SUNNYVALE, Calif.–(BUSINESS WIRE)–April 29, 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 first quarter ended March 31, 2008.

Recent Highlights

  • Reported first quarter total revenue of $2.8 million

  • Increased year-over-year royalty revenue by 21 percent

  • Cash and investments balance of $77.3 million

  • Booked first major order for MoSys’ display driver IC macro

  • Delivered first 1T-FLASH production macro

  • Demonstrated fully functional Blu-ray analog system-on-chip
    (SoC)

  • Appointed Didier LaCroix as Vice President of Worldwide Sales

Management Commentary

“During the first quarter, we made further progress on the
execution of several key objectives,” stated Len Perham, MoSys’
President and Chief Executive Officer. “We added a vice president of
worldwide sales to our leadership team and initiated a direct sales
presence in Taiwan, China and Europe in support of our current
representatives already covering those regions.”

Mr. Perham continued, “As a result of recent efforts, we booked
our first major order for a display driver IC macro, which is based on
MoSys’ 1T-SRAM technology and designed specifically for high
resolution mobile handset displays. We also successfully demonstrated
our fully integrated SoC, which provides a single chip analog front
end (AFE) to potential partners who intend to provide Blu-ray quality
and resolution for PCs, DVD players and set top boxes. Our complex AFE
enables both Blu-ray BD and HD formats and is equipped with both read
and record functionality. This represents a tremendous accomplishment
and it opens a new market for our technology. With regard to 1T-FLASH,
we delivered our first 1T-FLASH production macro and are currently
assisting the customer with the integration of 1T-FLASH into their
SoC.”

“Looking forward, we remain optimistic about the Company’s future
prospects, as there are significant opportunities to leverage and
monetize our valuable IP. In the coming quarters, we expect to expand
and improve our relationships with our customers and foundry partners,
while exploring opportunities to increase our silicon content in SoCs.
Additionally, we will continue to strategically invest in R&D in order
to develop new technologies, particularly in Flash, as well as
evaluate strategic alternatives for accelerating the growth of our
business,” concluded Mr. Perham.

First Quarter Results

Total net revenue for the first quarter of 2008 was $2.8 million,
compared to $2.9 million for the fourth quarter of 2007 and $3.1
million for the first quarter of 2007.

First quarter total revenue included licensing revenue of $0.4
million, compared to $0.4 million for the fourth quarter of 2007 and
$1.2 million for the first quarter of 2007. Royalty revenue for the
first quarter was $2.4 million, which includes royalties associated
with the Nintendo Wii game console. First quarter royalty revenue
compares to $2.5 million for the previous quarter and $2.0 million for
the first quarter of 2007.

Gross margin as determined in accordance with U.S. Generally
Accepted Accounting Principles (GAAP) was 83 percent, compared to 72
percent for the fourth quarter of 2007 and 82 percent for the first
quarter of 2007.

Total operating expenses on a GAAP basis for the first quarter
were $7.7 million, which was consistent with the previous quarter and
compares to $4.7 million for the first quarter of 2007.

GAAP net loss for the quarter was $4.3 million, or ($0.14) per
share, including stock-based compensation expense of $1.3 million and
intangible asset amortization charges of $0.2 million. This compares
to a net loss of $4.6 million, or ($0.14) per share, for the fourth
quarter of 2007 and a net loss of $969,000, or ($0.03) per share, for
the first quarter of 2007.

The non-GAAP net loss for the first quarter was $2.8 million, or
($0.09) per share, excluding total stock-based compensation charges of
$1.3 million and $0.2 million in amortization 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 31,673,000 shares.

Cash, cash equivalents and both long and short-term investments
totaled approximately $77.3 million as of March 31, 2008, compared to
approximately $78.7 million as of December 31, 2007.

Business Outlook

Len Perham, CEO, and Jim Sullivan, CFO, will comment on the first
quarter during the Company’s financial results conference call today,
April 29, 2008, at 1:30 p.m. (PT).

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 2008 financial results and the business outlook.
Investors and other interested parties may access the call by dialing
888-680-0860 in the U.S. (617-213-4852 outside of the U.S.), and
entering the passcode 47922430 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 https://dev-mosys-web-04-19.pantheonsite.io. 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.), passcode of 51276179.

One may also pre-register their attendance for the conference
call, which will enable immediate entry into the call. To pre-register
and secure your unique PIN please go to:
https://www.theconferencingservice.com/prereg/key.process?key=
PBFBHLHV7

(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 April 29, 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 proprietary
technologies for 1T-SRAM, 1T-FLASH and analog/mixed-signal, 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 forms 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 and analog/mixed-signal
intellectual property (IP) technologies for advanced 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’
advanced analog/mixed-signal technologies include highly integrated
Blu-ray DVD, Gibabit Ethernet, Serial ATA, and a range of high speed
phase lock loop and analog-to-digital converter IP. MoSys’ embedded
memory IP has been included in more than 140 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 https://dev-mosys-web-04-19.pantheonsite.io.

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,
                                                       2008     2007
                                                     -------- --------

Net Revenue
   Licensing                                             432    1,158
   Royalty                                             2,385    1,979
                                                     -------- --------
      Total net revenue                                2,817    3,137

Cost of Net Revenue
   Licensing                                             480      564
                                                     -------- --------
      Total cost of net revenue                          480      564

Gross Profit                                           2,337    2,573

Operating Expenses
   Research and development                            4,099    2,078
   Selling, general and administrative                 3,356    2,580
   Amortization of acquired intangible assets            197        -
                                                     -------- --------
      Total operating expenses                         7,652    4,658

   Loss from operations                               (5,315)  (2,085)

   Other income/expenses                               1,074    1,064
                                                     -------- --------
      Loss before income taxes                        (4,241)  (1,021)

   Benefit (provision) for income taxes                  (43)      52
                                                     -------- --------

Net loss                                             $(4,284) $  (969)
                                                     ======== ========

Net loss per share
   Basic and diluted                                  ($0.14)  ($0.03)

Shares used in computing net loss per share
   Basic and diluted                                  31,673   31,689

                             MOSYS, INC.
  Reconciliation of GAAP to Non-GAAP Net Loss and Net Loss Per Share
         (In thousands, except per share amounts; unaudited)


                                                       Three Months
                                                           Ended
                                                         March 31,
                                                       2008     2007
                                                     -------- --------

GAAP net loss                                        $(4,284) $  (969)
   Stock-based compensation expense
      -Cost of net revenue                                80      100
      -Research and development                          373      250
      -Selling, general and administrative               813      412
                                                     -------- --------
   Total stock-based compensation expense              1,266      762

   Amortization of acquired intangible assets            197        -
                                                     -------- --------

Non-GAAP net loss                                    $(2,821) $  (207)
                                                     ======== ========

GAAP net loss per share                               ($0.14)  ($0.03)
   Reconciling items:
      -Stock-based compensation expense                 0.04     0.02
      -Amortization of acquired intangible assets       0.01        -
                                                     -------- --------

Non-GAAP net loss per share: Basic and diluted        ($0.09)  ($0.01)
                                                     ======== ========

Shares used in computing non-GAAP net loss per share
   Basic and diluted                                  31,673   31,689

                             MOSYS, INC.
          CONDENSED CONSOLIDATED BALANCE SHEETS
                      (in thousands, unaudited)

                                               March 31,  December 31,
                                                 2008         2007
                                              ----------- ------------

Assets
   Current assets:
      Cash, cash equivalents and investments   $   59,700  $    64,961
      Accounts receivable, net                      1,260          895
      Unbilled contract receivables                   260          518
      Prepaid expenses and other assets             2,141        2,393
                                              ----------- ------------
         Total current assets                      63,361       68,767

   Long-term investments                           17,569       13,693
   Property and equipment, net                      1,281        1,396
   Goodwill                                        12,326       12,326
   Intangible assets, net                           1,969        2,166
   Other assets                                       217          449
                                              ----------- ------------
         Total assets                          $   96,723  $    98,797
                                              =========== ============


Liabilities and Stockholders' Equity
   Current liabilities:
      Accounts payable                         $      478  $       146
      Accrued expenses and other liabilities        2,497        2,158
      Deferred revenue                                832          201
                                              ----------- ------------
         Total current liabilities                  3,807        2,505

   Stockholders' equity                            92,916       96,292

                                              ----------- ------------
         Total liabilities and stockholders'
          equity                               $   96,723  $    98,797
                                              =========== ============

CONTACT:
MoSys, Inc.
Jim Sullivan, CFO, 408-731-1800
jsullivan@mosys.com
or
Shelton Group, Investor Relations
Beverly Twing, 972-239-5119 ext. 126
Sr. Acct. Manager
btwing@sheltongroup.com

SOURCE: MoSys, Inc.