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MIPS Technologies Inc. Message Board

  • taexpert928 taexpert928 Sep 15, 2011 3:14 PM Flag

    Seriously, only stupid people sell at below $12

    I don't want to pump, but why in the world anybody should sell MIPS with so much potential:

    * Best 4G processor according to EE times article
    * BRCM bought Netlogic mainly because of MIPS based XLP processor which is excellent for 4G application
    * Patents wars in tech companies( goog, BRCM, MOt,IBM, HTC) make 580 patents of MIPS more important
    * 10 mobile devices are in design process only in China
    * Announcement of MIPS based tables in China by Levono and others
    * Tiny market cap of $300 compared to $13B cap of ARMH

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    • New license activity of MIPS continues to gain momentum . It takes an average of one to two years before a licensee begins producing chips and paying royalties, so all the recurring revenues from those new licenses in China and US are still in the pipeline.

      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 on its balance sheet, whereas Intel carries roughly $2.3 billion in debt. That leverage will boost return on equity when times are good, but, like any leverage, can hurt when times are tough.

      The home entertainment, internet , smart TV and networking processors markets are only the first to be dominated by MIPS. The momentum it has gathered will carry into mobile smart phones and tablets and drive sales growth for years.

      Consumers typically upgrade home entertainment devices every two years. Therefor purchase of new devices will keep generating cash for MIPS from these markets even as MIPS widens its horizons to smart mobile devices in the emerging markets and in low-price mobile devices in developed countries.