MIPS Technologies, Inc. (NASDAQ:MIPS) jumps after getting a superior unwanted takeover bid

  on Nov 21,2012 Posted in Business News ,Finance
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MIPS Technologies, Inc. (NASDAQ:MIPS), which two weeks ago decided to a buyout at $7.31 per share, were been halted a short while ago just prior to the company declared it has received an unsolicited takeover bid from Mountain View, California-based digital signal processor developer company Ceva (CEVA). The chip maker has been offered $75 million for what’s left of MIPS after the scheduled sale of its patents to a patent holding company.

That proposal is higher than the $60 million that British chip technology designer Imagination Technologies (IMGUK) has agreed to pay MIPS. MIPS Technologies (MIPS) said its board is evaluating the offer to decide whether it is superior to MIPS Technologies’ awaiting deal with Imagination Technologies, but said that its board still recommends the merger contract with Imagination Technologies to stockholders.

Talking about the competitiveness, let’s have a glance over other contending firms of the sector. Shares of Micron Technology, Inc. (NASDAQ:MU) surged +0.36% to settle at $5.55, Rambus Inc. (NASDAQ:RMBS) moved down -4.38% to finish at $4.37 while Spansion Inc. (NYSE:CODE) advanced +0.09% to end the trading session at $11.57.

Last session’s traded volume of MIPS Technologies, Inc. (NASDAQ:MIPS) was 1.87 million shares as compared to its average volume of 1.72 million shares. Company changed hands within the price range of $6.98 – $7.16 in the last trading session.

MIPS earnings per share growth ratio this year was -19.83% compared with the 28.75% and 18.84% of ARM Holdings and Intel Corporation respectively. The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth. PEG of the firm remained 2.07% while return on assets was 6.96%.

The company generated revenue of $82.96 million in the previous twelve months and had $9.42 million in earnings. The stock posted a gross margin of +98.34% whereas operating margin was +13.56%.



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