This is what Ingenic said in its earning report:
<<Beijing Jun (Ingenic) is looking forward to a new generation of Tablet PC CPU chip with heavy volume>>
As you all know, Ingenic MISP based processors passed the android mobile tests 6 months ago.
What is your take about the answer of the CFO to the question of why swift resigned. He is very optimistic. This optimism will be reflected into the earning of Q3?
4) Why Mr. Swift has decided to resign ?
A: Sandeep and Art had agreed when Sandeep came on board that Art would stay with the company for an extended period of time to allow Sandeep to get his team in place and to provide some strategic continuity. Over the last year, we has successfully executed on our strategy to expand out of our strong base in networking and digital consumer markets to open a large new TAM for us in the mobile market. In the last few months, our initial mobile licensees introduced the first MIPS-Based mobile products including smart phones and tablets, which are already shipping in millions of units. Along the way, we also generated year over-year revenue gains of 16% and grew our cash balances to nearly $110M. Art believes it’s now a good time for him to consider new opportunities.
Valuation should attract hedge funds to MIPS
Last quarter's revenue grew by 18%. while MIPS does trade at a notably lower valuation than its main competitor ARM Holding, it also has shown more promising growth especially in year over year metrics. Its royalty revenues grew from $510 Million to $656 millions, year over year. Even though the MIPS's return on equity is higher than ARM ,investors should keep in mind that MIPS carries no debt and tiny market capital of $260M
<<There are two camps.The first camp believes that over time multicore MIPS based processors are the most flexible way to build and update communications equipment. Broadcom’s major weakness was that they were not able to get a view into new high performance designs with switch chips better suited for cost sensitive volume switches. >>
September 30 is the FISCAL Q1 ending date for MIPS.
As the CEO of MIPS and others have commented, MIPS's journey into mobile is a marathon, not a sprint. During the most recent conference call, MIPS refused to give guidance beyond even the next quarter or two. Short of a buyout, do not expect significant gains, if any, in the short term.
How the large high volume chips expectation of Ingenic will impact Q3 report of MIPS?
20M chip times 0.2/chip is only $4M increased revenue for Q3; not a big deal!
Maybe Actions Semi is also expecting large MIPS chips volume in Q3!
Ingenic is seeling MIPS chips to Lenovo , ICT , Loogson and TCL communication. This High Volume announcement of Ingentic is a very important milestone for MIPS success.
From recent news:
<< Lenovo to Start Sales of New Android MIPS
Mobile device demonstrations included MIPS-Based(TM) smartphones and tablets that are currently shipping. MIPS featured a new TD-SCDMA smartphone from TCL Corporation, a feature phone from Lenovo, other white box smartphones, Cruz tablets from Velocity Micro, and several other portable multimedia devices.>>
Beijing Jun is looking forward to a new generation of Tablet PC CPU chip heavy volume
Hai Tong Securities Co., Ltd.
Earnings forecasts and investment ratings.
Beijing Jun is a good IC design company, has licensed the MIPS instruction set architecture, innovation XBurst series CPU chip in PMP, machine learning, e-books on the market a success. The focus will shift to the future development of tablet PCs, smart phones and other broader market, can enjoy the mobile terminal of the industry the opportunity to bring the outbreak.
According to the company semi-annual report, we forecast the company's 2011-2012 profits to adjust, as shown in Table 3, 2011, 2012 EPS was 1.42 yuan and 1.76 yuan, according to Aug. 24 closing price of 49.37 yuan, corresponding dynamic PE were the next two years and 35 × 28 ×. We believe that the company's reasonable valuation range 35 times in 2011, corresponding to the price of 49.79 yuan, current price is more reasonable, given the "overweight" rating. Related accessories