Financial Data and Key Metrics Changes - Revenue in Q3 fiscal 2026 increased by 12% year-over-year and 28.5% on a fiscal year-to-date basis, reaching $6.1 million compared to $5.4 million in Q3 fiscal 2025 [3][11] - Gross margin was 52.7% in Q3 fiscal 2026, down from 54% in Q3 fiscal 2025 and 54.8% in the previous quarter [11] - Operating loss for Q3 fiscal 2026 was $6.9 million, compared to an operating loss of $4.1 million in the prior year and $3.2 million in the prior quarter [13] - Net loss in Q3 fiscal 2026 was $3 million, or $0.09 per diluted share, compared to a net loss of $3.2 million, or $0.11 per diluted share in the previous quarter [14] Business Line Data and Key Metrics Changes - Sales to KYEC were $1.1 million, or 17.9% of net revenues, down from $1.2 million, or 22.7% of net revenues in the same period a year ago [9] - Sales to Nokia increased to $675,000, or 11.1% of net revenues, compared to $239,000, or 4.4% of net revenues in the same period a year ago [10] - Military defense sales accounted for 28.5% of third-quarter shipments, slightly down from 30% in the comparable quarter a year ago [10] Market Data and Key Metrics Changes - The company is focusing on defense applications, which have shown early success, particularly with the U.S. Department of Defense [20] - The partnership with G2 Tech is expected to enhance capabilities in real-world applications, particularly in defense and potential commercial uses beyond drones [22] Company Strategy and Development Direction - The company is advancing its APU roadmap and hardware development, with plans to tape out Plato in early 2027 [3] - A partnership with G2 Tech for a proof-of-concept in autonomous perimeter security is underway, supported by government funding [4][6] - The focus is on low-power edge AI applications, with an emphasis on performance per watt and responsiveness rather than peak training metrics [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong sales from major customers in the first half of calendar 2026 [3] - The company is actively pursuing non-dilutive R&D funding through government defense programs, which is expected to provide additional financial support [24] - Current expectations for Q4 fiscal 2026 are net revenues in the range of $5.7 million to $6.5 million, with a gross margin of approximately 54% to 56% [17] Other Important Information - The company reported a significant increase in cash and cash equivalents to $70.7 million as of December 31, 2025, primarily due to net proceeds from a registered direct offering [16] - Total operating expenses in Q3 fiscal 2026 were $10.1 million, up from $7 million in the same period a year ago, driven by increased R&D spending [11][12] Q&A Session Summary Question: Importance of defense applications for Gemini 2 - Management highlighted that military and defense sectors have been the quickest to adopt their technology, with successful SBIR wins and ongoing evaluations for various applications [20][21] Question: Potential timelines for government funding - Management indicated a continuous pipeline of submissions for SBIRs and other funding programs, emphasizing the non-dilutive nature of this funding and its importance for future business exposure [24]

Financial Data and Key Metrics Changes - Revenue in Q3 fiscal 2026 increased by 12% year-over-year and 28.5% on a fiscal year-to-date basis, reaching $6.1 million compared to $5.4 million in Q3 fiscal 2025 [3][12] - Gross margin decreased to 52.7% in Q3 fiscal 2026 from 54% in Q3 fiscal 2025, primarily due to product mix [12] - Operating loss for Q3 fiscal 2026 was $6.9 million, compared to an operating loss of $4.1 million in the prior year [13] - Net loss in Q3 fiscal 2026 was $3 million, or $0.09 per diluted share, compared to a net loss of $3.2 million, or $0.11 per diluted share in the previous quarter [14][15] - Cash and cash equivalents increased to $70.7 million as of December 31, 2025, primarily due to $46.9 million in net proceeds from a registered direct offering [17] Business Line Data and Key Metrics Changes - Sales to KYEC were $1.1 million, or 17.9% of net revenues, down from $1.2 million, or 22.7% in the same period a year ago [10] - Sales to Nokia increased to $675,000, or 11.1% of net revenues, compared to $239,000, or 4.4% in the same period a year ago [11] - Military defense sales accounted for 28.5% of third-quarter shipments, slightly down from 30% in the comparable quarter a year ago [11] Market Data and Key Metrics Changes - The company is focusing on defense applications, which have shown early success, particularly with the U.S. Department of Defense [21] - The partnership with G2 Tech aims to leverage the company's technology for real-world applications, including drones and smart cities [24] Company Strategy and Development Direction - The company is advancing its APU roadmap and hardware development, with plans to tape out Plato in early 2027 [3] - The partnership with G2 Tech for the Sentinel program is expected to enhance the company's capabilities in autonomous perimeter security [4] - The focus is on non-dilutive R&D funding through government defense programs and strategic partnerships to support development [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand from major customers in the first half of calendar 2026 [3] - The company anticipates receiving over $1 million in government funding for the Sentinel project, which will offset R&D expenses [6] - The outlook for Q4 fiscal 2026 is net revenues in the range of $5.7 million to $6.5 million, with a gross margin of approximately 54% to 56% [18] Other Important Information - The company is expanding cash disclosures in its quarterly earnings to provide better insights into cash consumption and generation [16] - Total operating expenses in Q3 fiscal 2026 were $10.1 million, up from $7 million in the prior year [12] Q&A Session Summary Question: Importance of defense applications for Gemini 2 - Management highlighted that military and defense sectors have been the quickest to adopt their technology, with successful partnerships and applications already established [21][24] Question: Timelines for government funding - Management indicated a continuous pipeline of submissions for SBIRs and other funding opportunities, emphasizing the non-dilutive nature of this funding [26]

Summary of GSI Technology Conference Call Company Overview - **Company**: GSI Technology - **Headquarters**: Sunnyvale, California - **Founded**: 30 years ago, went public in 2007 - **Core Technologies**: APU (Associative Processing Unit) for AI, SRAM technology, and radiation-hardened memory solutions for space and military applications [1][3][4] Financial Performance - **Last Fiscal Year Revenue**: Just over $20 million - **Projected Growth**: Expected to grow about 20% for the current fiscal year [5][27] - **Cash and Cash Equivalents**: $25 million as of September, excluding a recent $47 million raised [6][27] - **Market Capitalization**: Approximately $270 million with 21% insider ownership [6] Product Lines SRAM Technology - **Product Line**: Highest density and performance SRAMs in the market, primarily from the Sigma Quad family [6][7] - **Revenue Contribution**: Majority of revenues come from the Sigma Quad family, with significant design wins in the third and fourth generations [6][7] APU Technology - **APU Overview**: Focused on edge computing with unique compute-in-memory architecture, allowing for massive parallel processing [10][11] - **Gemini 1 and Gemini 2**: AI chips designed for edge applications, with Gemini 2 being more versatile and capable of being sold as a chip [17][18] - **Performance Comparison**: Gemini 1 demonstrated 98% less power usage compared to NVIDIA's GPU in a specific application [17] Future Products - **Plato**: A next-generation device aimed at addressing large language models (LLMs) on the edge, with a tape-out expected in early 2027 [20][22][29] Market Opportunities - **Edge Computing Market**: Expected to grow from nearly $7 billion this year to over $16 billion in five years [10] - **Radiation-Hardened SRAM Market**: Projected to grow from $2 billion to nearly $5 billion by 2032, with high ASPs ranging from $10,000 to $30,000 and gross margins over 90% [9] Strategic Partnerships and Projects - **Partnership with G2 Tech**: Involved in a proof of concept (POC) for a multimodal VLM model for the Department of Defense, focusing on drone applications [19][37] - **Government Grants**: Awarded $3.4 million in SBIRs and additional funding for various defense projects [23][24][26] Competitive Landscape - **Market Position**: GSI Technology positions itself as a strong competitor against larger firms like NVIDIA and AMD, leveraging its established manufacturing capabilities and expertise in SRAM [28][29] Challenges and Future Outlook - **Revenue Growth**: The SRAM market has been flat, and future revenue growth is expected to come from the APU segment [42][44] - **Software Development**: Ongoing efforts to develop a compiler stack and functional libraries to support APU applications are critical for future design wins [45][48] - **Production Timeline**: Anticipated production for Gemini 2 in 2027, with prototypes expected by the end of 2026 [46][48] Key Takeaways - GSI Technology is at the forefront of AI and edge computing with its innovative APU technology - The company has a solid financial foundation and is strategically positioned for growth in the defense and aerospace sectors - Continued investment in R&D and software development is essential for capitalizing on emerging market opportunities and achieving profitability [27][44]

Financial Data and Key Metrics Changes - The company reported net revenues of $6.4 million for the second quarter of fiscal 2026, an increase from $4.6 million in the same period of fiscal 2025 and slightly up from $6.3 million in the first quarter of fiscal 2026 [14] - Gross margin was 54.8% in the second quarter of fiscal 2026, compared to 38.6% in the year-ago quarter and 58.1% in the preceding quarter [14] - The second quarter operating loss was $3.2 million, an improvement from an operating loss of $5.6 million in the prior year period and $2.2 million in the prior quarter [16] - Net loss in the second quarter of fiscal 2026 was $3.2 million, or $0.11 per diluted share, compared to a net loss of $2.2 million, or $0.08 per diluted share for the first quarter of fiscal 2026 [17] Business Line Data and Key Metrics Changes - Sales to KYEC were $802,000, or 12.5% of revenues, compared to $650,000, or 14.3% of revenues in the same period a year ago [12] - Sales to Nokia were $200,000, or 3.1% of revenues, down from $812,000, or 17.8% in the same period a year ago [12] - Military defense sales accounted for 28.9% of second-quarter shipments, down from 40.2% in the comparable period a year ago [13] - Sigma Quad sales were 50.1% of second-quarter shipments, up from 38.6% in the second quarter of fiscal 2025 [13] Market Data and Key Metrics Changes - The company is focusing on high-value edge and defense applications, such as drones and military vehicles, which are expected to drive future growth [6] - The Gemini 2 project has been approved for prototyping by an offshore defense contractor, indicating strong market interest [7] Company Strategy and Development Direction - The company is accelerating execution across hardware and software development, particularly for the Gemini 2 and PLATO chip initiatives [4] - The strategy includes converting proof-of-concept projects into commercial customers and expanding those relationships into large production programs [5] - The company aims to strengthen ties with key defense and government partners through its POC and SBIR programs [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of Gemini 2, which is positioned to deliver superior processing at a fraction of the power compared to existing solutions [3] - The company is focused on the edge market rather than data centers, citing resource limitations and a strategic decision to concentrate on areas with more immediate opportunities [50] Other Important Information - The company closed a $50 million equity financing to support its growth initiatives [3] - A recent extension of a Space Development Agency contract provided $751,000 for radiation-hardened beam testing of Gemini 2 [11] Q&A Session Summary Question: Has the company done any work with the auto industry on autonomous vehicles? - The company has not yet engaged in the auto industry but believes its technology will adapt well in those areas in the future [20] Question: Was the recent $50 million placement with a strategic investor? - The placement was not with a strategic investor and there is no required holding period for the shares [22] Question: Is there a plan to validate the Gemini 2 information by Cornell or another third party? - The company is in discussions with Cornell about getting a Gemini 2 board for validation [25] Question: Are there plans to enhance military defense experience on the management team? - There are currently no plans to revise the board, but it could be considered in the future [26] Question: Why is the company developing its own large language model? - The company is not developing its own large language model but is working on an open-source model for specific applications [27][29] Question: How does the company differentiate its APU versus GPU competitors? - The company claims significant advantages in power consumption, with Gemini 2 using 98% less power than NVIDIA's A6000 GPU [32] Question: What is the total addressable market the company is looking at over the next five years? - The market is expected to be very large, potentially in the tens of billions, with the company well-positioned to address it [36] Question: How will the $50 million raise be allocated? - The allocation will include fixed costs for PLATO and evenly distributed funding between Gemini 2 and PLATO development [40] Question: Has the company attracted new customers after the Cornell study? - The company has not seen new customer traction specifically due to the Cornell paper, but it has validated existing claims [56]

自今年二月起，DeepSeek 便因其开源旗舰级推理模型DeepSeek-R1 而引发全球瞩目——该模型性能 堪比全球前沿推理模型。其独特价值不仅体现在卓越的性能表现，更在于仅使用约2000块NVIDIA H800 GPU 就完成了训练（H800 是H100 的缩减版出口合规替代方案），这一成就堪称效率优化的 典范。 几天后，Elon Musk 旗下xAI 发布了迄今最先进的Grok-3 模型，其性能表现略优于DeepSeek-R1、 OpenAI 的GPT-o1 以及谷歌的Gemini 2。与DeepSeek-R1 不同，Grok-3 属于闭源模型，其训练动用 了惊人的约20万块H100 GPU，依托xAI "巨像"超级计算机完成，标志着计算规模实现了巨大飞跃。 xAI "巨像" 数据中心 Grok-3 展现了无妥协的规模扩张——约200,000块NVIDIA H100 显卡追求前沿性能提升。而 DeepSeek-R1 仅用少量计算资源就实现了相近的性能，这表明创新的架构设计和数据策展能够 与蛮力计算相抗衡。 效率正成为一种趋势性策略，而非限制条件。DeepSeek 的成功重新定义了AI扩展方式的讨 论。我 ...