Core Insights - GSI Technology, Inc. (GSIT) shares have increased by 8.1% since the earnings report for the quarter ended March 31, 2025, outperforming the S&P 500 index, which grew by 0.7% during the same period [1] - The stock has seen a significant rise of 47.5% over the past month compared to the S&P 500's 2.8% increase [1] Financial Performance - For Q4 fiscal 2025, GSI Technology reported a net loss of $0.09 per share, an improvement from a net loss of $0.17 per share in the same quarter last year [2] - Net revenues reached $5.9 million, reflecting a 14% year-over-year increase, while gross margin improved to 56.1% from 51.6% a year earlier [2] - The net loss narrowed to $2.2 million from $4.3 million in the previous year [2] Operating Metrics - Operating expenses decreased to $5.6 million from $7.2 million year-over-year, primarily due to a reduction in R&D costs, which fell to $3 million from $4.8 million [3] - Government funding under the SBIR program contributed $0.9 million to offset R&D expenses [3] - SG&A expenses increased slightly to $2.6 million from $2.4 million [3] Revenue Breakdown - Sales to KYEC surged to $1.7 million, representing 29.5% of quarterly revenues, up from $0.5 million (10.6%) in the prior year [4] - Sales to Nokia declined to $0.4 million, or 7.5% of revenues, down from 13.5% a year earlier [4] - Military and defense sales accounted for 30.7% of quarterly shipments, slightly down from 35.5% last year [4] - SigmaQuad sales remained stable at 39.3% of shipments [4] Management Insights - The CEO highlighted strong demand for legacy SRAM products as a key driver of revenue growth and noted a strategic breakthrough with a North American prime contractor for higher-margin radiation-hardened SRAM chips [5] - Additional orders are expected in fiscal 2026, which is seen as pivotal for market access [5] Product Development - Progress continues in the AI product segment with the Gemini-II APU, with production-ready chips expected by the end of Q1 fiscal 2026 [6] - Successful milestones have been achieved under SBIR contracts with the U.S. Space Development Agency and Air Force Research Laboratory [6] - A new enhancement to the Plato processor includes a built-in camera interface, positioning it as a compact solution for edge AI applications [7] Earnings Drivers - Improvements in both top-line and bottom-line performance were attributed to a favorable product mix and cost discipline [8] - Gross margin benefited from increased sales of higher-margin products and better absorption of fixed manufacturing costs [8] - R&D expenses for the full year dropped to $16 million from $21.7 million in fiscal 2024 [9] Fiscal Year Overview - For the full fiscal year, revenues totaled $20.5 million, a decrease of 5.7% from fiscal 2024, while the net loss narrowed to $10.6 million, or $0.42 per share, from $20.1 million, or $0.80 per share a year ago [11] Future Guidance - For Q1 fiscal 2026, GSI expects revenues between $5.5 million and $6.3 million, with gross margin projected at 56% to 58% [12] - Continued momentum in SRAM demand and potential Gemini-II commercialization milestones are expected to support near-term growth [12] Other Developments - The company completed the sale and leaseback of its Sunnyvale headquarters, resulting in a $5.8 million gain and a reduction in working capital [13] - Working capital declined to $16.4 million from $24.7 million a year earlier, with cash and cash equivalents reported at $13.4 million and stockholders' equity at $28.2 million as of March 31, 2025 [13]

SUNNYVALE, Calif., May 06, 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, today announced that management is scheduled to virtually participate in the Sidoti May Micro-Cap Virtual Conference on May 21 – 22, 2025. On behalf of the company, Lee-Lean Shu, Chairman and Chief Executive Officer, and Didier ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 14% year-over-year and 9% sequentially to $5,900,000 driven by strong demand for SRAM chips [4] - Annual revenue for fiscal year 2025 declined by 6% compared to the prior year, with a net loss reduced by 47% from $20,100,000 in 2024 to $10,600,000 [5][25] - Gross margin for Q4 2025 was 56.1%, up from 51.6% in Q4 2024, primarily due to higher revenue and product mix [20] - Total operating expenses in Q4 2025 were $5,600,000, down from $7,200,000 in Q4 2024 [21] - Cash and cash equivalents as of March 31, 2025, were $13,400,000 compared to $14,400,000 a year earlier [25] Business Line Data and Key Metrics Changes - Sales to KYEC were $1,700,000 or 29.5% of net revenues in Q4 2025, compared to $544,000 or 10.6% in the same period a year ago [18] - Military defense sales accounted for 30.7% of Q4 shipments, down from 35.5% in the comparable period a year ago [18] - SigmaQuad sales were 39.3% of Q4 shipments, compared to 42.4% in Q4 2024 [19] Market Data and Key Metrics Changes - Demand for high-density SRAM is driven by critical systems in chip manufacturing, particularly from a leading GPU provider [11] - The company anticipates continued demand from this customer in fiscal year 2026 at similar levels to 2025 [11] Company Strategy and Development Direction - The company plans to build on the progress of APU development and drive continued growth in sales while maintaining operational efficiency [9] - There is a focus on securing funding to support the next phase of development, particularly for AI strategy [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the initial order for radiation-hardened SRAM, which carries a higher gross margin than traditional SRAM [12] - The company is actively working to secure heritage status for its radiation-hardened SRAM to enhance market acceptance [12] - Management highlighted the strategic interest in the PLATO chip due to its new capabilities for AI applications [8] Other Important Information - The company reported a gain on the sale of assets of $5,800,000 from the sale of its headquarters building [23] - The ongoing SBIR programs have generally received payments totaling $1,600,000, with an additional $1,000,000 anticipated upon program completion [7] Q&A Session Summary Question: Market size and scaling for PLATO and GEMINI II chips - Management has not released TAM numbers yet but indicated that GEMINI II is an extension for edge applications, while PLATO targets the LLM market at the edge [27][28][30] Question: Interest in GEMINI II from commercial companies - Most early interest has come from military defense applications, with some companies looking for chip-only solutions for drones or satellites [36][38] Question: Details on Needham's contributions - Management stated that nothing is off the table regarding potential contributions from Needham, including asset sales or funding opportunities [40] Question: Cash flow from operations and CapEx - Cash used in operating activities for the year was about $12,900,000, with minimal CapEx of approximately $45,000 [49][50]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 14% year over year and 9% sequentially to $5,900,000 driven by strong demand for SRAM chips [4] - Annual revenue for fiscal year 2025 declined by 6% compared to the prior year, with net loss reduced by 47% from $20,100,000 in 2024 to $10,600,000 [5][24] - Gross margin for Q4 2025 was 56.1%, up from 51.6% in Q4 2024, primarily due to higher revenue and product mix [19] - Total operating expenses in Q4 2025 were $5,600,000, down from $7,200,000 in Q4 2024 [20] Business Line Data and Key Metrics Changes - The primary revenue driver in Q4 2025 was the strong demand for high-density SRAM, particularly from a leading GPU provider [10] - Sales to KYEC were $1,700,000 or 29.5% of net revenues in Q4 2025, compared to $544,000 or 10.6% in the same period a year ago [17] - Military defense sales accounted for 30.7% of Q4 shipments, down from 35.5% in the comparable period a year ago [18] Market Data and Key Metrics Changes - The company anticipates continued demand for its products in fiscal year 2026, particularly from the North American prime contractor for radiation-hardened SRAM [11] - The market for the PLATO chip is focused on large language models (LLM) and generative AI at the edge, while the Gemini II chip targets high-performance computing applications at the edge [30] Company Strategy and Development Direction - The company plans to build on the progress of APU development and continue growth in sales while maintaining operational efficiency [8] - There is a focus on securing funding to support the next phase of development, particularly for the AI strategy [9] - The integration of a camera interface into the PLATO chip enhances its marketability for AI applications requiring object recognition [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for radiation-hardened SRAM and the potential for follow-on orders in fiscal year 2026 [11] - The company is exploring strategic alternatives to secure funding and is committed to maintaining operational efficiency [8][9] Other Important Information - The company reported cash and cash equivalents of $13,400,000 as of March 31, 2025, down from $14,400,000 a year earlier [24] - The company achieved a gain on the sale of assets of $5,800,000 from the sale of its headquarters building in a sale and leaseback transaction [22] Q&A Session Summary Question: Can you talk about the market for the PLATO chip and the GEMINI two chip? - The company has not released total addressable market (TAM) numbers yet, but Gemini II is positioned for edge applications, while PLATO targets the LLM market at the edge [28][30] Question: Is the company experiencing interest in the Gemini two chip from commercial companies? - Most early interest has come from military defense applications, but there is also interest in chip-level procurement for drones and satellites [36][38] Question: Can you share more detail on what Needham is bringing to the table? - The specifics are not available at this time, but options could include asset sales or funding opportunities [40][42] Question: What was cash flow from operations in the quarter and what was CapEx? - Cash used in operating activities for the year was about $12,900,000, with minimal CapEx of approximately $45,000 [49][50]

Financial Performance - GSI Technology reported fourth quarter net revenues of $5.9 million, a 14% increase year-over-year and a 9% increase sequentially[2]. - For fiscal year 2025, net revenues totaled $20.5 million, down from $21.8 million in fiscal 2024, with a gross margin of 49.4% compared to 54.3% in the prior year[3]. - Net revenues for the three months ended March 31, 2025, increased to $5,883,000, compared to $5,414,000 for the previous quarter, representing a growth of 8.6%[21]. Gross Margin and Profitability - The gross margin for the fourth quarter was 56.1%, up from 51.6% in the same quarter last year[7]. - The operating loss for fiscal 2025 was $(10.8) million, an improvement from $(20.4) million in the previous year[6]. - Gross profit for the twelve months ended March 31, 2025, was $10,140,000, down from $11,823,000 in the previous year, reflecting a decrease of 14.2%[21]. - The net loss for the three months ended March 31, 2025, was $2,230,000, compared to a net loss of $4,029,000 for the previous quarter, indicating an improvement of 44.6%[21]. - The company reported a total operating loss of $2,276,000 for the three months ended March 31, 2025, an improvement from a loss of $4,055,000 in the previous quarter[21]. Operating Expenses - Operating expenses for fiscal 2025 were $21.0 million, significantly reduced from $32.3 million in fiscal 2024[4]. - Research and development expenses for fiscal 2025 were $16.0 million, down from $21.7 million in fiscal 2024, aided by government funding[4]. - Research and development expenses for the three months ended March 31, 2025, were $2,966,000, a decrease of 26.5% compared to $4,037,000 in the previous quarter[21]. Cash and Assets - Cash and cash equivalents as of March 31, 2025, were $13.4 million, a decrease from $14.4 million a year earlier[12]. - Total assets as of March 31, 2025, increased to $43,317,000 from $42,464,000 as of March 31, 2024, showing a growth of 2.0%[24]. - Stockholders' equity decreased to $28,226,000 as of March 31, 2025, down from $35,970,000 a year earlier, representing a decline of 21.5%[24]. - Current liabilities increased to $7,074,000 as of March 31, 2025, compared to $5,365,000 as of March 31, 2024, reflecting an increase of 31.9%[24]. Future Outlook - The company anticipates first quarter fiscal 2026 net revenues between $5.5 million and $6.3 million, with gross margins of approximately 56% to 58%[2]. - GSI secured an initial order for radiation-hardened SRAM from a North American prime contractor, expected to yield higher gross margins[2]. Product Development - GSI is enhancing its Plato product by integrating a camera interface directly into the chip, aimed at improving edge computing applications[2]. Other Income - Interest and other income for the twelve months ended March 31, 2025, totaled $326,000, compared to $414,000 in the previous year, a decrease of 21.2%[21]. Share Information - The weighted-average shares used in computing net loss per share were 25,604,000 for the three months ended March 31, 2025, compared to 25,546,000 in the previous quarter, indicating a slight increase[21].

Core Viewpoint - GSI Technology, Inc. reported a significant improvement in its financial performance for the fourth fiscal quarter and the fiscal year ended March 31, 2025, with increased revenues and reduced net losses, driven by strong demand for its legacy SRAM chips and effective cost management [1][4]. Financial Performance Summary - **Fourth Quarter Results**: - Net revenues reached $5.9 million, a 14% increase year-over-year and a 9% increase sequentially [4][9]. - Gross margin improved to 56.1%, up from 51.6% in the same quarter last year [9]. - Operating loss was $(2.3) million, a reduction from $(4.5) million in the prior year [12]. - Net loss was $(2.2) million, or $(0.09) per diluted share, compared to $(4.3) million, or $(0.17) per diluted share, in the fourth quarter of fiscal 2024 [13]. - **Fiscal Year 2025 Results**: - Total net revenues for the fiscal year were $20.5 million, down from $21.8 million in fiscal 2024 [5]. - Gross margin for the year was 49.4%, compared to 54.3% in the previous year, primarily due to product mix and fixed costs [5]. - Operating expenses decreased to $21.0 million from $32.3 million in fiscal 2024, with R&D expenses reduced to $16.0 million from $21.7 million [6]. - The net loss for the fiscal year was $(10.6) million, or $(0.42) per diluted share, compared to $(20.1) million, or $(0.80) per diluted share, in fiscal 2024 [8]. Strategic Developments - The company secured an initial order for radiation-hardened SRAM from a North American prime contractor, with expectations for follow-on orders in fiscal 2026, which are anticipated to have a higher gross margin [4]. - GSI Technology is pursuing heritage status for its radiation-hardened SRAM, which will enhance market readiness and open new sales channels [4]. - The company is on track to deliver production-ready Gemini-II chips and Leda-2 boards by the end of the first quarter of fiscal 2026, with ongoing SBIR programs with the Space Development Agency and US Air Force Research Laboratory [4]. Cash and Equity Position - As of March 31, 2025, the company had $13.4 million in cash and cash equivalents, down from $14.4 million a year earlier [14]. - Working capital decreased to $16.4 million from $24.7 million at the same time last year, and stockholders' equity was $28.2 million, down from $36.0 million [14].

Core Viewpoint - GSI Technology, Inc. will announce its financial results for the fiscal fourth quarter and year ended March 31, 2025, on May 1, 2025, after market close, and will provide an outlook for the first quarter of fiscal 2026 during a conference call [1]. Company Overview - GSI Technology, Inc. is a leading provider of semiconductor memory solutions, founded in 1995, with a focus on developing new products that leverage its core strengths, including radiation-hardened memory products and the Gemini-I associative processing unit for AI applications [4]. - The company is headquartered in Sunnyvale, California, and has sales offices across the Americas, Europe, and Asia [4]. Financial Results Announcement - The financial results announcement will take place after market close on May 1, 2025, with a conference call scheduled for 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day [1]. - Participants can join the call by dialing specific numbers provided for U.S. and international callers, approximately 10 minutes before the start time [2]. Call Replay Information - A replay of the conference call will be available from May 1, 2025, at 7:30 p.m. Eastern Time until May 8, 2025, at 11:59 p.m. Eastern Time, with specific dialing instructions for U.S. and international callers [3]. - The webcast of the call will be archived on the company's investor relations website under the Events and Presentations tab [3].

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].