GSI Technology, Inc. Announces First Quarter Fiscal 2026 Results
Rhea-AI Summary
GSI Technology (Nasdaq: GSIT) reported its Q1 FY2026 financial results, highlighting significant improvements in both revenue and margins. The company achieved net revenues of $6.3 million, up from $4.7 million year-over-year, with a substantial gross margin improvement to 58.1%, up 1,100 basis points from the previous year.
Key developments include the successful completion of Gemini-II chip's second silicon evaluation, confirming it's production-ready. The company delivered an APU Leda-2 board to an offshore defense contractor and is developing a multi-modal LLM for edge applications. The quarter-end cash balance increased to $22.7 million, up from $13.4 million in Q4 FY2025.
For Q2 FY2026, GSI expects net revenues between $5.9 million to $6.7 million with gross margins of 56% to 58%.
Positive
- Revenue increased 35% year-over-year to $6.3 million
- Gross margin improved significantly to 58.1%, up 1,100 basis points year-over-year
- Cash balance increased to $22.7 million from $13.4 million in previous quarter
- SRAM revenue grew 7% sequentially and 35% year-over-year
- Gemini-II chip successfully completed evaluation and is production-ready
Negative
- Operating loss of $(2.2) million in Q1 FY2026
- Net loss of $(0.08) per diluted share
- Military/defense sales decreased to 19.1% from 31.9% year-over-year
Insights
GSI shows impressive margin growth and progress with AI-ready chips while transitioning from memory-centric to edge AI applications.
GSI Technology's Q1 FY2026 results demonstrate a meaningful turnaround with revenue of
The company's strategic shift toward AI applications is evident in three key developments. First, the Gemini-II chip has reached production-ready status after successful debugging of the second silicon spin, a critical technical milestone. Second, they've optimized SAR and YOLO algorithms for their low-power Leda board, targeting edge AI applications for drones in GPS-denied environments and satellite systems. Third, they're developing a multi-modal large language model optimized for edge computing with benchmarks expected this fall.
Customer concentration is shifting notably. While traditional customers KYEC and Nokia represented smaller portions of revenue (
The composition of product sales further validates their strategic direction, with SigmaQuad products (their higher-performance memory solution) jumping to
Their improved cash position of
Q2 guidance indicates continued confidence with projected revenue of
Gemini-II Second Silicon is Fully Functional and Production Ready
SUNNYVALE, Calif., July 31, 2025 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (Nasdaq: GSIT) today reported financial results for its first fiscal quarter ended June 30, 2025.
Summary Comments for First Quarter Fiscal Year 2026
- SRAM revenue increased
7% sequentially and35% year-over-year, fueled by strong market momentum for leading AI processors; - Gross margin lift of 200 basis points from prior quarter and over 1,100 basis points compared to the prior year for our largest gross margin in over two years;
- Quarter-end cash balance of
$22.7 million , up from$13.4 million at the end of Q4 FY2025, including proceeds from the “at the market” (ATM) program; - Delivered an APU Leda-2 board to an offshore defense contractor, as planned, for proof-of-concept development; and
- Currently developing a multi-modal LLM that targets edge applications, with benchmark results available by fall 2025.
Lee-Lean Shu, Chairman and Chief Executive Officer, commented, “We have completed the evaluation of the second spin of our Gemini-II chip, successfully resolving all known bugs, and confirming the chip is production-ready. In parallel, we finalized development of the SAR and YOLO algorithms, optimized for a low-power version of our Leda board. We are pleased with the performance of the board, which is optimized for Edge AI applications. This solution holds strong market potential, particularly for drones operating in GPS-denied environments and next-generation satellite applications."
Mr. Shu continued, “Gemini-II is ideally suited for edge-based large language models (LLMs), combining high-performance, low-power architecture and flexible processing capabilities, key features that meet the growing demand for AI at the edge. We are developing a multi-modal LLM optimized for edge applications and expect to share benchmark results by fall 2025.”
Commenting on GSI’s second quarter of fiscal 2026 outlook, Mr. Shu stated, “Current expectations for the upcoming fiscal second quarter are net revenues in a range of
First Quarter Fiscal Year 2026 Summary Financials
The Company reported net revenues of
In the first quarter of fiscal 2026, sales to KYEC were
Total operating expenses in the first quarter of fiscal 2026 were
First quarter fiscal 2026 operating loss was
Net loss in the first quarter of fiscal 2026 was
Total first quarter pre-tax stock-based compensation expense was
At June 30, 2025, the Company had
Conference Call
GSI Technology will review its financial results for the quarter ended June 30, 2025, and discuss its current business outlook during a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern) today, July 31, 2025. To participate in the call, please dial 1-877-407-3982 in the U.S., or 1-201-493-6780 for international, approximately 10 minutes prior to the above start time, and provide Conference ID 13754957. The call will also be streamed live via the internet at https://ir.gsitechnology.com.
About GSI Technology
GSI Technology is at the forefront of the AI revolution with our groundbreaking APU technology, designed for unparalleled efficiency in billion-item database searches and high-performance computing. GSI’s innovations, Gemini-I® and Gemini-II®, offer scalable, low-power, high-capacity computing solutions that redefine edge computing capabilities. GSI Technology is not just advancing technology; we're shaping a smarter, faster, and more efficient future.
Founded in 1995 and headquartered in Sunnyvale, California, GSI Technology has 127 employees and over 125 granted patents.
For more information, please visit www.gsitechnology.com.
Forward-Looking Statements
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; the need to develop and introduce new products to offset the historical decline in the average unit selling price of GSI Technology’s products; the challenges of rapid growth followed by periods of contraction; intensive competition; the continued availability of government funding opportunities; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology and the establishment of new markets and customer and partner relationships for the sale of such products; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as changing interest rates, worldwide inflationary pressures, policy unpredictability, the imposition of tariffs and other trade barriers, military conflicts and declines in the global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.
| Source: GSI Technology, Inc. |
Investor Relations
Hayden IR
Kim Rogers
Managing Director
385-831-7337
Kim@HaydenIR.com
Media Relations
Finn Partners for GSI Technology
Ricca Silverio
(415) 348-2724
gsi@finnpartners.com
Company
GSI Technology, Inc.
Douglas M. Schirle
Chief Financial Officer
408-331-9802
| GSI TECHNOLOGY, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2025 | 2025 | 2024 | ||||||||||
| Net revenues | $ | 6,283 | $ | 5,883 | $ | 4,671 | ||||||
| Cost of goods sold | 2,632 | 2,584 | 2,510 | |||||||||
| Gross profit | 3,651 | 3,299 | 2,161 | |||||||||
| Operating expenses: | ||||||||||||
| Research & development | 3,097 | 2,966 | 4,214 | |||||||||
| Selling, general and administrative | 2,730 | 2,609 | 2,604 | |||||||||
| Gain from sale and leaseback transaction | - | - | (5,737 | ) | ||||||||
| Total operating expenses | 5,827 | 5,575 | 1,081 | |||||||||
| Operating income (loss) | (2,176 | ) | (2,276 | ) | 1,080 | |||||||
| Interest and other income, net | 13 | 52 | 55 | |||||||||
| Income (loss) before income taxes | (2,163 | ) | (2,224 | ) | 1,135 | |||||||
| Provision for income taxes | 54 | 6 | 57 | |||||||||
| Net income (loss) | $ | (2,217 | ) | $ | (2,230 | ) | $ | 1,078 | ||||
| Net income (loss) per share, basic | $ | (0.08 | ) | $ | (0.09 | ) | $ | 0.04 | ||||
| Net income (loss) per share, diluted | $ | (0.08 | ) | $ | (0.09 | ) | $ | 0.04 | ||||
| Weighted-average shares used in | ||||||||||||
| computing per share amounts: | ||||||||||||
| Basic | 26,967 | 25,604 | 25,374 | |||||||||
| Diluted | 26,967 | 25,604 | 25,686 | |||||||||
| Stock-based compensation included in the Condensed Consolidated Statements of Operations: | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2025 | 2025 | 2024 | ||||||||||
| Cost of goods sold | $ | 44 | $ | 42 | $ | 56 | ||||||
| Research & development | (62 | ) | 263 | 290 | ||||||||
| Selling, general and administrative | 359 | 207 | 312 | |||||||||
| $ | 341 | $ | 512 | $ | 658 | |||||||
| GSI TECHNOLOGY, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| (Unaudited) | ||||||
| June 30, 2025 | March 31, 2025 | |||||
| Cash and cash equivalents | $ | 22,725 | $ | 13,434 | ||
| Accounts receivable | 1,587 | 3,169 | ||||
| Inventory | 3,763 | 3,891 | ||||
| Other current assets | 3,012 | 2,961 | ||||
| Net property and equipment | 722 | 808 | ||||
| Operating lease right-of-use assets | 9,232 | 9,547 | ||||
| Other assets | 9,464 | 9,507 | ||||
| Total assets | $ | 50,505 | $ | 43,317 | ||
| Current liabilities | $ | 5,372 | $ | 7,074 | ||
| Long-term liabilities | 7,759 | 8,017 | ||||
| Stockholders' equity | 37,374 | 28,226 | ||||
| Total liabilities and stockholders' equity | $ | 50,505 | $ | 43,317 | ||
FAQ
What were GSI Technology's (GSIT) Q1 FY2026 earnings results?
What is the status of GSI Technology's Gemini-II chip development?
What is GSI Technology's financial guidance for Q2 FY2026?
How much cash does GSI Technology (GSIT) have as of Q1 FY2026?
What were the major customer sales for GSI Technology in Q1 FY2026?
