<SEC-DOCUMENT>0001171843-17-002995.txt : 20170511
<SEC-HEADER>0001171843-17-002995.hdr.sgml : 20170511
<ACCEPTANCE-DATETIME>20170511161013
ACCESSION NUMBER:		0001171843-17-002995
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170511
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170511
DATE AS OF CHANGE:		20170511

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:		17834374

	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_051117.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): <!--May 11, 2017-->May 11, 2017 &#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><p><font style="font-size: 10pt;"><br>Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &sect;230.405) or Rule&#160;12b-2&#160;of the Securities Exchange Act of 1934 (17 CFR&#160;&sect;240.12b-2).&#160;Emerging growth company [&#160;&#160;&#160;]</font></p><p style="margin: 0in; margin-bottom: .0001pt; background: white; box-sizing: border-box; font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; word-spacing: 0px;"><font style="font-size: 10pt;"><font style="font-size: 10.0pt; font-family: 'Helvetica','sans-serif';">&#160;</font>If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [&#160;&#160;&#160;]</font></p><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 May 11, 2017, MoSys, Inc., or the Company, issued a press release announcing its financial results for the three months ended March 31, 2017.&#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.</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, restructuring and impairment charges, and amortization of intangibles. 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 months ended March 31, 2017.</p><p>In the first quarter of&#160;2016, the Company effected a reduction in workforce and associated operating expenses, net loss and cash burn and to realign resources. Substantially all of these restructuring charges were paid in the first quarter of 2016.</p><p>Management and the Company&#8217;s board of directors will continue to analyze the 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.</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.</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>(d) Exhibits.</p><table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" class="mce-item-table"><tr><td style="text-decoration: underline;" valign="bottom"><font style="font-size: 10pt;"><strong>Exhibit No.</strong></font></td><td width="20"><font style="font-size: 10pt;">&#160;</font></td><td style="text-decoration: underline;" valign="bottom"><font style="font-size: 10pt;"><strong>Description</strong></font></td></tr><tr><td>&#160;</td><td width="20"><font style="font-size: 10pt;">&#160;</font></td><td><font style="font-size: 10pt;">&#160;</font></td></tr><tr><td><font style="font-size: 10pt;">99.1</font></td><td width="20"><font style="font-size: 10pt;">&#160;</font></td><td><font style="font-size: 10pt;">Press Release by MoSys, Inc. dated May 11, 2017. </font></td></tr></table><div id="mceResizeHandlen" class="mce-resizehandle" style="cursor: n-resize; margin: 0px; padding: 0px; left: 227.5px; top: 41.5px;"></div><div id="mceResizeHandlee" class="mce-resizehandle" style="cursor: e-resize; margin: 0px; padding: 0px; left: 450.5px; top: 69px;"></div><div id="mceResizeHandles" class="mce-resizehandle" style="cursor: s-resize; margin: 0px; padding: 0px; left: 227.5px; top: 96.5px;"></div><div id="mceResizeHandlew" class="mce-resizehandle" style="cursor: w-resize; margin: 0px; padding: 0px; left: 4.5px; top: 69px;"></div><div id="mceResizeHandlenw" class="mce-resizehandle" style="cursor: nw-resize; margin: 0px; padding: 0px; left: 4.5px; top: 41.5px;"></div><div id="mceResizeHandlene" class="mce-resizehandle" style="cursor: ne-resize; margin: 0px; padding: 0px; left: 450.5px; top: 41.5px;"></div><div id="mceResizeHandlese" class="mce-resizehandle" style="cursor: se-resize; margin: 0px; padding: 0px; left: 450.5px; top: 96.5px;"></div><div id="mceResizeHandlesw" class="mce-resizehandle" style="cursor: sw-resize; margin: 0px; padding: 0px; left: 4.5px; top: 96.5px;"></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;May 11, 2017</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%">James W. Sullivan</td></tr><tr valign="top"><td width="49%">&#160;</td><td width="2%">&#160;</td><td width="49%">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><hr style="page-break-after: always;" noshade="noshade"><p style="text-align: left;"><font style="font-size: 10pt;"><strong><u>EXHIBIT INDEX</u></strong></font></p><p style="text-align: center;"><font style="font-size: 10pt;">&#160;</font></p><table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" class="mce-item-table"><tr><td style="text-decoration: underline;" valign="bottom"><font style="font-size: 10pt;"><strong>Exhibit No.</strong></font></td><td width="20"><font style="font-size: 10pt;">&#160;</font></td><td style="text-decoration: underline;" valign="bottom"><font style="font-size: 10pt;"><strong>Description</strong></font></td></tr><tr><td>&#160;</td><td width="20"><font style="font-size: 10pt;">&#160;</font></td><td><font style="font-size: 10pt;">&#160;</font></td></tr><tr><td><font style="font-size: 10pt;"><a href="exh_991.htm">99.1</a></font></td><td width="20"><font style="font-size: 10pt;">&#160;</font></td><td><font style="font-size: 10pt;">Press Release by MoSys, Inc. dated May 11, 2017. </font></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 First Quarter 2017 Financial Results</strong></p><p style="text-align: center;"><p><p align="left">SANTA CLARA, Calif., May  11, 2017  (GLOBE NEWSWIRE) -- MoSys, Inc.&#160;(NASDAQ:MOSY), today reported financial results for the first quarter ended March 31, 2017. &#160;&#160;<br></p><p align="justify"><strong><u>First Quarter 2017 Financial Results</u></strong><br>Total net revenue for the first quarter of 2017 was $1.2 million, compared with $1.4 million in the previous quarter and $1.5 million in the first quarter of 2016. Product revenue in the first quarter was $1.0 million, consistent with the fourth quarter of 2016, and compared with $1.1 million in the year-ago period.</p><p align="justify">Gross margin for the first quarter of 2017 was 50 percent, compared with 57 percent in the fourth quarter of 2016 and 41 percent for the first quarter of 2016.</p><p align="justify">Total operating expenses on a GAAP basis for the first quarter of 2017 were $4.8 million, compared with $15.1 million in the fourth quarter of 2016, which included a non-cash goodwill impairment charge of $9.9 million, and $7.4 million in the year-ago period.</p><p align="justify">In February 2017, the Company effected a 1-for-10 reverse stock split of its common stock. All share and per share amounts in this press release have been adjusted to reflect the reverse stock split for all current and prior periods.</p><p align="justify">GAAP net loss for the first quarter of 2017 was $4.4 million, or ($0.66) per share, compared with a net loss of $14.5 million, or ($2.18) per share, in the previous quarter and a net loss of $6.9 million, or ($1.05) per share, for the first quarter of 2016. Non-GAAP net loss for the first quarter of 2017 was $4.2 million, or ($0.63) per share, which excludes intangible asset amortization and stock-based compensation expenses. 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><u>Management Commentary</u></strong><br>&#8220;First quarter 2017 product revenue was primarily comprised of ongoing shipments of our Bandwidth Engine&#174; 2 ICs, with the majority of those shipments to our lead IP security appliance customer. We have a reliable volume forecast from this customer for the remainder of this year, and are working to confirm order commitments from our other top customers,&#8221; commented Len Perham, MoSys&#8217; President and CEO. &#8220;During the first quarter, we won our first Bandwidth Engine 3 design-in with a leading networking equipment supplier in China, and received our first pre-production order from this customer. We also secured additional Bandwidth Engine 2 design-ins with multiple customers for next-generation video applications.</p><p align="justify">&#8220;After the close of the quarter, as previously announced, we revised our operating plan and began implementing our cost reduction initiatives. We expect to realize significant operating cost savings from these actions, and believe these expense reductions will position us to maintain ongoing operations and preserve cash until such time that our past design wins ramp more materially.&#8221;</p><p align="justify">Mr. Perham further commented, &#8220;Although we are now running a leaner organization, we remain confident that we have the necessary resources and personnel to fully support the current needs and firm orders of our customers. In addition, we remain focused on carefully managing operating costs and expanding our portfolio of design wins, while continuing to explore strategic alternatives and asset monetization strategies to ensure our viability and provide value to our stockholders.&#8221;</p><p align="justify"><strong>Financial Results Conference Call</strong><br>The Company will not be hosting a conference call or webcast in conjunction with today&#8217;s release of its first quarter results.</p><p style="text-align: justify;"><strong>Use of Non-GAAP Financial Measures&#160;<br></strong>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 non-cash goodwill impairment, restructuring, stock-based compensation and intangible asset amortization 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 May 11, 2017 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 its 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>a lack of working capital to fund continued product development and growth;</li><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. There can be no assurance that MoSys&#8217; review of strategic alternatives will result in any specific action.&#160;</p><p align="justify"><strong>About MoSys, Inc.</strong><br>MoSys, Inc. (NASDAQ:MOSY) is a fabless semiconductor company enabling leading equipment manufacturers of Cloud, networking, communications, and data center systems to address the continual increase in Internet users, data and services. The company'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;, Programmable Search Engine, 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 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>
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