GSI Technology(US:GSIT)2021-01-28 23:30Financial Data and Key Metrics Changes - The company reported a net loss of $5.2 million or $0.22 per diluted share on net revenues of $6.8 million for Q3 fiscal 2021, compared to a net loss of $4.6 million or $0.20 per diluted share on net revenues of $10 million for Q3 fiscal 2020 [19] - Gross margin decreased to 47.3% from 60.2% in the prior year period [19] - Total operating expenses were $8.3 million, down from $10.8 million in Q3 fiscal 2020 [20] Business Line Data and Key Metrics Changes - Sales to Nokia were $2.8 million or 42% of net revenues, up from $2.6 million or 26.3% in the same period a year ago [16] - Military defense sales constituted 26% of third-quarter shipments, compared to 18.9% in the comparable period a year ago [16] - SigmaQuad sales remained stable at 62% of third-quarter shipments compared to the same quarter in fiscal 2020 [16] Market Data and Key Metrics Changes - The company is facing challenges related to COVID-19, impacting face-to-face meetings critical for military and defense sales [17] - The company is adapting to remote access for customer testing, which is expected to slow the sales process for Gemini [18] Company Strategy and Development Direction - The company is focused on launching the Gemini APU and enhancing its software capabilities to improve performance [5][7] - Plans to release a compiler stack for Python and C++ to grow the APU ecosystem [7][12] - The company aims to win design contracts for Gemini-I in various sectors including aerospace, defense, and e-commerce [11] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the reception of the Gemini APU despite the challenges posed by COVID-19 [5] - The company anticipates launching Gemini-II by late calendar 2022, with significant performance improvements over Gemini-I [12] - Management acknowledged the impact of silicon shortages and price increases on operations but noted that they are managing to grow slightly [32] Other Important Information - The company had $52.3 million in cash and short-term investments as of December 31, 2020, down from $66.6 million a year prior [22] - Working capital decreased to $54.4 million from $70.9 million at the end of the previous fiscal year [23] Q&A Session Summary Question: Are you still on lockdown, or have you recently reopened after inauguration in California? - Management confirmed that they are still working from home and do not expect to return until summer [26] Question: What is the current status of facial recognition technology? - Management stated that they are still moving ahead with facial recognition applications, particularly in niche markets [27] Question: When can we expect revenue from Gemini-I and Gemini-II? - Management indicated that some revenue from Gemini-I is expected in the first half of the year, while Gemini-II will take longer, with first silicon expected in early 2022 [29] Question: How are silicon shortages affecting the company? - Management acknowledged that silicon shortages have led to increased costs and longer lead times, but they are managing to grow slightly despite these challenges [32]