Recent Highlights
- Reported first quarter total revenue of $2.6 million
- Ended quarter with total cash and investments of $62 million
- Completed the exit of the analog/mixed-signal product lines, which is expected to result in a $5.5 million annual cost savings
Management Commentary
Commenting on the Company’s first quarter financial performance, Len Perham, MoSys’ President and Chief Executive Officer, stated, “The first quarter remained challenging for MoSys due to the continued uncertainty in the macroeconomic environment as customers delayed or cancelled projects and tightly managed spending levels. During the quarter, we secured two new 1T-SRAM macro licenses, one of which we anticipate will be used in an application in a new market segment for our technology. Royalty revenue decreased from the previous quarter primarily due to the gradual transition by a major integrated device manufacturer licensee to an SoC utilizing a more advanced processing node. As a result of this transition, royalties that were previously being reported and recognized by us in the quarter in which the licensee shipped the SoCs are now being reported and recognized by us in the quarter subsequent to shipment. In response to the global economic crisis, we continued to closely manage expenses while also completing our exit from the analog/mixed-signal product lines, which contributed to a sequential decrease in total operating expenses.”
Mr. Perham continued, “In order to position the Company for future growth, we remain focused on furthering the proliferation of our proven 1T-SRAM technology, strengthening our foundry partnerships, bringing our 1T-FLASH product to market and leveraging our patented IP for the development of new products to serve an expanded available market. 1T-SRAM remains the cost effective solution of choice for designs where high-density, embedded memory is a requirement.”
First Quarter Results
Total net revenue for the first quarter of 2009 was $2.6 million, compared with $4.0 million for the fourth quarter of 2008 and $2.8 million for the first quarter of 2008.
First quarter total revenue included licensing revenue of $524,000, compared with $859,000 for the fourth quarter of 2008 and $432,000 for the first quarter of 2008. Royalty revenue for the first quarter was $2.0 million, which includes royalties associated with the Nintendo Wii game console. First quarter royalty revenue compares with $3.1 million for the previous quarter and $2.4 million for the first quarter of 2008.
Gross margin as determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP) was 87.5 percent, compared with 83.8 percent for the fourth quarter of 2008 and 83.0 percent for the first quarter of 2008.
Total operating expenses on a GAAP basis for the first quarter were $6.5 million, compared with $9.8 million for the previous quarter and $7.7 million for the first quarter of 2008.
GAAP net loss for the first quarter of 2009 was $4.1 million, or ($0.13) per share, including a restructuring charge of $275,000 and stock-based compensation expense of $447,000. This compares with a net loss of $6.3 million, or ($0.20) per share, for the fourth quarter of 2008 and a net loss of $4.3 million, or ($0.14) per share, for the first quarter of 2008.
The non-GAAP net loss for the first quarter was $3.4 million, or ($0.11) per share, excluding restructuring and stock-based compensation charges. A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.
Earnings per share for the quarter on both a GAAP and non-GAAP basis were computed using 31,322,000 shares.
Cash, cash equivalents and both long and short-term investments totaled approximately $62.0 million as of March 31, 2009, compared with approximately $67.5 million as of December 31, 2008. The decrease in cash and investments included expenditures of approximately $1.0 million related to the exit of the analog/mixed-signal product lines and approximately $0.9 million of stock repurchases.
First Quarter Financial Results Webcast / Conference Call
MoSys 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 first
quarter 2009 financial results and the business outlook. Investors and
other interested parties may access the call by dialing 888-713-4213
in the U.S. (617-213-4865 outside of the U.S.), and entering the pass
code 93024073 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 2 business days following the
call at 888-286-8010 in the U.S. (617-801-6888 outside of the U.S.),
pass code of 87854028.
