CNET también está disponible en español.

Ir a español

Don't show this again

Amazon showcase Amazon Echo 2020 Amazon Echo Show 10 Stimulus bill negotiations New Alexa features Disney delays Black Widow Galaxy S20 FE

MIPS tumbles on earnings news

Shares in MIPS Technologies, which designs microprocessors for information appliances and cell phones, take a beating after the company narrowly misses estimates for its fiscal third quarter.

Shares in MIPS Technologies, which designs microprocessors for information appliances and cell phones, took a beating today after the company narrowly missed estimates for its fiscal third quarter.

MIPS yesterday reported net income of $10.4 million, or 26 cents a share, for the quarter, down from $10.7 million for the same period a year ago. Analysts polled by First Call/Thomson Financial had predicted the company would earn 27 cents a share.

MIPS blamed the revenue shortcoming primarily on a decline in Nintendo 64 royalties. Income from royalties dropped 22 percent to $18.1 million, while contract revenue increased to $8.8 million from $3.4 million a year ago.

A precipitous stock slide on Wall Street and the slightly disappointing earnings have coincided with a sharp decline in MIPS's stock price. The company's shares were down nearly a third in late trading on Nasdaq today, sinking $11.88 to $25.81.

MIPS was spun off from high-end workstation maker Silicon Graphics, now SGI, in 1998. The company creates chips for handheld computers, set-top boxes, cell phones and other non-PC applications.