LONDON – Processor and related intellectual property licensor MIPS Technologies Inc., a pioneer of the reduced instruction set computing (RISC) style of architecture, is looking for a buyer, according to a Bloomberg report that referenced unnamed sources.
MIPS (Sunnyvale, Calif.), which rivaled fellow processor IP licensor ARM Holdings plc (Cambridge, England) at one time but has struggled over recent years, has hired Goldman Sachs Group Inc. to identify and negotiate with potential acquirers of the company, the report said. The company's stock, which is traded on NASDAQ, jumped in price by more than 25 percent to close at $6.58 on Thursday (April 12).
A MIPS spokesperson said the company had "no comment."
MIPS, which originally stood for Microprocessor without Interlocked Pipeline Stages, was founded by computer scientist John Hennessey of Stanford University and enjoyed success in the 1990s licensing 32-bit and 64-bit cores to developers of computers and set-top boxes and its architecture has also enjoyed success in networking applications.
The company has built up a long list of licensors – including Broadcom, Cavium, Cisco Systems, LSI, Microchip and Toshiba – but has not enjoyed much success in the mobile phone and mobile computing markets of the last decade. The company was also been quite successful in capturing licensees in China but despite efforts to address mobile devices with Android initiatives MIPS has not made much headway in the hot markets of smartphones or tablet computers.
MIPS made a net loss of $449,000 on total revenues of $32.5 million in the six months ended on Dec. 31, 2011. This compares with a profit of $13.5 million on total revenues of $44.4 million in the same period a year before. In January MIPS CEO Sandeep Vij told analysts that the company was looking at ways of monetizing its patent portfolio.
I must confess to never having used a MIPS processor, instead I had leaned towards the ARM family early on. I am wondering what the IP portfolio is that would be of value to other companies. I would like to know what the analysis think was the limiting factor in the MIPS line? Was it the overall speed, performance, or cost that was the limiting factor in the "ARMs" race?
If some quality buyer comes, he will be better able to utilized the quality resources of MIPS, it totally depended on the decision makers where they want to take the company, the quality manpower will always there at the bottom level.
The last article Peter Clarke wrote about MIPS sale was inaccurate (he has a habit of doing that). Now he rewrites something Bloomberg reported. Can't EEtimes hire competent reporters these days, instead of just rehashing articles written by real reporters?
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.