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]
GSIT's Q4 Loss Narrows Y/Y on Strong SRAM Demand, Stock Up 8%