SANTA CLARA, Calif.–(BUSINESS WIRE)–Jan. 30, 2015–
Full Year 2014 and Recent Highlights
- Recently announced collaboration with EZchip Semiconductor’s NPS family of network processors and a customized derivative of the
MoSys Bandwidth Engine® 3; - Launched LineSpeed™ 100G Low-Power Retimer;
- Established a dual-sourcing product and technology partnership with
GSI Technology ; - Introduced third-generation Bandwidth Engine architecture;
- Nearly doubled total number of IC design wins in 2014 over 2013;
- Increased IC product revenue to over 40% of total 2014 revenue; and
- Ended the year with total cash and investments of
$25.8 million .
Management Commentary
Commenting on the results,
“During the year, we continued to make progress on our product development roadmap and broadened our product offerings with the introduction of the Bandwidth Engine 3 architecture and our LineSpeed 100G Low Power Retimer for optical modules. These solutions, along with an anticipated further expansion of our LineSpeed product portfolio, will allow us to meaningfully expand our served available market in 2015. In addition, we recently announced a collaboration with EZchip intended to provide a customized version of Bandwidth Engine 3 for EZchip’s NPS family of C-programmable network processors. This significant partnership should accelerate the adoption of our Bandwidth Engine products in the marketplace. We believe it demonstrates the value that leading IC companies in our ecosystem are beginning to place on our solutions. We are currently working closely with EZchip to complete the integration and technology verification of our respective component families with the goal of sampling to customers later this year.
Mr. Perham concluded, “With our strong fourth quarter design win activity, we believe we are well positioned for growth in 2015 with solid design win traction, a robust sales funnel and an expanding product portfolio, all of which are expected to drive both additional design wins and a ramping of revenue in the second half of the year.”
Fourth Quarter Results
Total net revenue for the fourth quarter of 2014 was
Fourth quarter 2014 total revenue included product revenue of
Gross margin for the fourth quarter of 2014 was 76 percent, compared with 61 percent in the third quarter of 2014 and 78 percent for the fourth quarter of 2013. Fourth quarter gross margin reflects a higher mix of royalty and other revenue, which carry higher gross margins than IC products.
Total operating expenses on a GAAP basis for the fourth quarter of 2014 were
GAAP net loss for the fourth quarter of 2014 was
Full Year 2014 Results
Total revenue for 2014 was
A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.
Financial Results Webcast / Conference Call
Use of Non-GAAP Financial Measures
To supplement MoSys’ consolidated financial statements presented in accordance with GAAP,
Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is provided in a table 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
Forward-Looking Statements
This press release may contain forward-looking statements about the company, including, without limitation, anticipated benefits and performance expected from our IC products and the company’s future markets 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 the following:
- achieving additional IC design wins;
- commencing volume shipments of Bandwidth Engine ICs;
- the timing of customer orders and product shipments;
- our ability to enhance our existing proprietary technologies and develop new technologies;
- achieving necessary acceptance and adoption of our IC architecture and interface protocols by potential customers and their suppliers;
- difficulties and delays in the development, production, testing and marketing of our ICs;
- reliance on our manufacturing partners to assist successfully with the fabrication of our ICs;
- availability of quantities of ICs supplied by our manufacturing partners at a competitive cost;
- our lack of recent experience as a fabless semiconductor company making and selling proprietary ICs;
- 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;
- vigor and growth of markets served by our customers and our operations; and
other risks identified in the company’s most recent report on Form 10-K filed with the
About
Bandwidth Engine, GigaChip and
(Financial Tables to Follow)
| MOSYS, INC. | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| (In thousands, except per share amounts; unaudited) | |||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
| Net Revenue | |||||||||||||||||||||
| Product | $ | 287 | $ | 183 | $ | 2,280 | $ | 394 | |||||||||||||
| Royalty and other | 859 | 803 | 3,100 | 4,004 | |||||||||||||||||
| Total net revenue | 1,146 | 986 | 5,380 | 4,398 | |||||||||||||||||
| Cost of Net Revenue | |||||||||||||||||||||
| Product and other | 272 | 220 | 2,318 | 474 | |||||||||||||||||
| Total cost of net revenue | 272 | 220 | 2,318 | 474 | |||||||||||||||||
| Gross Profit | 874 | 766 | 3,062 | 3,924 | |||||||||||||||||
| Operating Expenses | |||||||||||||||||||||
| Research and development | 8,268 | 5,779 | 29,261 | 23,325 | |||||||||||||||||
| Selling, general and administrative | 1,543 | 1,483 | 6,519 | 6,161 | |||||||||||||||||
| Gain on sale of assets | – | – | – | (630 | ) | ||||||||||||||||
| Total operating expenses | 9,811 | 7,262 | 35,780 | 28,856 | |||||||||||||||||
| Loss from operations | (8,937 | ) | (6,496 | ) | (32,718 | ) | (24,932 | ) | |||||||||||||
| Other income, net | 28 | 43 | 143 | 209 | |||||||||||||||||
| Loss before income taxes | (8,909 | ) | (6,453 | ) | (32,575 | ) | (24,723 | ) | |||||||||||||
| Income tax provision | 42 | 3 | 107 | 71 | |||||||||||||||||
| Net loss | $ | (8,951 | ) | $ | (6,456 | ) | $ | (32,682 | ) | $ | (24,794 | ) | |||||||||
| Net loss per share | |||||||||||||||||||||
| Basic and diluted | ($0.18 | ) | ($0.13 | ) | ($0.66 | ) | ($0.55 | ) | |||||||||||||
| Shares used in computing net loss per share | |||||||||||||||||||||
| Basic and diluted | 49,783 | 48,543 | 49,528 | 45,246 | |||||||||||||||||
| MOSYS, INC. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands, unaudited) | ||||||||||
| December 31, | ||||||||||
| 2014 | 2013 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash, cash equivalents and investments | $ | 23,549 | $ | 36,556 | ||||||
| Accounts receivable, net | 177 | 148 | ||||||||
| Inventories | 881 | 567 | ||||||||
| Prepaid expenses and other | 887 | 1,104 | ||||||||
| Total current assets | 25,494 | 38,375 | ||||||||
| Long-term investments | 2,245 | 13,926 | ||||||||
| Property and equipment, net | 854 | 706 | ||||||||
| Goodwill | 23,134 | 23,134 | ||||||||
| Intangible assets, net | 655 | 1,655 | ||||||||
| Other assets | 244 | 193 | ||||||||
| Total assets | $ | 52,626 | $ | 77,989 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 495 | $ | 276 | ||||||
| Accrued expenses and other | 2,350 | 2,079 | ||||||||
| Total current liabilities | 2,845 | 2,355 | ||||||||
| Long-term liabilities | 241 | 216 | ||||||||
| Stockholders’ equity | 49,540 | 75,418 | ||||||||
| Total liabilities and stockholders’ equity | $ | 52,626 | $ | 77,989 | ||||||
| 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 | Twelve Months Ended | ||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
| GAAP net loss | $ | (8,951 | ) | $ | (6,456 | ) | $ | (32,682 | ) | $ | (24,794 | ) | |||||||||
| Stock-based compensation expense | |||||||||||||||||||||
| – | Cost of net revenue | – | – | – | 7 | ||||||||||||||||
| – | Research and development | 766 | 641 | 3,419 | 2,565 | ||||||||||||||||
| – | Selling, general and administrative | 229 | 257 | 1,172 | 1,126 | ||||||||||||||||
| Total stock-based compensation expense | 995 | 898 | 4,591 | 3,698 | |||||||||||||||||
| Amortization of intangible assets | 250 | 249 | 1,000 | 999 | |||||||||||||||||
| Non-GAAP net loss | $ | (7,706 | ) | $ | (5,309 | ) | $ | (27,091 | ) | $ | (20,097 | ) | |||||||||
| GAAP net loss per share | $ | (0.18 | ) | $ | (0.13 | ) | $ | (0.66 | ) | $ | (0.55 | ) | |||||||||
| Reconciling items | |||||||||||||||||||||
| – | Stock-based compensation expense | 0.02 | 0.01 | 0.09 | 0.09 | ||||||||||||||||
| – | Amortization of intangible assets | 0.01 | 0.01 | 0.02 | 0.02 | ||||||||||||||||
| Non-GAAP net loss per share: basic and diluted | $ | (0.15 | ) | $ | (0.11 | ) | $ | (0.55 | ) | $ | (0.44 | ) | |||||||||
| Shares used in computing non-GAAP net loss per share | |||||||||||||||||||||
| Basic and diluted | 49,783 | 48,543 | 49,528 | 45,246 | |||||||||||||||||
Source:
MoSys, Inc.
Jim Sullivan, CFO, +1-408-418-7500
jsullivan@mosys.com
or
Shelton Group, Investor Relations
Beverly Twing, Sr. Acct. Manager, +1-214-272-0089
btwing@sheltongroup.com
