Core Viewpoint - GSI Technology, Inc. will announce its financial results for the fiscal third quarter of 2025 on January 30, 2025, and will provide an outlook for the fourth quarter during a conference call [1]. Group 1: Financial Results Announcement - The financial results for the fiscal third quarter 2025, which ended on December 31, 2024, will be released after market close on January 30, 2025 [1]. - A conference call to discuss the third quarter results and the fourth quarter outlook will take place at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day [1]. Group 2: Participation Details - Participants can join the call by dialing 1-877-407-3982 in the U.S. or 1-201-493-6780 internationally, approximately 10 minutes before the start time, using Conference ID 13751185 [2]. - The call will also be available for live streaming on the company's investor relations website [2]. Group 3: Replay Information - A replay of the conference call will be accessible from January 30, 2025, at 7:30 p.m. Eastern Time until February 6, 2025, at 11:59 p.m. Eastern Time [3]. - The replay can be accessed by dialing 1-844-512-2921 for the U.S. or 1-412-317-6671 internationally, entering pin number 13751185 [3]. Group 4: Company Overview - GSI Technology is a leader in AI and high-performance parallel computing, known for its Gemini® Associative Processing Unit (APU) [4]. - The company provides high-performance memory solutions for various markets, including networking, telecommunications, and military [4]. - GSI's innovations, Gemini-I® and Gemini-II®, are designed for scalable, low-power, high-capacity computing, enhancing edge computing capabilities [4].

Financial Performance - Net revenues decreased by 20.3% from $5.7 million in Q3 2023 to $4.6 million in Q3 2024, and by 18.4% from $11.3 million in the first half of 2023 to $9.2 million in the first half of 2024[106]. - Gross profit decreased by 43.7% from $3.1 million in Q3 2023 to $1.8 million in Q3 2024, with gross margin dropping from 54.7% to 38.6%[112]. - Net loss was $5.5 million in Q3 2024 compared to $4.1 million in Q3 2023, and $4.4 million in the first half of 2024 compared to $9.2 million in the first half of 2023[120]. - The average selling price of units shipped decreased by 12.0% in Q3 2024 compared to Q3 2023, with the number of units shipped decreasing by 10.5%[106]. - Direct and indirect sales to Nokia decreased from $1.2 million in Q3 2023 to $812,000 in Q3 2024, and from $3.0 million in the first half of 2023 to $1.8 million in the first half of 2024[110]. Cash and Liquidity - Cash and cash equivalents of $18.4 million as of September 30, 2024, with no debt[90]. - Cash and cash equivalents increased to $18.4 million as of September 30, 2024, up from $14.4 million as of March 31, 2024[121]. - Net cash used in operating activities was $7.7 million for the first half of 2024, compared to $6.3 million for the first half of 2023[122]. - Net cash provided by investing activities was $11.3 million in the first half of 2024, primarily from the sale and leaseback transaction[125]. - Net cash provided by financing activities for the six months ended September 30, 2024, was $373,000, compared to $1.5 million for the same period in 2023[126]. - The company believes its existing cash balances and future cash flow will be sufficient for working capital and capital expenditures for at least the next 12 months[127]. - The company sold 133,000 shares at an average price of $4.20 for proceeds of $542,000 during the quarter ended September 30, 2023[127]. Operational Changes - The company initiated measures to reduce operating expenses by approximately $3.5 million annually, resulting in a 16% decrease in the global workforce[91]. - The company has experienced a decline in revenues due to changes in customer buying patterns and communication limitations related to COVID-19, with a decrease in revenues expected in the second half of fiscal 2023 and into fiscal 2025[87]. - Research and development expenses are expected to remain substantial as the company invests in new in-place associative computing products, potentially leading to operating losses in some periods[102]. - Research and development expenses increased by 2.1% from $4.7 million in Q3 2023 to $4.8 million in Q3 2024, primarily due to outside consulting expenses for the next generation APU product[113]. - Selling, general and administrative expenses increased by 1.2% from $2.5 million in Q3 2023 to $2.6 million in Q3 2024, while decreasing by 6.7% from $5.5 million in the first half of 2023 to $5.2 million in the first half of 2024[116]. Market Conditions - The company expects continued inflationary pressures and high interest rates to negatively impact general economic activity and demand in its end markets over the next 12 months[90]. - The company has been impacted by increased costs due to inflation and supply chain constraints, particularly in wafer fabrication and outsourced manufacturing[98]. - The company anticipates fluctuations in quarterly net revenues due to the cyclical nature of the semiconductor industry and reliance on obtaining and shipping orders within the same quarter[94]. Goodwill and Obligations - The company completed its annual goodwill impairment test with no impairment noted, maintaining a goodwill balance of $8.0 million as of September 30, 2024[104]. - As of September 30, 2024, the company had $14.9 million in purchase obligations, with $1.6 million due in the next twelve months[128]. - The accrual for potential contingent consideration related to the acquisition of MikaMonu was $51,000 as of September 30, 2024, payable through December 31, 2025[129]. Financial Instruments and Risk Management - The company does not currently enter into forward exchange contracts to hedge foreign currency exposure, which is minimal[134]. - 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[135]. - The company may require additional capital for potential acquisitions of businesses, products, or technologies in the future[127].

Financial Data and Key Metrics Changes - The company reported net revenues of $4.6 million for Q2 fiscal 2025, down from $5.7 million in Q2 fiscal 2024 and $4.7 million in Q1 fiscal 2025 [17] - Gross margin decreased to 38.6% in Q2 fiscal 2025 from 54.7% in Q2 fiscal 2024 and 46.3% in Q1 fiscal 2025, primarily due to a shift in product mix and non-recurring severance costs [17] - Operating loss for Q2 fiscal 2025 was $5.6 million, compared to an operating loss of $4.1 million in the prior year and operating income of $1.1 million in the prior quarter [19] - Net loss was $5.4 million or $0.21 per diluted share, compared to a net loss of $4.1 million or $0.60 per diluted share in Q2 fiscal 2024 and net income of $1.1 million or $0.04 per diluted share in Q1 fiscal 2025 [20] - Cash and cash equivalents increased to $18.4 million as of September 30, 2024, from $14.4 million at March 31, 2024 [21] Business Line Data and Key Metrics Changes - The SRAM business is experiencing a turnaround, with existing customers depleting channel inventories and a new SRAM design secured with significant growth potential [3] - Sales to Nokia were $812,000, representing 17.8% of net revenues, down from $1.2 million or 20.3% in the same period a year ago [13] - Military/defense sales accounted for 40.2% of shipments in Q2 fiscal 2025, up from 34.8% in the comparable period a year ago [13] Market Data and Key Metrics Changes - Demand for SRAM chips is expected to rise due to the growth in high-performance computing hardware and the introduction of a new AI chip by a leading tech company [9] - The company is engaged with two customers on SAR edge applications, transitioning from evaluating Gemini-I to Gemini-II [12] Company Strategy and Development Direction - The company is implementing strategic cost-cutting measures to extend its financial runway and capitalize on immediate and long-term opportunities, aiming for annualized savings of about $3.5 million [6] - The company is on track to meet milestones for the Gemini-II benchmarking projects and is excited about software fixes for the Gemini-II development [4] Management's Comments on Operating Environment and Future Outlook - Management anticipates a significant increase in SRAM orders in upcoming quarters as customers work through excessive inventory [10] - The company is optimistic about the collaboration with a new customer in the AI chip sector, which is expected to drive substantial demand for SRAM chips [10] Other Important Information - The company is working with Needham & Company as a strategic and financial advisor to evaluate specific strategic alternatives [21] Q&A Session Summary Question: Is the SRAM opportunity associated with semi equipment wafer fabrication or semi test equipment? - The company confirmed it is associated with manufacturing but did not disclose the specific customer details at this time [22][23] Question: What is the difference between Plato and Gemini-II L? - Plato is a new design targeting the LLM market specifically on the edge, while Gemini-II L is a derivative of Gemini-II configured for lower power usage [24]

Financial Performance - GSI Technology reported net revenues of $4.6 million for Q2 FY2025, down from $5.7 million in Q2 FY2024 and $4.7 million in Q1 FY2025[2] - Gross margin decreased to 38.6% in Q2 FY2025 from 54.7% in Q2 FY2024 and 46.3% in Q1 FY2025, primarily due to product mix and severance costs[2] - Operating loss for Q2 FY2025 was $(5.6) million, compared to an operating loss of $(4.1) million in the prior-year period and operating income of $1.1 million in the prior quarter[5] - Net loss for Q2 FY2025 was $(5.5) million, or $(0.21) per diluted share, compared to a net loss of $(4.1) million, or $(0.16) per diluted share, in Q2 FY2024[5] - Total operating expenses in Q2 FY2025 were $7.3 million, compared to $7.2 million in Q2 FY2024 and $1.1 million in the prior quarter, which included a one-time gain of $5.7 million[4] Revenue Sources - Sales to Nokia accounted for $812,000, or 17.8% of net revenues in Q2 FY2025, down from $1.2 million, or 20.3% in the same period a year ago[3] - Military/defense sales represented 40.2% of second quarter shipments, up from 34.8% in the comparable period a year ago[3] Future Outlook - GSI Technology anticipates Q3 FY2025 net revenues in the range of $4.7 million to $5.5 million, with gross margin expected to be approximately 50% to 52%[1] - The company expects to achieve annual savings of $3.5 million from strategic cost-cutting measures implemented in Q2 FY2025[1] Cash Position - GSI Technology had $18.4 million in cash and cash equivalents as of September 30, 2024, compared to $14.4 million at March 31, 2024[6]

Core Viewpoint - GSI Technology, Inc. will announce its financial results for the fiscal second quarter 2025 on October 24, 2024, and will provide an outlook for the third quarter during a conference call [1]. Financial Results Announcement - The financial results for the fiscal second quarter 2025, which ended on September 30, 2024, will be released after market close on October 24, 2024 [1]. - A conference call to discuss the results and the outlook for the third quarter will take place at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day [1]. Participation Details - Participants can join the call by dialing 1-877-407-3982 in the U.S. or 1-201-493-6780 internationally, approximately 10 minutes before the start time, using Conference ID 13749240 [2]. - The call will also be streamed live on the internet [2]. Replay Information - A replay of the call will be available from October 24, 2024, at 7:30 p.m. Eastern Time until October 31, 2024, at 11:59 p.m. Eastern Time [3]. - The replay can be accessed by dialing 1-844-512-2921 in the U.S. or 1-412-317-6671 internationally, entering pin number 13749240 [3]. - A webcast of the call will be archived on the company's investor relations website [3]. Company Overview - GSI Technology is a leader in AI and high-performance parallel computing, known for its Gemini® Associative Processing Unit (APU) [4]. - The company provides high-performance memory solutions for various markets, including networking, telecommunications, and military [4]. - GSI's innovations, Gemini-I® and Gemini-II®, offer scalable, low-power, high-capacity computing solutions, enhancing edge computing capabilities [4].

Company Overview - GSI Technology, Inc. is a leading provider of semiconductor memory solutions, founded in 1995 [4] - The company has recently launched radiation-hardened memory products designed for extreme environments in space [4] - GSI Technology is known for its Gemini® Associative Processing Unit (APU), which offers significant performance advantages for various AI applications [4] Product Innovation - The Gemini APU architecture eliminates the I/O bottleneck between processors and memory arrays by enabling massive parallel searches directly in the memory array [4] - This novel architecture provides improved performance-over-power ratios compared to traditional CPU, GPU, and DRAM solutions [4] - The Gemini APU is particularly suitable for edge applications due to its scalable format, small footprint, and low power consumption, making it ideal for rapid and accurate responses [4] Upcoming Events - GSI Technology management is scheduled to participate in the 5th Annual Needham Semiconductor & SemiCap 1x1 Conference on August 21, 2024 [1] - Didier Lasserre, Vice President of Sales and Investor Relations, will host one-on-one meetings during the conference [1] - A webcast of GSI Technology's presentation will be available on the company's website under the Events and Presentations tab [3]

Financial Performance - Net revenues decreased by 16.4% from $5.6 million in Q2 2023 to $4.7 million in Q2 2024, attributed to cautious customer spending and supply chain constraints[92]. - Gross profit fell by 29.6% from $3.1 million in Q2 2023 to $2.2 million in Q2 2024, with gross margin decreasing from 54.9% to 46.3%[93]. - Net income improved from a loss of $5.1 million in Q2 2023 to a profit of $1.1 million in Q2 2024, driven by changes in revenues and operating expenses[98]. Cash and Liquidity - Company reported cash and cash equivalents of $21.8 million as of June 30, 2024, with no debt[78]. - Cash and cash equivalents increased to $21.8 million as of June 30, 2024, up from $14.4 million as of March 31, 2024[99]. - Net cash used in operating activities was $4.3 million in Q2 2024, compared to $3.7 million in Q2 2023, with primary sources being net income and decreases in inventories and accounts receivable[99]. - Net cash provided by investing activities was $11.3 million in Q2 2024, primarily from the sale and leaseback transaction[102]. - The company believes existing cash balances and expected cash flow will be sufficient for working capital and capital expenditures for at least the next 12 months[103]. Customer and Market Dynamics - Sales to networking and telecommunications OEMs accounted for 32% to 49% of net revenues over the last three fiscal years[79]. - Nokia was the largest customer, representing approximately 21% of net revenues in the three months ended June 30, 2024[84]. - Company expects continued fluctuations in sales to Nokia, which may significantly affect future operating results[84]. - The company anticipates that inflationary pressures and higher interest rates will negatively impact demand in end markets over the next 12 months[78]. Research and Development - Research and development expenses are expected to remain substantial as the company invests in new in-place associative computing products[87]. - Research and development expenses decreased by 19.0% from $5.2 million in Q2 2023 to $4.2 million in Q2 2024, primarily due to reduced payroll and consulting expenses[94]. Operating Expenses - Selling, general and administrative expenses decreased by 13.3% from $3.0 million in Q2 2023 to $2.6 million in Q2 2024, with notable reductions in accounting fees and payroll expenses[95]. Contracts and Awards - The company received a prototype agreement award from the Space Development Agency for $1.25 million to develop the APU2[75]. - A contract with AFWERX was awarded for $1.1 million to demonstrate high-data computation use cases leveraging the APU-2 architecture[76]. Pricing and Revenue Trends - The average selling prices of products are expected to increase in the coming quarters due to a shift towards higher price, higher density products[80]. - Company experienced a decrease in revenues in the second half of fiscal 2023 due to easing supply chain shortages and prior buffer stock purchases[74].

GSI Technology, Inc. (GSIT) reported earnings per share (EPS) of $0.04 for the first quarter of fiscal 2025, a significant improvement from the loss of $0.21 per share in the same quarter last year. Sales to Nokia amounted to $1 million, or 21.4% of net revenues compared with $1.9 million, or 33.5% of net revenues, in the same period last year. Military and defense sales represented 31.9% of total shipments for the quarter compared with 33.8% in the same period last year. SigmaQuad sales were 36.3% of total ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $4.7 million, down from $5.6 million in the same period last year and $5.2 million in the previous quarter, attributed to lower SigmaQuad sales and military contractor sales [30][47] - Gross margin decreased to 46.3% in the first quarter of fiscal 2025 from 54.9% a year ago and 51.6% in the previous quarter, primarily due to product mix and lower revenue affecting fixed costs [71] - Total operating expenses were $6.8 million, down from $8.2 million in the first quarter of fiscal 2024 [48] - The company achieved a net income of $1.1 million, reflecting a one-time gain of $5.7 million from a sale and leaseback transaction, compared to a net loss of $5.1 million a year ago [73] Business Line Data and Key Metrics Changes - Military/defense sales accounted for 31.9% of first quarter shipments, down from 33.8% a year ago and 35.5% in the previous quarter [46] - SigmaQuad sales represented 36.3% of first quarter shipments, a significant drop from 58.6% in the first quarter of fiscal 2024 [46] Market Data and Key Metrics Changes - Sales to Nokia were $998,000, representing 21.4% of net revenues, compared to $1.9 million or 33.5% in the same period last year [69] - The company is targeting the HAI processing market, which is projected to be a mid-$20 billion market in 2024, growing at mid-20% to mid-30% annually [20] Company Strategy and Development Direction - The company aims to launch the GXL platform for Fast Vector Search, which will be available as cloud-based or on-premises solutions, targeting the growing demand in AI and e-commerce [36][62] - The focus is on securing more SBIR contracts to reverse revenue decline and achieve financial stability, with a pipeline totaling $6 million [59][67] - The company is preparing to demonstrate significant improvements in processing capabilities with Gemini-II, aiming for validation by the December quarter [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing discussions with Needham regarding strategic alternatives, indicating encouraging preliminary discussions [74] - The company is actively seeking strategic partnerships to scale resources and funding for future development [61] Other Important Information - The company has initiated a Phase II SBIR contract with the Air Force valued at $1.1 million, with over 25% completion [66] - The company has $21.8 million in cash and cash equivalents as of June 30, 2024, up from $14.4 million at the end of the previous quarter [50] Q&A Session Summary Question: Update on cost-benefit considerations regarding potential leasing or sale - Management is in discussions regarding Gemini-III with hyperscalers and HBM vendors, focusing on demonstrating GPU APU capabilities [78] Question: Validation of benchmarks for outside clients - Management is working on completing the necessary algorithms and libraries to run benchmarks and demonstrate capabilities to potential clients [86] Question: Market potential and gross margin expectations - Management indicated that achieving benchmarks is crucial for demonstrating market potential and attracting interest from hyperscalers [84]

EXHIBIT 99.1 Lee-Lean Shu, Chairman and Chief Executive Officer commented, "First quarter revenue of $4.7 million was within our guidance range despite lower sales of SigmaQuad SRAM and lower sales of our SRAM products to military prime contractors. To reverse this revenue decline, achieve financial stability and ultimately return to growth, we are focused on introducing new business lines with Gemini-I and Gemini-II. Cash on hand at June 30, 2024, which includes the net proceeds from the sale and leaseback ...