Shares of GSI Technology, Inc. (GSIT) have gained 8.1% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 index’s 0.7% growth over the same time frame. Over the past month, the stock has gained 47.5% versus the S&P 500’s 2.8% change.For the fourth quarter of fiscal 2025, GSI Technology incurred a net loss of 9 cents per share, narrower than a net loss of 17 cents per share in the year-ago quarter. (See the Zacks Earnings Calendar to stay ahead of marke ...

GSI (GSIT) Q4 2025 Earnings Call May 01, 2025 04:30 PM ET Speaker0 Welcome to GSI Technologies Fourth Quarter and Fiscal Year twenty twenty five Results Conference Call. At this time, all participants are on a listen only mode. Later, we will conduct a question and answer session. At that time, we will provide instructions for those interested in entering the queue for the Q and A. Before we begin today's call, the company has requested that I read the following safe harbor statement. The matters discussed ...

EXHIBIT 99.1 GSI Technology, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results SUNNYVALE, Calif., May 01, 2025 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its fourth fiscal quarter and fiscal year ended March 31, 2025. Summary Financial Results Table (in thousands, except per share amounts) Mr. Shu concluded, "We are especially excited about a recent enhancement to Plato: adding the integration of a camera interface directly into the chip. This and oth ...

SUNNYVALE, Calif., May 01, 2025 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its fourth fiscal quarter and fiscal year ended March 31, 2025. Summary Financial Results Table (in thousands, except per share amounts) Three Months Ended12 Months Ended Mar. 31, 2025Dec. 31, 2024Mar. 31, 2024Mar. 31, 2025Mar. 31,2024Net revenues$5,883 $5,414 $<td style="max-width:10%; width:10%; min-width:10%;;padding-left: 0 ; padding-right: 0 ; text-align: right ; vert ...

SUNNYVALE, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (Nasdaq: GSIT), the inventor of the Associative Processing Unit (APU), a paradigm shift in artificial intelligence (AI) and high-performance compute (HPC) processing providing true compute-in-memory technology, will announce financial results for its fiscal fourth quarter and year ended March 31, 2025 after the market close on Thursday, May 1, 2025. Management will also conduct a conference call to review the Company's fourth quarter ...

Financial Performance - Net revenues increased by 1.8% from $5.3 million in Q3 2023 to $5.4 million in Q3 2024, but decreased by 11.9% from $16.6 million in the nine months ended December 31, 2023 to $14.6 million in the same period in 2024[113]. - Gross profit decreased by 1.8% from $3.0 million in Q3 2023 to $2.9 million in Q3 2024, and by 25.4% from $9.2 million in the nine months ended December 31, 2023 to $6.8 million in the same period in 2024[117]. - Net loss was $6.6 million in Q3 2023 compared to $4.0 million in Q3 2024, and $15.8 million in the nine months ended December 31, 2023 compared to $8.4 million in the same period in 2024[124]. Revenue Sources - Revenue is primarily generated from Very Fast SRAM products, with direct and indirect sales to networking and telecommunications OEMs accounting for 32% to 49% of net revenues over the last three fiscal years[100]. - Nokia was the largest end user customer, representing approximately 14% of net revenues in the nine months ended December 31, 2024, down from 29% in fiscal 2022[105]. Cash and Cash Equivalents - The company reported cash and cash equivalents of $15.1 million as of December 31, 2024, with no debt[98]. - Cash and cash equivalents as of December 31, 2024 were $15.1 million, up from $14.4 million as of March 31, 2024[125]. - The company has cash and cash equivalents totaling $15.1 million as of December 31, 2024, primarily invested in money market funds for working capital purposes[140]. Operating Expenses - Operating expenses were reduced by approximately $3.5 million on an annualized basis, resulting in a 16% decrease in the global workforce[99]. - Selling, general and administrative expenses increased by 11.7% from $2.7 million in Q3 2023 to $3.0 million in Q3 2024[120]. - Research and development expenses decreased by 42.1% from $7.0 million in Q3 2023 to $4.0 million in Q3 2024, primarily due to a decrease in pre-production mask costs[118]. Future Outlook - The company anticipates continued inflationary pressures and geopolitical tensions will negatively impact financial performance in fiscal 2025 and beyond[98]. - The company has experienced increased costs due to inflation and supply chain constraints, affecting the cost of revenues[106]. - Future capital requirements will depend on factors such as revenue growth, manufacturing cost increases, and spending to support product development and sales expansion[131]. - The company may require additional capital for potential acquisitions of businesses, products, or technologies[131]. Contracts and Agreements - The company expects to receive milestone payments totaling an estimated $1.25 million under a prototype agreement with the Space Development Agency for the development of APU2[95]. - The company received payments of $124,000 and $157,000 under two separate contracts during the nine months ended December 31, 2024[95][97]. Financial Activities - Net cash used in operating activities was $11.3 million for the nine months ended December 31, 2024, compared to $10.2 million for the same period in 2023[126]. - Net cash provided by investing activities was $11.4 million in the nine months ended December 31, 2024, compared to $2.8 million in the same period in 2023[129]. - Net cash provided by financing activities in the nine months ended December 31, 2024 was $622,000, down from $1.6 million in the same period in 2023[130]. Accounting and Risk Management - The company completed its annual goodwill impairment test with no impairment noted, maintaining a goodwill balance of $8.0 million[111]. - The company has no off-balance sheet arrangements or relationships with unconsolidated entities, mitigating exposure to financing, liquidity, market, or credit risk[136]. - The company does not currently enter into forward exchange contracts to hedge foreign currency exposure, which is minimal due to most revenues and expenses being denominated in U.S. dollars[139]. - A hypothetical 100 basis point change in interest rates is not expected to materially affect the fair value of the company's interest-sensitive financial instruments[140]. - The company has disclosed critical accounting estimates in its Annual Report on Form 10-K for the fiscal year ended March 31, 2024[134].

Core Viewpoint - GSI Technology, Inc. reported a narrower net loss and a slight increase in revenues, but the stock has underperformed compared to the S&P 500 index, indicating potential challenges ahead for the company [1][2]. Financial Performance - GSI Technology incurred a net loss of 16 cents per share in Q3 fiscal 2025, an improvement from a loss of 26 cents per share in the same quarter last year [2]. - The company reported net revenues of $5.4 million, a 2% increase from $5.3 million in the prior-year period [2]. - Gross margin decreased to 54% from 55.9% in the prior-year quarter [2]. - Operating expenses declined to $7 million from $9.7 million a year ago, with R&D spending dropping to $4 million from $7 million [3]. - Selling, general, and administrative (SG&A) expenses rose to $3 million from $2.7 million a year ago [3]. - The operating loss narrowed to $4.1 million from $6.7 million in the prior-year quarter, while the net loss narrowed to $4 million from $6.6 million [3]. Business Metrics - Military and defense sales accounted for 30% of total shipments, up from 28.2% in the prior-year period [4]. - Sales to Nokia declined to $0.2 million, representing 4.4% of total revenues, down from $0.8 million (15.2%) a year ago [4]. - SigmaQuad sales accounted for 39.1% of total shipments, down from 46.9% in the year-ago period [4]. Cash Position - As of Dec. 31, 2024, GSI Technology had cash and cash equivalents of $15.1 million, up from $14.4 million at the end of fiscal 2024 [5]. - Working capital stood at $17.9 million, compared to $19.1 million as of March 31, 2024 [5]. - Stockholders' equity decreased to $29.9 million from $36 million at fiscal year-end [5]. Management Commentary - The CEO highlighted progress in revenue growth and cost reduction initiatives, noting a key customer in the AI semiconductor industry is ramping up orders, potentially becoming GSIT's largest revenue contributor in fiscal 2025 [6]. Product Development - The APU initiative is advancing, with the Gemini-II chip on track for a February tape-out and availability in May [7]. - A new chip, Plato, was introduced to leverage Gemini-II's architecture for edge AI and large language model applications [7]. Performance Influencers - The sequential improvement in gross margin was attributed to higher revenues, a favorable product mix, and the absence of severance costs incurred in the prior quarter [8]. - Declining sales to Nokia and shifts in defense segment contributions could affect future revenue composition, but strengthening SRAM demand and a pipeline of government contracts may provide stability [9]. Guidance - For Q4 fiscal 2025, GSI Technology expects net revenues to range between $5.4 million and $6.2 million, with gross margin projected between 55% and 57% [10]. Strategic Developments - GSI Technology is conducting a strategic review with Needham & Company to evaluate alternatives for enhancing shareholder value [11]. - The company secured a $0.3 million Phase 1 SBIR contract with the U.S. Army for AI-driven edge computing applications, with existing SBIR projects on track [11].

Financial Performance - GSI Technology reported net revenues of $5.4 million for Q3 FY2025, a 2% increase year-over-year and a 19% increase sequentially[2]. - Gross margin for Q3 FY2025 was 54.0%, compared to 55.9% in Q3 FY2024 and 38.6% in Q2 FY2025[3]. - Operating loss for Q3 FY2025 was $(4.1) million, an improvement from $(6.7) million in Q3 FY2024 and $(5.6) million in Q2 FY2025[7]. - Net loss for Q3 FY2025 was $(4.0) million, or $(0.16) per diluted share, compared to $(6.6) million, or $(0.26) per diluted share in Q3 FY2024[8]. - Research and development expenses decreased to $4.0 million in Q3 FY2025 from $7.0 million in the prior-year period[5]. - GSI Technology anticipates Q4 FY2025 net revenues to be in the range of $5.4 million to $6.2 million, with a gross margin of approximately 55% to 57%[2]. Sales and Revenue Composition - Sales to Nokia accounted for 4.4% of net revenues in Q3 FY2025, down from 15.2% in Q3 FY2024[4]. - Military/defense sales represented 30.0% of shipments in Q3 FY2025, compared to 28.2% in the same period a year ago[4]. Cash and Assets - The company had $15.1 million in cash and cash equivalents as of December 31, 2024, up from $14.4 million at March 31, 2024[9]. - Total assets increased to $44,133 million as of December 31, 2024, up from $42,464 million on March 31, 2024, representing a growth of 3.93%[20]. - Cash and cash equivalents rose to $15,085 million, an increase of 4.54% from $14,429 million[20]. - Accounts receivable increased to $3,583 million, up 15% from $3,118 million[20]. - Inventory decreased to $3,885 million, down 22% from $4,977 million[20]. Liabilities and Equity - Current liabilities increased to $5,900 million, up 9.94% from $5,365 million[20]. - Long-term liabilities significantly increased to $8,300 million from $1,129 million, indicating a rise of 636.2%[20]. - Stockholders' equity decreased to $29,933 million from $35,970 million, a decline of 16.7%[21]. - Operating lease right-of-use assets increased to $9,858 million from $1,553 million, a substantial rise of 533.5%[20]. - Other current assets decreased to $1,267 million from $1,954 million, a decline of 35.2%[20]. - Total liabilities and stockholders' equity remained consistent at $44,133 million as of December 31, 2024[21]. Technology Development - GSI Technology is progressing on the development of its APU technology, with the Gemini-II chip on track for a February tape-out and availability in May[2].

Core Viewpoint - GSI Technology, Inc. reported a slight increase in net revenues for the third fiscal quarter of 2025, driven by a rebound in customer orders and strengthening core SRAM sales, particularly from a key customer in the AI chip manufacturing sector [4][5]. Financial Performance - Net revenues for the third quarter of fiscal 2025 were $5.4 million, a 2% increase year-over-year and a 19% increase sequentially [4][5]. - Gross margin was 54.0%, down from 55.9% in the same quarter last year but up from 38.6% in the previous quarter [5]. - Operating expenses totaled $7.0 million, a decrease from $9.7 million in the prior-year period [7]. - The operating loss for the third quarter was $(4.1) million, an improvement from $(6.7) million in the same quarter last year [8]. - Net loss was $(4.0) million, or $(0.16) per diluted share, compared to a net loss of $(6.6) million, or $(0.26) per diluted share, for the same period last year [9]. Sales and Customer Insights - Sales to Nokia accounted for $239,000, or 4.4% of net revenues, a significant decrease from $807,000, or 15.2% of net revenues, in the same period a year ago [6]. - Military/defense sales represented 30.0% of third-quarter shipments, up from 28.2% year-over-year [6]. Research and Development - The development of APU technology is progressing, with the Gemini-II chip on track for a February tape-out and expected availability in May [4]. - The latest version of Gemini-II aims to enhance AI capabilities by integrating advanced neural networks with radar imaging technology [4]. Outlook - The company anticipates fourth-quarter net revenues to be in the range of $5.4 million to $6.2 million, with a gross margin of approximately 55% to 57% [4]. Balance Sheet Highlights - As of December 31, 2024, the company had $15.1 million in cash and cash equivalents, an increase from $14.4 million at the end of March 2024 [10]. - Stockholders' equity decreased to $29.9 million from $36.0 million at the end of the previous fiscal year [10][22].

Core Insights - GSI Technology has been selected by the U.S. Army for a potential contract worth up to $250,000 under the DoD Small Business Innovation Research (SBIR) program, aimed at developing advanced edge computing AI solutions using its Gemini-II technology [1][4]. Group 1: Project Objectives - The project will focus on integrating Gemini-II with AI models tailored for the Army's edge computing needs, involving a comprehensive assessment of operational challenges and establishing key performance metrics [2]. - The second objective is to identify and validate suitable AI algorithms for the Gemini-II platform, emphasizing low-latency and high-throughput applications relevant to military environments [3]. Group 2: Technology and Innovation - The Gemini-II platform is a second-generation APU technology that processes data directly in memory, significantly reducing power consumption and bottleneck transfer latency while enhancing overall processing capacity [4]. - The project aims to develop 1-bit Large Language Models (LLMs) for the U.S. Army, which promise high accuracy with low power consumption and minimal latency, with potential applications in various dual-use markets [5]. Group 3: Strategic Positioning - The SBIR contract highlights GSI Technology's commitment to advancing edge computing and AI technologies, positioning the company at the forefront of innovation in both defense and commercial computing sectors [6].