<SEC-DOCUMENT>0001171843-17-006933.txt : 20171113
<SEC-HEADER>0001171843-17-006933.hdr.sgml : 20171110
<ACCEPTANCE-DATETIME>20171113161018
ACCESSION NUMBER:		0001171843-17-006933
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20171113
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20171113
DATE AS OF CHANGE:		20171113

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:		171195931

	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_111317.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): <!--November 13, 2017-->November 13, 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>2309 Bering Dr.<br>San Jose,&#160;California 95131<!--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">[  ]</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">[  ]</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">[  ]</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">[  ]</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; ]</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; ]</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 align="justify"><font style="font-size:10pt; font-family:&quot;Times New Roman&quot;;">On November 13, 2017, MoSys, Inc., or the Company, issued a press release announcing its financial results for the three and nine months ended September 30, 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.</font></p>  <p><font style="font-size:10pt; font-family:&quot;Times New Roman&quot;;">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; </font></p>  <p><font style="font-size:10pt; font-family:&quot;Times New Roman&quot;;">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; </font></p>  <p><font style="font-size:10pt; font-family:&quot;Times New Roman&quot;;">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 September 30, 2017. </font></p>  <p><font style="font-size:10pt;">In the first quarter of&#160;2016 and again in the second and third quarters of 2017, the Company effected reductions in workforce and associated operating expenses to reduce net loss and cash burn and to realign resources. The charges incurred in the second quarter of 2017 also included accruals for certain contractual obligations related to computer-aided design software.</font></p>  <p><font style="font-size:10pt; font-family:&quot;Times New Roman&quot;;">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, as 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. </font></p>  <p><font style="font-size:10pt; font-family:&quot;Times New Roman&quot;;">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.</font></p>  <p><font style="font-size:10pt; font-family:&quot;Times New Roman&quot;;">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.</font></p> </p><p><strong> &#160;</strong></p><p><strong>Item 9.01. Financial Statements and Exhibits.</strong></p><p>
 <p><font style="color: black;   font-size:10pt; font-family:&quot;Times New Roman&quot;;"> (d) Exhibits. </font></p> <table style="border-collapse: collapse; "><tr><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><strong><u>Exhibit No.</u></strong></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><strong><u>Description</u></strong></font></td></tr><tr><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td></tr><tr><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><font style="font-size:10pt;"><a href="exh_991.htm" rel="nofollow">99.1</a></font></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">Press Release by MoSys, Inc. dated November 13, 2017.&#160;</font></td></tr></table></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;November 13, 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>  <p align="left"><font style="font-size:10pt;"><strong><u>EXHIBIT INDEX</u></strong></font></p>  <p align="center"><font style="font-size:10pt;">&#160;</font></p> <table style="border-collapse: collapse; "><tr><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><strong><u>Exhibit No.</u></strong></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><strong><u>Description</u></strong></font></td></tr><tr><td style="vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td></tr><tr><td style="vertical-align: bottom ; "><font style="font-size:10pt;"><font style="font-size:10pt;"><a href="exh_991.htm" rel="nofollow">99.1</a></font></font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">&#160;</font></td><td style="vertical-align: bottom ; "><font style="font-size:10pt;">Press Release by MoSys, Inc. dated November 13, 2017.&#160;</font></td></tr></table></p></body></html>
</TEXT>
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<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 Third Quarter 2017 Financial Results</strong></p><p style="text-align: center;"><p>
 <p align="left">SANTA CLARA, Calif., Nov.  13, 2017  (GLOBE NEWSWIRE) -- MoSys, Inc.&#160;(NASDAQ:MOSY), today reported financial results for the quarter ended September 30, 2017.&#160; &#160;<br></p>  <p align="justify"><strong><u>Third Quarter 2017 Financial Results</u></strong><br>Total net revenue for the third quarter of 2017 was $2.5 million, compared with $1.4 million for the previous quarter and $1.6 million for the third quarter of 2016. Product revenue for the third quarter was $2.2 million, compared with $1.1 million in the second quarter of 2017 and $1.2 million in the year-ago period. The sequential quarterly and annual increases in product revenue were primarily attributable to increased shipments of Bandwidth Engine 2 products.</p>  <p align="justify">Gross margin for the third quarter of 2017 was 49 percent, compared with 47 percent for the second quarter of 2017 and 58 percent for the third quarter of 2016. Gross margin was higher in 2016 due to a higher proportion of royalty revenues to total revenues. The Company expects gross margin to improve further as a result of increased manufacturing efficiency and recent price adjustments.</p>  <p align="justify">Total operating expenses on a GAAP basis for the third quarter of 2017 were $2.7 million, compared with $4.4 million for the second quarter of 2017 and $5.4 million for the third quarter of 2016. Third quarter total operating expenses decreased 38 percent sequentially and 49 percent compared with the year ago period. The Company expects operating expenses to continue to decrease due to the effects of continued restructuring and other cost reduction initiatives.</p>  <p align="justify">GAAP net loss for the third quarter of 2017 was $1.7 million, or ($0.22) per share, compared with a net loss of $4.0 million, or ($0.60) per share, for the previous quarter and a net loss of $4.7 million, or ($0.71) per share, for the third quarter of 2016. Non-GAAP net loss for the third quarter of 2017 was $1.5 million, or ($0.18) per share, which excludes restructuring charges, 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. 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"><strong><u>Management Commentary</u></strong><br>&#8220;We have made significant progress over the past six months driving revenue growth while reducing costs, resulting in a sequential doubling of product revenue and a 38% reduction in operating expenses,&#8221; commented Len Perham, president and CEO of MoSys. &#8220;Our revenue growth in the third quarter was primarily driven by increased shipments to our largest Bandwidth Engine 2 customers. More specifically, the design wins with our lead security-appliance customer entered production in early 2017, and have been a significant driver of our increased revenue this past year. &#160;As part of our close collaboration with our lead customers, we have developed a solid backlog that extends out through 2018. Our design win platforms are highly differentiated and have long life cycles; therefore, we expect customer production shipments for current design wins to continue over the next five to seven years. The orders received to date and visibility provided by our lead customers validate the significance of our design wins and the value that our technology brings to our customers&#8217; products. We believe that we have a high level of predictability for our continued revenue ramp for the fourth quarter of 2017, as well as for our base revenue run rates for 2018.&#8221;</p>  <p align="justify">Perham continued, &#8220;Earlier this year, we initiated several cost reduction initiatives, and have taken a number of significant actions to right-size the company and realign our organization. We reconfigured our engineering resources and reduced headcount to focus on supporting our Bandwidth Engine business, lowered outsourced manufacturing and design costs and recently relocated our headquarters. As a leaner organization, we&#8217;ve retained a critical core of applications, engineering and operations staff to efficiently and effectively maintain and expand our business. Also, we continue to pursue new design win opportunities to provide future revenue growth and augment our existing business. Based on current order backlog and customer forecasts, we expect increased revenue in the fourth quarter and anticipate revenue growth in excess of 60% in 2018. When combined with our lower operating expenses, we believe we are well positioned to achieve non-GAAP profitability in the first half of 2018 while meaningfully reducing our cash burn.&#8221;</p>  <p align="justify"><strong>Outlook for Fourth Quarter of 2017</strong><br>For the fourth quarter of fiscal 2017, the Company expects net revenues to be in the range of $3.3 million to $3.6 million, with non-GAAP operating expenses in the range of $2.2 million to $2.4 million.</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 third quarter results.</p>  <p 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 November 13, 2017 that the Company filed with the Securities and Exchange Commission.</p>  <p align="justify"><strong>Forward-Looking Statements&#160;<br></strong>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>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><strong>About MoSys, Inc.</strong><br>MoSys, Inc.&#160;(NASDAQ:MOSY) is a fabless semiconductor company enabling leading equipment manufacturers in the data center, networking, security and communications systems markets to address the continual increase in Internet users, data and services. More information is available at&#160;www.mosys.com.</p>  <p><em>Bandwidth Engine and MoSys are registered trademarks of MoSys, Inc. in the US and/or other countries. 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">&#160;</td></tr></table> <p align="justify"><strong>Contacts:</strong><br>Jim Sullivan, CFO<br>MoSys, Inc.<br>+1 (408) 418-7500<br>jsullivan@mosys.com</p>  <p align="justify">Beverly Twing, Sr. Acct. Manager<br>Shelton Group, Investor Relations<br>+1 (214) 272-0089<br>btwing@sheltongroup.com</p> </p><p></body></html>
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