“During the first quarter, we made further progress on the execution of several key objectives,” stated Len Perham, MoSys’ President and Chief Executive Officer. “We added a vice president of worldwide sales to our leadership team and initiated a direct sales presence in Taiwan, China and Europe in support of our current representatives already covering those regions.”
Mr. Perham continued, “As a result of recent efforts, we booked our first major order for a display driver IC macro, which is based on MoSys’ 1T-SRAM technology and designed specifically for high resolution mobile handset displays. We also successfully demonstrated our fully integrated SoC, which provides a single chip analog front end (AFE) to potential partners who intend to provide Blu-ray quality and resolution for PCs, DVD players and set top boxes. Our complex AFE enables both Blu-ray BD and HD formats and is equipped with both read and record functionality. This represents a tremendous accomplishment and it opens a new market for our technology. With regard to 1T-FLASH, we delivered our first 1T-FLASH production macro and are currently assisting the customer with the integration of 1T-FLASH into their SoC.”
“Looking forward, we remain optimistic about the Company’s future prospects, as there are significant opportunities to leverage and monetize our valuable IP. In the coming quarters, we expect to expand and improve our relationships with our customers and foundry partners, while exploring opportunities to increase our silicon content in SoCs. Additionally, we will continue to strategically invest in R&D in order to develop new technologies, particularly in Flash, as well as evaluate strategic alternatives for accelerating the growth of our business,” concluded Mr. Perham.
First Quarter Results
Total net revenue for the first quarter of 2008 was $2.8 million, compared to $2.9 million for the fourth quarter of 2007 and $3.1 million for the first quarter of 2007.
First quarter total revenue included licensing revenue of $0.4 million, compared to $0.4 million for the fourth quarter of 2007 and $1.2 million for the first quarter of 2007. Royalty revenue for the first quarter was $2.4 million, which includes royalties associated with the Nintendo Wii game console. First quarter royalty revenue compares to $2.5 million for the previous quarter and $2.0 million for the first quarter of 2007.
Gross margin as determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP) was 83 percent, compared to 72 percent for the fourth quarter of 2007 and 82 percent for the first quarter of 2007.
Total operating expenses on a GAAP basis for the first quarter were $7.7 million, which was consistent with the previous quarter and compares to $4.7 million for the first quarter of 2007.
GAAP net loss for the quarter was $4.3 million, or ($0.14) per share, including stock-based compensation expense of $1.3 million and intangible asset amortization charges of $0.2 million. This compares to a net loss of $4.6 million, or ($0.14) per share, for the fourth quarter of 2007 and a net loss of $969,000, or ($0.03) per share, for the first quarter of 2007.
The non-GAAP net loss for the first quarter was $2.8 million, or ($0.09) per share, excluding total stock-based compensation charges of $1.3 million and $0.2 million in amortization charges. A reconciliation of GAAP results to non-GAAP results is provided in the financial statement tables following the text of this press release.
Earnings per share for the quarter on both a GAAP and non-GAAP basis were computed using 31,673,000 shares.
Cash, cash equivalents and both long and short-term investments totaled
approximately $77.3 million as of March 31, 2008, compared to
approximately $78.7 million as of December 31, 2007.