LONDON ó Processor IP licensor MIPS Technologies Inc. has announced a
restructuring plan that will see it reduce headcount and incur a $1 million
restructuring charge. The changes are expected to save company between $2
million and $2.4 million in annual expense, including the current financial
The move is being made to align the company's spending with current
opportunities including Android-related mobile applications.
The company began implementing the cuts on June 18 and expects it to complete
within two months. The company stressed the move was "strategic" and not related
to performance in the current quarter.
At the same time MIPS (Sunnyvale, Calif.) announced that Sandy Creighton, vice president of
corporate administration, who has been an officer of the Company since 1998,
volunteered to be included in the restructuring and has resigned as an executive
officer with effect from June 23, 2010. Creighton remains with MIPS as an
interim vice president of human resources during a transition period.
Gary Mobley, an analyst with Benchmark Capital said the move reflects a
restructuring of the management organization chart following the January
appointment of Sandeep Vij as CEO. Several high-paying executive jobs are being
cut, according to Mobley. The money being saved there is being put to work in
R&D during the 2011 fiscal year.
"We believe the company's licensing pipeline continues to improve. Given
solid prospects for top-line growth, further enhanced by cost cutting, we
reiterate our Buy rating," Mobley said.
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