Revenue up 40% over first quarter last year
Sunnyvale, CA, April 18, 2002 Monolithic System Technology, Inc., ("MoSys,") (NASDAQ: MOSY) today reported financial results for its first quarter ended March 31, 2002. Net revenue in the quarter of $6.4 million was an increase of 40% over the first quarter of last year and consisted of licensing revenue of $1.9 million, royalty revenue of $3.6 million and product revenue of approximately $893,000. Licensing revenue of $1.9 million in the quarter represented a 263% increase over the $519,000 recorded in the first quarter of 2001. Royalty revenue in the first quarter was $3.6 million compared to $133,000 in the first quarter of 2001. Product revenue in the quarter was $893,000 and declined from $3.9 million in the first quarter of 2001, due to the continuing weakness in the markets of our communications equipment OEM customers.
The gross margin percentage in the first quarter of 2002 was 88% due to the high proportion of royalty revenue, which was 57% of total revenue. Net income in the first quarter of 2002 was $2.8 million, up 293% from net income of $707,000 in the first quarter of 2001. Net income in the first quarter of 2002 was equal to 43% of total revenue. Diluted earnings per share in the quarter were $0.09 compared to $0.03 in the first quarter of 2001. First quarter 2002 diluted earnings per share were computed using 31,742,000 shares.
Dr. Fu-Chieh Hsu, CEO of MoSys stated, "Our combined licensing and royalty revenue continued to grow in the first quarter due to the success of the 1T-SRAM technology in high volume production. We announced in the quarter that our licensees have shipped 20 million ICs and we have shipped 3 million ICs with 1T-SRAM technology. This represents over one billion megabits of memory. Our technology is "volume production proven" and our customers are very pleased with the cost savings and high yields they are experiencing in the production of our 1T-SRAM technology. We are particularly proud that many are returning to us for new embedded memory designs that will be used in new development projects."
Dr. Hsu further stated, "This year we have had a good start in our 1T-SRAM technology licensing. Currently we are working on cell phone handset base-band processor projects with three licensees. In addition, we have recently announced several new licensees that include eSilicon, LG Electronics, Matsushita Communications Industrial, Pixim, Philips Semiconductor and Stepmind. Our 1T-SRAM technology is now serving many different applications."
Dr. Hsu also stated, "We continue to advance our technology and introduced the 1T-SRAM-R™ technology in the first quarter. 1T-SRAM-R technology is a version of our embedded memory that includes Transparent Error Correction™ (TEC), which automatically corrects memory errors during operation, including soft errors caused by high-energy particles, and eliminates the need for laser repair and its associated costs in manufacturing test. This is accomplished without a penalty of additional silicon area or additional cost. This capability dramatically enhances reliability and quality of embedded memory and is creating a lot of interest in the market."
Q1 2002 Financial Results Webcast
MoSys will host a live webcast to discuss Q1 2002 financial results beginning at 2:15 P.M. (PT) on Thursday, April 18, 2002. Access to the webcast is provided in the MoSys website at http://www.mosys.com.
Founded in 1991, MoSys develops, licenses and markets innovative memory technology for semiconductors. MoSys' patented 1T-SRAM ® technology offers a combination of high density, low power consumption, high speed and low cost unmatched by other available memory technologies. The single transistor bit cell used in 1T-SRAM technology results in the technology achieving much higher density than traditional four or six transistor SRAMs while using the same standard logic manufacturing processes. 1T-SRAM technology also offers the familiar, refresh-free interface and high performance for random address access cycles associated with traditional SRAMs. In addition, this technology can reduce operating power consumption by a factor of four compared with traditional SRAM technology, contributing to making it an ideal technology for embedding large memories in System on Chip (SoC) designs. 1T-SRAM technology is in volume production both in SoC products at MoSys' licensees as well as in MoSys' standalone memories. MoSys is headquartered at 1020 Stewart Drive, Sunnyvale, California 94085. More information is available on MoSys' website at http://www.mosys.com.
Forward Looking Statements
This press release may contain forward-looking statements about the Company including, without limitation, benefits and performance expected from use of our 1T-SRAM® technology.
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, customer acceptance of our 1T-SRAM technology, proving our technology in high-volume production of licensees' integrated circuits, the level of commercial success of licensees' products such as the Nintendo GAMECUBE and cell phone hand sets, ease of integration of our 1T-SRAM with other semiconductor functions, ease of manufacturing and yields of devices incorporating our 1T-SRAM, our ability to enhance the 1T-SRAM technology or develop new technologies, the level of intellectual property protection provided by our patents , the vigor and growth of markets served by our licensees and customers, and other risks identified in the Company's most recent annual 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.
1T-SRAM is a MoSys trademark registered in the U.S. Patent and Trademark Office.