GSI Technology(US:GSIT)2022-05-08 09:15Financial Data and Key Metrics Changes - In Q4 2022, revenue grew by 14% year-over-year, and for the full fiscal year 2022, revenue increased by 20% [4] - The net loss for Q4 2022 was $4.3 million or $0.18 per diluted share on net revenues of $8.7 million, compared to a net loss of $5 million or $0.21 per diluted share on net revenues of $7.7 million in Q4 2021 [25] - Gross margin improved to 58.6% in Q4 2022 from 50.2% in the prior year period [26] - Total operating expenses in Q4 2022 were $9.4 million, up from $9.1 million in Q4 2021 [26] - Cash, cash equivalents, and short-term investments totaled $44 million as of March 31, 2022, down from $54 million a year earlier [30] Business Line Data and Key Metrics Changes - Sales to Nokia were $2.0 million or 23.1% of net revenues in Q4 2022, down from $2.8 million or 36.5% in the same period a year ago [21] - Military defense sales accounted for 22.3% of Q4 shipments, slightly down from 22.5% in the comparable period a year ago [21] - SigmaQuad sales represented 47.6% of Q4 shipments, down from 52.9% in Q4 2021 [21] Market Data and Key Metrics Changes - The company has shifted most of its chip substrate suppliers out of China to mitigate risks from COVID-related lockdowns [22] - The supply chain situation remains fluid, with ongoing efforts to address variances that could impact order fulfillment [22] Company Strategy and Development Direction - The company is focused on R&D, particularly on the Gemini-II hardware project and the upcoming launch of Version 2 of the Gemini-I compiler stack [6][7] - Plans to launch the OpenSearch platform on AWS marketplaces, targeting a fully functioning platform by Q3 2022 [14] - The company aims to penetrate the SAR market with a new product following a successful POC with Elta [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer engagement and the potential for revenue growth, particularly in the APU market [20][66] - The company is actively pursuing opportunities in the military and defense sectors following recent competition wins [11][12] - Management acknowledged the challenges in visibility regarding future revenue streams but emphasized ongoing traction and activity [66] Other Important Information - The company reported a significant improvement in gross margin due to a better product mix and price increases [26] - The R&D budget is expected to remain at the current run rate due to ongoing software development needs [6] Q&A Session Summary Question: Update on Rad-Hard parts satellite - The satellite has not yet launched due to missing components, with expectations for completion in the summer [36][37] Question: Cost of the mask set for Gemini-II - The process node for Gemini-II is 16-nanometer, with the mask set costing approximately $2.5 million [41][43] Question: Visibility with Nokia in fiscal '23 - Visibility remains constant, indicating a flat to slightly lower year for Nokia [44][45] Question: Development delays for Gemini-I compiler stack - The delays are due to the need for additional steps to complete the full compiler stack [60] Question: Testing of Gemini-I APU - Currently, dozens of customers are testing the Gemini-I APU, both with physical hardware and over the cloud [62] Question: Share price concerns - Management noted a lack of visibility in revenue streams as a reason for the low share price, but emphasized ongoing traction [66] Question: Interest in partnerships - There are currently no discussions about partnerships, but the company is open to opportunities that benefit shareholders [85]