GSI Technology, Inc. Reports Second Quarter Fiscal 2025 Results
Rhea-AI Summary
GSI Technology (GSIT) reported Q2 fiscal 2025 financial results with net revenues of $4.6 million, down from $5.7 million in Q2 fiscal 2024. Gross margin decreased to 38.6% from 54.7% year-over-year. The company reported a net loss of $(5.5) million, or $(0.21) per diluted share. Management anticipates Q3 fiscal 2025 revenues between $4.7-$5.5 million with gross margin of 50-52%. The company implemented cost-cutting measures expected to yield $3.5 million in annual savings. Cash and cash equivalents stood at $18.4 million as of September 30, 2024.
Positive
- Implementation of cost-cutting measures expected to save $3.5 million annually
- Anticipated significant increase in orders from existing customer over next 12 months
- Cash position improved to $18.4 million from $14.4 million in March 2024
- Working capital increased to $21.1 million from $19.1 million in March 2024
Negative
- Net revenues decreased 20.3% YoY to $4.6 million from $5.7 million
- Gross margin declined to 38.6% from 54.7% YoY
- Net loss widened to $(5.5) million from $(4.1) million YoY
- Operating loss increased to $(5.6) million from $(4.1) million YoY
News Market Reaction 1 Alert
On the day this news was published, GSIT declined 1.17%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SUNNYVALE, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its second fiscal quarter ended September 30, 2024.
Summary Financial Results Table (in thousands, except per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Sept. 30, 2024 | June 30, 2024 | Sept. 30, 2023 | Sept. 30, 2024 | Sept. 30, 2023 | |||||||||||||||
| Net revenues | $ | 4,550 | $ | 4,671 | $ | 5,708 | $ | 9,221 | $ | 11,295 | |||||||||
| Gross margin (%) | 38.6 | % | 46.3 | % | 54.7 | % | 42.5 | % | 54.8 | % | |||||||||
| Operating expenses | $ | 7,341 | $ | 1,081 | $ | 7,214 | $ | 8,422 | $ | 15,422 | |||||||||
| Operating income (loss) | $ | (5,584 | ) | $ | 1,080 | $ | (4,093 | ) | $ | (4,504 | ) | $ | (9,232 | ) | |||||
| Net income (loss) | $ | (5,458 | ) | $ | 1,078 | $ | (4,055 | ) | $ | (4,380 | ) | $ | (9,165 | ) | |||||
| Net income (loss) per share, diluted | $ | (0.21 | ) | $ | 0.04 | $ | (0.16 | ) | $ | (0.17 | ) | $ | (0.37 | ) | |||||
Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “We are seeing early indications of a turnaround in our SRAM business. Existing customers are depleting their channel inventory, and we anticipate they will resume ordering in the upcoming quarters. Furthermore, we expect a significant increase in orders from an existing customer over the next 12 months. This opportunity for additional orders involves collaborating on a cutting-edge product for a leading AI chip developer, which is expected to drive consistent demand for this customer's equipment and our SRAM chips going forward.”
Mr. Shu continued, “Looking at our financial results for the second quarter of fiscal 2025, we reported revenue of
Mr. Shu concluded, “We are on track to meet our deadlines for the Gemini-II benchmarking project and remain committed to fulfilling our SBIR contract with the U.S. Air Force Labs by December 31, 2024, followed by the delivery of the software algorithm in the first quarter of calendar 2025.”
Commenting on the outlook for GSI's third quarter of fiscal 2025, Mr. Shu stated, "Our current expectations for the upcoming third quarter are net revenues in a range of
Second Quarter Fiscal Year 2025 Summary Financials
The Company reported net revenues of
In the second quarter of fiscal 2025, sales to Nokia were
Total operating expenses in the second quarter of fiscal 2025 were
Second quarter fiscal 2025 operating loss was
Net loss in the second quarter of fiscal 2025 was
Total second quarter pre-tax stock-based compensation expense was
At September 30, 2024, the Company had
Conference Call
Management will conduct a conference call to review the Company's financial results for the second quarter of fiscal year 2025 and its current outlook for the third quarter of fiscal 2025 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 13749240. The call will also be streamed live via the internet at www.gsitechnology.com.
A replay will be available from October 24, 2024, at 7:30 p.m. Eastern Time through October 31, 2024, 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 13749240. 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; 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; GSI Technology’s ability to successfully implement its workforce reductions; the impact of GSI Technology’s workforce reductions on its business and operations and the failure to realize the anticipated benefits of its workforce reductions; 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, 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 | Six Months Ended | |||||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Net revenues | ||||||||||||||||||||||
| Cost of goods sold | 2,793 | 2,510 | 2,587 | 5,303 | 5,105 | |||||||||||||||||
| Gross profit | 1,757 | 2,161 | 3,121 | 3,918 | 6,190 | |||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Research & development | 4,788 | 4,214 | 4,691 | 9,002 | 9,895 | |||||||||||||||||
| Selling, general and administrative | 2,553 | 2,604 | 2,523 | 5,157 | 5,527 | |||||||||||||||||
| Gain from sale and leaseback transaction | - | (5,737 | ) | - | (5,737 | ) | - | |||||||||||||||
| Total operating expenses | 7,341 | 1,081 | 7,214 | 8,422 | 15,422 | |||||||||||||||||
| Operating income (loss) | (5,584 | ) | 1,080 | (4,093 | ) | (4,504 | ) | (9,232 | ) | |||||||||||||
| Interest and other income, net | 149 | 55 | 71 | 204 | 151 | |||||||||||||||||
| Income (loss) before income taxes | (5,435 | ) | 1,135 | (4,022 | ) | (4,300 | ) | (9,081 | ) | |||||||||||||
| Provision for income taxes | 23 | 57 | 33 | 80 | 84 | |||||||||||||||||
| 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 | 25,467 | 25,374 | 25,161 | 25,421 | 25,014 | |||||||||||||||||
| Diluted | 25,467 | 25,686 | 25,161 | 25,421 | 25,014 | |||||||||||||||||
| Stock-based compensation included in the Condensed Consolidated Statements of Operations: | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Cost of goods sold | ||||||||||||||||||||||
| Research & development | 336 | 290 | 369 | 626 | 755 | |||||||||||||||||
| Selling, general and administrative | 276 | 312 | 250 | 588 | 617 | |||||||||||||||||
| GSI TECHNOLOGY, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Sept. 30, 2024 | March 31, 2024 | |||||||
| Cash and cash equivalents | ||||||||
| Accounts receivable | 2,411 | 3,118 | ||||||
| Inventory | 4,127 | 4,977 | ||||||
| Other current assets | 1,724 | 1,954 | ||||||
| Assets held for sale | - | 5,629 | ||||||
| Net property and equipment | 980 | 1,148 | ||||||
| Operating lease right-of-use assets | 10,166 | 1,553 | ||||||
| Other assets | 9,630 | 9,656 | ||||||
| Total assets | ||||||||
| Current liabilities | ||||||||
| Long-term liabilities | 8,622 | 1,129 | ||||||
| Stockholders' equity | 33,284 | 35,970 | ||||||
| Total liabilities and stockholders' equity | ||||||||
FAQ
What was GSIT's revenue in Q2 fiscal 2025?
How much annual cost savings does GSIT expect from recent measures?
What is GSIT's revenue guidance for Q3 fiscal 2025?
What was GSIT's cash position as of September 30, 2024?
