The litigation had focused on MIPS' revenue recognition policies related to technology licensing transactions. U.S. District Judge Ronald M. Whyte ruled that summary judgment was proper because the plaintiffs, despite protracted litigation and extensive discovery, had demonstrated "...at most, a difference of opinion as to when revenue should have been recognized." Judge Whyte's decision terminates the litigation, subject to a possible appeal by the plaintiffs.
"Summary judgment represents a clear vindication for MIPS and its directors, officers and employees," said Robert C. Miller, formerly CEO of MIPS and now CEO of NeTpower, Inc. and a director of Silicon Graphics."While this result is of course gratifying", said Edward R. McCracken, chairman and CEO of Silicon Graphics, "it should be noted that it has taken over two years and literally millions of dollars to dispose of a frivolous lawsuit that should never have been brought in the first place. We have had the financial resources to bear the expense and risk of litigation, unlike many smaller companies that have been forced into settlements in similar circumstances. This case underscores the need for legislative reform to rid America's high technology industry of the drain of frivolous securities litigation." McCracken testified last year before a subcommittee of the United States Senate concerning the need for securities litigation reform.
The defendants were represented by Wilson Sonsini Goodrich & Rosati of Palo Alto. Lead counsel for the plaintiffs were Milberg, Weiss, Bershad, Hynes & Lerach of San Diego.
Silicon Graphics, Inc. is the leading manufacturer of high-performance visual computing systems. The company delivers interactive three-dimensional graphics, digital media and multiprocessing supercomputing technologies to technical, scientific and creative professionals. Its subsidiary, MIPS Technologies, Inc., designs and licenses the industry's leading RISC processor technology for the computer systems and embedded control markets. Silicon Graphics has offices worldwide and headquarters in Mountain View, California.
