MoSys Inc. (NASDAQ: MOSY) is climbing this morning after reporting its earnings for the third quarter. As you could imagine, the report proved to be positive, showing strong growth on a year over year basis. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from MOSY stock as a result; and
- what we’ll be watching for ahead.
MOSY Announces Earnings
As mentioned above, MoSys is having an incredibly strong start to the trading session this morning after the company announced its financial results for the third quarter. Here’s what we saw from the report:
- Net Revenue – MOSY said that it generated net revenue in the amount of $4.3 million. That figure showed strong year over year growth from the $2.5 million reported in the third quarter of 2017. The company said that product revenue came to $4.1 million, another point of strong growth from the $2.2 million reported in the same quarter of last year. The company said that the increase was the result of an increase in IC shipments to various design-win customers.
- Earnings – In terms of earnings, the company generated a GAAP net loss in the amount of $2.8 million, or $0.34 per share. Non-GAAP net income for the third quarter came to $0.6 million. That works out to earnings per share in the amount of $0.07.
In a statement, Daniel Lewis, President and CEO at MOSY, had the following to offer:
I am pleased with our financial results for the third quarter, as we once again generated positive cash flow and achieved non-GAAP profitability… 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.
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.
The news proved to be a breath of fresh air for investors. Unfortunately, the company’s stock has fallen from $0.67 per share to $0.31 per share over the past year.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of MoSys, the news proved to be positive. With a strong earnings report, investor confidence is starting to build back up. So, it’s not surprising to see that the stock is headed for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:20), MOSY is trading at $0.32 per share after a gain of $0.016 per share or 5.04% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MOSY. In particular, we’re interested in following the continued growth of the company’s IC business and work to get more design wins. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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