Core Insights - GSI Technology, Inc. (GSIT) shares have seen a 24.5% decline since the earnings report for the quarter ended September 30, 2025, contrasting with a 0.5% decline in the S&P 500 index during the same period [1] - The stock has experienced high volatility, gaining 81.7% over the past month compared to a 2% growth in the S&P 500 [1] Financial Performance - The company reported a loss per share of 11 cents for Q2 FY26, an improvement from a loss of 21 cents per share in the same quarter of the previous year [2] - Revenues reached $6.4 million, a 41.6% increase from $4.6 million in Q2 FY25, driven by higher demand for SRAM products [2] - The net loss narrowed to $3.2 million from $5.5 million in the prior-year quarter, with gross margin improving to 54.8% from 38.6% due to changes in product mix [3] Customer and Product Trends - Key customer concentration shifted, with Cadence Design Systems accounting for 21.6% of total revenues, up from zero in the prior-year period, while Nokia's contribution fell to 3.1% from 17.8% [4] - Military and defense-related shipments constituted 28.9% of total shipments, down from 40.2% a year ago, while SigmaQuad SRAM sales increased to 50.1% of shipments from 38.6% [5] Operating Expenses and Efficiency - Operating expenses totaled $6.7 million, down from $7.3 million in Q2 FY25, primarily due to reduced research and development spending [5] - Management indicated that efficiency improvements and potential design wins could help narrow losses in the future [9] Strategic Developments - CEO Lee-Lean Shu highlighted a significant technological milestone with the validation of GSI's Gemini-I chip, which matched the performance of NVIDIA's A6000 GPU while consuming over 98% less energy [6] - The company plans to use recently raised capital to fund ongoing Gemini-II software development and initiate the Plato chip design, targeting edge AI markets and defense applications [7] Future Guidance - Management expects third-quarter revenues to be flat to modestly higher, with gross margin remaining steady at 54% to 56% [10][11] - The company has scheduled the tape-out of the Plato chip for early 2027 and is engaging with multiple defense and aerospace prospects [11][12] Liquidity and Capital Position - GSI Technology closed a $50 million registered direct offering, nearly doubling its cash position to $25.3 million from $13.4 million at the end of March 2025 [13]