Welcome!

Microsoft Cloud Authors: John Basso, Liz McMillan, Pat Romanski, Glenn Rossman, Elizabeth White

News Feed Item

MoSys, Inc. Reports Fourth Quarter 2012 Financial Results

MoSys, Inc., (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, 2012.

2012 and Recent Highlights

  • Secured initial OEM design wins for the Bandwidth Engine® IC product family at multiple customers;
  • Passed 3000 hours of high temperature operating life (HTOL) testing of the Bandwidth Engine IC with no failures; thus, exceeding carrier-grade QA&R requirements;
  • Made significant progress toward new design wins with prospective customers in Japan, China and the U.S.;
  • Established worldwide sales representation and distribution channels;
  • Taped out second generation Bandwidth Engine IC;
  • Announced support of GigaChip™ Interface by Renesas Electronics Corporation; and
  • Ended the year with total cash and investments of approximately $41 million.

Management Commentary

“In 2012, MoSys made continued progress toward becoming a fabless semiconductor company. Specifically, we advanced the development of our Bandwidth Engine IC family, including passing 3000 hours of HTOL testing with no failures, securing multiple design wins and taping out our second generation device family,” commented Len Perham, MoSys’ President and Chief Executive Officer. “Our second generation Bandwidth Engine family will embody substantial performance improvements, a significantly expanded feature set and much faster I/O speeds, resulting in an expanded range of applications that can be served when compared with our first generation family. We are excited to have this new IC family in wafer fabrication and look forward to receiving first silicon for testing and characterization.”

Mr. Perham continued, “Activity in our sales funnel increased substantially during the year, and we have made significant progress towards declaring our first tier one design win. This brisk pace of sales activity for new design wins across all geographic regions has created a solid foundation of customer and partnership interest in Bandwidth Engine. Furthermore, our close collaboration with our initial design win partners has assisted these lead OEMs to advance toward achieving full system qualification and initial production releases, which we believe are scheduled for completion in the second half of 2013.

“During 2012, we also continued to reconfigure our resources and operations to align with our focus on IC sales. We believe these actions, along with our numerous operational accomplishments and increased design win activity, have set the stage for further product expansion and customer traction in 2013 and beyond.”

Fourth Quarter Results

Total net revenue for the fourth quarter of 2012 was $1.6 million, compared with $1.3 million reported in the third quarter of 2012 and $5.2 million in the fourth quarter of 2011.

Fourth quarter 2012 total revenue included licensing and other revenue of $0.2 million, consistent with the previous quarter and compared with $2.7 million for the fourth quarter of 2011. Fourth quarter 2012 royalty revenue was $1.4 million compared with $1.1 million in the previous quarter and $2.5 million for the fourth quarter of 2011.

Gross margin for the fourth quarter of 2012 was 97% compared with 96% in the third quarter of 2012 and 66% for the fourth quarter of 2011.

Total operating expenses on a GAAP basis for the fourth quarter of 2012 were $9.4 million compared with $7.3 million in the previous quarter and a net gain of $26.5 million for the fourth quarter of 2011. Fourth quarter 2012 operating expenses included $0.3 million of amortization of intangible assets and $0.8 million of stock-based compensation expense.

GAAP net loss for the fourth quarter of 2012 was $7.8 million, or ($0.19) per share, compared with a net loss of $6.1 million, or ($0.15) per share, in the previous quarter and net income of $29.8 million, or $0.75 per diluted share, for the fourth quarter of 2011. The non-GAAP net loss for the fourth quarter of 2012 was $6.7 million, or ($0.17) per share, which excluded amortization of intangible assets and stock-based compensation expense. Earnings per share for the fourth quarter of 2012 were computed using approximately 40.0 million 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, 2012, cash and investments totaled $40.7 million.

Full Year 2012 Results

Total revenue for 2012 was $6.1 million, compared with $14.1 million for 2011. Net loss for 2012 was $27.6 million, or ($0.70) per share, compared with net income of $11.3 million, or $0.28 per diluted share, in 2011. Non-GAAP net loss for 2012 was $22.0 million, or ($0.56) per share, excluding stock-based compensation charges of $3.8 million and intangible asset amortization charges of $1.7 million. Non-GAAP net income for 2011 was $17.6 million, or $0.44 per diluted share. Earnings per share for the full year 2012 were computed using approximately 39.2 million shares on a GAAP and non-GAAP basis.

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 fourth quarter 2012 financial results. Investors and other interested parties may access the call by dialing 1-888-396-2298 in the U.S. (1-617-847-8708 outside of the U.S.), and entering the pass code 13611660 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 98125616.

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 1, 2013, 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, benefits and performance expected from use of the Company’s embedded memory and interface technologies, anticipated benefits and performance expected from the Bandwidth Engine product 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 the Bandwidth Engine IC;
  • 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 reports on Form 10-K and Form 10-Q 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 an IP-rich fabless semiconductor company that provides high performance solutions for fast, intelligent data access in network and communications systems. Engineered and built for high-reliability carrier and enterprise applications, MoSys' products are breaking bandwidth barriers™ in data processing to allow for faster packet access and analysis, expanded user capacity and new capabilities required by the expanding global infrastructure. MoSys' Bandwidth Engine® family of ICs combines the company's patented 1T-SRAM® high-density, embedded memory and high-speed, 10 Gigabits per second serial interface with its intelligent access technology and a highly efficient GigaChip™ Interface transport protocol to eliminate bottlenecks in high-speed data access. MoSys is headquartered in Santa Clara, California, and more information is available at http://www.mosys.com.

MoSys, 1T-SRAM and Bandwidth Engine are registered trademarks of MoSys, Inc. in the US and/or other countries. Breaking Bandwidth Barriers, GigaChip and the MoSys logo are trademarks of MoSys, Inc. All other marks mentioned herein are the property of their respective owners.

(Financial Tables to Follow)

         
 
MOSYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts; unaudited)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2012   2011 2012   2011
 
Net Revenue
Licensing and other $ 227 $ 2,668 $ 1,340 $ 5,987
Royalty   1,368       2,501     4,742       8,120  
Total net revenue 1,595 5,169 6,082 14,107
 
Cost of Net Revenue
Licensing and other   45       1,780     334       3,295  
Total cost of net revenue 45 1,780 334 3,295
 
Gross Profit 1,550 3,389 5,748 10,812
 
Operating Expenses
Research and development 7,260 6,847 28,480 26,216
Selling, general and administrative 2,126 2,286 8,218 8,869
Gain on sale of assets   -       (35,611 )   (3,291 )     (35,611 )
Total operating expenses 9,386 (26,478 ) 33,407 (526 )
 
Income (loss) from operations (7,836 ) 29,867 (27,659 ) 11,338
 
Other income, net   34       162     155       206  
Income (loss) before income taxes (7,802 ) 30,029 (27,504 ) 11,544
 
Income tax provision (benefit)   (29 )     229     110       288  
 
Net income (loss) $ (7,773 )   $ 29,800   $ (27,614 )   $ 11,256  
 
Net income (loss) per share
Basic ($0.19 ) $ 0.78 ($0.70 ) $ 0.30
Diluted ($0.19 ) $ 0.75 ($0.70 ) $ 0.28
 
Shares used in computing net income (loss) per share
Basic 39,958 38,353 39,176 37,861
Diluted 39,958 39,765 39,176 40,377

     
 

MOSYS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
 
December 31, December 31,
2012   2011
 
Assets
Current assets:
Cash, cash equivalents and investments $ 33,327 $ 49,438
Accounts receivable, net 287 969
Prepaid expenses and other assets   1,362     1,596

Total current assets

34,976 52,003
 
Long-term investments 7,383 8,537
Property and equipment, net 1,238 1,382
Goodwill 23,134 23,134
Intangible assets, net 2,654 4,400
Other assets   149     181
Total assets $ 69,534   $ 89,637
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 393 $ 336
Accrued expenses and other liabilities 3,947 2,779
Deferred revenue   481     920
Total current liabilities 4,821 4,035
 
Long-term liabilities 171 109
 
Stockholders' equity 64,542 85,493
     
Total liabilities and stockholders’ equity $ 69,534   $ 89,637

           
 
MOSYS, INC.
Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share
(In thousands, except per share amounts; unaudited)
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2012   2011 2012   2011
 
GAAP net income (loss) $ (7,773 ) $ 29,800 $ (27,614 ) $ 11,256
Stock-based compensation expense

- Cost of net revenue

4 270 53 407

- Research and development

590 586 2,694 1,961

- Selling, general and administrative

  226       436   1,064       1,398

Total stock-based compensation expense

820 1,292 3,811 3,766
 
Amortization of intangible assets 250 654 1,746 2,618
 
Non-GAAP net income (loss) $ (6,703 )   $ 31,746 $ (22,057 )   $ 17,640
 
GAAP net income (loss) per share - diluted $ (0.19 ) $ 0.75 $ (0.70 ) $ 0.28
Reconciling items

- Stock-based compensation expense

0.01 0.03 0.10 0.10

- Amortization of intangible assets

0.01 0.02 0.04 0.06
           
Non-GAAP net income (loss) per share: diluted $ (0.17 )   $ 0.80 $ (0.56 )   $ 0.44
 
Shares used in computing non-GAAP net income (loss) per share
Basic 39,958 38,353 39,176 37,861
Diluted 39,958 39,765 39,176 40,377

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.

@ThingsExpo Stories
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, 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 LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...