SUNNYVALE, Calif.--May 2, 2006-
-Monolithic System Technology, Inc. (MoSys), (Nasdaq:MOSY), the industry's leading provider of high-density system-on-chip (SoC) embedded memory, today reported financial results for its first quarter ended March 31, 2006.
- Total revenue of $3.5 million as compared to $2.4 million for the quarter ended December 31, 2005
- GAAP net loss of $974,000 or ($0.03) per share
- Non-GAAP net loss of $371,000 or ($0.01) per share as compared to a non-GAAP net loss of $1,359,000 or ($0.04) per share for the quarter ended December 31, 2005 (See table of reconciliation to GAAP net loss in supplemental information)
First Quarter Results
Total net revenue for the first quarter increased to $3.5 million, compared to $2.4 million in the fourth quarter of 2005 and $2.7 million recorded for the first quarter of 2005. Total revenue for the quarter was in line with the Company's previously announced guidance range of $3.0 million to $4.0 million.
Total revenue for the first quarter included licensing revenue of $2.3 million, compared to $1.3 million in the previous quarter and $1.2 million in the same period a year ago. Royalty revenue for the first quarter was $1.3 million, compared to $1.1 million in the fourth quarter of 2005 and $1.5 million in the first quarter of 2005. The Company recorded licensing revenue from 12 different chip development projects compared to 15 in the fourth quarter and royalty revenue from 19 different licensees compared to 17 in the previous quarter.
"We expect the average dollar amount of our licensing contracts to increase as our licensees look to us to provide larger memory size macros at advanced geometries. The number of royalty paying licensees is also trending upward as our licensees are more rapidly moving from the development phase to the production phase by utilizing our pre-configured macros to shorten their time-to-market," commented Chet Silvestri, Chief Executive Officer of MoSys.
The gross margin percentage was 90 percent in the first quarter of 2006 and the fourth quarter of 2005, and 83 percent in the first quarter of 2005. The non-GAAP gross margin percentage for the first quarter of 2006, which excludes stock-based compensation charges, was 92%.
Under generally accepted accounting principles (GAAP), total operating expenses for the first quarter were $4.6 million, which included approximately $190,000 of legal expenses related to the UniRam litigation. On a non-GAAP basis, total operating expenses for the first quarter of 2006 were $4.0 million.
Net loss for the quarter, on a GAAP basis, was $974,000 or a loss of ($0.03) per diluted share, including stock-based compensation expense under Statement of Financial Accounting Standard No. 123R (FAS 123R) of $603,000. This compares to a net loss of $1.1 million, or ($0.04) per diluted share, in the fourth quarter of 2005 and to a net loss of $1.4 million, or ($0.04) per diluted share in the first quarter of 2005.
The non-GAAP net loss for the first quarter, which excludes only these stock-based compensation charges, was $371,000, or a loss of ($0.01) per share. Per share amounts were computed using 31,022,000 shares outstanding for the quarter. A reconciliation of GAAP results to non-GAAP results has been provided in the financial statement tables following the text of this press release.
Cash, cash equivalents and both long and short-term investments totaled approximately $85.4 million as of March 31, 2006 compared to approximately $86.0 million as of December 31, 2005.
"We are pleased with the strong customer interest in our 1T-SRAM Technology and the progress we are making towards finalizing a number of 65nm agreements," commented Chet Silvestri. "The industry is moving very quickly to implement new designs in 65nm. Our high density memory technology is easily scalable to 65nm and is rapidly becoming the memory of choice for high volume consumer electronics applications."
Business Outlook for the Second Quarter of 2006
MoSys expects total revenue for the second quarter of 2006 to range from $3.5 million to $4.5 million.
Click here to read financial tables About MoSys, Inc.
Founded in 1991, MoSys (Nasdaq:MOSY), develops, licenses and markets innovative memory technologies for semiconductors. MoSys' patented 1T-SRAM technologies offer 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 memory results in the technology achieving much higher density than traditional six transistor SRAMs while using the same standard logic manufacturing processes. 1T-SRAM technologies also offer the familiar, refresh-free interface and high performance for random address access cycles associated with traditional SRAMs. In addition, these technologies can reduce operating power consumption by a factor of four compared with traditional SRAM technology, contributing to making them ideal for embedding large memories in System on Chip (SoC) designs. MoSys' licensees have shipped more than 100 million chips incorporating 1T-SRAM embedded memory technologies, demonstrating excellent manufacturability in a wide range of silicon 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.