MIPS Misses Estimate, Sees Revenue Dwindle

The technology company posts a 55% revenue drop and misses the consensus estimate by a penny.

Author:: Michael Dunn
Publish date:: Apr 12, 2002 10:59 AM EDT

MIPS Technologies

(MIPS)

missed third quarter estimates by a penny as revenue from Nintendo continued to decline.

The processor company said it lost $1.7 million, or 4 cents a share, compared with net income of $8.5 million, or 21 cents a share, in the year ago quarter. Analysts polled by Thomson Financial/First Call were expecting a loss of 3 cents a share for the quarter.

Revenue dropped 55% from a year ago to $12.7 million. Excluding revenue from Nintendo 64 products, the company's revenue dipped 28%. Royalties dropped 74% to $4.1 million from $16.1 million in the year ago period, due primarily to lower Nintendo royalties.

The company said in a press release that it had begun to see early signs of a potential economic recovery, but it "continues to see many of the elements in the market that have frustrated a faster recovery." No further guidance was offered at this time.

Shares of MIPS closed at $6.95 Thursday on the

Nasdaq