MoSys Inc. (NASDAQ: MOSY) is having an incredibly strong start to the trading session this morning. In fact, it's easier to describe the gains in multiples than it is to describe them in percentages. The gains are ultimately the result of an incredibly strong quarter. Today, we'll talk about what we saw from the company's earnings report, how the stock is reacting to the news, and what we'll be watching for with regard to MOSY ahead.
MOSY Gains On Earnings
As mentioned above, MoSys is having an incredibly strong start to the trading session this morning after the company reported overwhelmingly positive earnings. Here's what we saw from the report:
- Earnings Per Share – In terms of earnings per share, MOSY had a great quarter. During the third quarter, analysts expected that the company would produce a loss of $0.48 per share. However, the company actually reported a loss of $0.18 per share, blowing away expectations and proving to be the primary source of excitement.
- Revenue – When it comes to revenue, MOSY also did incredibly well. During the quarter, analysts expected that the company would generate revenue in the amount of $1.61 million. However, the company actually produced revenue in the amount of $2.45 million, beating expectations by around $840,000.
In a statement, Len Perham, President and CEO at MoSys, had the following to offer:
“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... 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. 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' 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 our base revenue run rates for 2018.”
How The Stock Reacted To The News
As investors, one of the first things that we learn is to keep a close eye on earnings. After all, strong earnings tend to lead to strong gains in the market, which is exactly what we're seeing from MOSY today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:41), MOSY is trading at $1.83 per share after a gain of $1.15 per share or 167.77% 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 revenue growth and excited to see the company hit the break even point in the coming year or so at this rate. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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