GSI Technology, Inc. Announces Second Quarter Fiscal 2026 Results

Core Insights - GSI Technology closed a $50 million financing to support the development of its Gemini-II platform and initiate the Plato chip design, reinforcing its position in the edge AI market [3][6][10] - The company reported a revenue of $6.44 million for the second quarter of fiscal 2026, reflecting a 41.6% year-over-year increase, driven by strong demand for SRAM solutions [4][6] - The Gemini-I Associative Processing Unit has been validated by Cornell University research, demonstrating performance comparable to NVIDIA's A6000 GPU while consuming over 98% less energy, highlighting the potential of GSI's compute-in-memory architecture [3][12] Financial Performance - For the second quarter of fiscal 2026, GSI Technology achieved net revenues of $6.44 million, up from $4.6 million in the same quarter of the previous year and $6.3 million in the prior quarter [4][6] - Gross margin for the second quarter was 54.8%, an increase from 38.6% year-over-year but a decrease from 58.1% in the previous quarter, primarily due to product mix [4][6] - The company reported a net loss of $3.2 million, or $0.11 per diluted share, compared to a net loss of $5.5 million, or $0.21 per diluted share, in the same quarter of the previous year [9][8] Sales and Customer Insights - Sales to KYEC accounted for 12.5% of net revenues in the second quarter, while sales to Nokia decreased significantly from 17.8% to 3.1% year-over-year [5] - Military/defense sales represented 28.9% of shipments in the second quarter, down from 40.2% in the same period last year [5] - SigmaQuad sales increased to 50.1% of shipments in fiscal 2026's second quarter, compared to 38.6% in the same quarter of the previous year [5] Operating Expenses and Cash Position - Total operating expenses for the second quarter were $6.7 million, a decrease from $7.3 million in the same quarter of the previous year [6][8] - Research and development expenses were $3.8 million, down from $4.8 million year-over-year, indicating a focus on cost management [6][7] - The company ended the quarter with a cash balance of $25.3 million, significantly up from $13.4 million at the end of the previous fiscal year [10][6]