MoSys, Inc. (NASDAQ: MOSY) shares rose Friday after the company reported better-than-expected Q1 results and issued strong Q2 forecast.
The San Jose-based MoSys reported total net revenue for the first quarter of 2018 of $4.2 million, compared with $3.8 million for the fourth quarter of 2017 and $1.2 million for the first quarter of 2017.
Product revenue for the first quarter was $3.7 million, compared with $3.5 million in the fourth quarter of 2017 and $1.0 million in the year ago period, reflecting increased IC shipments to multiple design win customers.
GAAP gross margin for the first quarter of 2018 increased to 62%, compared with 45% for the fourth quarter of 2017 and 50% for the first quarter of 2017. The sequential increase in gross margin was due primarily to improved manufacturing efficiencies and higher licensing revenue.
Total operating expenses on a GAAP basis for the first quarter of 2018 were $2.0 million, compared with $2.2 million in the fourth quarter of 2017 and $4.8 million in the first quarter of 2017. Operating expenses decreased sequentially and year-over-year due primarily to the benefits of the Company’s restructuring and cost reduction initiatives implemented in 2017.
Said CEO Len Perham, "During the first quarter, we further extended the momentum established at the end of 2017, increasing total revenue 11%, improving product gross margins to 57%, and reducing operating expenses by 9%, sequentially.
"These financial and business improvements enabled us to achieve profitability in the quarter and position the Company to sustain profitability in the quarters ahead."
Shares galloped 37 cents, or 24%, to $1.89.
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