Sunnyvale, CA, January 24, 2002 – Monolithic System Technology, Inc., (“MoSys,”) (NASDAQ: MOSY) today reported financial results for its fourth quarter and year ended December 31, 2001. Net revenue for the quarter was $6.7 million, an increase of 27% over the fourth quarter of 2000. Product revenue in the quarter declined to $3.1 million from $4.7 million in the fourth quarter of 2000. Revenue from intellectual property licensing, which consists of licensing revenue and royalty revenue, exceeded revenue from the sale of stand-alone memory products. Licensing revenue for the quarter was $1.7 million, or 25% of total revenue, compared to $638,000 in the fourth quarter of 2000. Royalty revenue in the fourth quarter was $1.9 million or 28% of total revenue.
Net income in the fourth quarter of 2001 was $2.8 million, up 186% from net income of $971,000 in the fourth quarter of 2000. Net income in the quarter was equal to 41% of total revenue. Fully diluted earnings per share in the quarter were $0.09 compared to $0.04 in the prior year fourth quarter. Fully diluted fourth quarter 2001 earnings per share were computed using 31,550,000 shares.
Net revenue for 2001 was $22.5 million, an increase of 57% from the $14.3 million recorded in the year 2000. The revenue growth resulted from the successful emergence of the intellectual property licensing.
Net income in 2001 was $7.0 million, up 426% from net income of $1.3 million reported in 2000. Net income in the year was equal to 31 % of net revenue. Fully diluted earnings per share in the year were $0.25 compared to $0.05 in the prior year. Fully diluted 2001 earnings per share were computed using 28,390,000 shares.
In 2001, the Company generated net cash of $8.4 million from its operating activities and received net proceeds of $51.6 million from its IPO. Cash, cash equivalents and short-term investments totaled $84.3 million at the end of the year 2001.
Dr. Fu-Chieh Hsu, CEO of MoSys stated, “We are very pleased that our fourth quarter and year 2001 results met analysts and our expectations, in spite of the continuing difficult economic conditions for electronics manufacturers. Our 1T-SRAM® technology is proving to be very successful for our licensees who are producing high volume, high profile products that require high density embedded memories. Evidence of the success of 1T-SRAM technology is our royalty revenue, which represented 28% of total revenue, and our net income, which was equal to 41% of revenue in the fourth quarter”.
Dr. Hsu further stated, “Over the last 2 years, MoSys has demonstrated the many fundamental advantages of our 1T-SRAM technology over traditional 6T SRAM. Our licensees’ products embedding 1T-SRAM have been developed successfully, achieving better manufacturing yield and time-to-volume than traditional technologies. We are not resting on these past accomplishments, but continue to make advancements in the 1T-SRAM technology. For instance, in the fourth quarter we announced the development of a second-generation 1T-SRAM-MTM technology, which operates on very low standby power. This is in addition to the low active power operation, which was already available. We believe the 1T-SRAM-M technology is now suitable for the low stand by power requirements of cell phone handsets.
Q4 Financial Results Webcast
MoSys will host a live webcast to discuss Q4 and year 2001 financial results beginning at 2:15 P.M. (PT) on Thursday, January 24, 2002. Access to the webcast is provided in the MoSys website at http://www.mosys.com.
Founded in 1991, MoSys develops, licenses and markets innovative memory technology for semiconductors. MoSys’ patented 1T-SRAM ® technology offers a combination of high density, low power consumption, high speed and low cost unmatched by other available memory technologies. The single transistor bit cell used in 1T-SRAM technology results in the technology achieving much higher density than traditional four or six transistor SRAMs while using the same standard logic manufacturing processes. 1T-SRAM technology also offers the familiar, refresh-free interface and high performance for random address access cycles associated with traditional SRAMs. In addition, this technology can reduce operating power consumption by a factor of four compared with traditional SRAM technology, contributing to making it an ideal technology for embedding large memories in System on Chip (SoC) designs. 1T-SRAM technology is in volume production both in SoC products at MoSys’ licensees as well as in MoSys’ standalone memories. MoSys is headquartered at 1020 Stewart Drive, Sunnyvale, California 94085. More information is available on MoSys’ website at http://www.mosys.com.
Forward Looking Statements
This press release may contain forward-looking statements about the Company including, without limitation, benefits and performance expected from use of our 1T-SRAM® technology.
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 technology, proving our technology in high-volume production of licensees’ integrated circuits, the level of commercial success of licensees’ products such as the Nintendo GAMECUBE and cell phone hand sets, ease of integration of our 1T-SRAM with other semiconductor functions, 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 vigor and growth of markets served by our licensees and customers, and other risks identified in MoSys’ final Prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(1) on June 28, 2001, 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.
1T-SRAM is a MoSys trademark registered in the U.S. Patent and Trademark Office.