<SEC-DOCUMENT>0001171843-18-007623.txt : 20181106
<SEC-HEADER>0001171843-18-007623.hdr.sgml : 20181106
<ACCEPTANCE-DATETIME>20181106090516
ACCESSION NUMBER:		0001171843-18-007623
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20181106
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20181106
DATE AS OF CHANGE:		20181106

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:		181161684

	BUSINESS ADDRESS:	
		STREET 1:		2309 BERING DRIVE
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95131
		BUSINESS PHONE:		408 418 7500

	MAIL ADDRESS:	
		STREET 1:		2309 BERING DRIVE
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95131

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MONOLITHIC SYSTEM TECHNOLOGY INC
		DATE OF NAME CHANGE:	19960613
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_110618.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 6, 2018-->November 6, 2018 &#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 style="margin-left: 0in; margin-right: 0in;" align="justify"><font style="font-size: 10pt; font-family: 'Times New Roman';">On November 6, 2018, the Company issued a press release announcing its financial results for the three and nine months ended September 30, 2018.&#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 style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt; font-family: 'Times New Roman';">In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;), 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 style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt; font-family: 'Times New Roman';">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 style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt; font-family: 'Times New Roman';">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 nine months ended September 30, 2018. </font></p><p style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt;">In accordance with its goodwill accounting policy, in September 2018, the Company performed assessments to identify possible goodwill impairment and concluded the goodwill carrying value was greater than the Company&#8217;s market value. Therefore, the Company recorded non-cash impairment charges totaling $3.2 million during the three months ended September 30, 2018. The impairment charges have been presented within the condensed consolidated statements of operations and comprehensive loss.</font></p><p style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt;">The Company&#8217;s non-GAAP financial measures also exclude restructuring charges related to reductions in workforce and associated operating expenses to reduce net loss and cash burn and to realign resources, as well as accruals for certain contractual obligations related to computer-aided design software and lease termination costs. The Company has incurred restructuring charges in prior periods and may do so in the future, and such charges should be considered in evaluating the performance of the Company and its management.&#160; However, management believes that presenting financial measures that exclude these charges facilitates comparisons with the Company&#8217;s ongoing operating results as well as those of other companies in its business sector. </font></p><p style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt;">Adjusted EBITDA is GAAP net income (loss), as reported on our condensed consolidated statements of operations, excluding stock-based compensation, restructuring and impairment charges, amortization of intangibles, interest expense, depreciation, and the provision for income taxes.</font></p><p style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Management and the Company&#8217;s board of directors will continue to analyze the historical consolidated results of operations and comprehensive income (loss) (revenue, gross margin, research and development expenses, selling, general and administrative expenses, operating income (loss), net income (loss) and net income (loss) per share), and adjusted EBITDA 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. </font></p><p style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt; font-family: 'Times New Roman';">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 style="margin-left: 0in; margin-right: 0in;"><font style="font-size: 10pt; font-family: 'Times New Roman';">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 style="margin-left: 0in; margin-right: 0in;" align="justify"><font style="color: black; font-size: 10pt; font-family: 'Times New Roman';">(d) Exhibits.</font></p><table class="mce-item-table" style="border-collapse: collapse; width: 334pt;" border="0" width="446" cellspacing="0" cellpadding="0"><!--StartFragment--><tr style="height: 14.4pt;"><td style="height: 14.4pt; width: 63pt; color: #191919; font-size: 10pt; font-weight: bold; font-family: 'Times New Roman', serif; text-align: left; vertical-align: middle; border-top: none; border-right: none; border-bottom: 0.5pt solid windowtext; border-left: none; padding-top: 1px; padding-right: 1px; padding-left: 1px; font-style: normal; text-decoration: none; border-image: initial; white-space: nowrap;" width="84" height="19">Exhibit No.</td><td style="width: 11pt; color: #191919; font-size: 10pt; font-weight: bold; font-family: 'Times New Roman', serif; text-align: left; vertical-align: middle; padding-top: 1px; padding-right: 1px; padding-left: 1px; font-style: normal; text-decoration: none; border: none; white-space: nowrap;" width="15">&#160;</td><td style="width: 260pt; color: #191919; font-size: 10pt; font-weight: bold; font-family: 'Times New Roman', serif; text-align: justify; vertical-align: middle; border-top: none; border-right: none; border-bottom: 0.5pt solid windowtext; border-left: none; padding-top: 1px; padding-right: 1px; padding-left: 1px; font-style: normal; text-decoration: none; border-image: initial; white-space: nowrap;" width="347">Description</td></tr><tr style="height: 14.4pt;"><td style="height: 14.4pt; color: black; font-size: 10pt; font-family: 'Times New Roman', serif; text-align: left; vertical-align: middle; padding-top: 1px; padding-right: 1px; padding-left: 1px; font-weight: 400; font-style: normal; text-decoration: none; border: none; white-space: nowrap;" height="19">&#160;</td><td style="color: black; font-size: 10pt; font-family: 'Times New Roman', serif; text-align: left; vertical-align: middle; padding-top: 1px; padding-right: 1px; padding-left: 1px; font-weight: 400; font-style: normal; text-decoration: none; border: none; white-space: nowrap;">&#160;</td><td style="font-size: 10pt; padding-top: 1px; padding-right: 1px; padding-left: 1px; color: black; font-weight: 400; font-style: normal; text-decoration: none; font-family: Calibri, sans-serif; vertical-align: bottom; border: none; white-space: nowrap;">&#160;</td></tr><tr style="height: 14.4pt;"><td style="height: 14.4pt; font-size: 10pt; font-family: 'Times New Roman', serif; text-align: left; vertical-align: middle; padding-top: 1px; padding-right: 1px; padding-left: 1px; color: black; font-weight: 400; font-style: normal; text-decoration: none; border: none; white-space: nowrap;" height="19"><a href="exh_991.htm">99.1</a></td><td style="font-size: 10pt; font-family: 'Times New Roman', serif; text-align: left; vertical-align: middle; padding-top: 1px; padding-right: 1px; padding-left: 1px; color: black; font-weight: 400; font-style: normal; text-decoration: none; border: none; white-space: nowrap;">&#160;</td><td style="font-size: 10pt; font-family: 'Times New Roman', serif; vertical-align: middle; padding-top: 1px; padding-right: 1px; padding-left: 1px; color: black; font-weight: 400; font-style: normal; text-decoration: none; border: none; white-space: nowrap;"><a href="exh_991.htm">Press Release by MoSys, Inc. dated November 6, 2018</a></td></tr><!--EndFragment--></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 6, 2018</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: center;"><font style="font-size: 10pt;"><strong>EXHIBIT INDEX</strong></font>&#160;</p><table class="mce-item-table" style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0"><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;"><a href="exh_991.htm">Press Release by MoSys, Inc. dated November 6, 2018</a>&#160;</font></td></tr></table><p><br /></p></p></body></html>
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<DOCUMENT>
<TYPE>EX-99.1
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<!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 2018 Financial Results</strong></p><p style="text-align: center;" ></p><p>
 <p align="justify"><strong>Generates Positive Cash Flow and Completes Public Offering of Common Stock</strong><br ></p>  <p align="justify">SAN JOSE, Calif., Nov.  06, 2018  (GLOBE NEWSWIRE) -- MoSys, Inc.&#160;(NASDAQ: MOSY), today reported financial results for the quarter ended September 30, 2018. &#160;</p>  <p align="justify"><strong>Third Quarter 2018 Financial Results</strong><br >Total net revenue for the third quarter of 2018 was $4.3 million, compared with $4.6 million for the previous quarter and $2.5 million for the third quarter of 2017. Product revenue for the third quarter was $4.1 million, consistent with the second quarter of 2018, and compared with $2.2 million in the year-ago period reflecting increased IC shipments to multiple design-win customers.</p>  <p align="justify">Gross margin for the third quarter of 2018 was 55%, compared with 60% for the previous quarter and 49% for the third quarter of 2017. The sequential decrease in gross margin was due primarily to a reduction in one-time licensing revenues and standard cost adjustments. &#160;</p>  <p align="justify">Total operating expenses on a GAAP basis for the third quarter of 2018 were $5.1 million, which included a goodwill impairment charge of $3.2 million, and compared with operating expenses of $2.2 million in the previous quarter and $2.7 million in the third quarter of 2017. Total operating expenses on a non-GAAP basis for the third quarter of 2018 decreased to $1.7 million, compared with $2.1 million in the second quarter of 2018 and $2.5 million in the third quarter of 2017.</p>  <p align="justify">GAAP net loss for the third quarter of 2018 was $2.8 million, or ($0.34) per share, compared with net income of $0.3 million, or $0.04 per diluted share, for the previous quarter and a net loss of $1.7 million, or ($0.22) per share, for the third quarter of 2017. Non-GAAP net income for the third quarter of 2018 was $0.6 million, or $0.07 per diluted share, and compared with net income of $0.5 million, or $0.06 per diluted share, for the previous quarter and a net loss of $1.5 million, or ($0.18) per share, for the third quarter of 2017. Adjusted EBITDA for the third quarter of 2018 was $0.8 million, and compared with $0.9 million for the previous quarter and a negative $1.0 million for the third quarter of 2017. 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">As of October 31, 2018, the Company had 39,040,586 shares of common stock outstanding, which excludes 6,144,109 shares of common stock issuable upon exercise of pre-funded warrants issued in October 2018.</p>  <p align="justify"><strong>Management Commentary</strong><br >&#8220;I am pleased with our financial results for the third quarter, as we once again generated positive cash flow and achieved non-GAAP profitability,&#8221; commented Daniel Lewis, president and CEO of MoSys. &#8220;During 2018, we have expanded our sales channels, which has contributed to an increased sales pipeline and new design wins that we believe will add to our revenue base in 2019 and beyond. Our operations team continues to execute, and we expect 2018 to be a record-breaking year for product shipments, primarily driven by our Bandwidth Engine 2 products.&#8221;</p>  <p align="justify">Mr. Lewis continued, &#8220;In addition, we closed a public offering in early October, generating net proceeds of approximately $3.0 million, and significantly improved our balance sheet. We used most of the offering proceeds to reduce our outstanding convertible note obligation to $2.7 million, which now is not due until August 2023. Based on customer orders and forecasts, we have good visibility for the fourth quarter of 2018 and into the first half of 2019. With our improved financial position, we remain focused on supporting our existing customers and design wins in process, expanding our customer base and managing our expenses in support of our long-term goals and objectives.&#8221;</p>  <p align="justify"><strong>Business Outlook for Fourth Quarter of 2018</strong><br >The Company expects total net revenue for the fourth quarter of 2018 to be in the range of $3.2 million to $3.5 million. The mid-point of this guidance represents an expectation for full year revenue to increase approximately 87% over 2017. The Company also expects to achieve profitability on a non-GAAP basis for the full year.</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><strong>Use of Non-GAAP Financial Measures<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 stock-based compensation, intangible asset amortization and restructuring and impairment 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. The press release also makes reference to and reconciles GAAP net income (loss) and adjusted EBITDA, which the Company defines as GAAP net income (loss) before interest expense, income tax provision, and depreciation and amortization, as well as stock-based compensation, intangible asset amortization and restructuring and impairment charges. 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 reconciliations of these non-GAAP financial measures to the comparable GAAP results, which are provided in tables 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 6, 2018 that the Company filed with the Securities and Exchange Commission.</p>  <p><strong>Forward-Looking Statements<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 aggressively fund product development and growth;</li><li>the timing of customer orders and product shipments;</li><li>customer concentration;</li><li>lengthy sales cycle;</li><li>our ability to enhance our existing proprietary technologies and develop new technologies;</li><li>achieving additional design wins for our IC products through the 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>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.</p>  <p><strong>About MoSys, Inc.</strong><br >MoSys, Inc.&#160;(NASDAQ: MOSY) is a provider of semiconductor solutions that enable fast, intelligent data access for cloud networking, security, test and video systems. 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. All other marks mentioned herein are the property of their respective owners.</em></p>  <p align="center"><em>(Financial Tables to Follow)</em></p> <table style="width:100%; border-collapse:collapse !important;;border-collapse: collapse; "><tr><td colspan="14" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td colspan="14" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr><tr><td colspan="14" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>MOSYS, INC.</strong></td></tr><tr><td colspan="14" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</strong></td></tr><tr><td colspan="14" style="text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>(In thousands, except per share amounts; unaudited)</strong></td></tr><tr><td style="vertical-align: bottom ; 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