GSI Technology, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results
Rhea-AI Summary
Positive
- Q4 revenue increased 14% year-over-year and 9% sequentially to $5.9 million
- Gross margin improved to 56.1% in Q4 FY2025 from 51.6% in Q4 FY2024
- Secured initial order for radiation-hardened SRAM with higher gross margins
- Operating expenses reduced significantly from $32.3M to $21.0M year-over-year
- Gained $5.8M from headquarters building sale and leaseback transaction
- Net loss per share improved from $(0.80) in FY2024 to $(0.42) in FY2025
Negative
- Annual revenue declined to $20.5M in FY2025 from $21.8M in FY2024
- Overall gross margin decreased to 49.4% in FY2025 from 54.3% in FY2024
- Continued operating losses of $(10.8M) in FY2025
- Cash and cash equivalents decreased to $13.4M from $14.4M year-over-year
- Working capital declined to $16.4M from $24.7M year-over-year
Insights
GSI shows narrowing losses and improved margins but faces ongoing financial challenges despite strategic shifts toward specialized, higher-margin products.
GSI Technology's Q4 FY2025 results demonstrate meaningful operational improvements with revenue increasing 14% year-over-year to
For the full fiscal year, despite a
The balance sheet presents continued challenges. Cash decreased to
Customer concentration risk remains substantial with KYEC representing
GSI's radiation-hardened SRAM breakthrough and edge AI innovations show promise but face commercialization challenges amid strong competition.
GSI Technology's strategic pivot toward specialized semiconductor products is gaining traction with their initial radiation-hardened SRAM order from a North American defense contractor. This represents a significant milestone, as rad-hard components must withstand extreme environmental conditions and command premium pricing - directly supporting the gross margin expansion to
The defense sector now constitutes
On the AI processing front, GSI's associative processing units (APUs) offer an alternative architecture to conventional GPUs dominating the AI acceleration market. The ongoing development of Gemini-II chips and Leda-2 boards, supported by government SBIR programs (
The enhanced Plato platform with integrated camera interfaces directly addresses the growing need for edge AI devices that process visual data locally without cloud dependencies. This integration creates a more compelling offering for autonomous systems, surveillance, and IoT applications requiring compact, self-contained processing capabilities.
While these specialized technologies may secure defensible market niches, GSI faces formidable competition from semiconductor giants with vastly greater resources. Their success ultimately depends on effectively commercializing these innovations while navigating financial constraints - making the mentioned preliminary partnership discussions for Plato potentially crucial for the company's future.
SUNNYVALE, Calif., May 01, 2025 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its fourth fiscal quarter and fiscal year ended March 31, 2025.
Summary Financial Results Table (in thousands, except per share amounts)
| Three Months Ended | 12 Months Ended | ||||||||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2025 | Mar. 31, 2024 | |||||||||||||||
| Net revenues | $ | 5,883 | $ | 5,414 | $ | 5,152 | $ | 20,518 | $ | 21,765 | |||||||||
| Gross margin (%) | 56.1 | % | 54.0 | % | 51.6 | % | 49.4 | % | 54.3 | % | |||||||||
| Operating expenses | $ | 5,575 | $ | 6,978 | $ | 7,172 | $ | 20,975 | $ | 32,254 | |||||||||
| Operating loss | $ | (2,276 | ) | $ | (4,055 | ) | $ | (4,514 | ) | $ | (10,835 | ) | $ | (20,431 | ) | ||||
| Net loss | $ | (2,230 | ) | $ | (4,029 | ) | $ | (4,321 | ) | $ | (10,639 | ) | $ | (20,087 | ) | ||||
| Net loss per share, diluted | $ | (0.09 | ) | $ | (0.16 | ) | $ | (0.17 | ) | $ | (0.42 | ) | $ | (0.80 | ) | ||||
Lee-Lean Shu, Chairman and Chief Executive Officer, stated, "Our fourth quarter revenue increased
Mr. Shu continued, “ I am excited to announce that we secured an initial order for our radiation-hardened SRAM from a North American prime contractor, with follow-on orders expected in fiscal 2026. This sale also carries a significantly higher gross margin than our traditional SRAM chips. In parallel, we are actively pursuing heritage status for this chip, which will improve our market readiness and open important new sales channels. On the APU front, we expect to receive production-ready Gemini-II chips and Leda-2 boards by the end of the first quarter of fiscal 2026. In addition, our Gemini-II SBIR programs with the Space Development Agency (SDA) and US Air Force Research Laboratory (AFRL) remain on schedule. We delivered a server with a Leda-2 board to AFRL and will soon ship a Gemini-II card to SDA. Funds from these programs are offsetting our R&D expenditures for Gemini-II.”
Mr. Shu concluded, "We are especially excited about a recent enhancement to Plato: adding the integration of a camera interface directly into the chip. This and other enhanced connectivity features create a compact, all-in-one optimized AI and LLM engine for edge devices, particularly well suited for agents requiring object recognition. With the ability to process data locally, without relying on cloud infrastructure, Plato now offers a powerful and flexible accelerator for next-generation edge computing applications. The new capability has increased strategic interest in Plato, and we are currently in preliminary discussions with multiple parties to secure partnerships to fund the next phase of development.”
Commenting on the outlook for GSI's first quarter of fiscal 2026, Mr. Shu stated, "Our current expectations for the upcoming first quarter of fiscal 2026 is for net revenues in a range of
Fiscal Year 2025 Summary Financials
The Company reported net revenues of
Total operating expenses were
Research and development expenses in fiscal 2025 and fiscal 2024 were reduced by
The operating loss for fiscal 2025 was
Net loss for fiscal 2025 was
Fourth Quarter Fiscal Year 2025 Summary Financials
The Company reported net revenues of
In the fourth quarter of fiscal 2025, sales to KYEC were
Total operating expenses in the fourth quarter of fiscal 2025 were
Fourth quarter fiscal 2025 operating loss was
Net loss in the fourth quarter of fiscal 2025 was
Total fourth quarter pre-tax stock-based compensation expense was
At March 31, 2025, the Company had
Conference Call
Management will conduct a conference call to review the Company's financial results for the fourth quarter and fiscal year 2025 and its current outlook for the first quarter of fiscal 2026 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) today.
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 13753362. The call will also be streamed live via the internet at www.gsitechnology.com.
A replay will be available from May 1, 2025, at 7:30 p.m. Eastern Time through May 8, 2025, at 11:59 p.m. Eastern Time by dialing toll-free for the U.S. 1-844-512-2921 or international 1-412-317-6671 and entering pin number 13753362. A webcast of the call will be archived on the Company’s investor relations website under the Events and Presentations tab.
About GSI Technology
Founded in 1995, GSI Technology, Inc. is a leading provider of semiconductor memory solutions. GSI's resources are focused on bringing new products to market that leverage existing core strengths, including radiation-hardened memory products for extreme environments and Gemini-I, the associative processing unit designed to deliver performance advantages for diverse artificial intelligence applications. GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. 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.
Contacts:
Investor Relations:
Hayden IR
Kim Rogers
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 | Twelve Months Ended | |||||||||||||||
| March 31, | Dec. 31, | March 31, | March 31, | March 31, | ||||||||||||
| 2025 | 2024 | 2024 | 2025 | 2024 | ||||||||||||
| Net revenues | $ | 5,883 | $ | 5,414 | $ | 5,152 | $ | 20,518 | $ | 21,765 | ||||||
| Cost of goods sold | 2,584 | 2,491 | 2,494 | 10,378 | 9,942 | |||||||||||
| Gross profit | 3,299 | 2,923 | 2,658 | 10,140 | 11,823 | |||||||||||
| Operating expenses: | ||||||||||||||||
| Research & development | 2,966 | 4,037 | 4,818 | 16,005 | 21,689 | |||||||||||
| Selling, general and administrative | 2,609 | 2,997 | 2,354 | 10,763 | 10,565 | |||||||||||
| Gain from sale of assets | - | (56 | ) | - | (5,793 | ) | - | |||||||||
| Total operating expenses | 5,575 | 6,978 | 7,172 | 20,975 | 32,254 | |||||||||||
| Operating loss | (2,276 | ) | (4,055 | ) | (4,514 | ) | (10,835 | ) | (20,431 | ) | ||||||
| Interest and other income (expense), net | 52 | 70 | 108 | 326 | 414 | |||||||||||
| Loss before income taxes | (2,224 | ) | (3,985 | ) | (4,406 | ) | (10,509 | ) | (20,017 | ) | ||||||
| Provision (benefit) for income taxes | 6 | 44 | (85 | ) | 130 | 70 | ||||||||||
| Net loss | $ | (2,230 | ) | $ | (4,029 | ) | $ | (4,321 | ) | $ | (10,639 | ) | $ | (20,087 | ) | |
| Net loss per share, basic | $ | (0.09 | ) | ($ | 0.16 | ) | $ | (0.17 | ) | $ | (0.42 | ) | $ | (0.80 | ) | |
| Net loss per share, diluted | $ | (0.09 | ) | ($ | 0.16 | ) | $ | (0.17 | ) | $ | (0.42 | ) | $ | (0.80 | ) | |
| Weighted-average shares used in | ||||||||||||||||
| computing per share amounts: | ||||||||||||||||
| Basic | 25,604 | 25,546 | 25,297 | 25,498 | 25,144 | |||||||||||
| Diluted | 25,604 | 25,546 | 25,297 | 25,498 | 25,144 | |||||||||||
| Stock-based compensation included in the Condensed Consolidated Statements of Operations: | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| March 31, | Dec. 31, | March 31, | March 31, | March 31, | ||||||||||||
| 2025 | 2024 | 2024 | 2025 | 2024 | ||||||||||||
| Cost of goods sold | $ | 42 | $ | 50 | $ | 53 | $ | 199 | $ | 228 | ||||||
| Research & development | 263 | 121 | 331 | 1,010 | 1,411 | |||||||||||
| Selling, general and administrative | 207 | 258 | 309 | 1,053 | 1,199 | |||||||||||
| $ | 512 | $ | 429 | $ | 693 | $ | 2,262 | $ | 2,838 | |||||||
| GSI TECHNOLOGY, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| (Unaudited) | ||||||
| March 31, 2025 | March 31, 2024 | |||||
| Cash and cash equivalents | $ | 13,434 | $ | 14,429 | ||
| Accounts receivable | 3,169 | 3,118 | ||||
| Inventory | 3,891 | 4,977 | ||||
| Other current assets | 2,961 | 1,954 | ||||
| Assets held for sale | 0 | 5,629 | ||||
| Net property and equipment | 808 | 1,148 | ||||
| Operating lease right-of-use assets | 9,547 | 1,553 | ||||
| Other assets | 9,507 | 9,656 | ||||
| Total assets | $ | 43,317 | $ | 42,464 | ||
| Current liabilities | $ | 7,074 | $ | 5,365 | ||
| Long-term liabilities | 8,017 | 1,129 | ||||
| Stockholders' equity | 28,226 | 35,970 | ||||
| Total liabilities and stockholders' equity | $ | 43,317 | $ | 42,464 | ||
FAQ
What were GSIT's Q4 2025 financial results?
How did GSI Technology's full fiscal year 2025 performance compare to 2024?
What is GSIT's revenue guidance for Q1 2026?
What new developments did GSIT announce in their Q4 2025 earnings?
How much cash does GSIT have as of March 31, 2025?
