Welcome!

News Feed Item

MoSys, Inc. Reports Second Quarter 2014 Financial Results

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 second quarter ended June 30, 2014.

Second Quarter Highlights

  • Secured additional design wins for MoSys® Bandwidth Engine® ICs;
  • Increased shipments of Bandwidth Engine ICs quarter-over-quarter;
  • Established a dual-sourcing product and technology partnership with GSI Technology; and
  • Ended the quarter with total cash and investments of $40.1 million.

Management Commentary

“We continued to gain traction in the second quarter for our Bandwidth Engine ICs by securing additional design wins and increasing shipments to customers,” commented Len Perham, MoSys’ president and chief executive officer. “Most notable, total IC shipments for the first half of 2014 were double the amount shipped during all of 2013. While the timing of our customers’ production ramps remains difficult to predict, we remain optimistic that our early design win customers are making solid progress and will initiate their production ramps later this year.

“Also of note, during the quarter, we announced a dual-sourcing and technology partnership with GSI Technology. This partnership is an important milestone because it provides our customers and potential customers the comfort of having multiple sources of supply for key components. It also provides the opportunity to collaborate on future products critical to the fast-moving advancements we are seeing in the network infrastructure. Furthermore, this dual-sourcing relationship should allow both companies to grow their served available markets.

“In addition, we continued to advance the development of our third generation Bandwidth Engine IC family and next-generation 100G PHY LineSpeed™ products. Our R&D roadmap aligns well with the market’s transition toward next-generation networking systems and the drive toward 400G+ platforms. The growing trend toward data center and edge devices that expand capacity, security and deep packet inspection are generating increased interest in both our technology and our advanced IC solutions. We are working closely with both customers and partners to address these growing needs.”

Second Quarter Results

Total net revenue for the second quarter of 2014 was $1.8 million, compared with $1.3 million reported in the first quarter of 2014 and $1.1 million in the second quarter of 2013.

Second quarter 2014 total revenue included product revenue of $1.0 million, compared with $0.6 million in the first quarter of 2014. Royalty and other revenue for the second quarter of 2014, which includes licensing revenue, was $0.8 million, consistent with the previous quarter and compared with $1.1 million in the second quarter of 2013.

Gross margin for the second quarter of 2014 was 42 percent, compared with 57 percent in the first quarter of 2014 and 93 percent for the second quarter of 2013. The sequential decrease in gross margin reflects increased IC product sales, which carry a lower gross margin than the Company’s licensing and royalty revenue.

Total operating expenses on a GAAP basis for the second quarter of 2014 were $7.9 million, compared with $8.9 million in the previous quarter and $7.4 million for the second quarter of 2013. Second quarter 2014 operating expenses included $0.3 million of amortization of intangible assets and $1.0 million in stock-based compensation expense.

GAAP net loss for the second quarter of 2014 was $7.2 million, or ($0.14) per share, compared with a net loss of $8.1 million, or ($0.16) per share, in the previous quarter and a net loss of $6.4 million, or ($0.15) per share, for the second quarter of 2013. Non-GAAP net loss for the second quarter of 2014 was $5.9 million, or ($0.12) per share, which excludes amortization of intangible assets and stock-based compensation expense. Earnings per share for the second quarter of 2014 were computed using approximately 49.5 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.

Financial Results Webcast / Conference Call

MoSys will host a conference call and webcast with investors today at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) to discuss the second quarter 2014 financial results. Investors and other interested parties may access the call by dialing 1-866-271-6103 in the U.S. (1-617-213-8894 outside of the U.S.), and entering the pass code 61562569 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 74177110.

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 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 July 22, 2014, that the company filed with the Securities and Exchange Commission.

Forward-Looking Statements

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 IC design wins;
  • commencing volume shipments of Bandwidth Engine ICs;
  • the timing of customer orders and product shipments;
  • our ability to enhance our existing proprietary technologies and develop new technologies;
  • achieving necessary acceptance and adoption 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, GigaChip and MoSys are registered trademarks of MoSys, Inc. in the US and/or other countries. LineSpeed and the MoSys logo are trademarks of MoSys, Inc. All other marks mentioned herein are the property of their respective owners.

 
MOSYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
                 
Three Months Ended Six Months Ended
June 30, June 30,
2014     2013 2014     2013
 
Net Revenue
Product $ 975 $ 60 $ 1,556 $ 121
Royalty and other   774         1,060     1,525         2,334  
Total net revenue 1,749 1,120 3,081 2,455
 
Cost of Net Revenue
Product and other   1,022         77     1,599         96  
Total cost of net revenue 1,022 77 1,599 96
 
Gross Profit 727 1,043 1,482 2,359
 
Operating Expenses
Research and development 6,432 5,983 13,486 11,303
Selling, general and administrative 1,490 1,460 3,287 3,083
Gain on sale of assets   -         -     -         (630 )
Total operating expenses 7,922 7,443 16,773 13,756
 
Loss from operations (7,195 ) (6,400 ) (15,291 ) (11,397 )
 
Other income, net   55         24     85         44  
Loss before income taxes (7,140 ) (6,376 ) (15,206 ) (11,353 )
 
Income tax provision   21         20     42         40  
 
Net loss $ (7,161 )     $ (6,396 ) $ (15,248 )     $ (11,393 )
 
Net loss per share
Basic and diluted ($0.14 ) ($0.15 ) ($0.31 ) ($0.27 )
 
Shares used in computing net loss per share
Basic and diluted 49,511 43,892 49,344 42,078
 

 
MOSYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
       
June 30, December 31,
2014     2013
 
Assets
Current assets:
Cash, cash equivalents and investments $ 31,034 $ 36,556
Accounts receivable, net 307 148
Inventories 628 567
Prepaid expenses and other assets   1,326       1,104
Total current assets 33,295 38,375
 
Long-term investments 9,106 13,926
Property and equipment, net 613 706
Goodwill 23,134 23,134
Intangible assets, net 1,155 1,655
Other assets   204       193
Total assets $ 67,507     $ 77,989
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 764 $ 276
Accrued expenses and other liabilities 2,028 1,909
Deferred revenue   103       170
Total current liabilities 2,895 2,355
 
Long-term liabilities 232 216
 
Stockholders' equity 64,380 75,418
       
Total liabilities and stockholders’ equity $ 67,507     $ 77,989
 

 
MOSYS, INC.
Reconciliation of GAAP to Non-GAAP Net Loss and Net Loss Per Share
(In thousands, except per share amounts; unaudited)
                 
Three Months Ended Six Months Ended
June 30, June 30,
2014     2013 2014     2013
 
GAAP net loss $ (7,161 ) $ (6,396 ) $ (15,248 ) $ (11,393 )
Stock-based compensation expense
- Cost of net revenue - 5 - 7
- Research and development 784 720 1,867 1,310
- Selling, general and administrative   247         236     655         532  
Total stock-based compensation expense 1,031 961 2,522 1,849
 
Amortization of intangible assets   250         250     500         500  
 
Non-GAAP net loss $ (5,880 )     $ (5,185 ) $ (12,226 )     $ (9,044 )
 
GAAP net loss per share $ (0.14 ) $ (0.15 ) $ (0.31 ) $ (0.27 )
Reconciling items
- Stock-based compensation expense 0.02 0.02 0.05 0.05
- Amortization of intangible assets - 0.01 0.01 0.01
               
Non-GAAP net loss per share: basic and diluted $ (0.12 )     $ (0.12 ) $ (0.25 )     $ (0.21 )
 
Shares used in computing non-GAAP net loss per share
Basic and diluted 49,511 43,892 49,344 42,078

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver 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. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
@ThingsExpo has been named the ‘Top WebRTC Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @ThingsExpo ranked as the number one ‘WebRTC Influencer' followed by @DevOpsSummit at 55th.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, 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. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...