The company also missed its own sales goals of at least $21 million, and the $0.09 non-GAAP earnings result was the lower limit of management guidance. Looking forward, MIPS guided the fourth quarter below Street expectations on both the top and bottom lines.
MIPS has hundreds of customers, but none as large and important as Broadcom
As CEO Sandeep Vij reminded analysts on the earnings call, MIPS is in the mobile race, but "It's a marathon, not a sprint." ARM Holdings
With a trailing P/E ratio just north of 18, MIPS can be an affordable way to add exposure to the mobile computing market. The small-cap stock certainly has more headroom than ARM, which quintupled in price over the last two years and trades at nearly 100 times trailing earnings.
The best way to stay on top of the mobile race is to track the challenges and small victories along the way, which means keeping your finger on the pulse of both MIPS and ARM. The Motley Fool recently introduced a free My Watchlist feature that allows users to stay ahead of the curve and receive up-to-date news on companies like MIPS or any of its competitors. To get up-to-date MIPS news and analysis, add the company to your Watchlist today.
Fool contributor Anders Bylund owns shares of Google but holds no other position in any of the companies discussed here. Google is a Motley Fool Inside Value pick. Google is a Motley Fool Rule Breakers recommendation. The Fool owns shares of Google. 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. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.