MoSys Announces Revised Operating Plan
April 12 2017 - 4:05PM
MoSys, Inc. (NASDAQ:MOSY) today announced a revision of its
operating plan to concentrate resources on the production and sale
of its existing products, while significantly limiting new product
development and research and development activities. Under the
plan, the Company will implement a reduction in workforce of up to
35 positions, or approximately 60% of total headcount. This
headcount reduction will be substantially completed in the second
quarter of 2017 and take place across all geographic locations.
This reduction is intended to lower operating expenses, realign
resources and conserve cash.
Additionally, the Company announced that, in the
second half of 2016, its board of directors engaged an investment
bank to act as its strategic financial advisor, and initiated a
process to explore and review a range of strategic alternatives
focused on maximizing stockholder value. During this process, the
Company’s management and its financial advisor met with many
companies, but did not receive any proposals that the board of
directors considered to be in the best interests of the Company’s
stockholders.
Len Perham, MoSys’ president and CEO commented,
“We have been working closely with our financial advisor to explore
various strategic alternatives for the Company and its
shareholders. Unfortunately, that effort has been unsuccessful. As
a result, we have revised our operating plan to streamline
operations and effect a significant reduction in our workforce.
This reduction was a difficult, but yet a necessary step, to reduce
cash burn and focus resources on supporting existing products and
customers. I would like to personally express my appreciation for
the many contributions of our colleagues affected by this decision.
Although MoSys will be a smaller company, we remain committed to
supporting our base of design win customers and identifying new
customer opportunities.”
As a result of the headcount reductions, the
Company expects to incur approximately $0.6 million of charges for
severance benefits and other one-time headcount termination costs.
The Company expects that substantially all of these charges will be
recognized and paid in the second quarter 2017. The Company expects
to realize approximately $6.0 million of savings for personnel
costs (salaries and benefits) on an annual basis from the headcount
reductions.
Forward-Looking StatementsThis
press release may contain “forward-looking statements” about the
Company, including, without limitation, the timing of expenditures
related to the workforce reduction and anticipated cost savings.
Forward-looking statements are based on certain assumptions and
expectations of future events that are subject to risks and
uncertainties. Such statements are made in reliance upon the safe
harbor provisions of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. 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,
the timing of planned expense reductions, the timing of customer
orders and product shipments, our ability to enhance our existing
proprietary technologies and develop new technologies, achieving
necessary acceptance and adoption of our IC architecture and
interface protocols by potential customers and their suppliers,
difficulties and delays in the development, production, testing and
marketing of our ICs, reliance on our manufacturing partners to
assist successfully with the fabrication of our ICs, availability
of quantities of ICs supplied by our manufacturing partners at a
competitive cost, level of intellectual property protection
provided by our patents, the expenses and other consequences of
litigation, including intellectual property infringement
litigation, to which we may be or may become a party from time to
time, vigor and growth of markets served by our customers and our
operations, and other risks identified in MoSys’ most recent 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.
About MoSys, Inc.MoSys, Inc.
(NASDAQ:MOSY) is a fabless semiconductor company enabling leading
equipment manufacturers of Cloud, networking, communications, and
data center systems to address the continual increase in Internet
users, data and services. The company's solutions deliver data path
connectivity, speed and intelligence while eliminating data access
bottlenecks on line cards and systems scaling from 100G to
multi-terabits per second. Engineered and built for
high-reliability carrier and enterprise applications, MoSys'
Bandwidth Engine®, Programmable Search Engine, and LineSpeed™ IC
product families are based on the company's patented
high-performance, high-density intelligent access and high-speed
serial interface technology, and utilize the company's highly
efficient GigaChip® Interface. MoSys is headquartered in Santa
Clara, California. More information is available at
www.mosys.com.
Bandwidth Engine, GigaChip, and MoSys are
registered trademarks of MoSys, Inc. in the US and/or other
countries. IC Spotlight, LineSpeed and the MoSys logo are
trademarks of MoSys, Inc. All other marks mentioned herein are the
property of their respective owners.
Contact:
Jim Sullivan, CFO
MoSys, Inc.
+1 (408) 418-7500
jsullivan@mosys.com
MoSys (NASDAQ:MOSY)
Historical Stock Chart
From Mar 2024 to Apr 2024
MoSys (NASDAQ:MOSY)
Historical Stock Chart
From Apr 2023 to Apr 2024