On October 29, 2009 MIPS Technologies reported financial results for its first quarter 2010 ended September 30, 2009. Revenue for the quarter was $15.0 million, an increase of 19% over the prior quarter revenue of $12.6 million and a decrease of 23% from the $19.6 million reported in the first fiscal quarter a year ago.
Revenue from royalties was $9.8 million, a decrease of 16% year-over-year but an increase 27% sequentially. License revenue was $5.2 million, a decrease of 34% from the year ago quarter but an increase of 6% from the prior quarter. The sequential increases (106 million units versus 82 million units) generally reflect the improving semiconductor market from its low point in the first half of the calendar year.
Net income for the quarter was $595,000. This included a $1.0 million accrual for estimated taxes which relates to a one time change in the legal structure of MIPS foreign operations. This compares to net losses of $7.0 million and $6.7 million in the same quarter a year earlier and in the preceding quarter respectively. The year ago quarter had a $12 million loss from discontinued operations.
John Bourgoin, MIPS president and CEO, said, "Revenues and operating margins improved as expected in the first quarter. We are pleased to see continued improvements in the market as demonstrated by our strong royalty growth. We are optimistic that we have passed the low point in revenues. We also made excellent progress in taking the Android platform into digital home devices and joined the Open Handset Alliance to contribute to continued development of Android for mobile devices. MIPS is positioned for a strong year.”
On October 27, 2009 MoSys, Inc. reported financial results for the third quarter, the period ended September 30, 2009. Total revenue for the quarter was $3.4 million, a drop of nearly 17% from the $4.0 million in the third quarter of 2008, but a 70% increase from the $2.0 million in the second quarter of 2009. License revenue was $1.3 million, accounting for 40% of total revenue. This was an increase of 11% year-over-year, and an increase of 335% sequentially. These increases in license revenue were primarily driven by growth in revenues from ongoing interface IP projects. Royalty revenue was $2.0 million, or 60% of the total. This was a drop of 29% from the year ago quarter, but an increase of over 21% from the prior quarter. The sequential increase in royalty revenue was primarily due to an increase in revenue from a major IDM licensee. Most production by this IDM licensee is now subject to a license agreement that provides for royalties on its SoC at a more advanced process node to be reported and recognized in the quarter subsequent to shipment of the licensee’s products, instead of the shipment quarter, as was the case under the previous agreement. The licensee’s transition to the more advanced process node was substantially completed in the second quarter, resulting in increased royalty revenue from this IDM licensee in the third quarter.
On June 6, 2009 MoSys announced the acquisition of substantially all of the assets and business of privately held Prism Circuits, Inc., a profitable supplier of high data rate parallel and serial interface (I/O) IP. MoSys paid approximately $13.5 million at the closing, and potentially will pay an additional earn-out amount of up to $6.5 million after the first anniversary of the closing date, subject to the attainment of specified milestones during the initial 12-month post-acquisition period.
Net loss for the quarter was $5.0 million. This was a 56% increase relative to the loss of $3.2 million in the same quarter a year earlier, and essentially flat compared to the net loss of %5.1 million in the preceding quarter.
Commenting on the quarter, Len Perham, MoSys’ President and Chief Executive Officer, stated, “In the third quarter, the significant increase in our total revenue was driven by strong growth, both sequentially and year-over-year, in our licensing revenue, which was enhanced by contributions from our high-speed serial interface IP. I see networking and communications applications as a strategic growth area for MoSys and believe that our high-speed interface IP and design expertise, combined with 1T-SRAM, will be a key driver of that growth. I am pleased to report that we added two new customers, both adopting our high speed SerDes interface IP for networking and communications applications. Our goal is to become the partner of choice for our customers’ high-speed interface IP needs by exceeding their expectations while delivering the most competitive, cost-effective and robust solutions. Early in the fourth quarter, we booked a follow-on project from one of these new customers. Also, in October, we signed a significant technology license agreement for 1T-SRAM with a major Japanese IDM, also a new customer to MoSys. The license is initially for DDI applications and may expand into additional applications in the future.”
On October 22, 2009 Rambus Inc. reported financial results for the third quarter of 2009, the period ended September 30, 2009. Revenue for the third quarter of 2009 was $27.9 million, up 3.3% sequentially from the second quarter of 2009 primarily due to higher variable royalty revenue. As compared to the third quarter of 2008, revenue was down 5.3% primarily due to lower contract revenue. Revenue for the nine months ended September 30, 2009 was $82.2 million, down 21.6% over the same period of last year, primarily due to revenue recognized from Elpida during the first half of 2008.
Total costs and expenses for the third quarter of 2009 were $48.5 million, which included $7.7 million of stock-based compensation expenses. This is compared to total costs and expenses of $49.3 million for the second quarter of 2009, which included $7.9 million of stock-based compensation. General litigation expenses for the third quarter were $12.0 million, a decrease of $3.0 million from the second quarter of 2009. Total costs and expenses in the third quarter of last year were $60.0 million, which included $9.0 million of stock-based compensation expenses, $4.0 million of restructuring-related expenses, $2.2 million of asset impairment expenses and $0.4 million of previous stock-based compensation restatement and related legal expenses. General litigation expenses in the third quarter of 2009 decreased $3.7 million from the third quarter of 2008.
Net loss for the quarter was $27.5 million, an improvement compared to a net loss of $30.9 million in the year ago quarter, but a greater loss than the $23.9 million in the preceding quarter.
Harold Hughes, president and chief executive officer at Rambus, said, "The recovery in chip sales following an industry overcorrection, and modest growth in our focus markets, helped deliver revenues at the high end of our guidance. While there is much work ahead, we continue to progress in our strategy of creating and licensing innovations that make great computing and consumer electronics products possible."
On November 2, 2009 Virage Logic Corporation reported financial result for its fourth quarter and fiscal year ended September 30, 2009. Total revenue for the quarter was $13.1 million, a 15.2% drop from the $15.5 million in the same quarter last year but an increase of over 10% from the $11.9 million in the prior quarter. License revenue was $10.9 million or 83% of total revenue, down 10% year-over-year but up almost 2% sequentially. Royalty revenue was $2.2 million accounting for 17% of the total. This was down 34% from the year ago quarter but an increase of 87% from the preceding quarter.
Net loss for the quarter was $3.2 million compared to a net loss of $47,000 a year earlier and compared to a net loss of $1.9 million in the previous quarter.