MIPS Technologies: Chips ahoy!

MIPS Technologies, Inc. (Nasdaq: MIPS)
Mountain View, CA 94043
http://www.mips.com/

52-week low / high: $6.92 / $10.20
Shares Outstanding:  43.88 million
Market Capitalization: $340.59 million

If you’ve snapped a picture with a digital camera, used a DVD recorder, surfed the Web on a DSL connection or used an Internet-powered phone, you’ve likely used a product with components made by MIPS Technologies, Inc. (Nasdaq: MIPS). The Mountain View, Calif.-based MIPS creates and licenses microprocessor designs, which are embedded in Windows CE devices, network routers, digital televisions, Nintendo and Sony game consoles, cable modems, laser printers and other electronic devices.

The firm is best known for creating high-end RISC, or reduced instruction set computing, chips. The company’s RISC technology increases the speed of a relatively small number of tasks, when compared to standard microprocessors. Its 32-bit and 64-bit semiconductor designs are sold to more than 110 licensees, including Toshiba, Sony and Texas Instruments.

MIPS was founded in 1984 by a group of Stanford University researchers that included the university’s current president, John Hennessy. The firm made its first IPO in November 1989, was acquired by Silicon Graphics, Inc. in 1992 for $333 million and spun off and then offered publicly again in 1998. SGI spun off MIPS completely in 2000 by distributing all of its MIPS shares as dividend to shareholders. Along with being headquartered in California, MIPS owns facilities in China and Europe.

Two investment firms—Longbow and Cowen & Co.—initiated coverage on MIPS this year, with ratings of “buy” and “outperform” respectively. Six analysts currently cover the company.

Revenue for the fourth quarter ended June 30, 2007 was $23.7 million, up 30% from $18.2 million a year ago and up 24% sequentially. For the year, revenue was $83.3 million, up 30% from $64.1 million for fiscal 2006.

Non-GAAP net income in the fourth quarter (excluding equity-based compensation) was $4 million, or $0.09 per diluted share, compared with $3.5 million, or $0.08 per diluted share, in the third quarter. GAAP net income was $2.3 million, or $0.05 per share, compared with $7.5 million, or $0.17 per share, a year earlier. GAAP third-quarter net income totaled $1.2 million, or $0.08 per share.

Note: MIPS Technologies, Inc. is on the “Watch List” of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, MIPS Technologies, displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below