SANTA CLARA, Calif. — (BUSINESS WIRE) — July 19, 2013 — MoSys, Inc., (NASDAQ: MOSY), a leader in semiconductor solutions that enable fast, intelligent data access for network and communications systems, today reported financial results for the second quarter ended June 30, 2013.
Second Quarter and Recent Highlights
- Secured multiple new design wins for Bandwidth Engine® and LineSpeed™ integrated circuits (ICs);
- Shipped prototype quantities of Bandwidth Engine 2 and initial samples of LineSpeed Gearbox ICs;
- Announced second product in the LineSpeed family, the 100G Quad Retimer;
- Obtained net proceeds of $27.7 million from underwritten public offering of common stock; and
- Ended the quarter with total cash and investments of $58.9 million.
“During the quarter, we continued to build sales and design win momentum, securing multiple new design wins for our Bandwidth Engine products,” commented Len Perham, MoSys’ President and Chief Executive Officer. “I was pleased with our win rate during the quarter, especially with new customers. After further testing and characterization, Bandwidth Engine 2 continues to meet or exceed specifications, and we made initial shipments to our customers.
“The addition of the LineSpeed family of single-chip PHY ICs to our product offerings complements our Bandwidth Engine products for next generation networking and communications systems and provides MoSys with a significantly expanded market opportunity. We recently achieved our first design engagements for Gearbox ICs in two high-performance line card applications. Although the majority of activity has been for our 100G Multi-Mode Gearbox, our recently released 100G Quad Retimer has also been well-received. The LineSpeed devices represent a growing percentage of our sales activity, which is a strong testament to the considerable importance of these functions to future system design requirements, the quality and capabilities of our technology, and the tireless efforts of our sales and marketing teams.
“In summary, I am pleased with the level of activity, both internally and externally, as we continue to make notable progress toward becoming a viable fabless semiconductor company. We have grown our sales pipeline for both the Bandwidth Engine and LineSpeed products and have multiple prospective customers advancing in the decision process. With the recent infusion of capital from our public offering, we are well positioned to expedite new product development and further our sales activities in order to drive additional design wins and future revenue.”
Second Quarter Results
Total net revenue for the second quarter of 2013 was $1.1 million, compared with $1.3 million reported in the first quarter of 2013 and $1.7 million in the second quarter of 2012.
Second quarter 2013 total revenue included licensing and other revenue of $0.1 million, consistent with the previous quarter and compared with $0.6 million in the second quarter of 2012. Revenue attributable to shipments of integrated circuits is included in licensing and other revenue. Second quarter 2013 royalty revenue was $1.0 million, compared with $1.1 million in both the previous quarter and the second quarter of 2012.
Gross margin for the second quarter of 2013 was 93 percent, compared with 99 percent in the first quarter of 2013 and 90 percent for the second quarter of 2012.
Total operating expenses on a GAAP basis for the second quarter of 2013 were $7.4 million, compared with $6.3 million in the previous quarter and $8.1 million for the second quarter of 2012. Second quarter 2013 operating expenses included $0.3 million of amortization of intangible assets and $1.0 million in stock-based compensation expense.
GAAP net loss for the second quarter of 2013 was $6.4 million, or ($0.15) per share, compared with a net loss of $5.0 million, or ($0.12) per share, in the previous quarter and a net loss of $6.6 million, or ($0.17) per share, for the second quarter of 2012. The non-GAAP net loss for the second quarter of 2013 was $5.2 million, or ($0.12) per share, which excludes amortization of intangible assets and stock-based compensation expense. Earnings per share for the second quarter of 2013 were computed using approximately 43.9 million weighted shares on a GAAP and non-GAAP basis. A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.
As of June 30, 2013, cash and investments totaled $58.9 million, which included approximately $27.7 million in net cash proceeds received from the Company’s May 2013 public offering of common stock.
The Company also announced, in accordance with NASDAQ Listing Rule
5635(c)(4), as a material inducement to the hiring of five new
employees, it has granted or offered to grant stock options for a total
of 136,000 shares of common stock. Inducement option grants have an
exercise price equal to the closing price of the Company’s common stock
on the NASDAQ market on the grant date, and vest over four years and
expire in ten years, assuming continued service.