Signed Major IDM Technology License During the Quarter; Maintains Full Year OutlookSUNNYVALE, Calif.--May 1, 2007
--MoSys, Inc. (MoSys), (Nasdaq:MOSY), the industry's leading provider of high-density system-on-chip (SoC) embedded memory intellectual property (IP) today reported financial results for its first quarter ended March 31, 2007.First Quarter Highlights
Total revenue for the first quarter of 2007 was $3.1 million, compared to $5.0 million in the fourth quarter of 2006 and $3.5 million in the first quarter of 2006. Total revenue was lower than the previously stated guidance of $4 to $5 million primarily due to the deferral of the majority of the revenue associated with a major IDM technology license secured during the first quarter of 2007.
"During the first quarter, we signed another major IDM technology license agreement as anticipated," stated Chet Silvestri, CEO of MoSys, Inc. "However, the revenue associated with this closed contract is being recognized on a percent of completion basis over the next several quarters, due to the bundling of engineering services within the agreement. While royalty revenue met expectations, deferral of revenue from this signed technology agreement caused our licensing revenue to fall short of expectations."
Mr. Silvestri further stated, "We have good licensing visibility for the second quarter and the remainder of the year and anticipate continued growth in our quarterly royalties. We have already signed another major technology license agreement in the beginning of the second quarter and have a strong pipeline of deals. We therefore are maintaining our previously stated full year 2007 revenue guidance in the range of $23 to $27 million and expect Q2 revenue guidance in the range of $5 to $6 million."
First quarter total revenue included $1.1 million of licensing revenue as compared to $1.8 million in the fourth quarter of 2006 and $2.3 million in the first quarter of 2006. Royalty revenue was $2.0 million as expected. This compared to $3.2 million in the previous quarter and $1.2 million in the same period a year ago. The Company recorded licensing revenue from 12 different chip development projects and royalty revenue from 16 different licensees, which was comparable to the previous quarter.
During the quarter, MoSys announced an agreement with Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), whereby TSMC will develop and market eDRAM technology incorporating MoSys' patented 1T-SRAM(R) embedded memory intellectual property (IP) at 90nm, 65nm and future advanced process geometries. Additionally, MoSys announced an agreement with China's leading foundry, Semiconductor Manufacturing International Corporation (SMIC), to jointly productize MoSys' new high-density, embedded flash memory IP.
The Company also announced the availability of new memory macros specifically configured for mobile handset and other consumer liquid crystal displays. The 1T-SRAM dual-port display macros are the first application-optimized memory built on the Company's technology platform. MoSys also reported that initial customers in the high-volume consumer handset market were entering the production phase.
"We are very pleased with the strong customer interest that we are receiving for our first application-specific memory solution. Our dual port display macros offer a unique value in their ability to meet the critical form factor requirement of these LCD chips while at the same time offering the low power and low cost features of our 1T-SRAM technology," stated Chet Silvestri.
The first quarter gross margin percentage determined in accordance with U.S. generally accepted accounting principles, or GAAP, was 82 percent, compared to 88 percent in the fourth quarter of 2006 and 90 percent in the first quarter of 2006. The sequential decrease in total gross margin for the first quarter of 2007 was due to higher costs associated with product deliverables accounted for under the percentage of completion method.
Total operating expenses were $4.7 million as compared to $4.6 million in the fourth quarter of 2006.
GAAP net loss for the quarter was $969,000, or ($0.03) per share, including stock-based compensation charges of $886,000. This compares to net income of $567,000, or $0.02 fully diluted per share, in the fourth quarter of 2006 and a net loss of $974,000, or ($0.03) per share, in the first quarter of 2006. Earnings per share for the quarter on a GAAP basis were computed using 31,689,000 shares.
The non-GAAP net loss for the first quarter of 2007, which excludes the total stock-based compensation charges of $886,000, was $83,000, or ($0.00) per share. Loss per share for the quarter on a non-GAAP basis also was computed using 31,689,000 shares. A reconciliation of GAAP results to non-GAAP results is 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 $86.2 million as of March 31, 2007, up from approximately $84.3 million as of December 31, 2006 primarily due to the collection of receivables.Business Outlook for Fiscal 2007
The Company's Chief Executive Officer and Chief Financial Officer will provide additional financial details on its business outlook during their conference call at 1:30 p.m. (PT) on Tuesday, May 1, 2007.First Quarter 2007 Financial Results Webcast/Conference Call
MoSys management will host a conference call and webcast with investors today, May 1, 2007, at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) to discuss the first quarter 2007 financial results and the business outlook. Investors and other interested parties may access the call by dialing 1-800-299-7098 in the U.S. (1-617-801-9715) outside of the U.S.), and entering the passcode 27921763 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 http://www.mosys.com. A telephonic replay will be available for 48 hours following the call at 888-286-8010 in the U.S. (617-801-6888 outside of the U.S.), passcode of 10379466.Financial tables
to read financial tablesABOUT 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 four or 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