GSI Technology(US:GSIT)2023-05-16 23:39Financial Data and Key Metrics Changes - For Q4 2023, the company reported a net loss of $4 million, or $0.16 per diluted share, on net revenues of $5.4 million, compared to a net loss of $3 million, or $0.12 per diluted share, on net revenues of $8.7 million in Q4 2022 [38] - Gross margin was 55.9% in Q4 2023, down from 58.6% in the prior-year period, primarily due to lower revenue affecting fixed costs [39] - For the fiscal year 2023, the company reported a net loss of $16 million, or $0.65 per diluted share, on net revenues of $29.7 million, compared to a net loss of $16.4 million, or $0.67 per diluted share, on net revenues of $33.4 million in fiscal 2022 [41] Business Line Data and Key Metrics Changes - Sales to Nokia were $1.2 million, or 21.8% of net revenues, down from $2.0 million, or 23.1% in the same period a year ago [34] - Military/defense sales constituted 44.2% of fourth-quarter shipments, up from 22.3% in the comparable period a year ago [34] - SigmaQuad sales were 46.3% of fourth-quarter shipments, slightly down from 47.6% in Q4 2022 [34] Market Data and Key Metrics Changes - The company has sharpened its focus on applications with high revenue potential, such as synthetic aperture radar (SAR) and satellites, where it has a superior solution [11] - The company is actively exploring various options to create shareholder value and is committed to driving sustained growth and innovation [26] Company Strategy and Development Direction - The company is on track to complete the tape-out for Gemini-II by the second half of 2024, which is expected to provide significant enhancements over Gemini-I [14] - Future versions of the APU are expected to cater to larger markets, including edge applications and large language models (LLM) for natural language processing [20][16] - The company is improving its SearchiumAI SaaS platform to support its go-to-market strategy for search, aiming to develop partnerships with key players [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged setbacks and unforeseen delays with the APU but emphasized learning from these experiences to better approach target customers [10] - The company is optimistic about generating modest revenue from the search engine market in fiscal year 2024, driven by positive reception of its APU plug-in [13] - Management highlighted the transformative potential of large language models and the opportunities they present for future APU versions [16] Other Important Information - The company has added a new distributor for its Radiation Hard and Tolerant SRAM in the European market [4] - A recent contract with the Air and Space Force could be worth up to $1.25 million, with revenue recognized as milestones are achieved [33] Q&A Session Summary Question: Are all costs related to the tape-out and testing volume production for Gemini-II included in the current outlook? - Yes, most R&D spending is on Gemini-II, with a tape-out expected to cost about $2.5 million [48] Question: What applications are seeing traction with Gemini-II, specifically in ADAS and large language models? - ADAS is a target application, likely to be pursued with a partner, and the technology is applicable for large language models [50] Question: What is the timeline for the rad hard roadmap for the product mentioned in the EU? - The rad hard and rad-tolerant SRAMs are available today, with full radiation testing planned for the second half of the year [52] Question: Can you provide an update on the Elta SAR application? - The company has SAR demos available, but interactive features for loading custom data are still in development [85] Question: Any updates on scientific applications with universities? - The company is not focusing heavily on the university market due to larger revenue opportunities elsewhere, but there are two applications in genomics being explored [98]