GSI Technology, Inc. Reports Third Quarter Fiscal 2025 Results

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].