SUNNYVALE, Calif.—(BUSINESS WIRE)—February 12, 2008—
MoSys, Inc., (NASDAQ:
MOSY), a leading provider of high-density
system-on-chip (SoC) memory and analog/mixed-signal intellectual
property (IP), today reported financial results for its fourth quarter
and fiscal year ended December 31, 2007.
Recent Highlights
-- Announced Len Perham as President and CEO - Semiconductor
Industry Veteran, Chairman of the Board of NetLogic
Microsystems and former CEO of Integrated Device Technology
-- Appointed Jim Sullivan as Vice President and CFO
-- Total fiscal year revenue of $14.3 million
-- Increased total royalty revenue for fiscal 2007 by 56 percent
year-over-year
-- Cash position of $78.7 million as of December 31, 2007
-- Completed the acquisition from Atmel Corporation of the
analog/mixed-signal design teams in China and Romania and
their extensive and related design know-how
Management Commentary
"Before I joined MoSys, I assessed all aspects of the Company, and
as a result of this evaluation, I believe MoSys is a viable, long-term
business with a very valuable IP portfolio and significant growth
potential," stated Len Perham, MoSys' President and Chief Executive
Officer. "In order to exploit our opportunities, my short-term focus
is on reorganizing the Company and building a world-class leadership
team. Filling several key positions will allow us to move quickly and
efficiently to apply our IP-rich solutions to the system-level
challenges our customers face as they bring next-generation solutions
to the markets they serve. As part of this effort, we are focused on
enhancing our sales force to have a stronger presence in all regions
that have customers with applications for our IP. As we reorganize and
refocus on better supporting our customers, we will be closely
managing costs relative to the revenues generated in order to always
bring incrementally more value to our stockholders. Both our current
IP and the expertise in applying this IP lead me to believe the
prospects for the Company are exciting. I am optimistic about our
future business prospects and look forward to reporting on our
progress."
Fourth Quarter Results
Total net revenue for the fourth quarter of 2007 was $2.9 million,
compared to $4.0 million for the third quarter of 2007 and $5.0
million for the fourth quarter of 2006.
Fourth quarter total revenue included licensing revenue of $0.4
million, compared to $1.5 million for the third quarter of 2007 and
$1.8 million for the fourth quarter of 2006. Royalty revenue for the
fourth quarter was $2.5 million, compared to $2.4 million for the
previous quarter and $3.2 million for the fourth quarter of 2006.
Gross margin for the fourth quarter of 2007, as determined in
accordance with U.S. Generally Accepted Accounting Principles (GAAP)
was 72 percent, compared to 83 percent for the third quarter of 2007
and 88 percent for the fourth quarter of 2006.
Total operating expenses on a GAAP basis for the fourth quarter
were $7.7 million, compared to $7.3 million for the previous quarter
and $4.6 million for the fourth quarter of 2006.
GAAP net loss for the quarter was $4.6 million, or ($0.14) per
share, including stock-based compensation expense of $1.2 million and
intangible asset amortization charges of $0.2 million. This compares
to a net loss of $2.8 million, or ($0.09) per share, for the third
quarter of 2007 and net income of $567,000, or $0.02 per diluted
share, for the fourth quarter of 2006. Earnings per share for the
quarter on a GAAP basis were computed using 32,117,000 shares.
The non-GAAP net loss for the fourth quarter was $3.2 million, or
($0.10) per share, excluding total stock-based compensation charges of
$1.2 million and $0.2 million in amortization charges. Earnings per
share for the quarter on a non-GAAP basis were also computed using
32,117,000 shares. A reconciliation of GAAP results to non-GAAP
results is provided in the financial statement tables following the
text of this press release.
Cash, cash equivalents and both long and short-term investments
totaled approximately $78.7 million as of December 31, 2007, compared
to approximately $85.6 million as of September 30, 2007. Under its
stock repurchase program, the Company used $4.4 million of cash to
repurchase common stock during the quarter.
Fiscal 2007 Results
Total revenue for 2007 was $14.3 million, compared to $14.9
million for fiscal 2006. Net loss for the year, in accordance with
GAAP, was $8.5 million, or ($0.27) per share, compared to a net loss
of $5.3 million, or ($0.17) per share, for 2006. The non-GAAP net loss
for fiscal year 2007 was $3.4 million, or a loss of ($0.11) per share,
excluding total stock-based compensation charges of $3.8 million and
approximately $1.4 million in intangible asset amortization and
in-process research and development charges. Non-GAAP net loss for
2006 was $2.6 million, or ($0.08) per share, excluding total
stock-based compensation charges of $2.7 million. Earnings per share
for 2007 were computed using 31,994,000 shares on a GAAP and non-GAAP
basis.
The Company's Chief Executive Officer and Chief Financial Officer
will comment on the fourth quarter and fiscal year during the
Company's financial results conference call today, February 12, 2008,
at 1:30 p.m. (PT).
Fourth Quarter and Fiscal 2007 Financial Results Webcast /
Conference Call
MoSys management will host a conference call and webcast with
investors today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) to
discuss the fourth quarter and fiscal 2007 financial results and the
business outlook. Investors and other interested parties may access
the call by dialing 888-713-4209 in the U.S. (617-213-4863 outside of
the U.S.), and entering the passcode 54764928 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
www.mosys.com A
telephone replay will be available for 48 hours following the call at
888-286-8010 in the U.S. (617-801-6888 outside of the U.S.), passcode
of 97764044.
One may also pre-register their attendance for the conference
call, which will enable immediate entry into the call. To pre-register
please go to:
https://www.theconferencingservice.com/prereg/key.process?key=
PDPCV7TYF
(Due to its length, this URL may need to be copied/pasted into
your Internet browser's address field.)
Use of Non-GAAP Financial Measures
To supplement MoSys' consolidated financial statements presented
in accordance with GAAP (U.S. Generally Accepted Accounting
Principles), MoSys uses non-GAAP financial measures that exclude from
the income statement the effects of stock-based compensation and the
effects of certain charges related to acquired intangible assets and
other acquisition-related charges from its acquisition of the
analog/mixed-signal design teams and their extensive related design
know-how from Atmel Corporation in 2007. 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 believes that the presentation
of non-GAAP financial measures that exclude these items is useful to
investors because MoSys 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 immediately 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 12, 2008, 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 1T-SRAM, 1T-FLASH and
analog/mixed-signal technologies, the Company's execution and results,
improving operational efficiencies, growth of the business 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, customer acceptance of our 1T-SRAM, 1T-FLASH
or analog/mixed-signal technologies, the timing and nature of the
license agreements being signed with our customers and their requests
for our services under existing license agreements, the timing of
customer acceptance of our work under such agreements, the level of
commercial success of licensees' products, ease of manufacturing and
yields of devices incorporating our 1T-SRAM, our ability to enhance
the 1T-SRAM technology or develop new technologies, the 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, the vigor and growth of markets served by our licensees
and customers and operations of the Company and other risks identified
in the Company's most recent reports on forms 10-Q and 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.
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