MIPS to restructure, align with Android

LONDON — 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 year.

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.

Related links and articles:

Chinese group mulls stake in MIPS

MIPS, Imagination team up to wrestle with ARM

Virage, MIPS match memory, processor IP

Intel versus MIPS case study