Shares of GSI Technology, Inc. (GSIT) have declined 3.2% since the company reported its earnings for the quarter ended Dec. 31, 2025. This compares to the S&P 500 index’s 0.2% growth over the same time frame. Over the past month, the stock has gained 2.3% versus the S&P 500’s 1.5% increase.GSI Technology reported a net loss of 9 cents per share for the third quarter of fiscal 2026, which is narrower than the year-ago quarter’s loss of 16 cents per share. Net revenues of $6.1 million marked a 12% increase co ...

Core Insights - GSI Technology reported a revenue of $6.1 million for the third quarter of fiscal 2026, representing a 12% increase year-over-year, driven by sustained demand for SRAM solutions [3][4][7] - The company achieved significant milestones in the development of its Gemini-II technology, including a successful proof-of-concept for an autonomous perimeter security system [3][7] - GSI's gross margin for the quarter was approximately 52.7%, a decrease from 54.0% in the same quarter last year, attributed to product mix changes [4][6] Financial Performance - Net revenues for the third quarter of fiscal 2026 were $6.1 million, compared to $5.4 million in the same quarter of fiscal 2025 and $6.4 million in the previous quarter [4][10] - The operating loss for the third quarter was $(6.9) million, compared to $(4.1) million in the prior-year period [9][10] - The net loss for the quarter was $(3.0) million, or $(0.09) per diluted share, an improvement from a net loss of $(4.0) million, or $(0.16) per diluted share, in the same quarter last year [10][21] Cash Flow and Balance Sheet - The company ended the quarter with a cash balance of $70.7 million, significantly up from $13.4 million at the end of the previous fiscal year [12][13] - Total operating expenses for the quarter were $10.1 million, an increase from $7.0 million in the same quarter last year, primarily due to higher research and development costs [6][9] - Cash used in operating activities was $(7.9) million, reflecting investments in the development and commercialization of Gemini-II and Plato [12][13] Customer and Market Insights - Sales to KYEC were $1.1 million, accounting for 17.9% of net revenues, while sales to Nokia increased to $675,000, representing 11.1% of net revenues [5] - Military and defense sales constituted 28.5% of third-quarter shipments, slightly down from 30.0% in the same period last year [5] - The company is pursuing initial design wins for Gemini-II in defense-oriented programs and select commercial edge deployments [3][7]

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]