MIPS Technologies Reports First Quarter Fiscal 2009 Financial Results (Revenue up 18%)

 

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 income and net income per share excluding the items listed below 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.

 

    (a) This adjustment reflects the non-cash equity-based compensation
        expense related to the Company's adoption of SFAS No. 123 revised
        (SFAS 123R) beginning July 1, 2005. For the first fiscal quarter
        ending September 30, 2008, $1.2 million of equity-based compensation
        was allocated as follows: $202,000 to research and development,
        $433,000 to sales and marketing and $526,000 to general and
        administrative. For the fourth fiscal quarter of fiscal 2008 ending
        June 30, 2008, $1.6 million of equity-based compensation was allocated
        as follows: $478,000 to research and development, $592,000 to sales
        and marketing and $547,000 to general and administrative. For the
        first quarter of fiscal 2008 ending September 30, 2007, $2.4 million
        equity-based compensation expense was allocated as follows:  $833,000
        to research and development, $662,000 to sales and marketing and
        $896,000 to general and administrative.
    (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 first
        fiscal quarter ending September 30, 2008, $1.5 million of amortization
        expense related to these intangible assets was allocated as follows:
        $1.4 million to cost of sales, $8,000 to research and development and
        $62,000 to sales and marketing. For the fourth quarter of fiscal 2008
        ending June 30, 2008, $2.5 million of amortization expense related to
        these intangible assets was allocated as follows:  $2.4 million to
        cost of sales, $9,000 to research and development and $131,000 to
        sales and marketing.  For the first quarter of fiscal 2008 ending
        September 30, 2007, $970,000 of amortization expense related to the
        intangible assets was allocated as follows: $834,000 to cost of sales
        and $136,000 to sales and marketing.
    (c) This adjustment reflects the amortization expense related to the
        amount held in escrow and payable to the founders of Chipidea in
        connection with the acquisition of Chipidea.  This adjustment also
        reflects legal fees incurred in association with certain financing
        activities and the amortization of loan origination fees.  For the
        first fiscal quarter ending September 30, 2008, $1.5 million was
        expensed related to the escrow amount payable to the founders of
        Chipidea and was allocated as follows: $429,000 to general and
        administrative and $1.1 million to research and development.   For the
        fourth quarter of fiscal 2008 ending June 30, 2008, $1.8 million was
        expensed related to the escrow amount payable to the founders of
        Chipidea and was allocated as follows: $694,000 to general and
        administrative and $1.1 million to research and development.  $280,000
        was expensed related to the amortization of loan origination fees and
        was allocated to Other Income/Expense.  For the first quarter of
        fiscal 2008 ending September 30, 2007, $648,000 was expensed related
        to the escrow amount payable to the founders of Chipidea and was
        allocated as follows: $216,000 to general and administrative and
        $432,000 to research and development. In addition we incurred $335,000
        in legal fees included in general and administrative expenses in
        connection with obtaining a revolver loan related to the acquisition
        of Chipidea.  This adjustment also includes $330,000 in loan
        origination fees under other income and expense.
    (d) This adjustment reflects the integration expense related to the
        acquisition of Chipidea recorded in accounting and legal expense under
        general and administrative.
    (e) This adjustment reflects acquired in-process research and development
        expense related to the acquisition of Chipidea.
    (f) This adjustment reflects the impairment charge of goodwill and
        acquired intangible assets associated with Chipidea and certain other
        transactions.
    (g) This adjustment reflects restructuring expense related to reduction in
        workforce and facilities exit costs.
    (h) This adjustment reflects certain equity write down under Other
        Income/Expense related to investment associated with an equity
        position in a private company.
    (i) This adjustment reflects the net tax effect of the specific items
        presented in the non-GAAP adjustment described above.  For the fourth
        quarter of fiscal 2008, the Company used a short to intermediate term
        tax rate of 35% to estimate post tax non-GAAP income.

 

MIPS is a trademark or registered trademark in the United States and other countries of MIPS Technologies, Inc. Chipidea is a trademark or registered trademark in the United States and other countries of MIPSABG Chipidea, Lda. All other trademarks referred to herein are the property of their respective owners.

Web site: http://www.mips.com/



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