GSI Technology, Inc. Announces First Quarter Fiscal 2026 Results

Core Insights - GSI Technology, Inc. has successfully completed the evaluation of its Gemini-II chip, confirming it is production-ready and optimized for Edge AI applications, particularly in GPS-denied environments and next-generation satellite applications [3] - The company reported net revenues of $6.3 million for the first quarter of fiscal 2026, a significant increase from $4.7 million in the same period last year, and gross margin improved to 58.1% from 46.3% year-over-year [4][9] - The outlook for the second quarter of fiscal 2026 anticipates net revenues between $5.9 million and $6.7 million, with a gross margin of approximately 56% to 58% [3] Financial Performance - First quarter fiscal 2026 net revenues were $6.3 million, up 34% from $4.7 million in the first quarter of fiscal 2025 and up 7% from $5.9 million in the fourth quarter of fiscal 2025 [4] - Gross margin for the first quarter of fiscal 2026 was 58.1%, an increase of 200 basis points from the prior quarter and over 1,100 basis points compared to the prior year [7] - Total operating expenses for the first quarter of fiscal 2026 were $5.8 million, a decrease from $6.8 million in the same period a year ago [6] Customer and Sales Insights - Sales to Cadence Design Systems increased significantly to $1.5 million, representing 23.9% of net revenues, compared to $0 in the same period last year [5] - Sales to KYEC and Nokia decreased significantly, with KYEC contributing only $267,000 (4.3% of net revenues) and Nokia contributing $536,000 (8.5% of net revenues) in the first quarter of fiscal 2026 [5] Research and Development - The company is developing a multi-modal large language model (LLM) optimized for edge applications, with benchmark results expected by fall 2025 [3][7] - Research and development expenses for the first quarter of fiscal 2026 were $3.1 million, down from $4.2 million in the prior-year period [6] Cash and Equity Position - The quarter-end cash balance was $22.7 million, an increase from $13.4 million at the end of the previous quarter, reflecting strong cash flow management [7][10] - Stockholders' equity as of June 30, 2025, was $37.4 million, up from $28.2 million at the end of the previous fiscal year [10]