GSI Technology(US:GSIT)2020-05-09 04:23Financial Data and Key Metrics Changes - For the fiscal year ended March 31, 2020, the company reported a net loss of $10.3 million or $0.45 per diluted share, on net revenues of $43.3 million, compared to a net income of $163,000 or $0.01 per diluted share, on net revenues of $51.5 million in the previous fiscal year [23] - Gross margin for fiscal 2020 was 58.5%, down from 61.4% in the prior year [23] - The company reported a net loss of $3.8 million or $0.16 per diluted share, on net revenues of $8.5 million for the fourth quarter of fiscal 2020, compared to a net loss of $102,000 or $0.00 per diluted share, on net revenues of $12.7 million for the fourth quarter of fiscal 2019 [26] Business Line Data and Key Metrics Changes - Sales to Nokia were $2.4 million or 28.3% of net revenues, down from $5.2 million or 41.1% in the same period a year ago [20] - Military and defense sales increased to 30.9% of fourth quarter shipments compared to 22.1% a year ago [21] - SigmaQuad remains the best performing product category with sales of 44.7% of fourth quarter shipments, down from 57.4% in the fourth quarter of last year [21] Market Data and Key Metrics Changes - The company has seen slower sales to Nokia, which is expected to continue through the end of June, but anticipates an improvement in sales in the second half of calendar 2020 [20] - The search market is growing, with new solutions like the Gemini APU expected to deliver high performance while keeping total cost of ownership low [12] Company Strategy and Development Direction - The company remains focused on its long-term strategy despite the challenges posed by the COVID-19 pandemic, emphasizing its strong financial position and the experience of its team [6] - The Gemini-I product is positioned to serve a broader search market as a universal hardware solution, with plans to continue developing solutions for various applications over time [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to succeed during difficult times, citing a strong financial position and commitment to product excellence [6] - The company is uncertain about future performance metrics due to the current disruption in the marketplace caused by COVID-19 [33] Other Important Information - As of March 31, 2020, the company had over $70 million in cash and no debt, with stockholders' equity at $89.6 million [7][32] - The company has expanded its guidance range for the upcoming quarter to reflect potential changes in customer buying patterns due to COVID-19 [33] Q&A Session Summary Question: Are Weizmann getting free chips and boards as a collaborator? - Yes, the company has loaned them systems in the past and they plan on paying for the upgraded system [36] Question: How is the company marketing to larger drug companies? - The marketing team has created sales collateral and is conducting remote workshops for demonstrations [15][38] Question: Can you explain the stock selling by executives? - Executives receive options that vest over four years, and many sell shares to cover taxes or buy additional shares [42][44] Question: Any update on Rad-Hard products? - The qualification for the 288 megabit, SQ-II+ family has been completed, and the company is now able to offer QMLV equivalent devices [47] Question: Is there any indication of interest for APU orders this summer? - It is difficult to predict, but there is significant interest in the government space for APU technology [52]