MoSys Inc. (NASDAQ:MOSY) has announced its financial results for the three months ended March 31, 2017. The company reported $1.2 million in net revenue compared to $1.4 million reported in the last quarter of 2016 and $1.5 that was reported in the first quarter of 2016. The company generated product revenue of $1.0 million during the quarter which was consistent with what the company reported in the last quarter of 2016 and compared to $1.1 million that the company reported in the first quarter of 2016.
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.
The company reported $4.8 million in total operating expenses on a GAAP basis in the first quarter of 2017 compared to $15.1 million that was reported in the last quarter of 2016.
The company’s GAAP net loss in the first quarter of 2017 amounted to (-$4.4) million or (-$0.66) per share. This is compared to (-$14.5) million or (-$2.18) per share reported in the fourth quarter of 2017. The company reported a net loss of (-$6.9) million or (-$1.05) per share in the first quarter of 2016.
While commenting on the results, Len Perham, the President and CEO of MoSys said the revenue reported in the first quarter mainly came from the ongoing shipment of the company’s Bandwidth Engine® 2 ICs. He added that many of these shipments are being made to the company’s lead IP security appliance customer.
According to Perham, the company has a strong and reliable volume prediction from its customer for the remaining part of this year and they are currently working on confirming all order commitments from the company’s top customers. In the first quarter, the company won its first Bandwidth Engine 3 design-in with one of the leading supplier of network equipment in China. Additionally, the company got an additional Bandwidth Engine 2 design-ins with several customers for next-generation video applications.
After closing the first quarter, the company made a review of its operating plan and started the implementation of a cost reduction program.