MOUNTAIN VIEW, Calif. -- MIPS Technologies Inc. here today reported revenue for the first quarter of fiscal 2000 of $18.9 million and net income of $5.1 million -- gains of 55% and 56%, respectively, over the same quarter a year ago.
The diluted earnings per share for the first quarter, ended Sept. 30, was 13 cents compared to 9 cents the same quarter in 1998. Contract revenue was $7.1 million compared to $650,000 in the comparable period in fiscal 1999.
The company also announced today that General Instrument Corp. has signed a licensing agreement allowing it to incorporate 32-bit MIPS cores into custom system-on-a-chip solutions for next-generation set-top boxes.
MIPS Technologies' MIPS32 4Km 32-bit core, also targeted at set-top boxes among other applications, has been licensed by Texas Instruments Inc. "Licensing to customers that are market drivers is key to our long-term success," said Casey Eichler, CFO of MIPS Technologies, "and the September quarter revenues were fueled by growth in licensing including fees from Sony Corp. and Lara Technology."
Just a month ago, General Instrument announced a planned merger with Motorola Inc., presumably giving Motorola access to the set-top box market for its own 32-bit microprocessors and cores. MIPS and GI were mum about possible conflicts, but Tony Massimini, chief of technology at Semico Research Corp., said he believed the deal would not be a "slam-dunk" for Motorola.
"Motorola Semiconductor Products Sector has to sink or swim on its own," the Phoenix-based market researcher said. "They'll have to provide a good product at a price the designer wants."
But, he added, "it's definitely a plus for MIPS to be in that kind of market." GI. has 75% of the set-top box market. "The market is quickly moving from analog to digital and MIPS-based processors have been widely adopted," he said.