The Hindu Business Line : Moschip posts Rs 3-cr loss in fourth quarter

Hyderabad, July 6 Moschip Semiconductor posted consolidated revenues of Rs 6.67 crore, with a loss of Rs 3.14 crore for the fourth quarter ended March 31, as against total revenues of Rs 6.16 crore and loss of Rs 2.06 crore for the corresponding quarter last year.

For the year ended March 31, the company had revenues of Rs 24.38 crore, with a loss of Rs 10.99 crore as against total income of Rs 27.73 crore and loss of Rs 3.55 crore in the previous fiscal, according to a statement filed with the exchanges by Mr K. Ramachandra Reddy, Chairman and Chief Executive Officer.

In fact, as per the company’s financial statements, it continues to carry audit qualifications.

As per the qualification, the company had invested Rs 37 crore in its wholly owned US subsidiary Moschip (formerly Netmos). The investment is being carried at cost. The difference between the investment of Rs 37 crore and the net worth of US firm of Rs 11.3 crore at book value as of March 31, has not been charged to profit and loss account.

The board is of the opinion that the difference between the investment amount and the net worth is not a reflection in the diminution of the value of investment. The fair market value is based on expected future cash flows and other intangible assets. And the book value does not capture the real intrinsic value.

The company recently announced the acquisition of technology assets of a US firm and expects to close another acquisition.