Wednesday, May 6, 2009

MIPS 10Q - Analog unit for sale

In the third quarter of fiscal 2009 we made a determination with regard to the ABG (Analog Business Unit) to either improve the financial performance or investigate the potential divestiture of the unit, and progress has been made on both of those strategic alternatives. The Company replaced the Vice President of the ABG in January 2009 and subsequently the underlying financial performance, specifically bookings, has improved. In addition the Company has had discussions with third parties about the possible sale of the business unit. While no definitive sale agreement has been reached, the possibility of a divesture remains. Total third quarter revenue........from the ABG was $5.0 million.

History: On August 27, 2007, we completed the acquisition of Chipidea, a privately held supplier of analog and mixed signal IP based in Lisbon, Portugal. We acquired all of the outstanding stock of Chipidea for $147 million in cash, of which $14.7 million is held in escrow to satisfy indemnification claims that may arise.