Mips Technologies, Inc. (MM) (MIPS) ニュース

Great Story on the EmergingGrowht.com Board... http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83054571

Or get the Story from the website: http://emerginggrowth.com/emerging_growth_stock_picks/mips-technology-nasdaq-mips-a-good-hunting-ground-for-the-processor-industry/01/04/2013

MIPS Tech and Imagination agree to revised merger terms providing for $80 mln purchase price (MIPS) 7.52 : MIPS Technologies announces that it entered into an amendment to the agreement with Imagination Technologies Group previously announced on November 5, 2012. The amendment provides for an increased purchase price of $80 mln and the removal of the conditions to closing requiring the approval of the Committee on Foreign Investment in the United States and that MIPS is not a real property holding corporation. As a result of the amendment, the net proceeds to each holder of MIPS common stock following the consummation of the patent sale and recapitalization as previously announced, has increased to ~$7.64 per share in cash. The amendment followed the submission of a definitive proposal from CEVA (CEVA) to acquire MIPS for $75 mln, as previously announced, stating that it had completed its confirmatory due diligence and had received unanimous board approval, and the delivery of a notice by MIPS to Imagination Technologies that the MIPS board of directors had determined the proposal from CEVA to be a "Superior Proposal."

Chart it, Dano

MIPS chart is looking good

MIPS needs to get through the upper trading channel boundary, IMO

29-Sep-11, The Benchmark Company Downgraded MIPS

Starboard Value Delivers Letter to MIPS Technologies

Believes Company is Deeply Undervalued and that Meaningful Opportunities Exist to Enhance Stockholder Value

Urges Company to Discontinue Pursuing Acquisitions and Instead Focus on Improving its Operating Performance

Nominates a Slate of Highly Qualified Candidates for Election at the 2011 Annual Meeting

Press Release Source: Starboard Value LP On Monday September 12, 2011, 12:25 pm EDT
NEW YORK, Sept. 12, 2011 /PRNewswire/ -- Starboard Value LP (together with its affiliates and director nominees, "Starboard"), the largest stockholder of MIPS Technologies, Inc. ("MIPS" or the "Company") (NasdaqGS:MIPS - News) with ownership of 9.1% of the outstanding shares, today announced that it delivered a letter to the Company's President and Chief Executive Officer, Sandeep Vij, and the Company's Board of Directors.

In the letter, Starboard expressed its belief that the Company's common stock is deeply undervalued and that meaningful opportunities exist to unlock significant value based on actions within the control of management and the Board. Starboard also noted the Company's dismal stock price performance dating back to its IPO in 1998. According to Starboard, this destruction in stockholder value is a direct result of the Company's weak operating performance, deteriorating margins and poor capital allocation decisions around internal investments and poorly executed acquisitions. Starboard urged MIPS to discontinue pursuing acquisitions and instead focus on improving its operating performance and consider allocating capital to buy back shares at the current deeply discounted valuation.

Also, Starboard announced today it has delivered a letter to the Company nominating a slate of highly qualified candidates for election at the Company's 2011 Annual Meeting, including Robert Kramer, Jeffrey S. McCreary, Jeffrey C. Smith and Kenneth H. Traub. Starboard believes that the terms of three current MIPS directors are set to expire at the 2011 Annual Meeting and if this remains the case, Starboard would withdraw one of its director candidates. Starboard stated that it looks forward to engaging in a constructive dialogue with the Company in hopes of reaching a mutually agreeable resolution that will serve the best interests of all stockholders.

The full text of the letter follows:

September 12, 2011

Sandeep Vij
MIPS Technologies, Inc
President and CEO
955 East Arques Avenue
Sunnyvale, CA 94085

CC: Board of Directors

Dear Sandeep,

Starboard Value LP, together with its affiliates and director nominees, currently owns 9.1% of the outstanding common stock of MIPS Technologies, Inc. ("MIPS" or "the Company"), making us the Company's largest shareholder. This morning, we delivered a letter to the Company formally nominating four highly qualified candidates for election to the Board of Directors (the "Board") at the Company's 2011 Annual Meeting.

We believe that MIPS' common stock is deeply undervalued and that meaningful opportunities exist to unlock significant value based on actions within the control of management and the Board. Despite a highly profitable royalty stream, market-leading technology and valuable intellectual property, MIPS stock has dramatically underperformed over an extended time period. The director nominees we have proposed have the requisite skill sets to assist the Board in evaluating opportunities to improve performance and shareholder value.

As shown in the table below, MIPS' stock price performance has been dismal dating back to the Company's Initial Public Offering ("IPO") in 1998. As of August 22, 2011, the last trading day prior to our 13D filing, MIPS shares traded at $4.34 per share, a decline of 69%, versus the IPO price of $14.00. During the same period, the average share price of MIPS' Peer Group and the broader indices have increased by approximately 120% and 42%, respectively.

1. Performance as of 8/22/11.

2. Peer Group consists of companies used in MIPS proxy to set executive compensation and include AATI, ARMH, CEVA, ENTR, EXAR, GSIT, IKAN, LAVA, PSEM, PDFS, PLXT, SUPX, TXCC, TRID and VLTR.

In fact, in the 2011 year-to-date period through August 22, 2011, MIPS' share price declined 71% compared to a decline of only 14% in its Peer Group and 17% in the broader indices.

This destruction in shareholder value is a direct result of the Company's weak operating performance, deteriorating margins and poor capital allocation decisions around internal investments and acquisitions. In the eighteen months since you were named President and CEO in January 2010, operating margins and profitability have plummeted. As shown in the table below, operating margins have declined from 22.5% in the third quarter of 2010 to 8.9% last quarter, a reduction of 60%. While the Company has attempted to drive revenue growth by increasing its spending on research and development and sales and marketing, revenue has actually declined over the last four consecutive quarters and is expected to continue to decline over the coming year. This continued decline in revenue, together with increases in operating expenses, has caused significant deterioration in operating margins and may continue to negatively impact operating margins into the future.

Based on MIPS' recently reported fourth quarter results and associated conference call, it appears that the current plan is to press ahead with aggressive spending despite clearly missed expectations. As the Company's largest shareholder, we have serious concerns regarding the significant deterioration in financial performance and the lack of action to stem the decline in revenues and operating profits. Further, we are deeply troubled by the apparent willingness of the Board to consider using the Company's cash to pursue acquisitions in light of a terrible acquisition track record and an operating business in need of serious and immediate attention.

As a reminder, on August 27, 2007 MIPS announced the acquisition of Chipidea Microelectronica S.A. ("Chipidea") for an aggregate value of $149 million, plus assumed liabilities.(1) Prior to the announcement, MIPS shares were trading at $8.17. As a result of this acquisition, the Company depleted its entire $145 million of net cash and swung to a net debt balance of $11.7 million.(2) The stated rationale for the transaction was to "strategically enter high-growth segments where analog is essential" and that MIPS expected "to reap significant sales growth from the new partnership."

The Chipidea acquisition proved to be a massive failure. MIPS' financial results deteriorated and the stock fell to $1.01 per share at its low, 88% lower than where the Company was trading prior to the Chipidea acquisition. Less than two years later, on May 7, 2009, MIPS sold Chipidea to Synopsis for a mere $22 million, less than 15% of the original $149 million purchase price. MIPS stated, "Unfortunately, after two big quarters the analog market went into a sharp downturn...affecting our entire business" and that the "limited ability of our balance sheet to absorb that shock is driving this decision."

Given the disastrous results of the Chipidea acquisition and the many years of poor financial performance, we strongly encourage the Board to reconsider its stance on capital allocation. Instead of pursuing acquisitions, the Company should focus on improving its operating performance and consider allocating capital to buy back shares of MIPS at the current deeply discounted valuation. We believe this is the best use of excess cash and will significantly benefit shareholders.

Further, we believe that MIPS' intellectual property may hold substantial value. To that end, we strongly encourage the Board to explore alternatives for realizing that value for the benefit of all shareholders.

We look forward to continuing to share our views with you. It should be clear that our nominees are uniquely qualified to assist the Board in evaluating the topics covered in this letter and in taking the necessary steps to enhance shareholder value. We are happy to engage in a constructive dialogue with you in hopes of reaching a mutually agreeable resolution that will serve the best interests of all shareholders.

Best Regards,

Jeffrey C. Smith
Partner
Starboard Value LP

CERTAIN INFORMATION CONCERNING THE PARTICIPANTS

Starboard Value LP (“Starboard Value LP”), together with the other participants named herein, intends to make a preliminary filing with the Securities and Exchange Commission (“SEC”) of a proxy statement and accompanying proxy card to be used to solicit votes for the election of a slate of director nominees at the 2011 annual meeting of shareholders of MIPS Technologies, Inc., a Delaware corporation (the “Company”).

STARBOARD STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC’S WEB SITE AT http://us.lrd.yahoo.com/SIG=117l40953/EXP=1317148472/**http%3A//www.sec.gov/. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE UPON REQUEST.

The participants in the proxy solicitation are Starboard Value and Opportunity Master Fund Ltd (“Starboard V&O Fund”), Starboard Value and Opportunity S LLC (“Starboard LLC”), Starboard Value LP, Starboard Value GP LLC (“Starboard Value GP”), Starboard Principal Co LP (“Principal Co”), Starboard Principal Co GP LLC (“Principal GP”), Jeffrey C. Smith, Mark Mitchell, Peter A. Feld, Robert Kramer, Jeffrey S. McCreary and Kenneth H. Traub (collectively, the “Participants”).

As of the date of this filing, Starboard V&O Fund beneficially owns 3,125,632 shares of common stock, $0.001 par value (the “Common Stock”) of the Company. As of the date of this filing, Starboard LLC beneficially owns 1,632,120 shares of Common Stock. Starboard Value LP, as the investment manager of Starboard V&O Fund and the Manager of Starboard LLC, may be deemed the beneficial owner of an aggregate of 4,757,752 shares of Common Stock held directly by Starboard V&O Fund and Starboard LLC. Each of Starboard Value GP, as the general partner of Starboard Value LP, Principal Co, as a member of Starboard Value GP, Principal GP, as the general partner of Principal Co and each of Messrs. Smith, Mitchell and Feld, as a member of Principal GP and as a member of each of the Management Committee of Starboard Value GP and the Management Committee of Principal GP, may be deemed the beneficial owner of the 4,757,752 shares of Common Stock held directly by Starboard V&O Fund and Starboard LLC. As of the date of this filing, Mr. Traub directly owns 20,000 shares of Common Stock. As of the date of this filing, Mr. McCreary directly owns 17,000 shares of Common Stock. As of the date of this filing, Mr. Kramer does not directly own any shares of Common Stock.

ABOUT STARBOARD VALUE

Starboard Value is a New York-based investment adviser with a focused and differentiated fundamental approach to investing in publicly traded US small cap companies. The investment team has a successful track record of generating significant alpha for investors using their expertise in shareholder activism.

Contacts:
Peter Feld, (212) 201-4878
Gavin Molinelli, (212) 201-4828
www.starboardvalue.com

(1) Includes $147 million cash purchase price plus $2.3 million in acquisition costs. Assumed liabilities include approximately $6.4 million in net debt / capital leases, as of June 30, 2007.

(2) Includes $21.7 million of short-term debt and $7.6 million of capital leases, less $17.6 million in cash and equivalents, as of September 30, 2007.

MIPS Rallies As Capstone Boosts Rating To Buy


MIPS Technologies shares are getting a boost this morning from Capstone Research analyst Jeff Schreiner, who lifted his rating on the chip maker’s shares to Buy from Hold, setting a $7 target price. The stock closed Monday at $5.46.

Schreiner advises investors to “look through the eyes of potential private equity, or a potential acquirer, and what value may be overlooked within MIPS.” He contends that “strong potential free cash flow generation, plus [a] restrained spending environment due to activist investors and cash balances imply a much higher potential value for MIPS and its royalty based revenue stream.”

Schreiner says he recommends investors buy the stock “due to potential disconnect” in the value of cash plus the company’s royalty stream compared with the current market valuation.

The analyst also notes that the activist investment firm Starboard Value recently disclosed a 9% stake in the company, and will likely be pressuring MIPS for expense reductions. “If MIPS were to reign in spending significantly,” he writes, the company could see a positive boost in free cash flow.

Let's go to close 6$ gap.

Important that MIPS is over $5--- there are brokerage firms that have different margin requirements over $5--better for the investor.

yeah!. Agreed. I have bought this morning.

GO MIPS GO!!

Well, I am in now.M and A activity in this sector is going to heat up with these prices. And MIPS may become a target.

Short Interest in MIPS sttill over 4 Million shares

As of 7/29/2011, 4,002,328 shares are short.

Chart--

MIPS Technologies: A Potential Play for Those Who Missed the Motorola Deal

by: Benzinga August 17, 2011

By Abe Raymond

On Monday morning, Google (GOOG) announced its acquisition of Motorola Mobility Holdings (MMI), perhaps in an attempt to diversify its patent portfolio and gain market share in the mobile telecommunications space.

While investors may be late to profit off the merger directly, some may want to consider other technology companies that are involved in similar business strategies.

A small-cap firm that may appeal to investors on a fundamental basis is MIPS Technologies (MIPS). MIPS produces computing processors that run home entertainment and telecommunications products. This company may not be appropriate for some investors; however, as it operates in a market saturated with competitors and is relatively risky as it is trading at its lowest levels in over a year.

Since the 2008 market crash, MIPS Technologies has been improving its balance sheet. In the year ended 2008, MIPS had $37 million in cash. The company was able to increase that figure to $45 million in 2009 and to $52 million in 2010. Other currents assets also increased similarly. Interestingly, however, the company was unable to increase its property, plant and equipment. In fact, the company owned $30 million in 2008 but decreased its holdings to $12 million in 2009 and 2010. This may indicate a decrease in growth prospects for the firm; it may also indicate necessary cost-cutting actions to best accommodate its deal flow and overall production value.

MIPS Technologies has been able to systematically pay off its short-term and long-term debt over the last three years. As of 2010, the company had no debt holdings on its balance sheet. Its total liabilities have decreased from $108 to $25 during the 2008-2010 time-period. Shareholders' equity has also been able to increase from $45 million to $46 million during the last three years.

Consulting the income statement shows that MIPS Technologies managed to streamline operations by minimizing cost of goods sold, increasing necessary costs like research and development, and still being able to boost the bottom line. Its physical cash flows also corroborate the growth seen in the other financial statements.

If investors strictly consider its financial metrics, MIPS may be undervalued. Currently, the firm trades below the average price/earnings multiple and price/book multiple. MIPS also has an operating margin of 29.6% versus an average of 13.7%; its net margin is 26.2% versus 19.2%. The company's return on equity also fares better than the average competitor's; it returns about 32.9% compared to an average of 22.3%.

On the other hand, metrics like price/sales are higher for MIPS than the average competitor. It has also been experiencing negative EPS growth and revenue growth over the last three years. The numbers may be attributed to the company's performance in 2008.

MIPS Technologies may not be appropriate for everyone's investment objectives. It is a small-cap stock trading at the lowest levels in a year. It also operates in an industry that contains a huge amount of competitors. New firms enter the sector nearly everyday, and having a small market capitalization may not instill a sense of confidence in terms of future growth prospects. MIPS also produces a limited amount of products, and while demand appears like it will grow in the foreseeable future, there are no guarantees.

Some investors who trade on fundamental aspects of business may consider MIPS Technologies to be an interesting equity. Despite the risk involved with stocks of its type, investors w

ready to bounce through earnings, August 4 after hours. tech rally in place! 2q earnings have been great.

Chart

$MIPS 8.04 -24% backing out the cash on the balance sheet
8.00 subtract 2.00 in cash =6.00 divided by 2012 earnings of .57 = a foward p/e of 10 of 11 now. Undervalued vs Market P/E
http://finviz.com/quote.ashx?t=mips&ty=c&ta=1&p=d

in as well my friend
plus 20% float is short
should bounce to 8.50/8.60 at least

Link. 7.97 rtq -26% Just bought some today they have 2.00 in cash no debt. They earned .09 cents vs .10 cents consensus down from 18.00 peak in jan.
http://finance.yahoo.com/q/ks?s=MIPS+Key+Statistics

Benchmark is out with its report today on MIPS Technologies (NASDAQ: MIPS), upgrading MIPS from Buy to Hold.

In a note to clients, Benchmark writes, "We are upgrading our rating for shares of MIPS Technologies to 'Buy' from 'Hold'. First and foremost, our investment thesis is predicated on the likelihood of MIPS increasing its mobile market share. For example, the wireless industry's transition to 4G air interfaces such as LTE should at least allow MIPS to gain share in broadband cellular modems. Also, some key license agreements with Chinese baseband chip companies should allow MIPS to gain a toehold in the TD-SCDMA (and future TD-LTE) baseband market."

Benchmark has a $17 PT on MIPS.


Source:
http://www.benzinga.com/analyst-ratings/analyst-color/11/03/910651/update-benchmark-upgrades-mips-technologies-to-buy-mips#ixzz1G1TMBQXL

Altair Semi licenses MIPS technology!

MIPS got a downgrade today by Capstone. Cited Licensing momentum slowdown!

I think they're well known actually. Problem today was a bad report by CREE. Brought the whole sector down IMO. MIPS still holding trend line. If that breaks, I'll bail, but not before they announce earnings.

watching feb options 17.50 looks good

The SHORT INTEREST on MIPS can give some fuel to a short squeeze.

8,761,377 shares short as of Dec. 31.

MIPS needs to be "found" by the technology investor masses.

RealTek reaffirmns commitment to MIPS.

Right now this is the sector to be in. Glad to hear you're on board with MIPS!

INTC had great news. Now it is MIPS' turn

MIPS gonna spike this afternoon? ARMH is taking off. I expect MIPS to do the same!

Earnings on the 27th! Have only found one estimate of .12 cents. Hopefully we'll get a boost from Intel tomorrow!

I'm a buyer here!

Another Great Day

2011 will be MIPS year

Me thinks so Rob from Jersey. Got the double post!!

GREAT Company going to be huge in 2011

GREAT Company going to be huge in 2011

I love that nobody here follows this company. Their chips are very efficient, have very low power supply requirements and are in just about every cell phone and digital tv set. They also have awesome leadership. Pleased to be the second poster here!!

MIPS Great couple of days look for a run past 20.00 soon