(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
"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
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
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
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
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
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:
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
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.
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