The 10-second takeaway
For the quarter ended Dec. 31 (Q2), MIPS Technologies missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly, and earnings per share contracted to a loss.
Margins dropped across the board.
MIPS Technologies recorded revenue of $15.3 million. The five analysts polled by S&P Capital IQ hoped for a top line of $16.2 million. Sales were 30% lower than the prior-year quarter's $21.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.01. The five earnings estimates compiled by S&P Capital IQ predicted $0.03 per share on the same basis. GAAP EPS were -$0.02 for Q2 compared to $0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 97.8%, 80 basis points worse than the prior-year quarter. Operating margin was -3.6%, 3,010 basis points worse than the prior-year quarter. Net margin was -6.4%, 3,410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $16.3 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $66.1 million. The average EPS estimate is $0.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 302 members out of 326 rating the stock outperform, and 24 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give MIPS Technologies a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MIPS Technologies is outperform, with an average price target of $6.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.