MoSys blames loss on missed acquisition

MoSys has blamed its quarterly loss on its missed acquisition by Synopsys, pinning $900,000 of its operating expense on the planned acquisition by the EDA player, which came to a halt last month.

Synopsys had intended to pay $432m for the memory IP company, but announced in mid-April that it was backing out of the deal. MoSys said in its Q1 results yesterday that costs associated with the buyout – one that the company still feels should have gone through – brought its former income of $2.67m in Q1 2003 down to a $521,000 loss in Q1 of this year. That also compared to Q4 2003’s $415,000 loss.  

“During the quarter we were preparing our company for a smooth integration into Synopsys and believe we fully satisfied all requirements of the acquisition agreement,” said Fu-Chieh Hsu, CEO of MoSys. “Although this transaction has not as yet come to a final resolution, we continue to address this matter proactively.”

MoSys, which is bringing the issue to court, saw total net revenue in the quarter of $4.5m, compared to the $3.4m reported in Q4 and the $7.9m in Q1 2003. Sales consisted of $3m from licensing, $1.4m in royalties and approximately $162,000 in product revenue.

Gross margin for the quarter was 88.3 per cent compared to 87.1 per cent in the year-ago period and up from 79.6 per cent in Q4.

“We are pleased with the increases in both licensing and royalty revenue over the previous quarter which brought total revenue in line with our previously stated guidance. Additionally, excluding expenses associated with the anticipated acquisition of our company by Synopsys, MoSys has returned to profitability,” Hsu concluded.