MoSys Inc. Q4 2007 Earnings Call Transcript

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2008-02-12 18:53:07.0

Tags: MoSys Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Jamie Zimmerman of . Litespeed Partners. Please proceed.

Jamie Zimmerman - Litespeed Partners

You said that there was $9.1 million of royalty revenue this year, and that came from 18 customers. I believe that more than half of it is from Nintendo, can you tell us who else is paying royalties and what you expect them to be going forward?

Jim Sullivan

The 18 customers, that was the account total for Q4, which was exactly the same as for Q3. In addition to in Nintendo Wii console, our other royalty customers including TSMC and a number of others. We don't provide specific guidance on a customer basis, the royalty looking forward, but obviously, it is our expectation that particularly with regard to TSMC and some of the other players in there, that we will see significant increases in 2008.

Jamie Zimmerman - Litespeed Partners

We were supposed to see significant increases in 2007. So I am just curious, are those 18 people new then to the second half of 2007? Were they here in 2006? And what do you mean by significant?

Jim Sullivan

So in 2007, we entered into a general, I am going to call it general-license agreement with TSMC, and TSMC was then in a position to configure macros for their customers where they saw fit, and where they have the talent to do it themselves, and they did not continuously negotiate with us on licenses. The end result of that is then to make TSMC a bit much more successful and much more aggressive about implementing our technology into the systems solutions that their customers need.

And we saw a significant increase in revenue '07 over '06 to TSMC. I would say something greater than five times, with the strongest quarter by far being the fourth quarter, and I would expect that we would continue to see TSMC grow through 2008 and beyond that we have several other exciting products that are being brought up in other foundries, and I would expect that we are going to see other companies moving up also.

It's true that Nintendo has been very important and continues to be very, very important to us and that for sometime they will be significant, probably the largest royalty-bearing customer we deal with. But I think there are others that will start getting much larger.

 

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