The 10-second takeaway
For the quarter ended Sep. 30 (Q1), MIPS Technologies beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
MIPS Technologies logged revenue of $13.9 million. The five analysts polled by S&P Capital IQ anticipated revenue of $13.7 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $17.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.01. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share. GAAP EPS were -$0.08 for Q1 compared to $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 97.4%, 110 basis points worse than the prior-year quarter. Operating margin was -33.8%, 3,930 basis points worse than the prior-year quarter. Net margin was -31.0%, 3,400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14.7 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $58.5 million. The average EPS estimate is -$0.10.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 283 members out of 317 rating the stock outperform, and 34 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give MIPS Technologies a green thumbs-up, and 11 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 $8.00.
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