Mips Technologies Inc (MIPS) SEC Filing 10-K Annual report for the fiscal year ending Friday, June 30, 2006

MIPS Technologies Reports Third Quarter Fiscal 2007 Revenue Results

Update on Stock Option Investigation

MOUNTAIN VIEW, Calif. April 25, 2007

Third Quarter Revenue
Revenue in the third quarter was $19.1 million, an increase of 9 percent from the $17.5 million in revenue reported in the third fiscal quarter a year ago and a decrease of 8 percent from the $20.8 million reported in the prior quarter.

Revenue from royalties was $10.7 million, an increase of 15 percent from the $9.3 million reported in the third fiscal quarter a year ago and a decrease of 4 percent from the $11.2 million reported in the prior quarter. Contract revenue was $8.3 million, an increase of 2 percent from the $8.2 million reported in the third fiscal quarter a year ago and a decrease of 13 percent from the $9.6 million reported in the prior quarter.

As previously announced, MIPS Technologies formed a special committee of independent members of its board of directors to review the company’s historical option grant practices and the company’s accounting for its option grants. Although the formal investigation concluded in January, the detailed accounting and related tax impact analysis has not been completed. Therefore, MIPS is not releasing third quarter fiscal 2007 earnings at this time. See below for an update on the internal investigation.

“MIPS experienced good licensing activity during the quarter, although, as we previously announced, our revenues were impacted by the movement of two licenses from the third quarter to the fourth quarter. These licenses are now signed,” said John Bourgoin, president and CEO. “We made several significant announcements in the last 30 days, including MIPS 64(R) architecture licenses with STMicroelectronics and NEC Electronics. The STMicroelectronics agreement is our first with them and should have positive implications for MIPS’ business in China. We were also very pleased to complete a licensing agreement with Trident Microsystems, ending the patent and trademark infringement lawsuit we filed last December and adding a significant provider of digital TV technology to our growing customer list,” Bourgoin said.

MIPS Technologies invites you to listen to management’s discussion of Q3 results and Q4 guidance in a live conference call today beginning at 1:45 p.m. Pacific time. The conference call number is 1-210-839-8500. The replay number is 1-203-369-1260 and will be available for seven days, beginning shortly after the end of the conference call. The access code is MIPS. An audio replay of the conference call can be found at www.mips.com/company/investor_relations soon thereafter.