Revenue from royalties was $10.5 million, or 47% of total revenue, a decrease of 7% from the $11.3 million reported in the prior quarter and a decrease of 6% from the $11.2 million reported in the first quarter a year ago. Contract revenue was $11.8 million or 53% of total revenue, a decrease of 5% from the $12.4 million reported in the prior quarter and an increase of 42% from the $8.3 million reported in the first quarter a year ago. Six new license agreements were signed in the most recent quarter.
Organic revenue from the MIPS processor business was $19.9 million, while revenue from the analog and mixed signal (Chipidea) business after August 27, 2007 was $2.4 million. About $2 million of the latter amount was adjusted out for purchase accounting issues. Approximately $1.5 million of this figure may recognizable in future quarters.
On August 27, 2007, MIPS Technologies, Inc announced that the company had acquired privately-held Chipidea Microelectronica S.A, a leading independent supplier of analog and mixed signal IP. MIPS will pay an aggregate of $147 million in cash, with an additional performance-based milestone payment of 610,687 shares of MIPS Technologies' common stock in 2009. Chipidea had 34% CAGR from 2002 thru 2006. In 2006 the firm had revenues of $26.2 million, a year-over-year increase of 22.5%.
MIPS net loss in the first quarter of fiscal 2008 on a GAAP basis was $7.2 million, which includes a write-off of $5.4 million for the in-process R&D charge related to the Chipidea acquisition, compared to net income of $2.3 million in the prior quarter and $2.3 million in the first quarter a year ago.
John Bourgoin, president and CEO of MIPS Technologies, said, "The acquisition of Chipidea during (fiscal) Q1 was perhaps the company's most significant event during its nearly 10-year history. Analog products are increasingly becoming critical in the decision process for our customers, often determining whether a company is able to migrate to a higher performance or lower cost technology, and Chipidea is the undisputed world leader in analog IP. We expect this acquisition to lead to greater growth for MIPS Technologies, and anticipate that it will augment our earnings during the fiscal year.”
Net loss for the quarter was $2.83 million. This was close to the net losses of $2.87 million and $2.68 million in the year ago quarter and the last quarter, respectively.
Chet Silvestri, Chief Executive Officer of MoSys, said, "The Technology Licenses that we have signed over the past year on 1T-SRAM are now starting to generate royalties. Based on information provided to us by our licensees, we believe that there are several design wins that are now entering the production phase. We expect quarter over quarter royalty growth to continue throughout 2008 as additional design wins ramp into volume production.”
On a geographic basis, Japan accounted for 61% of total Rambus revenue, North America for almost 16%, and Europe for 18.5%.
Costs of general litigation, which excludes costs related to restatement, were $11.7 million, up 75% as compared to the second quarter of 2007, and up 34% from the third quarter of last year.
Net loss for the 2007 third quarter was $6.5 million, compared to a loss of $2.7 million in the second quarter, and a loss of $22.6 million in the third quarter of last year. After a review by its Audit Committee concerning historical stock option practices, Rambus recorded additional pre-tax, non-cash, stock-based compensation expenses for the period between May 13, 1997 (the date of Rambus' initial public offering) and December 31, 2005. The impact of these adjustments, net of taxes, decreased Rambus' previously reported cumulative net income by $102.4 million for the same period. Rambus had incurred substantial expenses for legal, accounting, tax and other professional services in connection with the investigation, its internal review, restatement activities, preparation of restated consolidated financial statements and related legal matters. For the third quarter of 2006 these expenses amounted to $23.8 million.
On October 10, 2007, Rambus announced it has received notification from the staff of the NASDAQ stating the Company has regained compliance with all Nasdaq rules. This determination is based on the Company having filed its 10K report for fiscal 2006 and its 10Q reports for the first three quarters of 2007. All of these were filed in September 2007. Consequently, Rambus' securities will continue to be listed on the Nasdaq.
Harold Hughes, president and chief executive officer at Rambus, said, "We have come through a very challenging time for the Company with the restatement and the consequences of the stock options backdating investigation. We look forward to being able to focus our attention on technology development and licensing activities."
On a geographic basis, revenue from North American was 59% of the total, from Asia 31% and from EMEA 10%. In the quarter, there were two 10% customers and one in the fiscal year. License revenue by technology node was 38% at 90 nm, 37% at 65nm, 17% at 130 nm and 8% at other. There were five new customers in the year.
On August 16, 2007, Virage Logic announced that it had completed its acquisition of privately held Ingot Systems, Inc., a provider of application specific IP (ASIP) solutions and design services to the semiconductor industry. This was an all-cash transaction.
Total revenue for fiscal 2007 was $46.5 million, a major 21.5% drop from the $59.3 million in fiscal 2006. License revenue was $34.4 million, accounting for 74% of total revenue, a notrworthy drop of 20.4% from the prior year. Royalty revenue was $12.1 million, accounting for 26% of total revenue, a decrease of 24.5%. Net loss for the fiscal year was $4.6 million, far larger compared to a net loss of $866K in the prior year.