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  MIPS TECHNOLOGIES, INC.

 

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Delaware (State or Other Jurisdiction of Incorporation or Organization)

000-24487 (Commission File Number)

77-0322161 (IRS Employer Identification No.)

 

 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

 

 

 

 

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SIGNATURES

 

 

	MIPS TECHNOLOGIES, INC. (Registrant)
Date:  November 8, 2007	By:	/s/   MERVIN S. KATO
		Name:  Mervin S. Kato
		Title:  Chief Financial Officer and Treasurer

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·	Cadence Selects Chipidea's USB 2.0 IP For Its SoC Functional Verification Kit

·	Chipidea’s Flexible Mixed-Signal IP Platform Architecture Provides Unprecedented Analog Integration

·	Chipidea Delivers First TSMC Qualified USB High-Speed PHY IP on 65nm General Process (GP) Technology

·	Broadcom Announces Industry's Most Advanced 65 Nanometer Solution for Next Generation Cable, Satellite and IP Set-Top Boxes

·	PMC-Sierra's New MIPS-Based™ Multi-Service Processors Optimize Power and Performance for Network and Storage Applications

·	FS2 and Tektronix Introduce FPGAView™ Software for Tektronix MSO4000 Mixed Signal Oscilloscopes

·	Cavium Networks Introduces MIPS-Based™ OCTEON Plus-based Accelerators for Appliance, Blade Server and Storage Systems

·	Wind River Supports Raza Microelectronics, Inc. Multi-Core, Multi-Thread Processor Solutions

·	Broadcom Extends Leadership in Networking Silicon Market with Industry's First MIPS-Based™ 65 Nanometer Gigabit Ethernet Switches

·	CSR boosts Actions Semiconductor's MIPS-Based™ MP3 design with wireless connectivity

 

 

 

 

 

		September 30, 2007				June 30, 2007
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	17,586			$	119,039
Short-term investments			-				25,845
Accounts receivable, net			21,762				5,212
Prepaid expenses and other current assets			18,596				2,472
Total current assets			57,944				152,568
Equipment, furniture and property, net			15,636				5,781
Goodwill			112,357				565
Other assets			68,632				15,948
		$	254,569			$	174,862
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	3,767			$	503
Accrued liabilities			51,832				16,118
Debt – short term			24,028				-
Deferred revenue			4,670				2,633
Total current liabilities			84,297				19,254
Long-term liabilities			18,836				5,726
Stockholders’ equity			151,436				149,882
		$	254,569			$	174,862

 

 

 

 

		Three Months Ended September 30,
		2007				2006
Revenue:
Royalties		$	10,519			$	11,207
Contract Revenue		$	11,792				8,343
Total revenue			22,311				19,550
Costs and expenses:
Costs of contract revenue			3,324				337
Research and development			9,013				7,774
Sales and marketing			5,586				4,871
General and administrative			7,009				4,311
Acquired in-process research and development			5,440				-
Total costs and expenses			30,372				17,293
Operating income (loss)			(8,061	)			2,257
Other income, net			494				1,429
Income (loss) before income taxes			(7,567	)			3,686
Provision (benefit) for income taxes			(413	)			1,363
Net income (loss)		$	(7,154	)		$	2,323
Net income (loss) per basic share		$	(0.16	)		$	0.05
Net income (loss) per diluted share		$	(0.16	)		$	0.05
Common shares outstanding-basic			43,766				43,461
Common shares outstanding-diluted			43,766				45,101

 

 

 

 

 

			Three Months Ended September 30, 2007				Three Months Ended June 30, 2007				Three Months Ended September 30, 2006
	GAAP net income (loss)		$	(7,154	)		$	2,335			$	2,323
	Net income (loss)  per basic share		$	(0.16	)		$	0.05			$	0.05
	Net income (loss) per diluted share		$	(0.16	)		$	0.05			$	0.05
(a)	Equity-based compensation expense under SFAS 123R		$	2,391			$	1,619			$	2,063
(b)	Amortization of intangibles			970				-				-
(c)	Acquisition related cost			1,319				-				-
(d)	Integration cost			839				-				-
(e)	Acquired in-process research and development			5,440				-				-
	Non-GAAP net income		$	3,805			$	3,954			$	4,386
	Non-GAAP net income per basic share		$	0.09			$	0.09			$	0.10
	Non-GAAP net income per diluted share		$	0.08			$	0.09			$	0.10
	Common shares outstanding – basic			43,766				43,535				43,461
	Common shares outstanding - diluted			46,723				46,374				45,101

 

 

(a)

Non-cash equity-based compensation expense related to the Company’s adoption of SFAS No. 123 revised (123R) beginning July 1, 2005. For the first fiscal quarter ending September, 2007, $2.4 million of equity-based compensation was allocated as follows: $833,000 to research and development, $662,000 to sales and marketing and $896,000 to general and administrative. For the fourth fiscal quarter ending June 30, 2007, $1.6 million of equity-based compensation expense was allocated as follows:  $539,000 to research and development, $508,000 to sales and marketing and $572,000 to general and administrative.  For the first quarter of fiscal 2007 ending September 30, 2006, $2.1 million equity-based compensation expense was allocated as follows:  $789,000 to research and development, $566,000 to sales and marketing and $708,000 to general and administrative.  Management believes that it is useful to investors to understand how the expenses associated with the adoption of SFAS 123R are reflected in net income.

 

(b)

This adjustment reflects the non-cash expense related to the amortization of intangibles acquired in connection with the acquisition of Chipidea included in operating expenses. For the quarter ending September, 2007, $970,000 of amortization expense related to these intangible assets was allocated as follows:  $834,000 to cost of sales and $136,000 to sales and marketing. Management believes that excluding this charge facilitates comparisons to MIPS’ core operating results because the expense for the amortization of intangibles is not indicative of core operational performance and the amount of such charges varies significantly based on the size and timing of our acquisitions and the maturity of the business being acquired.

 

(c)

This adjustment reflects the expense related to the amortization of $648,000 of an amount held in escrow and payable to the founders of Chipidea in connection with the acquisition of Chipidea, and legal expense of $335,000 related to legal fees incurred in association with certain financing activities.  These expenses were both  included in operating expenses.  This adjustment also includes $337,000 in loan origination fees recorded under other income and expense.  Management believes that excluding these charges facilitates comparisons to MIPS’ core operating results during periods when there was no escrow amortization or financing activities.

 

(d)	This adjustment reflects integration expense related to the acquisition of Chipidea recorded in accounting and legal expense.  Management believes that excluding this charge facilitates comparisons to MIPS’ core operating results during periods when there were no acquisitions.

 

(e)	The charge of $5.4 million for acquired in-process research and development expense related to the acquisition of Chipidea.  Management believes that excluding this charge facilitates comparisons to MIPS’ core operating results during periods when there were no acquisitions.