<SEC-DOCUMENT>0001171843-16-011340.txt : 20160729
<SEC-HEADER>0001171843-16-011340.hdr.sgml : 20160729
<ACCEPTANCE-DATETIME>20160729075014
ACCESSION NUMBER:		0001171843-16-011340
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160729
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160729
DATE AS OF CHANGE:		20160729

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MoSys, Inc.
		CENTRAL INDEX KEY:			0000890394
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				770291941
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-32929
		FILM NUMBER:		161791980

	BUSINESS ADDRESS:	
		STREET 1:		3301 OLCOTT STREET
		CITY:			SANTA CLARA
		STATE:			CA
		ZIP:			95054
		BUSINESS PHONE:		408 418 7500

	MAIL ADDRESS:	
		STREET 1:		3301 OLCOTT STREET
		CITY:			SANTA CLARA
		STATE:			CA
		ZIP:			95054

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MONOLITHIC SYSTEM TECHNOLOGY INC
		DATE OF NAME CHANGE:	19960613
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_072916.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"><html><head></head><body style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><div style="margin-top: 3pt; margin-bottom: 12pt;"><div style="font-size: 1pt; border-top: Black 2.5pt solid; border-bottom: Black 1.1pt solid; width: 100%;">&#160;</div></div><p style="font-size: 14pt;" align="center"><strong>UNITED STATES</strong><br><strong>SECURITIES AND EXCHANGE COMMISSION</strong><br><strong>Washington, D.C. 20549<br></strong>______________________</p><p style="font-size: 14pt; text-transform: uppercase;" align="center"><strong>Form 8-K<br></strong>______________________</p><p style="font-size: 12pt;" align="center"><strong>CURRENT REPORT</strong></p><p style="font-size: 12pt;" align="center"><strong>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</strong></p><p align="center">Date of Report (Date of earliest event Reported): <!--July 29, 2016-->July 29, 2016 &#160;</p><p align="center"><strong style="font-size: 14pt;">MOSYS, INC.</strong><br>(Exact Name of Registrant as Specified in Charter)</p><p align="center"><strong>000-32929</strong><br>(Commission File Number)</p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td align="center" width="33%"><strong>Delaware</strong></td><td align="center" width="33%"><strong>77-0291941</strong></td></tr><tr valign="top"><td align="center" width="33%">(State or Other Jurisdiction of Incorporation)</td><td align="center" width="33%">(I.R.S. Employer Identification Number)</td></tr></table><p>&#160;</p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="bottom"><td align="center" width="50%"><strong>3301 Olcott Street<br>Santa Clara,&#160;California 95054<!--UNITED STATES --></strong></td></tr><tr valign="top"><td align="center" width="50%">(Address of principal executive offices, with zip code)</td></tr></table><p align="center"><strong>(408) 418-7500</strong><br>(Registrant's telephone number, including area code)</p><!--<p align="center"><strong>N/A</strong><br/>(Former name or former address, if changed since last report)</p>--><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td colspan="3">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<br><br></td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</td></tr><tr valign="top"><td width="21">&#160;</td><td width="40">[ &#160; ]</td><td nowrap="nowrap">&#160;&#160;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</td></tr></table><div style="margin-top: 12pt; margin-bottom: 3pt;"><div style="font-size: 1pt; border-top: Black 1.1pt solid; border-bottom: Black 2.5pt solid; width: 100%;">&#160;</div>&#160;</div><hr style="page-break-after: always;" noshade="noshade"><p>  <strong> &#160;</strong></p><p><strong>Item 2.02. Results of Operations and Financial Condition.</strong></p><p><p>On July 29, 2016, MoSys, Inc., or the Company, issued a press release announcing its financial results for the three and six months ended June 30, 2016.&#160; A copy of this press release is furnished as Exhibit 99.1 to this report. The press release should be read in conjunction with the statements regarding forward-looking statements, which are included in the text of the release.&#160;</p><p>In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (GAAP), management also presents information regarding the Company&#8217;s performance over comparable periods based on gross margin, operating expenses (research and development and sales, general and administrative), operating loss, net loss and net loss per share, exclusive of stock-based compensation, amortization of intangibles and restructuring charges related to a reduction in force in the United States and the cessation of operations at its Indian subsidiary. Because management discloses financial measures calculated without taking into account these items, these financial measures are characterized as "non-GAAP financial measures" under Securities and Exchange Commission rules. &#160;</p><p>Stock-based compensation charges represent non-cash charges related to equity awards granted by the Company. Although these are recurring charges to the Company&#8217;s operations, management believes the measurement of these amounts can vary considerably from period to period and depend substantially on factors that are not a direct consequence of operating performance that is within management&#8217;s control.&#160; Thus, management believes that excluding these charges facilitates comparisons of the Company&#8217;s operational performance in different periods, as well as with similarly determined non-GAAP financial measures of comparable companies. &#160;</p><p>Amortization of intangible assets results from the value recorded for a license the Company retained to patents sold in 2011.&#160; The amortization does not represent operating expenses ordinarily incurred by the Company with respect to its primary business activities of selling integrated circuits.&#160; Thus, these charges are excluded from the Company&#8217;s non-GAAP financial measures to provide another basis for evaluating and comparing the Company&#8217;s performance for the three and six months ended June 30, 2016.&#160;</p><p>In the first quarter of&#160;2016, the Company effected a reduction in the Company&#8217;s workforce and associated operating expenses, net loss and cash burn and to realign resources, as the Company has substantially concluded development of new products, including its third generation Bandwidth Engine IC product family, and has brought these products to market in 2016. Substantially all of these charges were paid in the first quarter of 2016.&#160;</p><p>Management and the Company&#8217;s board of directors will continue to analyze the Company's historical consolidated results of operations and comprehensive loss (revenue, gross margin, research and development expenses, selling, general and administrative expenses, operating loss, net loss and net loss per share), excluding stock-based compensation, charges for amortization of intangibles and restructuring charges described above, to assess the business and compare operating results to the Company's performance objectives. For example, the Company's budgeting and planning process utilizes these non-GAAP financial measures, along with other types of financial information.&#160;</p><p>The Company discloses these non-GAAP financial measures to the public as an additional means by which investors can assess the Company's performance and to identify the Company's operating results for investors on the same basis applied by management. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has furnished reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures in the press release furnished as Exhibit 99.1.&#160;</p><p>Moreover, although these non-GAAP financial measures adjust expense, they should not be viewed as a pro-forma presentation reflecting the elimination of the underlying share-based compensation programs, which are an important element of the Company's compensation structure. GAAP requires that all forms of share-based payments should be valued and included, as appropriate, in results of operations. Management believes these expenses are a material part of the Company's operating results.</p></p><p><strong> &#160;</strong></p><p><strong>Item 9.01. Financial Statements and Exhibits.</strong></p><p><p style="margin: 0cm; margin-bottom: .0001pt; text-align: justify; text-justify: inter-ideograph;">(d) Exhibits.</p><p style="margin: 0cm; margin-bottom: .0001pt; text-align: justify; text-justify: inter-ideograph;"><br></p><table width="526" style="font-size: 10pt;" style=""><tr><td width="121"><u><strong>Exhibit No.</strong></u></td><td width="405"><u><strong>Description</strong></u></td></tr><tr><td>&#160;</td><td>&#160;</td></tr><tr><td>99.1</td><td>Press Release by MoSys, Inc. dated July 29, 2016.</td></tr></table><div id="mceResizeHandlen" style="cursor: n-resize; margin: 0px; padding: 0px; left: 267.5px; top: 38.5px;" style=""></div><div id="mceResizeHandlee" style="cursor: e-resize; margin: 0px; padding: 0px; left: 530.5px; top: 69px;" style=""></div><div id="mceResizeHandles" style="cursor: s-resize; margin: 0px; padding: 0px; left: 267.5px; top: 99.5px;" style=""></div><div id="mceResizeHandlew" style="cursor: w-resize; margin: 0px; padding: 0px; left: 4.5px; top: 69px;" style=""></div><div id="mceResizeHandlenw" style="cursor: nw-resize; margin: 0px; padding: 0px; left: 4.5px; top: 38.5px;" style=""></div><div id="mceResizeHandlene" style="cursor: ne-resize; margin: 0px; padding: 0px; left: 530.5px; top: 38.5px;" style=""></div><div id="mceResizeHandlese" style="cursor: se-resize; margin: 0px; padding: 0px; left: 530.5px; top: 99.5px;" style=""></div><div id="mceResizeHandlesw" style="cursor: sw-resize; margin: 0px; padding: 0px; left: 4.5px; top: 99.5px;" style=""></div></p><p><p> </p><p>&#160;</p><hr style="page-break-after: always;" noshade="noshade"><p align="center"><strong>SIGNATURE</strong></p><p>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td valign="top" width="49%">&#160;</td><td style="font-size: 12pt;" colspan="2" valign="top"><strong>MOSYS, INC.</strong></td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">&#160;</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">&#160;</td></tr><tr valign="top"><td width="49%">Date:&#160;July 29, 2016</td><td width="2%">By:&#160;</td><td style="text-decoration: underline;" width="49%">/s/ James W. Sullivan&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">Name: James W. Sullivan</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">Title: Vice President of Finance and Chief Financial Officer</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%"></td></tr></table><p><p><br> </p><p align="center"><strong>EXHIBIT INDEX</strong></p>  <p align="center">&#160;</p> <table style="border-collapse: collapse; "><tr><td style="vertical-align: bottom ; "><strong><u>Exhibit No.</u></strong></td><td style="">&#160;</td><td style="vertical-align: bottom ; "><strong><u>Description</u></strong></td></tr><tr><td style="">&#160;</td><td style="">&#160;</td><td style="">&#160;</td></tr><tr><td style="">99.1</td><td style="">&#160;</td><td style="">Press Release by MoSys, Inc. dated July 29, 2016.</td></tr></table></p></body></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh_991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"><html lang="en-US"><head><title>EdgarFiling</title><meta content="text/html; charset=windows-1252"><meta name="GENERATOR" content="MSHTML 8.00.7601.18094"></head><body bgcolor="#ffffff"><p style="text-align: right;"><strong>EXHIBIT 99.1</strong></p><p style="text-align: center;"><strong>MoSys, Inc. Reports Second Quarter 2016 Financial Results</strong></p><p style="text-align: center;"><p> <p align="justify">SANTA CLARA, Calif., July  29, 2016  (GLOBE NEWSWIRE) -- MoSys, Inc.&#160;(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, 2016.<br></p>  <p align="left"><strong>Second Quarter Overview</strong></p>  <ul type="disc"><li>Increased production shipments of Bandwidth Engine&#174; ICs across customer base;</li><li>Secured multiple new design wins for Bandwidth Engine and LineSpeed&#153; products;</li><li>Recorded first Programmable Search Engine (PSE) design wins and shipped prototyping quantities to lead customer; and&#160;&#160;&#160;&#160;</li><li>Ended the quarter with total cash and investments of $16.5 million.</li></ul>  <p align="justify">&#8220;During the quarter, we continued to see our early Bandwidth Engine 2 design wins ramp toward volume production, while design win activity increased, and, we closed wins with multiple new customers,&#8221; commented Len Perham, president and CEO of MoSys. &#8220;We also made considerable progress with new products, delivering first prototype units of the new Programmable Search Engine to a lead data-center networking customer, as well as completing sample delivery and achieving interoperability with multiple customers and partners for our expanding LineSpeed Flex family.</p>  <p align="justify">&#8220;As we make progress over the coming quarters, we expect to see design wins continue ramping into production at an increasing rate. In addition to our solid traction on Bandwidth Engine 2, we expect to see a growing number of wins for our Bandwidth Engine 3, Programmable Search Engine, and LineSpeed Flex product families. Based on the progress we have made to-date, I believe we are well positioned for continued revenue growth this year and into 2017.&#8221;</p>  <p align="justify">Total net revenue for the second quarter of 2016 was $1.6 million, compared with $1.5 million in the previous quarter and $1.0 million in the second quarter of 2015. Product revenue in the second quarter of 2016 was $1.3 million, compared with $1.1 million in the previous quarter and $0.5 million in the year ago period. Royalty and other revenue for the second quarter of 2016 was $0.3 million, consistent with the previous quarter and compared with $0.5 million in the year ago period.</p>  <p align="justify">Gross margin for the second quarter of 2016 was 41 percent, consistent with the previous quarter, and compared with 43 percent for the second quarter of 2015.</p>  <p align="justify">Total operating expenses on a GAAP basis for the second quarter of 2016 were $6.5 million, compared with $7.4 million in the first quarter of 2016, and $7.3 million in the year-ago period. Second quarter 2016 operating expenses included stock-based compensation and amortization of intangible asset expenses of $0.6 million.</p>  <p align="justify">GAAP net loss for the second quarter of 2016 was $6.0 million, or ($0.09) per share, including stock-based compensation and amortization expenses. This compares with a net loss of $6.9 million, or ($0.10) per share, in the previous quarter and a net loss of $6.9 million, or ($0.11) per share, for the second quarter of 2015. Non-GAAP net loss for the second quarter of 2016 was $5.4 million, or ($0.08) per share, which excludes amortization of intangible assets and stock-based compensation expense. Earnings per share for the second quarter of 2016 was computed using approximately 66.0 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.</p>  <p align="justify"><strong>Financial Results Webcast / Conference Call</strong><br>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 2016 financial results. Investors and other interested parties may access the call by dialing <strong>1-855-779-0042 </strong>in the U.S. (or +1-631-485-4856 outside of the U.S.) and entering the pass code <strong>47743251</strong> 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. (or +1-404-537-3406 outside of the U.S.), pass code of <strong>47743251</strong>.</p>  <p align="justify"><strong>Use of Non-GAAP Financial Measures </strong><br>To supplement MoSys&#8217; consolidated financial statements presented in accordance with GAAP, MoSys uses non-GAAP financial measures that exclude from the statement of operations the effects of stock-based compensation, amortization of recorded intangible assets and restructuring charges. MoSys&#8217; management believes that the presentation of these non-GAAP financial measures is useful to investors and other interested persons because they are one of the primary indicators that MoSys&#8217; management uses for planning and forecasting future performance. MoSys&#8217; management believes that the presentation of non-GAAP financial measures that exclude these items is useful to investors because management does not consider these charges part of the day-to-day business or reflective of the core operational activities of the Company that are within the control of management or that would be used to evaluate management&#8217;s operating performance.</p>  <p align="justify">Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is provided in a table below the Condensed Consolidated Statements of Operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. For additional information regarding these non-GAAP financial measures, and management&#8217;s explanation of why it considers such measures to be useful, refer to the Form 8-K dated July 29, 2016, that the Company filed with the Securities and Exchange Commission.</p>  <p align="justify"><strong>Forward-Looking Statements</strong><br>This press release may contain forward-looking statements about the Company, including, without limitation, anticipated benefits and performance expected from our IC products and the Company&#8217;s future markets and future business prospects. Forward-looking statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited, to the following:</p>  <ul type="disc"><li>achieving additional IC design wins;</li><li>commencing volume shipments of Bandwidth Engine ICs;</li><li>the timing of customer orders and product shipments;</li><li>our ability to enhance our existing proprietary technologies and develop new technologies;</li><li>achieving necessary acceptance and adoption of our IC architecture and interface protocols by potential customers and their suppliers;</li><li>difficulties and delays in the development, production, testing and marketing of our ICs;</li><li>reliance on our manufacturing partners to assist successfully with the fabrication of our ICs;</li><li>availability of quantities of ICs supplied by our manufacturing partners at a competitive cost;</li><li>our lack of recent experience as a fabless semiconductor company making and selling proprietary ICs;</li><li>level of intellectual property protection provided by our patents, the expenses and other consequences of litigation, including intellectual property infringement litigation, to which we may be or may become a party from time to time;</li><li>vigor and growth of markets served by our customers and our operations; and</li></ul>  <p align="justify">other risks identified in the Company&#8217;s most recent report on Form 10-K filed with the Securities and Exchange Commission, as well as other reports that MoSys files from time to time with the Securities and Exchange Commission. MoSys undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.</p>  <p align="justify"><strong>About MoSys, Inc.</strong><br>MoSys, Inc. (NASDAQ:MOSY) is a fabless semiconductor company enabling leading equipment manufacturers in the networking and communications systems markets to address the continual increase in Internet users, data and services. The Company&#8217;s solutions deliver data path connectivity, speed and intelligence while eliminating data access bottlenecks on line cards and systems scaling from 100G to multi-terabits per second. Engineered and built for high-reliability carrier and enterprise applications, MoSys' Bandwidth Engine&#174; and LineSpeed&#153; IC product families are based on the Company's patented high-performance, high-density intelligent access and high-speed serial interface technology, and utilize the Company's highly efficient GigaChip&#174; Interface. MoSys is headquartered in Santa Clara, California. More information is available at www.mosys.com.</p>  <p align="justify"><em>Bandwidth Engine, GigaChip and MoSys are registered trademarks of MoSys, Inc. in the US and/or other countries. LineSpeed and the MoSys logo are trademarks of MoSys, Inc. 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">&#160;</td><td colspan="3" style="vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td></tr></table> <p>&#160;</p></p><p>Contacts:<br>Jim Sullivan, CFO<br>MoSys, Inc.<br>+1 (408) 418-7500<br>jsullivan@mosys.com<br><br>Beverly Twing, Sr. Acct. Manager<br>Shelton Group, Investor Relations<br>+1 (214) 272-0089<br>btwing@sheltongroup.com</p></body></html>
</TEXT>
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</SEC-DOCUMENT>
