|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 BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust...
May. 29, 2015 11:15 PM EDT Reads: 1,006
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
May. 29, 2015 09:00 PM EDT Reads: 4,987
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connecte...
May. 29, 2015 04:27 PM EDT Reads: 479
High-performing enterprise Software Quality Assurance (SQA) teams validate systems that are ready for use - getting most actively involved as components integrate and form complete systems. These teams catch and report on defects, making sure the customer gets the best software possible. SQA teams have leveraged automation and virtualization to execute more thorough testing in less time - bringing Dev and Ops together, ensuring production readiness. Does the emergence of DevOps mean the end of E...
May. 29, 2015 04:00 PM EDT Reads: 5,316
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for companies without hyper-scale resources. In his session at 15th Cloud Expo, David Cauthron, CTO and Founder of NIMBOXX, highlighted how a mid-sized manufacturer of global industrial equipment bridged the gap from virtualization to software-defined services, streamlining operations and costs while connect...
May. 29, 2015 04:00 PM EDT Reads: 3,357
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
May. 29, 2015 03:45 PM EDT Reads: 4,806
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
May. 29, 2015 03:45 PM EDT Reads: 856
paradigm shifts in networking, to cloud and licensure, and all the Internet of Things in between. In 2014 automation was the name of the game. In his session at DevOps Summit, Matthew Joyce, a Sales Engineer at Big Switch, will discuss why in 2015 it’s complexity reduction. Matthew Joyce, a sales engineer at Big Switch, is helping push networking into the 21st century. He is also a hacker at NYC Resistor. Previously he worked at NASA Ames Research Center with the Nebula Project (where OpenSta...
May. 29, 2015 03:21 PM EDT Reads: 522
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
May. 29, 2015 03:00 PM EDT Reads: 4,941
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will address the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affec...
May. 29, 2015 03:00 PM EDT Reads: 1,503
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the ...
May. 29, 2015 02:33 PM EDT Reads: 524
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...
May. 29, 2015 02:30 PM EDT Reads: 958
EMC Corporation on Tuesday announced it has entered into a definitive agreement to acquire privately held Virtustream. When the transaction closes, Virtustream will form EMC’s new managed cloud services business. The acquisition represents a transformational element of EMC’s strategy to help customers move all applications to cloud-based IT environments. With the addition of Virtustream, EMC completes the industry’s most comprehensive hybrid cloud portfolio to support all applications, all workl...
May. 29, 2015 02:00 PM EDT Reads: 939
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
May. 29, 2015 02:00 PM EDT Reads: 6,445
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are bein...
May. 29, 2015 02:00 PM EDT Reads: 850