Financial Data and Key Metrics Changes - For Q3 fiscal 2020, the company reported a net loss of $4.6 million or $0.20 per diluted share, compared to a net income of $2.3 million or $0.10 per diluted share in Q3 fiscal 2019 and a net loss of $1.8 million or $0.08 per diluted share in Q2 fiscal 2020 [16] - Net revenues for Q3 fiscal 2020 were $10 million, down from $14.7 million in the same quarter last year and $11.7 million in the previous quarter [16] - Gross margin decreased to 60.2% from 68.3% in the prior year period and 55.9% in the prior quarter, primarily due to the mix of products sold [16][18] Business Line Data and Key Metrics Changes - Sales to Nokia were $2.6 million or 26.3% of revenue, down from $6.6 million or 45.2% of revenue a year ago and $5.3 million or 45.2% in the prior quarter [13] - Military and defense sales accounted for 18.9% of third-quarter shipments, up from 16.7% a year ago but down from 23.4% in the prior quarter [14] - SigmaQuad remained the best-performing product category, representing 62% of third-quarter shipments, down from 69.7% last year and up from 63.5% in the preceding quarter [14] Market Data and Key Metrics Changes - The total addressable market (TAM) for radiation-hardened products is estimated at $15 million to $20 million, with expectations for some sales in calendar 2020 [12][25] - The company anticipates that the TAM could grow with the introduction of the Gemini-1 product into the aerospace portfolio [25] Company Strategy and Development Direction - The company is focused on the development of the Gemini-1 chip, which is expected to be a game-changer in AI with its in-memory processing technology [10] - The strategy includes targeting applications such as signal and object identification, facial recognition, and drug discovery [8] - The company aims to complete the qualification for Gemini-1 in the second half of 2020 and plans to engage with e-commerce customers thereafter [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the design wins for Gemini-1 in 2020, despite current challenges in sales [8] - The company expects gross margins to return to the low 60% range in future quarters, contingent on product mix [24] - Management noted that the path to profitability hinges on successful shipments of RadHard and rad-tolerant products, which have high gross margins [28] Other Important Information - Total operating expenses for Q3 fiscal 2020 were $10.8 million, up from $7.8 million in the same quarter last year [17] - The company had $68.3 million in cash and short-term investments at the end of Q3 fiscal 2020, compared to $61.8 million a year ago [20] Q&A Session Summary Question: What are the gross margin expectations for the following quarters? - Management indicated that gross margins are impacted by product mix, with expectations to return to the low 60% range in future quarters [23][24] Question: What is the expected revenue from the RadHard market in 2020? - Management stated it is difficult to predict exact revenue but anticipates some sales in calendar 2020 [25] Question: What is the path to profitability? - Management noted that RadHard and rad-tolerant products have high gross margins, and successful shipments of these products should lead to profitability [28] Question: What is the potential demand from alpha customers in the defense area? - Management indicated that demand could range from tens to thousands of boards, depending on the application [32] Question: When will benchmarking results for Gemini-1 be published? - Management confirmed that results would be published shortly after testing is completed, expected in February [38]

Financial Overview - GSI Technology's market capitalization is $175 million as of November 15, 2019[4] - The company has $72.9 million in liquidity, including cash, cash equivalents, and short-term and long-term investments as of September 30, 2019[9] - GSI Technology has no debt[11] - Shareholder equity stands at $95.8 million as of September 30, 2019[12] - Working capital is $75.6 million with a current ratio of 10:1[13] - Annual revenue for FY 2019 was $51.5 million, with a gross margin of 61%[6] AI Processor Development (Gemini) - The company is self-funding its AI start-up, with over $5 million spent quarterly on R&D for Gemini-I and related software[15] - The global AI chip market is projected to grow at a CAGR of 45% from $6.6 billion in 2018 to $91.2 billion in 2025[22] - Gemini-I is targeted for launch in late CY 2020[44] Rad-Hard SRAM - The estimated annual Total Addressable Market (TAM) for Radiation Hardened SRAM is $20-$25 million, with ASP around $30K and gross margins exceeding 85%[21]

Revenue Performance - Revenues decreased by 8.5% from $12.8 million in Q3 2018 to $11.7 million in Q3 2019, while revenues increased by 2.7% from $24.1 million in the first half of 2018 to $24.8 million in the first half of 2019[109] - Direct and indirect sales to Nokia, the largest customer, decreased from $6.0 million in Q3 2018 to $5.3 million in Q3 2019, but increased from $11.2 million in the first half of 2018 to $11.3 million in the first half of 2019[109] - Future sales to Nokia are expected to fluctuate significantly on a quarterly basis, impacting overall revenues[98] Profitability Metrics - Gross profit decreased by 18.2% from $8.0 million in Q3 2018 to $6.6 million in Q3 2019, while it increased by 7.2% from $13.8 million in the first half of 2018 to $14.8 million in the first half of 2019[111] - Gross margin decreased from 62.6% in Q3 2018 to 55.9% in Q3 2019, but increased from 57.4% in the first half of 2018 to 59.8% in the first half of 2019[112] - Net loss increased from $351,000 in Q3 2018 to $1.8 million in Q3 2019, and decreased from $2.0 million in the first half of 2018 to $1.9 million in the first half of 2019[117] Expenses Overview - Research and development expenses were unchanged at $5.8 million in Q3 2018 and Q3 2019, but increased by 7.8% from $10.6 million in the first half of 2018 to $11.4 million in the first half of 2019[113] - Selling, general and administrative expenses remained unchanged at $2.7 million for the three months ended September 30, 2018, and 2019, while increasing by 5.0% from $5.3 million to $5.5 million for the six months ended September 30, 2018, and 2019[114] Cash Flow and Liquidity - As of September 30, 2019, cash, cash equivalents, and short-term investments totaled $68.1 million, up from $61.8 million as of March 31, 2019[118] - Net cash used in operating activities was $1.1 million for the first half of 2019, compared to $620,000 for the first half of 2018[119] - Net cash provided by investing activities was $1.2 million in the first half of 2019, compared to net cash used of $3.2 million in the first half of 2018[123] - Net cash provided by financing activities was $3.1 million in the first half of 2019, compared to $2.2 million in the first half of 2018[125] Other Financial Metrics - Interest and other income, net increased by 44.8% from $145,000 in Q3 2018 to $210,000 in Q3 2019, and by 112.5% from $168,000 in the first half of 2018 to $357,000 in the first half of 2019[115] - Provision for income taxes decreased by 46.1% from $102,000 in Q3 2018 to $55,000 in Q3 2019, and by 12.5% from $112,000 in the first half of 2018 to $98,000 in the first half of 2019[116] - The overall average selling price of units shipped increased by 1.0% in Q3 2019 compared to Q3 2018 and increased by 16.6% in the first half of 2019 compared to the first half of 2018[109] - Shipments of the SigmaQuad product line accounted for 63.5% of total shipments in Q3 2019, down from 66.4% in Q3 2018[109] - The company has no debt and substantial liquidity, positioning it better than many peers in the semiconductor industry[98] - The accrual for potential contingent consideration related to the acquisition of MikaMonu was $4.3 million as of September 30, 2019[130] - The estimated annual effective income tax rate was approximately (2.3%) as of September 30, 2019[126]

Start Time: 16:30 January 1, 0000 5:02 PM ET GSI Technology, Inc. (NASDAQ:GSIT) Q2 2020 Earnings Conference Call October 24, 2019, 16:30 PM ET Company Participants Lee-Lean Shu - President and CEO Douglas Schirle - CFO Didier Lasserre - VP of Sales Conference Call Participants Ari Shusterman - Needham & Company Kurt Caramanidis - Carl M. Hennig Jeff Bernstein - Cowen Operator Ladies and gentlemen, thank you for standing by. Welcome to the GSI Technology's Second Quarter Fiscal 2020 Results Conference Call. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33387 GSI Technology, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

GSI Technology, Inc. (NASDAQ:GSIT) Q2 2019 Earnings Conference Call July 25, 2019 4:30 PM ET Company Participants Lee-Lean Shu - Chairman, President and CEO Douglas Schirle - CFO Didier Lasserre - VP of Sales Conference Call Participants Kurt Caramanidis - Carl M. Hennig Jeffrey Bernstein - Cowen James Roumell - Roumell Asset Management Ari Shusterman - Needham & Company Operator Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's First Quarter Fiscal 2020 Results Conference Call. A ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33387 GSI Technology, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorp ...

GSI Technology, Inc. (NASDAQ:GSIT) Q4 2019 Earnings Conference Call May 2, 2019 4:30 PM ET Company Participants Lee-Lean Shu - Chairman, President and Chief Executive Officer Douglas Schirle - Chief Financial Officer Didier Lasserre - Vice President of Sales Conference Call Participants Jeff Bernstein - Cowen Kurt Caramanidis - Carl M. Hennig Ari Shusterman - Needham and Co Operator Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's Fourth Quarter Fiscal 2019 Results Conference Cal ...

| --- | --- | --- | --- | |-------|-------|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Doug Schirle, CFO \| February, 2019 | GSI Technology High Performance Memory for Leading-Edge Technology Didier Lasserre, Vice President Sales and Investor Relations | SAFE HARBOR The statements contained in this presentati ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33387 GSI Technology, Inc. (Exact name of registrant as specified in its charter) Delaware 77-0398779 (State or other ...