Technology Stocks

Does MoSys Inc (NASDAQ: MOSY) A Best Semiconductor Stock To Invest?

MoSys Inc (NASDAQ: MOSY) surged past the previous high of $6.26, recorded on February 16, 2021, to $9.11 on June 4, 2021. If it could sustain the current levels, the stock can touch a high of $37.60 soon and further above $70.

MoSys provides IP Solutions and silicon chips to facilitate intelligent data access quickly. It helps the decision-makers in a wide range of markets like 5G networks, test and measurement, SmartNIC, cloud networking, video systems, and security. 

Its series of Virtual Accelerator Engines comprise RISC-based firmware, software, and FPGA RTL-based firmware to expedite applications and supports portability of hardware configurations using MoSys silicon chips or without chips. 

Reports revenues of $1.3 million

MoSys reported $1.3 million (down by 23% QoQ) in Q1 2021 revenues. Its product revenues are declined by 16.66% QoQ to $1.2 million in Q1 2021. The decline is on the backdrop of a drop in Bandwidth Engine products shipments and reduced 1T-SRAM licensees.

MoSys’ gross margins are dropped by 5% QoQ to 63% in Q1 2021. Its operating expenses declined by $0.1 million QoQ to $2.2 million. The company’s net loss is $1.4 million.

The company’s investments and the cash balance are $11.1 million at the end of Q1 2021. MoSys’s CEO, Dan Lewis, said the company made significant achievements in customer engagements and its pipeline despite the supply chain challenges. 

MoSys maintains optimum inventories to support its customers because of an increase in lead times. The company also made adjustments to its customer orders due to a shortage of some components. It expects to face supply constraints in Q2 2021 too. 

Lewis said the company bagged several new designs for its IC products using its expanded sales channels and proven track record. He is pleased with the pipeline and would continue investments in future opportunities for growth. 

The company will concentrate on VAE (Virtual Accelerator Engine) solutions and explore opportunities for its technology. It supplied several IP drops to its partners. The company would leverage referrals from its partners for its VAE solutions to expand its portfolio.

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