MIPS Technologies Inc. (MIPS, Financial) filed Quarterly Report for the period ended 2010-12-31.
Mips Technologies Inc. has a market cap of $635 million; its shares were traded at around $13.44 with a P/E ratio of 26.4 and P/S ratio of 8.9. Hedge Fund Gurus that owns MIPS: Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns MIPS: Ronald Muhlenkamp of Muhlenkamp Fund.
The $0.2 million increase in general and administrative expense for the second quarter of fiscal 2011 over the comparable period in fiscal 2010 was primarily due to (i) a $0.2 million increase in employer payroll taxes due to an increase in stock option exercises, (ii) a $0.4 million increase in bonus expense resulting from the company exceeding certain financial targets in the second quarter of fiscal 2011 and (iii) higher stock compensation expense of $0.2 million resulting from higher average grant date fair value of options as compared to prior years. These increases were partially offset by a $0.5 million severance expense we incurred in the second quarter of fiscal 2010 in connection with our former Chief Executive Officer and lower recruiting fees of $0.1 million.
The $0.2 million increase in general and administrative expense for the six months ended December 31, 2010 compared to the same period in fiscal 2010 was primarily due to (i) a $0.2 million increase in employer payroll taxes due to increase in stock option exercises, (ii) a $0.7 million increase in bonus expense resulting from the company exceeding certain financial targets in the first half of fiscal 2011 and (iii) higher stock compensation expense of $0.3 million resulting from higher average grant date fair value of options as compared to the comparable period for the prior fiscal year. These increases were partially offset by a $0.5 million severance expense we incurred in the second quarter of fiscal 2010 in connection with our former Chief Executive Officer, lower recruiting fees of $0.2 million, lower outside services expenses of $0.1 million and lower depreciation expense of $0.1 million.
Other Income (Expense), Net. Other Income (Expense), net increased by $0.4 million for the three months ended December 31, 2010 compared to the same period in fiscal 2010 primarily due to $0.3 million of interest payments received from customers with respect to late royalty payments and a decrease of $0.2 million in interest expenses as the company had $9.7 million of debt as of December 31, 2009, which we fully repaid in April 2010. These increases were partially offset by a $0.1 million increase in foreign exchange loss in fiscal 2010.
Net cash provided by operating activities was $16.8 million for the six months ended December 31, 2010. The cash generated from operating activities included $16.6 million from continuing operations and cash provided from discontinued operations of $0.2 million. The cash generated from operations was primarily a result of our positive net income net of non-cash expenses. Our net income from continuing operations included the effects of non-cash charges of $2.1 million from stock compensation expense and $0.6 million in depreciation and amortization of intangible assets. In addition, cash generated from operating activities of continuing operations increased primarily as a result of a $1.6 million decrease in prepaid expenses and other current and long term assets, primarily reflecting the timing of engineering design software license payments as compared to their amortization and a $3.2 million decrease in accounts receivable, reflecting timing of customer billings and payments received. These increases were offset by cash used as a result of (i) a $1.2 million decrease in long term liabilities, primarily reflecting timing of engineering design software license payments and (ii) a $2.9 million decrease in accounts payable and accrued liabilities, primarily due to the payment of our fiscal 2010 bonus and commissions in the first quarter of fiscal 2011.
Net cash provided by operating activities was $5.7 million for the six months ended December 31, 2009. The cash generated from operating activities included $7.1 million from continuing operations, partially offset by cash used by discontinued operations of $1.4 million. The cash generated from continuing operations was primarily a result of our positive net income net of non-cash expenses and cash provided from changes in our asset and liability balances. Our net income from continuing operations included the effects of non-cash charges of $1.9 million from stock compensation expense $0.9 million in depreciation and amortization of intangible assets and $0.6 million from the gain on exchange and sale of investments. In addition, cash generated from operating activities of continuing operations increased primarily as a result of (i) a $2.5 million decrease in prepaid expenses and other current and long term assets, primarily reflecting the timing of engineering design software license payments as compared to their amortization and (ii) a $0.5 million decrease in accounts receivable, reflecting timing of customer billings and payments received. These increases in cash were partially offset by cash used as a result of a (i) a $1.5 million decrease in long term liabilities, primarily reflecting timing of engineering design software license payments and (ii) $0.5 million decrease in accounts payable and accrued liabilities, primarily due to lower purchases reflecting the effect of our cost cutting efforts and timing of the payment. The negative cash flow from operating activities of discontinued operations was primarily driven by the payment of $1.4 million of cash for restructuring and administrative expenses.
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Mips Technologies Inc. has a market cap of $635 million; its shares were traded at around $13.44 with a P/E ratio of 26.4 and P/S ratio of 8.9. Hedge Fund Gurus that owns MIPS: Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns MIPS: Ronald Muhlenkamp of Muhlenkamp Fund.
Highlight of Business Operations:
The $1.4 million increase in sales and marketing expense for second quarter of fiscal 2011 over the comparable period in fiscal 2010 was primarily due to a $0.5 million increase in compensation related expenses due to increased headcount and a $0.4 million increase in commissions and bonus expense resulting from the company exceeding certain financial targets in the second quarter of fiscal 2011. There was also a $0.3 million increase in outside service related expense with higher utilization of third party vendors and a $0.1 million increase in travel expenses.The $0.2 million increase in general and administrative expense for the second quarter of fiscal 2011 over the comparable period in fiscal 2010 was primarily due to (i) a $0.2 million increase in employer payroll taxes due to an increase in stock option exercises, (ii) a $0.4 million increase in bonus expense resulting from the company exceeding certain financial targets in the second quarter of fiscal 2011 and (iii) higher stock compensation expense of $0.2 million resulting from higher average grant date fair value of options as compared to prior years. These increases were partially offset by a $0.5 million severance expense we incurred in the second quarter of fiscal 2010 in connection with our former Chief Executive Officer and lower recruiting fees of $0.1 million.
The $0.2 million increase in general and administrative expense for the six months ended December 31, 2010 compared to the same period in fiscal 2010 was primarily due to (i) a $0.2 million increase in employer payroll taxes due to increase in stock option exercises, (ii) a $0.7 million increase in bonus expense resulting from the company exceeding certain financial targets in the first half of fiscal 2011 and (iii) higher stock compensation expense of $0.3 million resulting from higher average grant date fair value of options as compared to the comparable period for the prior fiscal year. These increases were partially offset by a $0.5 million severance expense we incurred in the second quarter of fiscal 2010 in connection with our former Chief Executive Officer, lower recruiting fees of $0.2 million, lower outside services expenses of $0.1 million and lower depreciation expense of $0.1 million.
Other Income (Expense), Net. Other Income (Expense), net increased by $0.4 million for the three months ended December 31, 2010 compared to the same period in fiscal 2010 primarily due to $0.3 million of interest payments received from customers with respect to late royalty payments and a decrease of $0.2 million in interest expenses as the company had $9.7 million of debt as of December 31, 2009, which we fully repaid in April 2010. These increases were partially offset by a $0.1 million increase in foreign exchange loss in fiscal 2010.
Net cash provided by operating activities was $16.8 million for the six months ended December 31, 2010. The cash generated from operating activities included $16.6 million from continuing operations and cash provided from discontinued operations of $0.2 million. The cash generated from operations was primarily a result of our positive net income net of non-cash expenses. Our net income from continuing operations included the effects of non-cash charges of $2.1 million from stock compensation expense and $0.6 million in depreciation and amortization of intangible assets. In addition, cash generated from operating activities of continuing operations increased primarily as a result of a $1.6 million decrease in prepaid expenses and other current and long term assets, primarily reflecting the timing of engineering design software license payments as compared to their amortization and a $3.2 million decrease in accounts receivable, reflecting timing of customer billings and payments received. These increases were offset by cash used as a result of (i) a $1.2 million decrease in long term liabilities, primarily reflecting timing of engineering design software license payments and (ii) a $2.9 million decrease in accounts payable and accrued liabilities, primarily due to the payment of our fiscal 2010 bonus and commissions in the first quarter of fiscal 2011.
Net cash provided by operating activities was $5.7 million for the six months ended December 31, 2009. The cash generated from operating activities included $7.1 million from continuing operations, partially offset by cash used by discontinued operations of $1.4 million. The cash generated from continuing operations was primarily a result of our positive net income net of non-cash expenses and cash provided from changes in our asset and liability balances. Our net income from continuing operations included the effects of non-cash charges of $1.9 million from stock compensation expense $0.9 million in depreciation and amortization of intangible assets and $0.6 million from the gain on exchange and sale of investments. In addition, cash generated from operating activities of continuing operations increased primarily as a result of (i) a $2.5 million decrease in prepaid expenses and other current and long term assets, primarily reflecting the timing of engineering design software license payments as compared to their amortization and (ii) a $0.5 million decrease in accounts receivable, reflecting timing of customer billings and payments received. These increases in cash were partially offset by cash used as a result of a (i) a $1.5 million decrease in long term liabilities, primarily reflecting timing of engineering design software license payments and (ii) $0.5 million decrease in accounts payable and accrued liabilities, primarily due to lower purchases reflecting the effect of our cost cutting efforts and timing of the payment. The negative cash flow from operating activities of discontinued operations was primarily driven by the payment of $1.4 million of cash for restructuring and administrative expenses.
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