MoSys, Inc. reports 32.6% revenue decline in 2020 and 26.6 pp EBITDA Margin decline from -20.5% to -47.0%
03/05/2021 • About MoSys, Inc. (
$MOSY) • By InTwits
MoSys, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -47.0%
- MoSys, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 is 0.0%. Average EBITDA Margin for the same period was -113.4%
- MoSys, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 5.5%
- CAPEX is quite volatile: $0m in 2020, $0m in 2019, $0m in 2018, $0m in 2017, $1m in 2016
- The company has unprofitable business model: ROIC is -48.0%
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 32.6%. Annual revenue decline showed slowdown in 20Q4 - revenue dropped on 30.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 26.6 pp from -20.5% to -47.0% in 2020. During 2016-2020 EBITDA Margin topped in 2019 at -20.5%.
Gross Margin increased on 4.7 pp from 61.0% to 65.7% in 2020. Gross Margin stuck to a growing trend at 4.8 pp per annum in 2016-2020. SG&A as a % of Revenue surged on 19.5 pp from 39.8% to 59.3% in 2020. During the last 5 years SG&A as a % of Revenue bottomed in 2018 at 24.7% and was growing since that time.
Net Income margin dropped on 30.0 pp from -25.6% to -55.6% in 2020. During 2016-2020 Net Income margin topped in 2019 at -25.6%.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 1.0%. CAPEX/Revenue decreased on 2.3 pp from 3.4% in 2017 to 1.0% in 2020. It's average CAPEX/Revenue for the last three years was 0.79%. During 2016-2020 CAPEX as a % of Revenue bottomed in 2018 at 0.30% and was growing since that time.
Return on investment
The company operates at negative ROIC (-48.0%) and ROE (-107.4%). ROIC dropped on 20.1 pp from -27.8% to -48.0% in 2020. ROE dropped on 64.4 pp from -43.0% to -107% in 2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.5x and Debt / EBITDA is . Debt surged on 31.4% while cash decreased on 2.7%.
MoSys, Inc. has no short term refinancing risk: cash is higher than short term debt (1,323.4%).
Management team
MoSys, Inc.'s CEO is Daniel Lewis "Dan". Daniel Lewis "Dan" has 2 years tenure with the company. James W Sullivan is a MoSys, Inc.'s CFO. James W Sullivan has spent 13 years at the company.
Financial and operational results
FY ended 12/31/2020
MoSys, Inc. ($MOSY) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 6.024 | 8.842 | 16.600 | 10.086 | 6.795 | -32.6% |
| Gross Profit | 2.949 | 4.148 | 10.254 | 6.155 | 4.466 | -27.4% |
| SG&A | 5.693 | 4.702 | 4.095 | 4.016 | 4.028 | 0.3% |
| EBITDA | -30.255 | -9.174 | -10.117 | -2.066 | -3.196 | |
| Net Income | -32.048 | -10.668 | -11.409 | -2.580 | -3.780 | |
Balance Sheet
|
|---|
| Cash | 8.766 | 3.868 | 7.104 | 6.053 | 5.889 | -2.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.166 | 0.445 | 168.1% |
| Long Term Debt | 8.250 | 9.160 | 2.671 | 2.858 | 3.530 | 23.5% |
Cash flow
|
|---|
| Capex | 0.646 | 0.300 | 0.050 | 0.103 | 0.071 | -31.1% |
Ratios
|
|---|
| Revenue growth | 37.2% | 46.8% | 87.7% | -39.2% | -32.6% | |
| EBITDA growth | -1.0% | -69.7% | 10.3% | -79.6% | 54.7% | |
|
|---|
| Gross Margin | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% | 4.7% |
| EBITDA Margin | -502.2% | -103.8% | -60.9% | -20.5% | -47.0% | -26.6% |
| SG&A, % of revenue | 94.5% | 53.2% | 24.7% | 39.8% | 59.3% | 19.5% |
| Net Income Margin | -532.0% | -120.7% | -68.7% | -25.6% | -55.6% | -30.0% |
| CAPEX, % of revenue | 10.7% | 3.4% | 0.3% | 1.0% | 1.0% | 0.0% |
|
|---|
| ROIC | -91.7% | -50.1% | -82.2% | -27.8% | -48.0% | -20.1% |
| ROE | -106.5% | -94.1% | -157.3% | -43.0% | -107.4% | -64.4% |
MoSys, Inc. ($MOSY) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 2 | 2 | 2 | | -64.2% | -35.8% | 63.4% | -30.4% |
| EBITDA | -1 | -1 | -1 | -1 | | -675.1% | - | - | - |
| Net Income | -1 | -1 | -1 | -1 | | -14,150.0% | - | - | - |
Balance Sheet
|
|---|
| Cash | 6 | 7 | 7 | 6 | | 18.4% | 15.7% | 12.2% | -2.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -41.1% | 32.5% | 88.8% | 168.1% |
| Long Term Debt | 3 | 3 | 4 | 4 | | 3.7% | 19.1% | 26.9% | 23.5% |
Ratios
|
|---|
| Gross Margin | 57.9% | 69.3% | 65.7% | 67.5% | | -3.6% | 9.4% | -0.6% | 8.6% |
| EBITDA Margin | -97.2% | -27.6% | -30.1% | -59.2% | | -103.3% | -26.5% | 105.8% | -32.9% |
| Net Income Margin | -111.5% | -32.5% | -35.9% | -64.5% | | -111.8% | -29.1% | 113.5% | -34.6% |
Peers in Semiconductors
Below you can find MoSys, Inc. benchmarking vs. other companies in Semiconductors industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 10.9% | 4.4% | -3.0% | 2.8% |
|---|
| MoSys, Inc. ($MOSY) | - | 46.8% | 87.7% | -39.2% | -32.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| Texas Instruments Incorporated ($TXN) | 61.8% | 64.3% | 65.1% | 63.7% | 64.1% |
| |
|---|
| Median (43 companies) | 47.2% | 49.1% | 50.2% | 50.4% | 49.2% |
|---|
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.4% |
|---|
| MoSys, Inc. ($MOSY) | -502.2% | -103.8% | -60.9% | -20.5% | -47.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.6% | 4.7% | 4.4% | 3.8% | 4.0% |
|---|
| MoSys, Inc. ($MOSY) | 10.7% | 3.4% | 0.3% | 1.0% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 3.8% | 5.5% |
|---|
| MoSys, Inc. ($MOSY) | -91.7% | -50.1% | -82.2% | -27.8% | -48.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (32 companies) | 0.2x | 0.4x | 0.3x | 0.5x | 0.3x |
|---|
