© 2010 MIPS Technologies, Inc. All rights reserved
MIPS Technologies Investor Presentation
May 2010
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
2© 2010 MIPS Technologies, Inc. All rights reserved
This presentation contains forward-lookindicated by for“will”, and otherstatements about future technologystatements include MIPS’Actual events orforward-looking statements as a resultuncertainties, including but nothat ourdevelopment expenses, the anmay be more difficult to customersales cycle, MIPS’product enhancements, and the level of demproducts that incorporate semiconductors, these markets during the recessionary periFor a further discussion of risk factors afrisk factors section in the docand Exchange Commission.
ing statements; such statements are ward-looking language such as “plans”, “anticipates”, “expects”, words or phrases contemplating future activities including
and growth. These forward-looking expectation regarding improvements in financial results.
results may differ materially from those anticipated in these of a number of different risks and
t limited to: the fact that there can be no assurance products will achieve market acceptance, changes in our research and
ticipated benefits of our partnering relationships achieve than expected, the timing of or delays in
orders, delays in the design process, the length of MIPS Technologies’ability to develop, introduce and market new products and
and for semiconductors and end-user in particular the level of demand in od currently affecting global economies.
fecting our business, we refer you to the uments we file from time to time with the Securities
Safe Harbor for Forward-Looking Statements
© 2010 MIPS Technologies, Inc. All rights reserved
Business Update
Sandeep VijPresident and CEO
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
4© 2010 MIPS Technologies, Inc. All rights reserved
Business Highlights
New CEO; new vision for growth and expansion
Record unit shipments:shipment run rate projected ½ billion units/year
Operating margin target >30% > $51 million cash in the bank as of FYQ3
#1 in digital home markets; aggressively expanding into new markets & building ecosystem
Highly leveraged business model:royalty annuity stream + license revenue
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
5© 2010 MIPS Technologies, Inc. All rights reserved
Success Drivers
Compelling Offerings for
Current Markets
Aggressive roadmap with industry’s only multi‐core & multi‐threaded IP
Expanding Into New
Segments
Mobile, storage…
Compelling offerings with Android
New Management= New MIPS
Customer and solutions focused
“Team MIPS”
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
6© 2010 MIPS Technologies, Inc. All rights reserved
Number One Market Share
Number One in Digital Home CPUs
Digital TV
Cable, Satellite & IPTV Set-top Boxes
Blu-ray Disc Players
DVD; DVR
Digital Cameras
Broadband CPE
WiFi Access Pointsand Routers
*IDC Research, 2008 embedded processor share
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
7© 2010 MIPS Technologies, Inc. All rights reserved
9.9%
2.4%
0%
2%
4%
6%
8%
10%
12%
MIPS PPC
CA
GR
200
6-20
08Wired + Wireless Networking Equipment
Networking Applications Leadership: Outpacing the Competition
Source: IDC 2009
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
8© 2010 MIPS Technologies, Inc. All rights reserved
Storage: A Growth Market
HP Smart Array P410 controller
“PMC’s growth and revenue upside was largely driven by storage, which set a new revenue record and doubled vs. Q1 levels…”
–January 29, 2010
“PMC should continue to benefit from a number of identifiable drivers in its storage business in 2010. A full year of revenue from the HP RAID-on-chip win should provide an incremental $35M in revenue vs. 2009.”
– March 25, 2020
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
9© 2010 MIPS Technologies, Inc. All rights reserved
Driving Delivery and User Experience of Content
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
10© 2010 MIPS Technologies, Inc. All rights reserved
MIPS Goes Mobile!
100+ =
First MIPS-Based™ cell phones to hit the market—2011
4G (LTE / WiMAX) protocols more similar to WiFi than 3G; MIPS can directly leverage proven WiFi expertise
Android + 4G = opportunity for MIPS to enter the mobile market
100 mbps – 1GBps
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
11© 2010 MIPS Technologies, Inc. All rights reserved
Enabling Full Range of Mobile Technologies
Mobile Applications Processing
WLAN
4G Baseband: LTE and WiMAX
3.5G Baseband/ Femtocell
Complementary IP and Enabling Technologies
Tools
SoC IP
Security
Uls
Audio
Video
Graphics
VoIP
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
12© 2010 MIPS Technologies, Inc. All rights reserved
MIPS Taking the Lead in Driving Android into Connected Consumer Devices
Multi-million $$ sales pipeline related to Android
Enabling new business models for service & content providers; OEMs
Bringing innovative technologies to customers in established markets
Achieved first significant revenuesdirectly attributable to Android
Android on MIPS code publicly available; 5,000+ downloads
Complementing efforts with Adobe Flash Player 10, Yahoo! TV Widgets
& other platforms
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
13© 2010 MIPS Technologies, Inc. All rights reserved
First Android on MIPS Devices
World’s First Android Social Media CenterConnecTV software on Sigma platform
MIPS-Based Android NetbookMIPS-Based chips from ICT
World’s First Android-Based Set-top BoxesMIPS-Based™ chips from Sigma Designs
MIPS-Based Personal Navigation DeviceMIPS-Based WiMAX chip from Altair
Android on MIPS Partners
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
14© 2010 MIPS Technologies, Inc. All rights reserved
Greater China Opportunity
ICT proliferating MIPS in non-traditional applications: netbooks, MIDs, miniPCs, desktops, supercomputing...
Dedicated Shanghai-based MIPS Engineering Center Only leading processor company
developing cores in China
Rapid adoption of MIPS architecture and cores; rapid adoption of Android
Over 35 customers in Greater ChinaMIPS in almost every major IC company in Taiwan
Shenzhen IC Design Industrial Center
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
15© 2010 MIPS Technologies, Inc. All rights reserved
The Heritage of the MIPS Architecture
Photo: In 1984, Stanford computer scientists John Shott, John Hennessy and James D. Meindl brainstorm about the MIPS project (Photo: Chuck Painter)
Now the architecture of choice for multimedia, home networking & beyond
Pure, fast, efficient, elegant RISC architecture designed for performance
Pioneered by Stanford President John Hennessy in the 1980s
Innovation continues by MIPS and licensees—Altera, Broadcom, Cavium, ICT, NEC, NetLogic,
Toshiba, others
Widely used, widely taught architecture withmillions of lines of code written for it
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
16© 2010 MIPS Technologies, Inc. All rights reserved
Industry’s Most Scalable Processor Architecture
32-bit Microcontrollers
64-bit Chips for Advanced Networking
And everything in between
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
17© 2010 MIPS Technologies, Inc. All rights reserved
Performance—MIPS versus ARM
3Cores
<4mm2
2Cores
4.6mm2
MIPS32 1004K ARM Cortex-A9 MP
Higher the Better
2,000
4,000
6,000
8,000
10,000
1004K Performance Advantage in Threaded Apps
500mW
450mW
Worst Case SS Corner Frequencies, Production MarginsARM = 12T power opt, MIPS = 9T freq opt
TotalCoremark
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
18© 2010 MIPS Technologies, Inc. All rights reserved
Silicon Area Advantage
Two ARM Cortex-A9s
MIPS32 1004K MIPS32 1004K MIPS32 1004K
Three MIPS32 1004K Cores = <4mm2*Two ARM Cortex-A9 Cores = 4.6mm2*
*Source: MIPS and ARM public dataARM = 12T power opt, MIPS = 9T freq opt
A 3-core MIPS 1004K occupies less die area than a 2-core ARM Cortex-A9—and consumes less power!
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
19© 2010 MIPS Technologies, Inc. All rights reserved
Why MIPS? Why Now?
Record royalty unit shipments
MIPS broadly replacing PowerPC in networking
Expanding into new segments—storage and high-growth mobile market
Customer and solutions focused
Number one position in the digital home
© 2010 MIPS Technologies, Inc. All rights reserved
Financials
Maury AustinChief Financial Officer
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
21© 2010 MIPS Technologies, Inc. All rights reserved
Q3 FY2010 Financial Results(Qtr Ending March 31, 2010)
Revenue: $17.5M (+15% Qtr to Qtr)$60m trailing 12 months Revenue
Pro-Forma Net Income: $3.9M or 8 cents per share35 cents trailing 12 months Proforma Net Income
EOQ Cash and Investments: > $51M$16m in cash generated from Operations in the last 12 monthsPaid off all debt as of April 7, 2010
Units: 135 Million Units reported by licensees as shipped in the December quarter (+7% sequentially)
+ 26% from year ago quarter
>2 Billion Unit installed base since 2000
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
22© 2010 MIPS Technologies, Inc. All rights reserved
MIPS Q3’10 P&L statement
Q2'10 GAAP Adj
Q2'10 Non-GAAP Q3'10
GAAP AdjQ3'10 Non-
GAAP
Total revenue $15.2 $0.0 $15.2 $17.5 $0.0 $17.5
Gross margin $15.1 $0.0 $15.1 $17.4 $0.0 $17.4
Total opex $13.0 $1.4 $11.5 $13.5 $0.8 $12.7
Operating income (loss) $2.1 ($1.4) $3.6 $3.9 ($0.8) $4.7
Other Inc (expense) $0.5 $0.6 ($0.1) ($0.1) $0.0 ($0.1)
Inc (loss) before taxes $2.6 ($0.8) $3.4 $3.8 ($0.8) $4.6 Prov for (benefit) income taxes ($0.7) $0.0 ($0.7) $0.8 $0.0 $0.8
Net income (loss) $3.3 ($0.8) $4.1 $3.1 ($0.8) $3.9
Net inc (loss) / share - diluted $0.07 ($0.02) $0.09 $0.07 ($0.02) $0.08 Shares - diluted 46.2 46.5
Operating inc/(loss) % 14% 23% 22% 27%
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
23© 2010 MIPS Technologies, Inc. All rights reserved
Q110 Q210 Q310Vs. Prior
QtrVs. Prior
YearAssetsCash $43.5 $32.3 $28.0 ($4.2) $8.0Short Term Investments $0.0 $15.7 $23.2 $7.4 $23.2Accounts Receivable, net $3.7 $1.9 $3.6 $1.7 ($1.6)Other Assets $1.0 $1.1 $1.0 ($0.1) ($0.2)Total Current Assets $48.2 $51.0 $55.8 $4.8 $29.5Intangible Assets $0.4 $0.3 $0.3 ($0.0) ($0.1)Other Assets $13.4 $12.2 $10.9 ($1.3) ($4.5)Assets of Disc. Ops $0.0 $0.0 $0.0 $0.0 ($79.9)
Total Assets 62.0$ 63.6$ 67.0$ $3.4 ($55.0)
Liabilities and Stockholder's Equity (Deficit)Debt - ST $3.8 $3.8 $8.8 $5.0 $3.8Accrued Compensation $2.7 $3.1 $3.9 $0.8 $0.1Deferred Revenue $2.2 $1.9 $1.9 ($0.0) ($0.0)Other Current Liabilities $8.7 $6.8 $7.2 $0.4 ($9.2)Total Current Liabilities $17.4 $15.6 $21.8 $6.2 ($5.3)Debt - LT $6.9 $5.9 $0.0 ($5.9) ($8.8)Other LT Liabilities $9.2 $8.2 $7.3 ($1.0) ($1.0)Liabilities of Disc. Ops $0.1 $0.0 $0.0 $0.0 ($36.2)Total Liabilities $33.6 $29.8 $29.1 ($0.6) ($51.3)Stockholder's Equity (Deficit) $28.4 $33.8 $37.9 $4.1 ($3.7)
Total Liabilities & Equity $62.0 $63.6 $67.0 $3.5 ($55.0)
($ in m’s)
MIPS Q3‘10 Balance Sheet
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
24© 2010 MIPS Technologies, Inc. All rights reserved
107 115 112126
107
82
106
124135
0
20
40
60
80
100
120
140
Munits
Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10
Royalty Quantity
99
Royalty Units Have Rebounded Strongly!
Note: One quarter lag in royalty reports. Q3FY10 quarterly resultsreflect shipments in the December 2009 quarter.
All Time Record! All Time Record! 135MU135MU
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
25© 2010 MIPS Technologies, Inc. All rights reserved
Calendar 2009 Royalty Revenue by Segment
Digital Home (DTV, STB, DVD)
MCUs and Storage Controllers
Networking (WLAN, BB CPE, VoIP, Enterprise)
Mobile/Portable(DSC, MID, games)
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
26© 2010 MIPS Technologies, Inc. All rights reserved
Digital Home Market Summary
Blue Laser DVDs TAM [Mu], CAGR 65.4%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2008
2009
2010
2011
2012
2013
Digital TVs TAM [Mu], CAGR 12.9%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2008
2009
2010
2011
2012
2013
All STBs TAM [Mu], CAGR 5.4%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
2008
2009
2010
2011
2012
2013
Red Laser DVDs TAM [Mu], CAGR -9.9%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2008
2009
2010
2011
2012
2013
Digital Media AdapterTAM [Mu], CAGR 72.7%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2008
2009
2010
2011
2012
2013
IDC 2009 IMS2010
MIPS Market Share > 50% in STB & DTV; ~ 30% in DVD
At t
he c
ore
of th
e us
er e
xper
ienc
e.®
27© 2010 MIPS Technologies, Inc. All rights reserved
At the core of the user experience®
MIPS, MIPS32, MIPS64, MIPS-Based, MIPS-Verified, MIPS Technologies logo are trademarks of MIPS Technologies, Inc. and registered in the U.S. Patent and Trademark Office. MIPS, MIPS32, MIPS64, MIPS-Based, MIPS Logo, MIPS Technologies Logo, CorExtend, Pro Series, microMIPS, M14K, M4K, 4KE, 4KEc, 24K, 24KE, 34K, 74K, 1004K, MIPS Navigator, and FS2 are trademarks or registered trademarks of MIPS Technologies, Inc. in the United States and other countries.
Thank You!