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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas A Watson who wrote (4810)	4/29/1998 10:50:00 PM
From: Don Green	Read Replies (1) \| Respond to of 14451

IPO Spotlight: 6.3 Million Shares Of MIPS Technologies To Be Offered Dow Jones Online News, Wednesday, April 29, 1998 at 15:38 NEW YORK -(Dow Jones)- Issuer: MIPS Technologies Inc. Description: Designs and develops reduced instruction set chips, or RISCs, for embedded systems applications. The company is a 100%-owned unit of Silicon Graphics Inc. (SGI). Offering: 6.325 million shares (all to be sold by the company and Silicon Graphics). Shares Outstanding After Offering: 37.2 million (a) Price talk: $14 a share maximum Market Cap: $520.8 million (a) Underwriters: Deutsche Morgan Grenfell Inc., BancAmerica Robertson Stephens & Co. and Hambrecht & Quist Inc. Proceeds: To be used for working capital and general corporate purposes. The company will not receive proceeds from the sale of Silicon Graphics' shares. Proposed Symbol: MIPS Dividend: Does not anticipate paying cash or stock dividends. ---Earnings--- 6 months ended Dec. 31: 1997 1996 Revenue $27,586,000 $9,374,000 Net income (14,546,000) (28,059,000) Avg shares n/a n/a Shr earns Net income n/a n/a Year June 30: 1997 1996 Revenue $37,107,000 $36,543,000 Net income (44,035,000) (28,165,000) Avg shares n/a n/a Shr earns Net income n/a n/a a. Approximations based on information that the offering represents about 17% of MIPS outstanding common stock, according to a press release from Silicon Graphics. ---Risk Factors--- Factors include risks associated with strategic shift away from microprocessor needs of Silicon Graphics, limited relevance of historical financial data because of planned changes to accounting, unpredictable and fluctuating operating results, revenue concentration and seasonality of certain sales. Factors also include risks associated with intellectual property matters, lack of independent operating history, risks associated with new product development and rapid technological change, dependence on digital consumer products industry, reliance on manufacturing partners, dependence on digital consumer product manufacturers, competition, control by and relationship with Silicon Graphics, future capital requirements, absence of obligatory funding from Silicon Graphics, as well as dependence on key personnel, risks associated with international operations, risks associated with management of growth, possible future sale of stock by Silicon Graphics, no prior public market for the stock, volatility of stock price and possible negative effects of antitakeover provisions. ---Management--- Name Age Position John E. Bourgoin 52 Chief Executive, President and Director Lavi Lev 41 Senior Vice President - Engineering Derek Meyer 38 Vice President - Sales and Marketing Biographies: BOURGOIN has served as chief executive since February 1998, president since September 1996 and director since May 1997. He has also served as a senior vice president of Silicon Graphics since September 1996. Bourgoin was a vice president at Advanced Micro Devices Inc. (AMD). LEV has served as senior vice president for engineering since March 1998 and was vice president for engineering from 1996 to March 1998. He previously served as vice president for engineering at MicroUnity Systems Engineering. MEYER has served in his current position since March 1998 and served as director for worldwide marketing and sales from May 1996 to March 1998. Prior to joining the company, he was marketing director for the TriMedia division of Philips Semiconductors. ---Shareholders--- Shareholder Shrs Before Offer After Offer (percent owned) Silicon Graphics n/a n/a (a) a. After the offering, Silicon Graphics will have beneficial ownership of more than 80% of the total voting power and value of MIPS outstanding common stock. Note: All of the above material has been taken from documents the company filed with the Securities and Exchange Commission. - Charlene Oldham; 201-938-5173 Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.