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MIPS Technologies Reports Second Quarter Fiscal 2013 Financial Results

MIPS and MIPS-Based are trademarks or registered trademark of MIPS Technologies, Inc. in the United States and other countries.

 
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(In thousands)
 
  December 31, 2012 June 30, 2012
  (unaudited)  
Assets    
Current assets:    
Cash and cash equivalents $131,299 $76,242
Short-term investments -- 34,642
Accounts receivable, net 1,068 27,044
Prepaid expenses and other current assets 2,985 1,793
Total current assets 135,352 139,721
Equipment, furniture and property, net 3,214 2,892
Goodwill 565 565
Other assets  10,591 11,962
Total assets $149,722  $155,140 
     
Liabilities and Stockholders' Equity    
Current liabilities:    
Accounts payable $1,619 $2,578
Accrued liabilities 13,093 11,852
Deferred revenue 769 1,259
Total current liabilities 15,481 15,689
Long-term liabilities 8,874 9,815
Stockholders' equity 125,367 129,636
Total liabilities and stockholders' equity $149,722 $155,140
 
 
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
(In thousands, except per share data)
(unaudited)
 
  Three Months Ended December 31, Six Months Ended December 31,
  2012 2011 2012 2011
Revenue:        
Royalties $10,751 $13,224 $21,224 $26,203
License and contract revenue 3,840 2,077 7,310 6,315
Total revenue 14,591 15,301 28,534 32,518
Costs and expenses:        
Cost of sales 332 344 694 605
Research and development 9,031 8,278 17,329 16,184
Sales and marketing 4,141 3,892 8,566 8,723
General and administrative 5,478 3,339 11,044 6,603
Transaction related costs 1,918 -- 1,918 --
Total costs and expenses 20,900 15,853 39,551 32,115
Operating income (loss) (6,309) (552) (11,017) 403
Other income, net 52 14 60 67
Income (loss) before income taxes (6,257) (538) (10,957) 470
Provision (benefit) for income taxes 130 434 (244) 919
Net loss $(6,387) $(972) $(10,713) $(449)
Net loss per share, basic $(0.12) $(0.02) $(0.20) $(0.01)
Net loss per share, diluted $(0.12) $(0.02) $(0.20) $(0.01)
Common shares outstanding, basic 54,109 52,886 53,904 52,773
Common shares outstanding, diluted 54,109 52,886 53,904 52,773
 
 
MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 
(In thousands)
 
  Six Months Ended December 31,
  2012 2011
Operating activities:    
Net loss $(10,713) $(449)
Adjustments to reconcile net loss to cash provided by operations    
Depreciation 724 471
Stock-based compensation 3,762 2,953
Excess tax benefits from stock-based compensation (168) --
Amortization of intangible assets 340 252
Amortization of investment premium, net 164 265
Other non-cash charges 124 139
Changes in operating assets and liabilities:    
Accounts receivable 25,976 1,500
Prepaid expenses (1,260) (230)
Other assets 1,459 791
Accounts payable (1,074) (613)
Accrued liabilities 1,283 (3,620)
Deferred revenue   (572) (488)
Long-term liabilities (1,196) 53
Net cash provided by operating activities 18,849 1,024
Investing activities:    
Purchases of marketable securities (16,857) (22,588)
Proceeds from sales of marketable securities 27,032 2,613
Proceeds from maturities of marketable securities 24,419 26,000
Capital expenditures (966) (659)
Net cash provided by investing activities 33,628 5,366
Financing activities:    
Net proceeds from issuance of common stock 2,410 1,269
Excess tax benefits from stock-based compensation 168 --
Net cash provided by financing activities 2,578 1,269
Effect of exchange rates on cash 2 (32)
Net increase in cash and cash equivalents 55,057 7,627
Cash and cash equivalents, beginning of period 76,242 69,202
Cash and cash equivalents, end of period $131,299 $76,829
     
     
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 Months Ended December 31, 2012 Three Months Ended September 30, 2012 Three Months Ended December 31, 2011
  GAAP net loss $(6,387) $(4,326) $(972)
  Net loss per basic share $(0.12) $(0.08) $(0.02)
  Net loss per diluted share $(0.12) $(0.08) $(0.02)
(a) Stock-based compensation expense 1,898 1,864 1,412
(b) Severance adjustment -- 44 49
(c) Expenses related to stockholder activities -- -- 158
(d) Expenses related to strategic opportunities 2,046 1,934 --
(e) Transaction related costs 1,918 -- --
  Non-GAAP net income  (loss) $(525) $(484) $647
  Non-GAAP net income (loss) per basic share $(0.01) $(0.01) $0.01
  Non-GAAP net income (loss) per diluted share $(0.01) $(0.01) $0.01
  Common shares outstanding – basic 54,109 53,699 52,886
  Common shares outstanding – diluted 54,109 53,699 53,658

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 loss and net loss per share excluding stock-based compensation expense, severance adjustment, expenses related to stockholder activities, expenses related to strategic opportunities, and transaction related costs 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.

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