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 ...

Summary Financial Results Table (in thousands, except per share amounts) 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, ...

California-based GSI Technology's innovative developments, particularly with its Gemini-I and Gemini-II associative processing units (APUs), mark a significant leap in high-performance computing (HPC) and artificial intelligence (AI) processing. These advancements offer substantial performance gains, especially for applications requiring high capacity and low power, such as synthetic aperture radar and fast vector search. A notable financial move is the sale and leaseback of GSI Technology's headquarters, w ...

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, 2024 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 ...

GEMINI-II APU TO TARGET SMALL MODEL ALGORITHMS THAT FIT ENTIRELY INTO THE CHIP'S MEMORY FOR EDGE APPLICATIONS SUNNYVALE, Calif., May 09, 2024 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ:GSIT), the inventor of the Associative Processing Unit (APU), a paradigm shift in AI and HPC processing providing true compute-in-memory technology, today reiterated the key highlights from its recent earnings call for the fourth quarter of fiscal year 2024 held on Thursday, May 2, 2024. Key Business Updates from Earnin ...

GSI Technology, Inc. (NASDAQ:GSIT) Q4 2024 Earnings Conference Call May 2, 2024 4:30 PM ET Company Participants Lee-Lean Shu - Chairman, President & Chief Executive Officer Didier Lasserre - Vice President, Sales Douglas Schirle - Chief Financial Officer Conference Call Participants Operator Ladies and gentlemen, thank you for standing by, and welcome to the GSI Technology's Fourth Quarter Fiscal 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will ...

Exhibit 99.1 Fiscal Year 2024 Summary Financials For the fiscal year ended March 31, 2024, the Company reported a net loss of $(20.1) million, or $(0.80) per diluted share, on net revenues of $21.8 million, compared to a net loss of $(16.0) million, or $(0.65) per diluted share, on net revenues of $29.7 million in the fiscal year ended March 31, 2023. Gross margin for fiscal 2024 was 54.3%, compared to 59.6% in the prior year. The decrease in gross margin was primarily due to product mix and the effect of l ...