Shares of MoSys Inc. (NASDAQ:MOSY) fell 35% on Thursday after the company disclosed that its effort to consider strategic alternatives was unsuccessful. Specifically, MoSys’ board of directors had engaged an investment bank in the second half of 2016 as a strategic financial adviser to review a range of strategic alternatives focused on maximizing stockholder value. Although the financial adviser met with many companies, MoSys did not receive any proposals that the company’s board considered to be in the best interest of shareholders.
As a result, MoSys Inc. (NASDAQ:MOSY) is revising its operating plan to cut costs and streamline its operations. To reduce its cash burn and focus more resources on customers, MoSys will lay off around 60% of its total headcount, or up to 35 positions. MoSys anticipates the cost cuts will save $6 million on an annual basis.
What Does The Smart Money Sentiment Say?
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None of the 742 smart money funds we track reported owning any shares of MoSys Inc. (NASDAQ:MOSY) at the end of Q4.
The Bottom Line
MoSys Inc. (NASDAQ:MOSY) fell sharply on Thursday due to the market not liking the company’s revised operating plan. For more reading, check out ‘10 Most Popular Stocks Among Hedge Funds‘.