MoSys, Inc. Reports Fourth Quarter and Full Year 2016 Financial Results
Last update: 29/03/2017 8:00:04 am
Management Commentary
"Fourth quarter revenue primarily reflected continued shipments of Bandwidth Engine(R) 2, including increased orders for early production units from our lead IP security appliance customer," commented Len Perham, president and CEO of MoSys. "While our product revenue increased in 2016 over 2015, we did not achieve our full year revised IC revenue guidance due to delays in customer ramps and order cancellations from a lead Programmable Search Engine (PSE) customer in the fourth quarter. Our initial PSE data-center customer chose not to continue to adapt our PSE and associated internal software for use in its next-generation product, and, instead, opted for an alternative solution. While we ended the year with a solid pipeline of design wins for our products, the pace at which we added incremental wins was lower due to a combination of market dynamics and customer concerns about the Company's financial viability. However, we recently won our first Bandwidth Engine 3 design win and initial pre-production order with a leading networking equipment supplier in China. For this design win, our Bandwidth Engine 3 device is configured to support Mellanox's Indigo NPS-400 network processor.
"Overall, we have experienced slowness in new equipment ramps by our various network infrastructure-based design-win customers. In addition, the cycles of improvements and performance upgrades being undertaken by networking infrastructure suppliers have taken longer to get started and are less predictable to forecast. These factors are likely due to the increased focus on the data center and Cloud applications, the emergence of new initiatives, such as software defined networking (SDN) and network function virtualization (NFV), and the ever-increasing use of white box equipment by traditional networking customers. These market dynamics, combined with the fact that MoSys' customer base includes a limited number of the tier-one players in the networking infrastructure space, have made the situation very difficult for MoSys given its size and capitalization.
(I do admire MoSys' management's commentary; An honest assessment of the company ). |
