|By Business Wire||
|February 7, 2014 07:30 AM EST||
MoSys (NASDAQ: MOSY), a leader in semiconductor solutions that enable fast, intelligent data access for network and communications systems, today reported financial results for the fourth quarter and fiscal year ended December 31, 2013.
Full Year 2013 and Recent Highlights
- Secured multiple new design wins for the Bandwidth Engine® IC product families, representing both new customers and new platforms;
- Commenced early production shipments of Bandwidth Engine ICs, with increased unit shipments both sequentially and year over year;
- Secured first design engagements for new family of LineSpeed™ 100G PHY solutions;
- Introduced third generation Bandwidth Engine architecture optimized to enhance the performance of multi-core packet processing engines; and
- Ended the year with total cash and investments of $50.5 million.
“We continued to make good progress throughout 2013 on our operational execution, design win momentum and sales activity,” said Len Perham, MoSys’ president and chief executive officer. “We increased our design wins three-fold in 2013 compared with 2012, including both Bandwidth Engine ICs and LineSpeed 100G PHY solutions. These new design wins represent an expanded customer base, as well as extended use of Bandwidth Engine ICs within existing customers. As our first design wins advance toward production release, IC unit shipments began to accelerate in the fourth quarter of 2013, and this acceleration in shipped volumes will likely continue period to period through 2014.
“In 2013, we announced sample availability of the three members of the Bandwidth Engine 2 family, the Burst, Access and Macro products, which enables us to provide a broad range of purpose-built solutions to meet our customers’ application needs. In addition, we introduced the first two members of our LineSpeed family of integrated CMOS PHY ICs. The LineSpeed 100G Multi-Mode Gearbox and Quad Full Duplex Retimer have proven their functionality with industry standards and interoperability with the 100G optical module and networking equipment ecosystem. The Bandwidth Engine and LineSpeed products enable critical density, performance and features for line cards in next generation networking and communications equipment. We also just announced our third generation Bandwidth Engine architecture, which represents a new co-processing paradigm with the ability to advance memory access performance well beyond current levels. This innovative architecture is capable of throughput up to 800+ Gbps, provides intelligent offload to relieve the packet processing engine of access-intensive operations and represents a powerful solution for the memory access bottleneck.
“In conclusion, I believe we are progressing well in our transition toward becoming a fabless semiconductor company. We now have a portfolio of IC products with design wins at leading customers and expect to begin generating early stage production revenue in 2014,” concluded Mr. Perham.
Fourth Quarter Results
Total net revenue for the fourth quarter of 2013 was $1.0 million, consistent with the third quarter of 2013 and compared with $1.6 million in the fourth quarter of 2012.
Fourth quarter 2013 total revenue included licensing and other revenue of $0.2 million, compared with $0.1 million in the third quarter of 2013 and $0.2 million in the fourth quarter of 2012. Revenue attributable to shipments of integrated circuits is included in licensing and other revenue. Fourth quarter 2013 royalty revenue was $0.8 million, consistent with the previous quarter and compared with $1.4 million for the fourth quarter of 2012.
Gross margin for the fourth quarter of 2013 was 78%, compared with 83% in the third quarter of 2013 and 97% for the fourth quarter of 2012.
Total operating expenses on a GAAP basis for the fourth quarter of 2013 were $7.3 million compared with $7.8 million in the previous quarter and $9.4 million for the fourth quarter of 2012. Fourth quarter 2013 operating expenses included $0.2 million of amortization of intangible assets and $0.9 million of stock-based compensation expense.
GAAP net loss for the fourth quarter of 2013 was $6.5 million, or ($0.13) per share, compared with a loss of $6.9 million, or ($0.14) per share, in the previous quarter and a loss of $7.8 million, or ($0.19) per share, for the fourth quarter of 2012. The non-GAAP net loss for the fourth quarter of 2013 was $5.3 million, or ($0.11) per share, which excluded amortization of intangible assets and stock-based compensation expense. Earnings per share for the fourth quarter of 2013 were computed using approximately 48.5 million weighted shares on a GAAP and non-GAAP basis. A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.
As of December 31, 2013, cash and investments totaled $50.5 million.
Full Year 2013 Results
Total revenue for 2013 was $4.4 million, compared with $6.1 million for 2012. Net loss for 2013 was $24.8 million, or ($0.55) per share, compared with a loss of $27.6 million, or ($0.70) per share, in 2012. Non-GAAP net loss for 2013 was $20.1 million, or ($0.44) per share, excluding stock-based compensation charges of $3.7 million and intangible asset amortization charges of $1.0 million. Non-GAAP net loss for 2012 was $22.1 million, or ($0.56) per share. Earnings per share for the full year 2013 were computed using approximately 45.2 million weighted shares on a GAAP and non-GAAP basis.
MoSys also announced, in accordance with NASDAQ Listing Rule 5635(c)(4), as a material inducement to the hiring of three new employees, it has granted or offered to grant stock options for a total of 125,000 shares of common stock. Inducement option grants have an exercise price equal to the closing price of MoSys' common stock on the NASDAQ market on the grant date, and vest over four years and expire in ten years, assuming continued service.
Financial Results Webcast / Conference Call
MoSys will host a conference call and webcast with investors today at 5:30a.m. Pacific Time (8:30a.m. Eastern Time) to discuss the fourth quarter 2013 financial results. Investors and other interested parties may access the call by dialing 1-877-474-9502 in the U.S. (1-857-244-7555 outside of the U.S.), and entering the pass code 19238799 at least 10 minutes prior to the start of the call. In addition, an audio webcast will be available through the MoSys Web site at http://www.mosys.com. A telephone replay will be available for two business days following the call at 1-888-286-8010 in the U.S. (1-617-801-6888 outside of the U.S.), pass code of 27352937.
Use of Non-GAAP Financial Measures
To supplement MoSys’ consolidated financial statements presented in accordance with GAAP, MoSys uses non-GAAP financial measures that exclude from the statement of operations the effects of stock-based compensation and amortization of recorded intangible assets. MoSys’ management believes that the presentation of these non-GAAP financial measures is useful to investors and other interested persons because they are one of the primary indicators that MoSys’ management uses for planning and forecasting future performance. MoSys’ management believes that the presentation of non-GAAP financial measures that exclude these items is useful to investors because MoSys’ management does not consider these charges part of the day-to-day business or reflective of the core operational activities of the Company that are within the control of management or that would be used to evaluate management’s operating performance.
Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is provided in a table below the Condensed Consolidated Statements of Operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. For additional information regarding these non-GAAP financial measures, and management’s explanation of why it considers such measures to be useful, refer to the Form 8-K dated February 7, 2014, which the Company filed with the Securities and Exchange Commission.
This press release may contain forward-looking statements about the Company, including, without limitation, anticipated benefits and performance expected from our IC products and the Company’s future markets and future business prospects.
Forward-looking statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited, to the following:
- achieving additional design wins for our ICs;
- commencing volume shipments of Bandwidth Engine ICs;
- our ability to enhance our existing proprietary technologies and develop new technologies;
- achieving necessary acceptance of our IC architecture and interface protocols by potential customers and their suppliers;
- difficulties and delays in the development, production, testing and marketing of our ICs;
- reliance on our manufacturing partners to assist successfully with the fabrication of our ICs;
- availability of quantities of ICs supplied by our manufacturing partners at a competitive cost;
- our lack of recent experience as a fabless semiconductor company making and selling proprietary ICs;
- level of intellectual property protection provided by our patents, the expenses and other consequences of litigation, including intellectual property infringement litigation, to which we may be or may become a party from time to time;
- vigor and growth of markets served by our customers and our operations; and
other risks identified in the Company’s most recent report on Form 10-K filed with the Securities and Exchange Commission, as well as other reports that MoSys files from time to time with the Securities and Exchange Commission. MoSys undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.
About MoSys, Inc.
MoSys, Inc. (NASDAQ: MOSY) is a fabless semiconductor company enabling leading equipment manufacturers in the networking and communications systems markets to address the continual increase in Internet users, data and services. The company's solutions deliver data path connectivity, speed and intelligence while eliminating data access bottlenecks on line cards and systems scaling from 100G to multi-terabits per second. Engineered and built for high-reliability carrier and enterprise applications, MoSys' Bandwidth Engine® and LineSpeed™ IC product families are based on the company's patented high-performance, high-density intelligent access and high-speed serial interface technology, and utilize the company's highly efficient GigaChip™ Interface. MoSys is headquartered in Santa Clara, California. More information is available at www.mosys.com.
Bandwidth Engine and MoSys are registered trademarks of MoSys, Inc. in the US and/or other countries. GigaChip, LineSpeed and the MoSys logo are trademarks of MoSys, Inc. All other marks mentioned herein are the property of their respective owners.
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In thousands, except per share amounts; unaudited)|
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
|Licensing and other||$||231||$||227||$||781||$||1,340|
|Total net revenue||986||1,595||4,398||6,082|
|Cost of Net Revenue|
|Licensing and other||220||45||474||334|
|Total cost of net revenue||220||45||474||334|
|Research and development||5,779||7,260||23,325||28,480|
|Selling, general and administrative||1,483||2,126||6,161||8,218|
|Gain on sale of assets||-||-||(630||)||(3,291||)|
|Total operating expenses||7,262||9,386||28,856||33,407|
|Loss from operations||(6,496||)||(7,836||)||(24,932||)||(27,659||)|
|Other income, net||43||34||209||155|
|Loss before income taxes||(6,453||)||(7,802||)||(24,723||)||(27,504||)|
|Income tax provision (benefit)||3||(29||)||71||110|
|Net loss per share|
|Basic and diluted||($0.13||)||($0.19||)||($0.55||)||($0.70||)|
|Shares used in computing net loss per share|
|Basic and diluted||48,543||39,958||45,246||39,176|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(in thousands, unaudited)|
|December 31,||December 31,|
|Cash, cash equivalents and investments||$||36,556||$||33,327|
|Accounts receivable, net||148||287|
|Prepaid expenses and other assets||1,671||1,362|
|Total current assets||38,375||34,976|
|Property and equipment, net||706||1,238|
|Intangible assets, net||1,655||2,654|
|Liabilities and Stockholders’ Equity|
|Accrued expenses and other liabilities||1,909||3,947|
|Total current liabilities||2,355||4,821|
|Total liabilities and stockholders’ equity||$||77,989||$||69,534|
|Reconciliation of GAAP to Non-GAAP Net Loss and Net Loss Per Share|
|(In thousands, except per share amounts; unaudited)|
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
|GAAP net loss||$||(6,456||)||$||(7,773||)||$||(24,794||)||$||(27,614||)|
|Stock-based compensation expense|
|- Cost of net revenue||-||4||7||53|
|- Research and development||641||590||2,565||2,694|
|- Selling, general and administrative||257||226||1,126||1,064|
|Total stock-based compensation expense||898||820||3,698||3,811|
|Amortization of intangible assets||249||250||999||1,746|
|Non-GAAP net loss||$||(5,309||)||$||(6,703||)||$||(20,097||)||$||(22,057||)|
|GAAP net loss per share||$||(0.13||)||$||(0.19||)||$||(0.55||)||$||(0.70||)|
|- Stock-based compensation expense||0.02||0.01||0.09||0.10|
|- Amortization of intangible assets||-||0.01||0.02||0.04|
|Non-GAAP net loss per share: basic and diluted||$||(0.11||)||$||(0.17||)||$||(0.44||)||$||(0.56||)|
|Shares used in computing non-GAAP net loss per share|
|Basic and diluted||48,543||39,958||45,246||39,176|
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Mar. 27, 2017 12:45 PM EDT Reads: 1,311
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
Mar. 27, 2017 11:30 AM EDT Reads: 6,689
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 27, 2017 11:15 AM EDT Reads: 2,343
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 27, 2017 10:30 AM EDT Reads: 2,984
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 27, 2017 10:30 AM EDT Reads: 3,110
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 27, 2017 09:30 AM EDT Reads: 2,091
Building custom add-ons does not need to be limited to the ideas you see on a marketplace. In his session at 20th Cloud Expo, Sukhbir Dhillon, CEO and founder of Addteq, will go over some adventures they faced in developing integrations using Atlassian SDK and other technologies/platforms and how it has enabled development teams to experiment with newer paradigms like Serverless and newer features of Atlassian SDKs. In this presentation, you will be taken on a journey of Add-On and Integration ...
Mar. 27, 2017 08:15 AM EDT Reads: 3,152
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
Mar. 27, 2017 08:15 AM EDT Reads: 3,081
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 27, 2017 08:00 AM EDT Reads: 4,316
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Mar. 27, 2017 07:45 AM EDT Reads: 1,136
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Mar. 27, 2017 05:00 AM EDT Reads: 11,128
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Mar. 27, 2017 05:00 AM EDT Reads: 6,259
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Mar. 27, 2017 03:45 AM EDT Reads: 3,056
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Mar. 27, 2017 03:15 AM EDT Reads: 3,236
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Mar. 27, 2017 03:00 AM EDT Reads: 3,089