MoSys, Inc. Reports Second Quarter 2011 Financial Results

SANTA CLARA, Calif., Jul 22, 2011  -- MoSys, Inc., (NASDAQ: MOSY), a leading provider of serial chip-to-chip communications solutions that deliver unparalleled bandwidth performance for next generation networking systems and advanced system-on-chip (SoC) designs, today reported financial results for the second quarter ended June 30, 2011.

Second Quarter 2011 Highlights

• Reported total revenue of $3.3 million;
• Ended the quarter with total cash and investments of approximately $31.3 million;
• Completed full verification of first Bandwidth Engine ® integrated circuit (IC); and
• Announced the appointment of Thomas Riordan as Chief Operating Officer.

Management Commentary

"During the second quarter, we continued to make progress toward the full production release of our Bandwidth Engine family of ICs," said Len Perham, MoSys' President and Chief Executive Officer. "As part of these efforts, we completed the full chip verification process and continued sampling and evaluation activity with various network equipment suppliers. Also, during the quarter, we took steps to expand our sales and marketing channels by adding applications-rich sales representation firms in the eastern U.S. and in China to further support adoption of our Bandwidth Engine IC in these markets. Our efforts over the past six months have kept us on track for the completion of one of our most important goals; that is, securing design wins with our key customers and partners by year-end 2011.

"In addition to our progress merchandising the Bandwidth Engine IC family, we had a solid first half of the year in our IP business, highlighted by securing five new customers and significantly increasing our SerDes licensing activity over the first half of 2010. We remain optimistic that we can achieve our bookings targets in the second half of the year, supported by a strong pipeline of new and follow-on projects, particularly for our 28 nanometer multi-protocol SerDes IP. Lastly, we have strengthened our operational capabilities with the recent addition of Tom Riordan as Chief Operating Officer. Tom has a wealth of operational and leadership experience in the semiconductor industry and will be responsible for engineering, product development and operations. We are pleased to have him join our management team and look forward to his contributions."

Second Quarter Results

Total net revenue for the second quarter of 2011 was $3.3 million, compared with $3.5 million reported in the first quarter of 2011 and $4.3 million in the second quarter of 2010.

Second quarter 2011 total revenue included licensing revenue of $1.2 million, compared with $1.3 million for the previous quarter and $2.0 million for the second quarter of 2010. Second quarter 2011 royalty revenue was $2.1 million, compared with $2.2 million in the previous quarter and $2.3 million for the second quarter of 2010.

Gross margin for the second quarter of 2011 was 86 percent, compared with 81 percent in the first quarter of 2011 and 87 percent for the second quarter of 2010.

Total operating expenses on a GAAP basis for the second quarter of 2011 were $8.5 million, compared with $8.9 million in the previous quarter and $9.2 million for the second quarter of 2010. Second quarter 2011 operating expenses included $0.7 million of amortization of intangible assets and $0.8 million of stock-based compensation expense.

GAAP net loss for the second quarter of 2011 was $5.7 million, or ($0.15) per share, compared with a net loss of $6.0 million, or ($0.16) per share, in the previous quarter and a net loss of $5.4 million, or ($0.17) per share, for the second quarter of 2010. The non-GAAP net loss for the second quarter of 2011 was $4.2 million, or ($0.11) per share, which excludes amortization of intangible assets and stock-based compensation expense. Earnings per share for the second quarter of 2011 were computed using approximately 37.7 million 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.

Financial Tables

To read financial tables, click here

Financial Results Webcast / Conference Call

MoSys will host a conference call and webcast with investors today at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) to discuss the second quarter 2011 financial results and the business outlook. Investors and other interested parties may access the call by dialing 1-866-800-8651 in the U.S. (1-617-614-2704) outside of the U.S.), and entering the pass code 66316848 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 telephone replay will be available for two business days following the call at 888-286-8010 in the U.S. (617-801-6888 outside of the U.S.), pass code of 21724849.

About MoSys, Inc.

MoSys, Inc. (NASDAQ: MOSY) is a leading provider of serial chip-to-chip communications solutions that deliver unparalleled bandwidth performance for next generation networking systems. MoSys' Bandwidth Engine ® family of ICs combines the company's patented 1T-SRAM® high-density memory with its high-speed interface technology. MoSys' IP portfolio includes silicon proven SerDes and DDR3 PHYs that support a wide range of data rates across a variety of standards and 1T-SRAM memory cores that provide a combination of high-density, low-power consumption, high-speed and low cost advantages for high-performance networking, computing, storage and consumer/graphics applications. MoSys is headquartered in Santa Clara, California. More information is available on MoSys' website at http://www.mosys.com.