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]

Core Viewpoint - GSI Technology, Inc. reported a significant improvement in its financial performance for the fourth fiscal quarter and the fiscal year ended March 31, 2025, with increased revenues and reduced net losses, driven by strong demand for its legacy SRAM chips and effective cost management [1][4]. Financial Performance Summary - **Fourth Quarter Results**: - Net revenues reached $5.9 million, a 14% increase year-over-year and a 9% increase sequentially [4][9]. - Gross margin improved to 56.1%, up from 51.6% in the same quarter last year [9]. - Operating loss was $(2.3) million, a reduction from $(4.5) million in the prior year [12]. - Net loss was $(2.2) million, or $(0.09) per diluted share, compared to $(4.3) million, or $(0.17) per diluted share, in the fourth quarter of fiscal 2024 [13]. - **Fiscal Year 2025 Results**: - Total net revenues for the fiscal year were $20.5 million, down from $21.8 million in fiscal 2024 [5]. - Gross margin for the year was 49.4%, compared to 54.3% in the previous year, primarily due to product mix and fixed costs [5]. - Operating expenses decreased to $21.0 million from $32.3 million in fiscal 2024, with R&D expenses reduced to $16.0 million from $21.7 million [6]. - The net loss for the fiscal year was $(10.6) million, or $(0.42) per diluted share, compared to $(20.1) million, or $(0.80) per diluted share, in fiscal 2024 [8]. Strategic Developments - The company secured an initial order for radiation-hardened SRAM from a North American prime contractor, with expectations for follow-on orders in fiscal 2026, which are anticipated to have a higher gross margin [4]. - GSI Technology is pursuing heritage status for its radiation-hardened SRAM, which will enhance market readiness and open new sales channels [4]. - The company is on track to deliver production-ready Gemini-II chips and Leda-2 boards by the end of the first quarter of fiscal 2026, with ongoing SBIR programs with the Space Development Agency and US Air Force Research Laboratory [4]. Cash and Equity Position - As of March 31, 2025, the company had $13.4 million in cash and cash equivalents, down from $14.4 million a year earlier [14]. - Working capital decreased to $16.4 million from $24.7 million at the same time last year, and stockholders' equity was $28.2 million, down from $36.0 million [14].