By Saabira Chaudhuri
MIPS Technologies Inc. (MIPS) said it signed a $26.5 million
agreement that allows Broadcom Corp. (BRCM) to license its
patents.
Additionally, Broadcom--a semiconductor technology provider and
MIPS' largest customer--has extended its license of the company's
architecture and core licenses.
MIPS, which licenses semiconductor architecture to chip
designers, has struggled in recent months. The
electronics-components designer has seen declining revenue and
earnings since June of last year. It reported in April that it had
swung to a third-quarter loss on lower revenue from royalties,
licensing and contracts coupled with higher costs.
Also in April, Bloomberg News reported that MIPS had hired
Goldman Sachs Group Inc. (GS) to find a buyer. Bloomberg reported
that a ThinkEquity LLC analyst had said Broadcom could potentially
look to buy MIPS in order to acquire the ability to make more
powerful processors.
The company's stock was up 1.8% to $6.84 in recent trading.
MIPS's shares are up 54% year-to-date.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com