SANTA CLARA, Calif. — (BUSINESS WIRE) — July 22, 2015 — MoSys (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, 2015.
Second Quarter and Recent Highlights
- More than doubled IC revenue sequentially as early customer production ramps begin;
- Secured a new Bandwidth Engine® design win with existing Tier One customer in a new application;
- Expanded both our customer and application base with multiple wins at the data center edge; and
- Ended the quarter with total cash and investments of $35.3 million.
"Our second quarter reflected continuing progress as IC revenue more than doubled over the previous quarter and backlog increased, while we fulfilled early production orders for the initial ramping of our first Bandwidth Engine 2 programs," commented Len Perham, president and CEO of MoSys. "We expect our IC revenues to continue to increase in the coming quarters, as our broader design win base begins to cycle into production.
"Also, during the quarter, we further increased our design win count, which reflects the continued expansion of our Bandwidth Engine customer base. Additionally, the Bandwidth Engine application footprint is expanding, as demonstrated by our design wins in both the router and switch space, as well as at the edge of the data center. We are gratified by the amount of activity in our sales funnel at present. The goal to double design wins year over year remains achievable from our current vantage point."
Mr. Perham continued, "I am pleased to report that the Bandwidth Engine 3 tape out is imminent. Most importantly, we remain closely aligned with the development schedules of our NPU partner, EZchip Semiconductor, our Bandwidth Engine 3 alpha customers, and our FPGA partners. We also made further progress with the sampling of our latest LineSpeed™ 100G PHY ICs and expect to release several new products and secure additional design wins over the next few quarters. With our strong global sales efforts, robust pipeline and active collaboration with strategic partners, I believe we are well positioned for growth in the coming quarters."
Second Quarter Results
Total net revenue for the second quarter of 2015 was $1.0 million, compared with $0.8 million reported in the first quarter of 2015 and $1.8 million in the second quarter of 2014.
Second quarter 2015 total revenue included product revenue of $0.5 million as compared with $0.2 million in the first quarter of 2015 and $1.0 million in the year ago period. Royalty and other revenue for the second quarter of 2015 was $0.5 million, as compared with $0.6 million in the previous quarter and $0.8 million in the second quarter of 2014.
Gross margin for the second quarter of 2015 was 43 percent, compared with 69 percent in the first quarter of 2015 and 42 percent for the second quarter of 2014.
Total operating expenses on a GAAP basis for the second quarter of 2015 were $7.3 million, compared with $8.5 million in the previous quarter and $7.9 million for the second quarter of 2014. Second quarter 2015 operating expenses included $0.8 million in amortization of intangible assets and stock-based compensation expense.
GAAP net loss for the second quarter of 2015 was $6.9 million, or ($0.11) per share, compared with a net loss of $8.0 million, or ($0.15) per share, in the previous quarter and a net loss of $7.2 million, or ($0.14) per share, for the second quarter of 2014. Non-GAAP net loss for the second quarter of 2015 was $6.1 million, or ($0.09) per share, which excludes amortization of intangible assets and stock-based compensation expense. Earnings per share for the second quarter of 2015 were computed using approximately 64.7 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.
Financial Results Webcast / Conference Call
MoSys will host a conference call and webcast with investors today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the second quarter financial results. Investors and other interested parties may access the call by dialing 1-855-779-0042 in the U.S. (1-631-485-4856 outside of the U.S.), and entering the pass code 78127823 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 1-855-859-2056 in the U.S. (1-404-537-3406 outside of the U.S.), pass code of 78127823.
Use of Non-GAAP Financial Measures