Gross margin for Q1 2010 was 78%, compared with 80% for Q4 2009 and 87% for Q1 2009.
GAAP net loss for Q1 2010 was $5.7 million, or ($0.18) per share, compared with a net loss of $4.9 million, or ($0.16) per share, for the previous quarter and a net loss of $4.2 million or ($0.13) per share for Q1 2009.
Cash and investments totaled $33.9 million as of March 31, 2010, compared with approximately $40.4 million as of December 31, 2009. The sequential decrease in cash and investments included cash used in operations, as well as $2.3 million in cash payments related to the acquisition of MagnaLynx.
“During the first quarter, we announced the expansion of our business model to include plans for the Bandwidth Engine family of ICs,” commented Len Perham, President and Chief Executive Officer of MoSys. “In addition to being a world-class IP provider, MoSys is developing high-performance ICs that combine our patented 1T-SRAM® high-density embedded memory and ultra high-speed 10 Gigabit per second SerDes with computational capability. We believe the Bandwidth Engine represents a breakthrough solution for developers of next-generation networking systems and high-performance computing applications. At the end of the quarter, we also announced the acquisition of MagnaLynx, which expands our engineering expertise in high-performance, low-power serial chip-to-chip communications and complements our Bandwidth Engine and next-generation IP product roadmap.”
Mr. Perham continued, “Also, during the quarter, we announced a major technology agreement with ROHM for use of our 1T-SRAM in its next-generation IC designs. Revenue from the ROHM project along with our ongoing serial interface and memory IP projects drove license revenue to the highest level since the second quarter of 2007. With several projects in the early stages of development, we expect license revenue to ramp throughout 2010 as additional delivery milestones are achieved.”
“Overall, we made significant progress on our strategic initiatives in the first quarter of 2010 and remain focused on positioning the Company for future growth by expanding our business model, market opportunities and product roadmap. In the coming quarters, we expect to further the development of our Bandwidth Engine family of ICs, while capitalizing on our serial interface and embedded memory IP in the networking, consumer and high performance computing markets,” concluded Mr. Perham.
By the way, spokespeople for MoSys said 3 months ago that the company as a matter of policy does not provide future guidance, yet these same people encouraged the writer to listen to the Q4 MoSys' webcast earnings call. Unfortunately, that recording was unavailable by the time this writer tried to access the Q4 webcast. The same was true this quarter.
On March 26, 2010 MoSys, Inc. announced that it had acquired MagnaLynx Inc. a developer of high-speed, low-power serial chip-to-chip communications technology.
The acquisition is expected by MoSys to result in the following benefits to MoSys:
- Adds innovative low-power SerDes IP, technology and expertise to the expanding MoSys family of product offerings.
- Expands MoSys' serial chip-to-chip communications technology and expertise
- Strengthens MoSys' SerDes capabilities by adding another very experienced, high caliber analog and mixed-signal development team
The total purchase price is expected to be approximately $5.0 million.
About MoSys, Inc.
MoSys, Inc. develops serial chip-to-chip communications solutions that deliver unparalleled bandwidth performance for next generation networking systems and advanced system-on-chip (SoC) designs. MoSys' IP portfolio includes DDR3 PHYs and SerDes IP that support data rates from 1 - 11 Gigabits per second (Gbps) across a variety of standards. In addition, MoSys offers its flagship, patented 1T-SRAM® and 1T-Flash® memory cores, which offer 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' IP is production-proven in more than 225 million devices. MoSys is headquartered in Sunnyvale, California. More information is available at www.mosys.com.
On April 22, 2010 Rambus Inc. (NASDAQ: RMBS), reported financial results for the first quarter of 2010, the period ending March 31, 2010.
Revenue for the first quarter of 2010 was an incredible $161.9 million, up 425% sequentially from the fourth quarter of 2009 and up 492% from the quarter a year ago, primarily due to the agreements signed with Samsung during the first quarter of 2010. (Revenue without the Samsung deal would have been $24.8 million for Q1 2010).
“The Samsung agreement was a transformational event driving record revenues this quarter,” said Harold Hughes, president and chief executive officer at Rambus, in what may become the most remarkable executive understatement of the new year. “This agreement, along with the AMD license renewal, reflects a recognition of the ongoing value of our portfolio of patented innovations and demonstrates the momentum of our licensing efforts.”
Samsung is expected to make payments to Rambus totaling approximately $900.0 million over a five-year period in connection with the settlement agreements, which include the purchase of 9.6 million shares of Rambus common stock for $200.0 million. In the first quarter of 2010, the Company received cash consideration of $425.0 million from Samsung, recognized as follows:
- Revenue of $137.1 million
- Gain from settlement of $95.9 million
- Contingently redeemable common stock and stockholders' equity of $192.0 million related to the 9.6 million of common stock issued to Samsung
Revenue and cash receipts resulting from the Samsung agreement for the first quarter of 2010 and future periods are expected to be recognized as follows (in millions):
Writer's Note: The overall impact of the settlement with Samsung makes Q1 2010 an accounting anomaly when it comes to perceiving numerical trends, and arguably may require a graduate degree in finance for readers to untangle. Nevertheless, the numbers are all presented here as reported by Rambus, comparing Q1 2010 to both Q4 2009 and Q1 2009.
After the giant impact of the Samsung deal is taken into account, Rambus reported net income for the first quarter of 2010 of $150.9 million as compared to a net loss of $23.3 million for Q4 2009 and a net loss of $17.4 million year-over-year for Q1 2009.
Diluted net income per share for Q1 2010 was $1.28 as compared to a net loss per share of $0.22 in Q4 2009 and a net loss per share of $0.17 for Q1 2009.
Comment from last Quarter on Rambus' Guidance for Q1 2010:
The following comment by this writer published last quarter turned out to be quite prescient:
“ Rambus executives gave guidance during the Rambus' Q4 2009 earnings conference call, that Rambus' revenues for the January - March 2010 quarter would be between $47 million and $51 million. Perhaps half of this would be from royalties recently won in Rambus' legal battles waged now for years to protect its Intellectual Property rights. Judging from the questions posed by investment analysts in on the earnings call, it would appear that most investors are focused on how much money Rambus can win in court battles, vs. winning in the technical market place. After all, Rambus has spent over $50 million in legal expenses in each of the last two years pursuing litigation to defend its intellectual property rights. And to Rambus' credit, the two attorneys present for Rambus during the earnings call appeared extremely competent, careful and confident, on a par with the two top management Rambus executives who participated.”
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-- Russ Henke, EDACafe.com Contributing Editor.