MIPS Technologies, Inc. F1Q09 (Qtr End 09/30/08) Earnings Call Transcript

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2008-11-18 01:02:25.0

Tags: Revenue, Piper Jaffray & Co., Call Transcript, Business, Earnings, Sales Strategy, GAAP, Sales Force Management, Sales, Financial Accounting, Finance, Seeking Alpha, Revenue, Piper Jaffray & Co., Call Transcript, Business, Earnings, Sales Strategy, GAAP, Sales Force Management, Sales, Financial Accounting, Finance, Seeking Alpha, MIPS Technologies

Question-and-Answer Session

Operator

(Operator instructions) And the first question comes from Gary Mobley, sir you’re line is open.

Gary MobleyPiper Jaffray & Co

Hi guys

John Bourgoin

Hi Gary.

Maury Austin

Hi Gary.

Gary MobleyPiper Jaffray & Co

I’m assuming with revenue guidance of roughly $26.2 million for the December quarter, you’re going to – and also considering the restructuring plan at play that you may be close to achieving the 25% non-GAAP operating margin target. Maybe you can provide some additional guidance besides revenue and what your non-GAAP operating margin target might be for that quarter?

Maury Austin

I think we ended at – pro forma basis we did 13% this quarter with our target at 25. I would think the pro forma operating margin should be approximately 20%, plus or minus 1% or so.

Gary Mobley

Okay. And John, could you give us a more detailed update on what exactly is going on in the analog business group in terms of top level management in the poised direction of the business or just some additional color to give us some comfort that there might be some turnaround in this business?

John Bourgoin

Yes, sure. You might recall, Gary, that in July, we appointed John Derrick as COO in the company and John is responsible for the analog business as well as the processor business here. And in fact, he runs most of the things in the factory except the sales force. So, John’s been focused pretty heavily on the analog side of the world since roughly mid July, and has taken a lot of actions over there, has spent a lot of time with the team and we’ve collectively spent a lot of time with the sales force tuning up actually how we deal with and respond to that market trying to work through the way we do business in the organization to streamline it.

There’s some inefficiencies in how that business has been conducted interactively between our own sales guys and the people running the BUs, and we’re making quite a bit of progress towards streamlining that. I think I said in the call that we still feel very good about the fact that over the long run, we expect a lot of people to want to outsource analog as it can be expensive to do internally and we think most companies are still doing an awful lot of it internally, and we think our guys are pretty good at it.

 

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