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 income statement the effects of restructuring and asset impairment charges related to the Company’s exit from its analog/mixed-signal product lines, stock-based compensation and the effects of certain charges related to acquired intangible assets and other acquisition-related charges. 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 April 28, 2009, 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 and 1T-FLASH technologies, the Company’s execution and results, improving operational efficiencies, growth of the business and future business prospects and the estimated cost savings from restructuring plans.
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 proprietary technologies for 1T-SRAM and 1T-FLASH, the timing and nature of the license agreements to be entered into 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 proprietary technologies, our ability to enhance our existing proprietary technologies and 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 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.
Founded in 1991, MoSys (NASDAQ: MOSY), develops, markets and licenses innovative embedded memory intellectual property (IP) technologies for advanced systems-on-chips (SoCs) used in a variety of home entertainment, mobile consumer, networking and storage applications. MoSys' patented 1T-SRAM and 1T-FLASH technologies offer a combination of high density, low power consumption, high speed and low cost unmatched by other available memory technologies. MoSys' embedded memory IP has been included in more than 175 million devices demonstrating silicon-proven manufacturability in a wide range of processes and applications. MoSys is headquartered at 755 N. Mathilda Avenue, Sunnyvale, California 94085. More information is available on MoSys' website at http://www.mosys.com.
MoSys and 1T-SRAM are registered trademarks of MoSys, Inc. 1T-FLASH(TM) is a trademark of MoSys, Inc.
| MOSYS, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In thousands, except per share amounts; unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2009 | 2008 | |||||||
| Net Revenue | ||||||||
| Licensing | $ | 524 | $ | 432 | ||||
| Royalty | 2,042 | 2,385 | ||||||
| Total net revenue | 2,566 | 2,817 | ||||||
| Cost of Net Revenue | ||||||||
| Licensing | 320 | 480 | ||||||
| Total cost of net revenue | 320 | 480 | ||||||
| Gross Profit | 2,246 | 2,337 | ||||||
| Operating Expenses | ||||||||
| Research and development | 3,829 | 4,099 | ||||||
| Selling, general and administrative | 2,417 | 3,356 | ||||||
| Restructuring charge | 275 | - | ||||||
| Amortization of intangible assets | - | 197 | ||||||
| Total operating expenses | 6,521 | 7,652 | ||||||
| Loss from operations | (4,275 | ) | (5,315 | ) | ||||
| Other income, net | 203 | 1,074 | ||||||
| Loss before income taxes | (4,072 | ) | (4,241 | ) | ||||
| Provision for income taxes | (7 | ) | (43 | ) | ||||
| Net loss | $ | (4,079 | ) | $ | (4,284 | ) | ||
| Net loss per share | ||||||||
| Basic and diluted | ($0.13 | ) | ($0.14 | ) | ||||
| Shares used in computing net loss per share | ||||||||
| Basic and diluted | 31,322 | 31,673 | ||||||
