MOSAID Reports Results for Second Quarter Fiscal 2012

The Company operates in one operating segment: monetizing patented intellectual property in the areas of semiconductors and communications and developing semiconductor memory technology.

In Q2 of fiscal 2012, four of the Company's licensees each amounted to more than 10% of consolidated revenue from operations. Revenue from one licensee was 23%; revenues from the other three licensees were 19%, 17% and 15%, respectively.

In Q2 of fiscal 2011, four of the Company's licensees each amounted to more than 10% of consolidated revenue from operations. Revenue from one licensee was 25%; revenues from the other three customers were 18%, 16% and 10%, respectively.

13. Contingency and Commitments

As at October 31, 2011, the Company had outstanding letters of guarantee totaling $200,000 (2010 - $200,000). The Company enters into patent licensing agreements in the ordinary course of business. Although the Company does not provide price protection to most of its customers, there are times when it is a necessary means of doing business. Price protection may be offered to earlier licensees in order to ensure that they enjoy more favoured pricing relative to later licensees for comparable license terms. Such protections are not retroactive. At October 31, 2011, the Company estimates the fair value of this obligation as $nil (2010 - $nil) based upon the licenses executed to date.

Contractual obligations:

Operating Lease

The Company has operating leases for office space. The future minimum lease payments over the next four years are as follows:


             --------------------------------------------------
             2012                                          $299
             2013                                          $461
             2014                                          $465
             2015                                          $332
             --------------------------------------------------

14. Capital Management

The Company's objective is to maintain a strong capital base in order to maintain investor, creditor and market confidence and to sustain future development of the business. Management defines capital as the Company's shareholders' equity excluding accumulated other comprehensive income.

The Company has certain credit facilities with a Canadian chartered bank, which consist of an operating line, a foreign exchange forward contract facility and standby letters of credit. The Board of Directors does not establish quantitative return on capital criteria for management, but rather promotes year-over-year sustainable profitable growth. The Board of Directors also reviews on a quarterly basis the level of dividends paid to the Company's shareholders and monitors the share repurchase program activities. There were no changes in the Company's approach to capital management during the period. Neither the Company nor any of its subsidiaries is subject to externally imposed capital requirements.

15. Transition to IFRS

As disclosed in Note 2, these interim Consolidated Financial Statements represent the Company's presentation of the financial results of operations and financial position under IFRS for the period ended October 31, 2011 in conjunction with the Company's annual audited Consolidated Financial Statements to be issued under IFRS as at and for the year ended April 30, 2012. As a result, these interim Consolidated Financial Statements have been prepared in accordance with IFRS 1, "First-time Adoption of International Financial Reporting Standards" and with IAS 34, "Interim Financial Reporting," as issued by the IASB. Previously, the Company prepared its interim and annual Consolidated Financial Statements in accordance with Canadian GAAP.

IFRS 1 requires the presentation of comparative information as at the May 1, 2010 transition date and subsequent comparative periods as well as the consistent and retrospective application of IFRS accounting policies. To assist with the transition, IFRS 1 provides mandatory and optional exemptions for first-time adopters to alleviate the retrospective application of all IFRS.

The following reconciliations present the adjustments made to the Company's previous GAAP financial results of operations and financial position to comply with IFRS 1. A summary of the significant accounting policy changes and applicable exemptions are discussed following the reconciliations. Reconciliations include the Company's Consolidated Balance Sheet as at May 1, 2010, Equity as of October 31, 2010 and April 30, 2011 and Statement of Income and Statement of Comprehensive Income for the period ended October 31, 2010 and for the year ended April 30, 2011.


IFRS Opening Consolidated Balance Sheet                                     
As at May 1, 2010                                                           
(In thousands of Canadian Dollars)                                          

                                       IFRS Adjustments                     
                             -----------------------------------            
                                Deferred                Deferred            
                                 gain on Share-based         tax            
                                   sale-     compen-   reclassi-            
                     Previous  leaseback      sation    fication            
                         GAAP (Note (a))  (Note (b))  (Note (c))        IFRS
----------------------------------------------------------------------------

Current Assets                                                              
  Cash and cash                                                                                                           
      equivalents                $70,732                  $-                    $-                    $-          $70,732
    Marketable                                                                                                                                
      securities                    30,096                                                                                  30,096
    Accounts                                                                                                                                    
      receivable                      4,880                                                                                    4,880
    Prepaid  expenses                698                                                                                        698
    Other  asset                      2,053                                                                                    2,053
    Deferred  income                                                                                                                      
      tax  asset                      10,930                                                        (10,930)                    -
----------------------------------------------------------------------------
                                            119,389                                                        (10,930)        108,459

Property  and                                                                                                                                
  equipment                                257                                                                                        257
Acquired                                                                                                                                        
  intangible  assets          80,685                                                                                  80,685
Deferred  income                                                                                                                          
  tax  asset                                    -              (263)                298              4,783              4,818
Investment  tax                                                                                                                            
  credits                                                                                                                                        
  receivable                        15,748                                                                                  15,748
----------------------------------------------------------------------------
                                          $216,079            $(263)              $298          $(6,147)      $209,967
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Current                                                                                                                                          
  Liabilities                                                                                                                                
    Accounts  payable                                                                                                                    
      and  accrued                                                                                                                            
      liabilities                  $7,734                  $-                $487                    $-            $8,221
    Deferred  revenue            4,611              (211)                                                            4,400
    Other  liability                  992                                                                                        992
    Current  portion                                                                                                                      
      of  other  long-                                                                                                                      
      term                                                                                                                                          
      liabilities                    8,294                                                                                    8,294
----------------------------------------------------------------------------
                                              21,631              (211)                487                                    21,907
    Deferred  gain  on                                                                                                                    
      sale-leaseback                  828              (828)                                                                    -
    Other  long-term                                                                                                                      
      liabilities                  33,132                                                                                  33,132
    Deferred  income                                                                                                                      
      tax  liability                6,147                                                          (6,147)                    -
----------------------------------------------------------------------------
                                              61,738          (1,039)                487            (6,147)          55,039
----------------------------------------------------------------------------

Shareholders'                                                                                                                              
  Equity                                                                                                                                          
    Share  capital              126,573                                                                                126,573
    Contributed                                                                                                                              
      surplus                            3,452                                        701                                      4,153
    Retained                                                                                                                                    
      earnings                        22,702                776                (890)                                  22,588
    Accumulated                                                                                                                              
      other                                                                                                                                        
      comprehensive                                                                                                                        
      income                              1,614                                                                                    1,614
----------------------------------------------------------------------------
                                            154,341                776                (189)                                154,928
----------------------------------------------------------------------------
                                          $216,079            $(263)              $298          $(6,147)      $209,967
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Reconciliation  of  Shareholders'  Equity                                                                            
As  at  October  31,  2010                                                                                                            
(In  thousands  of  Canadian  Dollars)                                                                                    

                                                                                IFRS  Adjustments                                        
                                                                  ----------------------------                              
                                                                              Deferred                                                          
                                                                                gain  on      Share-based                              
                                                                                    sale-              compen-                              
                                                  Previous          leaseback                sation                              
                                                          GAAP        (Note  (a))        (Note  (b))                      IFRS

Shareholders'                                                                                                                              
  Equity                                                                                                                                          
    Share  capital                    $126,937                                                                      $126,937
    Contributed                                                                                                                              
      surplus                                    3,366                                                  892                    4,258
    Retained  earnings                28,587                      696                (1,189)                28,094
    Accumulated  other                                                                                                                  
      comprehensive                                                                                                                        
      income                                          678                                                                                678
----------------------------------------------------------------------------
                                                  $159,568                      696                    (297)            $159,967
----------------------------------------------------------------------------
----------------------------------------------------------------------------



As  at  April  30,  2011                                                                                                                
(In  thousands  of  Canadian  Dollars)                                                                                    

                                                                                IFRS  Adjustments                                        
                                                                  ----------------------------                              
                                                                              Deferred                                                          
                                                                                gain  on      Share-based                              
                                                                                    sale-              compen-                              
                                                  Previous          leaseback              sation                                
                                                          GAAP        (Note  (a))        (Note  (b))                      IFRS
----------------------------------------------------------------------------

Shareholders'                                                                                                                              
  Equity                                                                                                                                          
    Share  capital                    $129,021                                                                      $129,021
    Contributed                                                                                                                              
      surplus                                    3,592                                                  934                    4,526
    Retained  earnings                35,905                      618                (1,088)                35,435
    Accumulated  other                                                                                                                  
      comprehensive                                                                                                                        
      income                                          848                                                                                848
----------------------------------------------------------------------------
                                                  $169,366                      618                    (154)            $169,830
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated  Statement  of  Income                                                                                        
Period  ended  October  31,  2010                                                                                              
(In  thousands  of  Canadian  Dollars)                                                                                    

                                                                              IFRS  Adjustments                                          
                                                          -----------------------------------                        
                                                                Deferred                                    Income                        
                                                                  gain  on  Share-based      Statement                        
                                                                      sale-          compen-      Reclassi-                        
                                        Previous      leaseback            sation      fications                        
                                                GAAP    (Note  (a))    (Note  (b))    (Note  (d))              IFRS  
----------------------------------------------------------------------------
Revenues                          $19,962                    $-                    $-                    $-        $19,962  
----------------------------------------------------------------------------

Operating                                                                                                                                      
  expenses                                                                                                                                      
    Patent                                                                                                                                        
      portfolio                                                                                                                                
      management                    2,248                                                                                    2,248  
    Patent                                                                                                                                        
      licensing  and                                                                                                                        
      litigation                    2,435                                        (107)                                  2,328  
    Research  and                                                                                                                            
      development                      625                                        (116)                                      509  
    General  and                                                                                                                              
      administration            1,393                                        (422)                (10)              961  
    Foreign                                                                                                                                      
      exchange                                                                                                                                  
      (gain)                              (181)                                                                                    (181)
    Share-based                                                                                                                              
      compensation                    445                                          896                                    1,341  
    Patent                                                                                                                                        
      amortization                3,380                                                                                    3,380  
    Imputed                                                                                                                                      
      interest                            747                                                                                        747  
----------------------------------------------------------------------------
                                            11,092                                          251                  (10)        11,333  
----------------------------------------------------------------------------
    Income  from                                                                                                                              
      operations                    8,870                                        (251)                  10            8,629  
    Investment                                                                                                                                
      income                                275                                                                                        275  
----------------------------------------------------------------------------
    Income  before                                                                                                                          
      income  tax                                                                                                                              
      expense  and                                                                                                                            
      discontinued                                                                                                                          
      operations                    9,145                                        (251)                  10            8,904  
    Income  tax                                                                                                                                
      expense                          2,631                                          (37)                                  2,594  
----------------------------------------------------------------------------
    Income  before                                                                                                                          
      discontinued                                                                                                                          
      operations                    6,514                                        (214)                  10            6,310  
    Discontinued                                                                                                                            
      operations                                                                                                                              
      income                                                                                                                                      
    (net  of  tax)                        50                  (40)                                        (10)                  -  
----------------------------------------------------------------------------
Net  Income                      $  6,564                $(40)            $(214)                  $-        $  6,310  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings  per                                                                                                                                
  share                                                                                                                                            

Basic  -  net                                                                                                                                  
  earnings                            $0.56                                                                                    $0.54  
Diluted  -  net                                                                                                                              
  earnings                            $0.55                                                                                    $0.53  



Consolidated  Statement  of  Comprehensive  Income                                                            
Period  ended  October  31,  2010                                                                                              
(In  thousands  of  Canadian  Dollars)                                                                                    

                                                                                  IFRS  Adjustments                                      
                                                                    ---------------------------                              
                                                                              Deferred                                                          
                                                                                gain  on      Share-based                              
                                                                                    sale-              compen-                              
                                                  Previous          leaseback                sation                              
                                                          GAAP        (Note  (a))        (Note  (b))                    IFRS  
----------------------------------------------------------------------------
Net  Income                                  $6,564                    $(40)                $(214)              $6,310  

Other  comprehensive                                                                                                                  
  income,  net  tax                                                                                                                        
Gains  (losses)  on                                                                                                                      
  derivatives                                                                                                                                
  designated  as  cash                                                                                                                  
  flow  hedges                                    240                                                                              240  
Gains  (losses)  on                                                                                                                      
  derivatives                                                                                                                                
  designated  as  cash                                                                                                                  
  flow  hedges  in                                                                                                                          
  prior  periods                                                                                                                            
  transferred  to                                                                                                                          
  earnings  in  the                                                                                                                        
  current  period                            (303)                                                                          (303)
----------------------------------------------------------------------------
Other  comprehensive                                                                                                                  
  income  (loss)                                (63)                                                                            (63)
----------------------------------------------------------------------------
Comprehensive  income              $6,501                    $(40)                $(214)              $6,247  
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Consolidated  Statement  of  Income                                                                                        
Year  ended  April  30,  2011                                                                                                      
(In  thousands  of  Canadian  Dollars)                                                                                    

                                                                                IFRS  Adjustments                                        
                                                        -----------------------------------                          
                                                              Deferred                                    Income                          
                                                                gain  on  Share-based      Statement                          
                                                                    sale-          compen-      Reclassi-                          
                                      Previous      leaseback            sation      fications                          
                                              GAAP    (Note  (a))    (Note  (b))    (Note  (d))                IFRS  
----------------------------------------------------------------------------
Revenues                        $80,537                  $  -                  $  -                    $-          $80,537  
----------------------------------------------------------------------------

Operating                                                                                                                                      
  expenses                                                                                                                                      
    Patent                                                                                                                                        
      portfolio                                                                                                                                
      management                  9,570                                                                                      9,570  
    Patent                                                                                                                                        
      licensing  and                                                                                                                        
      litigation                13,082                                        (298)                                  12,784  
    Research  and                                                                                                                            
      development                2,974                                        (306)                                    2,668  
    General  and                                                                                                                              
      administratio                                                                                                                        
      n                                    5,798                                    (1,460)                (87)            4,251  
    Foreign                                                                                                                                      
      exchange                                                                                                                                  
      (gain)                        (1,450)                                                                                  (1,450)
    Share-based                                                                                                                              
      compensation              1,989                                      2,179                                      4,168  
    Patent                                                                                                                                        
      Amortization            13,551                                                                                    13,551  
    Imputed                                                                                                                                      
      interest                      2,906                                                                                      2,906  
----------------------------------------------------------------------------
                                          48,420                                          115                  (87)          48,448  
----------------------------------------------------------------------------
    Income  from                                                                                                                              
      operations                32,117                                        (115)                  87            32,089  
    Investment                                                                                                                                
      income                          1,345                                                                                      1,345  
----------------------------------------------------------------------------
    Income  before                                                                                                                          
      income  tax                                                                                                                              
      expense  and                                                                                                                            
      discontinued                                                                                                                          
      operations                33,462                                        (115)                  87            33,434  
    Income  tax                                                                                                                                
      expense                        8,679                                          (81)                                    8,760  
----------------------------------------------------------------------------
    Income  before                                                                                                                          
      discontinued                                                                                                                          
      operations                24,783                                        (196)                  87            24,674  
    Discontinued                                                                                                                            
      operations                                                                                                                              
      income                                                                                                                                      
    (net  of  tax)                    247                (160)                                        (87)                    -  
----------------------------------------------------------------------------
Net  Income                    $25,030              $(160)            $(196)                  $-          $24,674  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings  per                                                                                                                                
  share                                                                                                                                            

Basic  -  net                                                                                                                                  
  earnings                          $2.12                                                                                      $2.09  
Diluted  -  net                                                                                                                              
  earnings                          $2.09                                                                                      $2.06  



Consolidated  Statement  of  Comprehensive  Income                                                            
Year  ended  April  30,  2011                                                                                                      
(In  thousands  of  Canadian  Dollars)                                                                                    

                                                                                          IFRS  Adjustments                              
                                                                                -----------------------                          
                                                                                      Deferred                                                  
                                                                                        gain  on  Share-based                          
                                                                                            sale-          compen-                          
                                                              Previous      leaseback            sation                          
                                                                      GAAP    (Note  (a))    (Note  (b))                IFRS  
----------------------------------------------------------------------------
Net  Income                                            $25,030              $(160)            $(196)        $24,674  

Other  comprehensive  income,                                                                                                  
  net  tax                                                                                                                                        
Gains  (losses)  on                                                                                                                      
  derivatives  designated  as                                                                                                    
  cash  flow  hedges                                      754                                                                  754  
Gains  (losses)  on                                                                                                                      
  derivatives  designated  as                                                                                                    
  cash  flow  hedges  in  prior                                                                                                    
  periods  transferred  to                                                                                                          
  earnings  in  the  current                                                                                                        
  period                                                    (1,520)                                                          (1,520)
----------------------------------------------------------------------------
Other  comprehensive  income                                                                                                    
  (loss)                                                        (766)                                                              (766)
----------------------------------------------------------------------------
Comprehensive  income                        $24,264              $(160)            $(196)        $23,908  
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
The following discussion explains the significant differences between the Company's previous GAAP accounting policies and those applied by the Company under IFRS. IFRS policies have been retrospectively and consistently applied except where specific IFRS 1 optional and mandatory exemptions permitted an alternative treatment upon transition to IFRS for first-time adopters. The descriptive note captions below correspond to the adjustments presented in the preceding reconciliations.
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