MIPS Working with Google on Chips for Android Devices

Chicago, IL 5/17/2011 (PennyPayDay) -- MIPS Technologies (Nasdaq:MIPS) licenses semiconductor designs for electronic devices, but during its early history, it didn't have much of a hand in the hot home entertainment and networking device areas. But that has changed more recently, as Sigma Designs (Nasdaq: SIGM ) turned to MIPS over rival ARM Holdings (Nasdaq: ARMH ) to help it in Sigma's battle in the digital media space. Google (Nasdaq: GOOG ) is working with MIPS to provide chips for several Android devices. Shares soared in response.

But late last month, MIPS announced earnings that disappointed investors, causing the stock to lose more than a quarter of its value. Not only did current numbers fall short, but the company also reduced its full-year revenue target for the coming year and said it expects a decline in royalty income.

With a host of Android manufacturers looking into MIPS technology as well as backing from Sigma and Broadcom (Nasdaq: BRCM ) , MIPS isn't about to fall off a cliff. But its lofty growth expectations have started to face reality. With the stock now fetching less than half what they did in January, now's a good time for value investors to look to see if they think MIPS can wake up and start firing on all cylinders again.

For more information about MIPS Technologies, please visit: www.mips.com.

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