MIPS Technologies designs semiconductor chips used to run video games, laser printers, set-top boxes, and PDAs, writes Tony Sagami, owner and founder of Harvest Advisors. Toshiba, Hewlett Packard, Texas Instruments, and Motorola are among its largest customers. Warning! MIPS warned that its Q3 sales would fall woefully short of Wall Street expectations. MIPS expects to pull in $11.8 to $12 million on Q3 sales, way below last year’s $14.6% million of sales, and way below the $14.7 million the Wall Street crowd was counting on.
A number of our customers delayed their investment decisions, especially for deal values in excess of $1,000,000. This slowdown has reduced the number and the corresponding dollar value of agreements completed in the quarter.
That’s just another fancy way of describing weak end demand.
And since MIPS is a big player in the electronic doodads market, this has a lot of implications for everybody in the consumer electronics food chain. Don’t forget to connect the dots.
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