7 million, a decrease of 7 percent compared to $16.8
million in fiscal 2002. Net loss for fiscal 2003 was $28.9 million
compared to a net loss of $9.4 million in fiscal 2002. Fiscal 2003 net
loss per share was $0.73 compared to a net loss per share of $0.24 in
fiscal 2002.
"Despite fiscal year 2003's reduced contract revenue when compared to
fiscal year 2002, we were pleased with the 23% year-over-year increase
in royalties excluding royalties from Nintendo," said Casey Eichler,
chief financial officer for MIPS Technologies. "Our restructuring plans
are on track to be completed by the end of September and we reiterate
our guidance for breakeven by the December quarter."
"We believe that quarterly revenues stabilized during the recently
concluded fiscal year. During the course of this year, we took some
difficult, but appropriate, actions to reduce spending which we believe
will set the stage for profitability during the second half of fiscal
2004," said John Bourgoin, Chairman & CEO. "We have also strengthened
our development capability in key product areas such as synthesizable
cores, and we expect to add to our industry-leading synthesizable core
product offerings during the coming quarters."
MIPS invites you to listen to management's discussion of Q4 and fiscal
2003 results and guidance for fiscal 2004 in a live conference call
today beginning at 1:45 p.m. Pacific. Conference call number is
1-719-457-2626. 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 426918. 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 the
ability of MIPS Technologies to achieve breakeven and to generate profit
and the anticipated timing thereof, future revenue, 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.
FY2003 Highlights: Following are selected press release headlines from
MIPS Technologies, and the company's licensees, systems vendors and third
party providers.
MIPS Technologies Introduces New Microarchitecture For the Next-Generation
of Embedded Designs
MIPS Technologies Appoints Chief Technology Officer
Wintegra Adds to MIPS-based(tm) Family of Devices for DSLAMs
New MIPS-based(tm) Family of Embedded Processors from QuickLogic Expands
QuickMIPS(tm) FPGA-Enabled Product Offering
Sharp Taps MIPS Technologies' Secure Data Processors to Develop Family of
Next-Generation Smart Card Microcontrollers
Broad Range of MIPS-Based(tm) Solutions Displayed At 2003 Embedded
Systems Conference (ESC) in San Francisco
MIPS Technologies, Inc. Announces Support for Microsoft's Windows CE .NET
4.2 Operating System
MIPS Technologies' Processor Core Powers Infineon's Voice-over-IP Solution
MIPS Technologies, with Leading Industry and Government Executives, Marks
One-Year Taiwan Anniversary
MIPS Technologies Partners with Socle of Taiwan to Offer ASIC Design
Services for Fabless Companies and System OEMs
New MIPS-Based(tm) SOC from ADMtek of Taiwan Targets Burgeoning Worldwide
Home Gateway Market
MIPS Technologies Licenses 32-Bit Processor Cores to Metalink for Next-
Generation Broadband Access Solutions
MIPS Technologies' Licenses Family of 32-Bit Processor Cores to Cirrus
Logic
MIPS Technologies Licenses 32-Bit Processor Core IP to Sunplus Technology
for Next-Generation Consumer Electronics Products
MIPS Technologies' Pro Series(tm) Cores Enable SOC Designers to
Supercharge Application Performance
VoCAL Adds DSP Functionality to MIPS Technologies' New 32-Bit Pro
Series(tm) Cores
Avaz Networks Uses Pro Series(tm) Core from MIPS Technologies To Eliminate
Need for DSP Block in VoIP Applications
MIPS Technologies Publishes EEMBC Benchmarks for Industry Standard
MIPS64(tm) 20Kc(tm) Core
2003 International Consumer Electronics Show (CES) Forum for MIPS-Based(tm)
Announcements
MIPS Technologies Introduces the Most Secure Licensable Processor Core
MIPS Technologies Licenses 32-Bit Processor Core IP to Micronas for Next-
generation Consumer Electronics Products
MIPS Technologies' Low-Power Core Delivers the Performance Needed for
Thrane & Thrane Satellite Mobile Phone
MIPS Technologies' Processor Core Powers ViXS' Video-over-IP Solution
MIPS Technologies Licenses 32-Bit Processor Cores to Zoran for
Next-Generation Consumer Electronics Products
MIPS Technologies Core Powers NEC's New SOC for Set-Tops and DTVs
MIPS Technologies Announces Update of Windows CE .NET Supports 32-,
64-Bit MIPS-Based(tm) Microprocessors
MIPS Technologies Launches System-Level Solution To Increase Overall
SOC Performance
MIPS Technologies Licenses 32-Bit Core to Proxim for Use in High-Speed
Wireless Networking Products
MIPS Technologies Acquires Leading GNU Tool Chain Company,UK-Based
Algorithmics
MIPS Technologies Licenses Sony Computer Entertainment Inc. MIPS64(tm)
Processor Architecture
MIPS Technologies Licenses 64-Bit Processor Core to Marvell(r)
Centillium Communications to Utilize MIPS Technologies' 32-Bit Processor
Cores
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
June 30, June 30,
2003 2002 2003 2002
Revenue:
Royalties $3,691 $3,211 $15,693 $16,791
Contract revenue 6,103 7,335 23,397 30,970
Total revenue 9,794 10,546 39,090 47,761
Costs and expenses:
Cost of contract revenue - - 250 250
Research and development 7,613 8,730 32,863 34,045
Sales and marketing 3,253 3,920 13,759 17,189
General and administrative 2,341 1,928 8,508 7,435
Acquired in process
research and development - - 394 1,737
Restructuring 2,665 - 10,282 437
Total costs and expenses 15,872 14,578 66,056 61,093
Operating loss (6,078) (4,032) (26,966) (13,332)
Other income (expense), net 314 614 303 3,028
Loss before income taxes (5,764) (3,418) (26,663) (10,304)
Provision (benefit)
for income taxes 945 (134) 2,244 (914)
Net loss $(6,709) $(3,284) $(28,907) $(9,390)
Net loss per basic
and diluted share $(0.17) $(0.08) $(0.73) $(0.24)
Common shares
outstanding-basic and
diluted 39,866 39,144 39,505 39,013
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 30,
2003 2002
Assets
Current assets:
Cash and cash equivalents $83,839 $90,712
Short-term investments - 5,000
Accounts receivable 4,762 6,046
Prepaid expenses and
other current assets 3,648 9,883
Total current assets 92,249 111,641
Equipment and furniture, net 4,202 7,481
Other assets 8,898 9,866
$105,349 $128,988
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $504 $1,203
Accrued liabilities 10,977 8,209
Deferred revenue 2,592 2,911
Total current liabilities 14,073 12,323
Long-term liabilities 1,900 770
Stockholders' equity 89,376 115,895
$105,349 $128,988