GSI Technology, Inc. Reports First Quarter Fiscal 2025 Results
Rhea-AI Summary
GSI Technology (Nasdaq: GSIT) reported Q1 fiscal 2025 results with net revenues of $4.7 million, down from $5.6 million in Q1 fiscal 2024. The company posted a net income of $1.1 million, or $0.04 per diluted share, compared to a net loss of $(5.1) million in the same period last year. This includes a one-time gain of $5.7 million from a sale and leaseback transaction. Gross margin decreased to 46.3% from 54.9% year-over-year. Cash on hand increased to $21.8 million. The company is focusing on new business lines with Gemini-I and Gemini-II, including a GXL platform for Fast Vector Search and expanding DOD SBIR proposals. For Q2 fiscal 2025, GSI Technology expects net revenues between $4.2 million to $4.8 million with a gross margin of 44% to 46%.
Positive
- Net income of $1.1 million, or $0.04 per diluted share, compared to a net loss in the previous year
- One-time gain of $5.7 million from sale and leaseback transaction
- Cash on hand increased to $21.8 million from $14.4 million in the previous quarter
- Expanding DOD SBIR proposal pipeline, targeting contracts totaling $6 million
- On track to begin customer sampling of Gemini-II software in early calendar 2025
Negative
- Net revenues decreased to $4.7 million from $5.6 million in Q1 fiscal 2024
- Gross margin declined to 46.3% from 54.9% year-over-year
- Sales to Nokia decreased to $998,000 from $1.9 million in the same period last year
- SigmaQuad sales decreased to 36.3% of shipments from 58.6% in Q1 fiscal 2024
- Expected Q2 fiscal 2025 revenues of $4.2-$4.8 million indicate potential continued decline
News Market Reaction – GSIT
In the trading session that priced this news, GSIT gained 0.35%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SUNNYVALE, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (Nasdaq: GSIT), the inventor of the Associative Processing Unit (APU), a paradigm shift in AI and HPC processing providing true compute-in-memory technology, today reported financial results for its first fiscal quarter ended June 30, 2024.
Summary Financial Results Table (in thousands, except per share amounts)
| Three Months Ended | |||||||||
| June 30, 2024 | Mar. 31, 2024 | June 30, 2023 | |||||||
| Net revenues | $ | 4,671 | $ | 5,152 | $ | 5,587 | |||
| Gross margin (%) | 46.3 | % | 51.6 | % | 54.9 | % | |||
| Operating expenses | $ | 6,818 | $ | 7,172 | $ | 8,208 | |||
| Operating loss | $ | (4,657 | ) | $ | (4,514 | ) | $ | (5,139 | ) |
| Net income (loss) | $ | 1,078 | $ | (4,321 | ) | $ | (5,110 | ) | |
| Net income (loss) per share, diluted | $ | 0.04 | $ | (0.17 | ) | $ | (0.21 | ) | |
Lee-Lean Shu, Chairman and Chief Executive Officer commented, “First quarter revenue of
Mr. Shu continued, "Our new GXL platform for Fast Vector Search, based on Gemini-I, will be available as a cloud-based or on-prem solution. We have identified potential partners for this innovative low-power solution, which speeds up the indexing process in fast vector search, allowing quicker database updates. We are also expanding our Department of Defense (“DOD”) SBIR proposal pipeline, targeting contracts totaling
Commenting on GSI’s second quarter of fiscal 2025 outlook, Mr. Shu stated, “Current expectations for the upcoming fiscal second quarter are net revenues in a range of
First Quarter Fiscal Year 2025 Summary Financials
The Company reported net revenues of
Gross margin was
In the first quarter of fiscal 2025, sales to Nokia were
Total operating expenses in the first quarter of fiscal 2025 were
First quarter fiscal 2025 operating loss was
Net income in the first quarter of fiscal 2025 was
Total first quarter pre-tax stock-based compensation expense was
At June 30, 2024, the Company had
Conference Call
GSI Technology will review its financial results for the quarter ended June 30, 2024, and discuss its current business outlook during a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern) today, July 25, 2024. 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 13747827. A webcast of the call will be available and archived on the Company’s website 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 146 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, as well as the Company’s ongoing strategic review. 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; intensive competition; 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 semiconductor products. The strategic review is subject to risks related to the process by which GSI Technology evaluates its strategic alternatives, the terms, timing, structure, benefits and costs of any strategic transaction and whether one will be consummated at all and the impact of any strategic transaction on GSI Technology. 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 rising interest rates, worldwide inflationary pressures, 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, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Net revenues | ||||||||||||
| Cost of goods sold | 2,510 | 2,494 | 2,518 | |||||||||
| Gross profit | 2,161 | 2,658 | 3,069 | |||||||||
| Operating expenses: | ||||||||||||
| Research & development | 4,214 | 4,818 | 5,204 | |||||||||
| Selling, general and administrative | 2,604 | 2,354 | 3,004 | |||||||||
| Total operating expenses | 6,818 | 7,172 | 8,208 | |||||||||
| Operating loss | (4,657 | ) | (4,514 | ) | (5,139 | ) | ||||||
| Gain on sale and leaseback transaction | 5,737 | - | - | |||||||||
| Interest and other income, net | 55 | 108 | 80 | |||||||||
| Income (loss) before income taxes | 1,135 | (4,406 | ) | (5,059 | ) | |||||||
| Provision (benefit) for income taxes | 57 | (85 | ) | 51 | ||||||||
| Net income (loss) | ( | ) | ( | ) | ||||||||
| Net income (loss) per share, basic | ( | ) | ( | ) | ||||||||
| Net income (loss) per share, diluted | ( | ) | ( | ) | ||||||||
| Weighted-average shares used in | ||||||||||||
| computing per share amounts: | ||||||||||||
| Basic | 25,374 | 25,297 | 24,866 | |||||||||
| Diluted | 25,686 | 25,297 | 24,866 | |||||||||
| Stock-based compensation included in the Condensed Consolidated Statements of Operations: | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Cost of goods sold | ||||||||||||
| Research & development | 290 | 331 | 386 | |||||||||
| Selling, general and administrative | 312 | 309 | 367 | |||||||||
| GSI TECHNOLOGY, INC. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands) | ||||||||||
| (Unaudited) | ||||||||||
| June 30, 2024 | March 31, 2024 | |||||||||
| Cash and cash equivalents | ||||||||||
| Accounts receivable | 2,718 | 3,118 | ||||||||
| Inventory | 4,467 | 4,977 | ||||||||
| Other current assets | 2,143 | 1,954 | ||||||||
| Assets held for sale | 0 | 5,629 | ||||||||
| Net property and equipment | 1,076 | 1,148 | ||||||||
| Operating lease right-of-use assets | 10,471 | 1,553 | ||||||||
| Other assets | 9,687 | 9,656 | ||||||||
| Total assets | ||||||||||
| Current liabilities | ||||||||||
| Long-term liabilities | 8,903 | 1,129 | ||||||||
| Stockholders' equity | 38,002 | 35,970 | ||||||||
| Total liabilities and stockholders' equity | ||||||||||
