SUNNYVALE, Calif., Oct. 27, 2022 (GLOBE NEWSWIRE) — GSI Technology, Inc. (NASDAQ: GSIT) at the moment reported monetary outcomes for its second fiscal quarter ended September 30, 2022.
Summary Financial Results Table (in 1000’s, besides per share quantities)
| Three Months Ended | Six Months Ended | ||||||||||||||
| Sept. 30, 2022 |
June 30, 2022 |
Sept. 30, 2021 |
Sept. 30, 2022 |
Sept. 30, 2021 |
|||||||||||
| Net revenues | $8,953 | $8,909 | $7,797 | $17,862 | $16,588 | ||||||||||
| Gross margin (%) | 62.6% | 60.2% | 53.6% | 61.4% | 54.0% | ||||||||||
| Operating bills | $8,807 | $9,307 | $8,694 | $18,114 | $17,837 | ||||||||||
| Operating loss | ($3,205 | ) | ($3,942 | ) | ($4,517 | ) | ($7,147 | ) | ($8,878 | ) | |||||
| Net loss | ($3,228 | ) | ($3,976 | ) | ($4,567 | ) | ($7,204 | ) | ($8,776 | ) | |||||
| Net loss per share, diluted | ($0.13 | ) | ($0.16 | ) | ($0.19 | ) | ($0.29 | ) | ($0.36 | ) | |||||
Lee-Lean Shu, Chairman, and Chief Executive Officer commented, “Revenue in the second quarter of fiscal year 2023 grew year-over-year by nearly 15% to $9.0 million, the mid-point of our guidance range. Revenue growth was primarily due to increased high-performance SRAM sales and the shipment of radiation-hardened SRAMs in the quarter. As a result, gross margin increased by 900 basis points year-over-year to 62.6%. Higher gross margin along with flat operating expense year-over-year, led to a lower operating loss for the quarter. Net loss for the second quarter narrowed to $3.2 million. As of September 30, 2022, GSI Technology’s cash balance, which includes cash and cash equivalents, as well as short- and long-term investments, was $38.9 million.”
“Our team is now primarily focused on developing two near-term markets for our APU technology, Synthetic Aperture Radar (SAR) image processing acceleration and Searchium.ai, GSI’s Software as a Service, or SaaS platform that optimizes neural search applications,” continued Mr. Shu. “At the end of September, we announced that our Synthetic Aperture Radar (SAR) image processing acceleration system using GSI’s APU technology was approved for use by IAI/Elta System Ltd, a subsidiary of Israeli Aerospace Industries (IAI). This win showcases the technological superiority of our APU technology and opens new opportunities in the field of accelerating SAR image formation. The Searchium.ai website is now live and available for trials, and currently users are exploring the platform. The compelling feature of the Searchium platform is the ability to reduce time and latency in large complex database searches.”
Commenting on the outlook for GSI’s third quarter of fiscal 2023, Mr. Shu said, “Given the current global economic environment, our current expectations for the upcoming third quarter are net revenues in a range of $6.3 million to $7.3 million, with gross margin of approximately 53% to 55%.”
Second Quarter Fiscal Year 2023 Summary Financials
The Company reported a internet lack of $(3.2 million), or $(0.13) per diluted share, on internet revenues of $9.0 million for the second quarter of fiscal 2023, in comparison with a internet lack of $(4.6 million), or $(0.19) per diluted share, on internet revenues of $7.8 million for the second quarter of fiscal 2022 and a internet lack of $(4.0 million), or $(0.16) per diluted share, on internet revenues of $8.9 million for the primary quarter of fiscal 2023. Gross margin was 62.6% in comparison with 53.6% within the prior yr interval and 60.2% within the previous first quarter. The modifications in gross margin had been primarily resulting from modifications in product combine offered within the three intervals.
In the second quarter of fiscal 2023, gross sales to Nokia had been $1.2 million, or 13.6% of internet revenues in comparison with $1.9 million, or 23.8% of internet revenues, in the identical interval a yr in the past and $1.3 million, or 14.7% of internet revenues within the prior quarter. Military/protection gross sales had been 22.4% of second quarter shipments in comparison with 27.4% of shipments within the comparable interval a yr in the past and 22.3% of shipments within the prior quarter. SigmaQuad gross sales had been 58.1% of second quarter shipments in comparison with 52.4% within the second quarter of fiscal 2022 and 44.8% within the prior quarter.
Total working bills within the second quarter of fiscal 2023 had been $8.8 million, in comparison with $8.7 million within the second quarter of fiscal 2022 and $9.3 million within the prior quarter. Research and growth bills had been $6.4 million, in comparison with $5.9 million within the prior yr interval and $6.6 million within the prior quarter. Selling, common and administrative bills had been $2.4 million within the quarter ended September 30, 2022, in comparison with $2.8 million within the prior yr quarter, and $2.7 million within the earlier quarter.
Second quarter fiscal 2023 working loss was $(3.2 million) in comparison with $(4.5 million) within the prior yr interval and $(3.9 million) within the prior quarter. Second quarter fiscal 2023 internet loss included curiosity revenue and different expense, internet of $14,000 and a tax provision of $37,000, in comparison with curiosity revenue and different expense, internet of $(8,000) and a tax provision of $42,000, for a similar interval a yr in the past. In the previous first quarter, internet loss included curiosity and different expense of $26,000 and a tax provision of $60,000.
Total second quarter pre-tax stock-based compensation expense was $661,000 in comparison with $716,000 within the comparable quarter a yr in the past and $638,000 within the prior quarter.
At September 30, 2022, the Company had $38.2 million in money, money equivalents and short-term investments and $628,000 in long-term investments, in comparison with $44.0 million in money, money equivalents, and short-term investments and $3.3 million in long-term investments at March 31, 2022. Working capital was $42.2 million as of September 30, 2022, versus $45.8 million at March 31, 2022, with no debt. Stockholders’ fairness as of September 30, 2022, was $58.7 million in comparison with $64.5 million as of the fiscal yr ended March 31, 2022.
Conference Call
GSI Technology will announce monetary outcomes for its second fiscal quarter ended September 30, 2022 at the moment after the market shut. Management can even conduct a convention name to overview the Company’s second quarter monetary outcomes and its present outlook for the third quarter of fiscal 2023 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) at the moment. To take part within the name, please dial 1-877-407-3982 within the U.S. or 1-201-493-6780 for worldwide roughly 10 minutes previous to the above begin time and supply Conference ID 13733700. The name can even be streamed dwell through the web at www.gsitechnology.com.
A replay will likely be out there from October 27, 2022 at 7:30 p.m. Eastern Time by November 3, 2022 at 11:59 p.m. Eastern Time by dialing toll free for the U.S. 1-844-512-2921 or worldwide 1-412-317-6671 and getting into pin quantity 13733700. A webcast of the decision will likely be archived on the Company’s investor relations web site below the Events and Presentations tab.
About GSI Technology
Founded in 1995, GSI Technology, Inc. is a number one supplier of semiconductor reminiscence options. GSI’s assets are targeted on bringing new merchandise to market that leverage present core strengths, together with radiation-hardened reminiscence merchandise for excessive environments and Gemini-I, the associative processing unit designed to ship efficiency benefits for numerous synthetic intelligence functions. GSI Technology is headquartered in Sunnyvale, California, and has gross sales places of work within the Americas, Europe, and Asia. For extra data, please go to www.gsitechnology.com.
Forward-Looking Statements
The statements contained on this press launch that aren’t purely historic are forward-looking statements throughout the which means of Section 21E of the Securities Exchange Act of 1934, as amended, together with statements concerning GSI Technology’s expectations, beliefs, intentions, or methods concerning the long run. All forward-looking statements included on this press launch are primarily based upon data out there to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to replace any such forward-looking statements. Forward-looking statements contain a wide range of dangers and uncertainties, which might trigger precise outcomes to vary materially from these projected. These dangers embrace these related to the conventional quarterly and financial year-end closing course of. Examples of dangers that would have an effect on our present expectations concerning future revenues and gross margins embrace these related to fluctuations in GSI Technology’s working outcomes; GSI Technology’s historic dependence on gross sales to a restricted variety of prospects and fluctuations within the combine of consumers and merchandise in any interval; world public well being crises that scale back financial exercise (together with the continuing COVID-19 world pandemic and the governmental and regulatory actions relating thereto); the quickly evolving markets for GSI Technology’s merchandise and uncertainty concerning the event of those markets; the necessity to develop and introduce new merchandise to offset the historic decline within the common unit promoting value of GSI Technology’s merchandise; the challenges of speedy progress adopted by intervals of contraction; intensive competitors; delays or unanticipated prices that could be encountered within the growth of latest merchandise primarily based on our in-place associative computing know-how and the institution of latest markets and buyer relationships for the sale of such merchandise, together with these for SAR picture processing acceleration and the Searchium.ai platform; and delays or sudden challenges associated to the institution of buyer relationships and orders for our radiation-hardened and tolerant SRAM merchandise. Many of those dangers are at the moment amplified by and can proceed to be amplified by, or sooner or later could also be amplified by, the COVID-19 world pandemic. Further data concerning these and different dangers regarding GSI Technology’s business is contained within the Company’s filings with the Securities and Exchange Commission, together with these elements mentioned below the caption “Risk Factors” in such filings.
Source: GSI Technology, Inc.
GSI Technology, Inc.
Douglas M. Schirle
Chief Financial Officer
408-331-9802
Hayden IR
Kim Rogers
Managing Director
385-831-7337
[email protected]
Media Relations
Finn Partners for GSI Technology
Ricca Silverio
(415) 348-2724
[email protected]
| GSI TECHNOLOGY, INC. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (in 1000’s, besides per share knowledge) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | |||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Net revenues | $ | 8,953 | $ | 8,909 | $ | 7,797 | $ | 17,862 | $ | 16,588 | |||||||||
| Cost of products offered | 3,351 | 3,544 | 3,620 | 6,895 | 7,629 | ||||||||||||||
| Gross revenue | 5,602 | 5,365 | 4,177 | 10,967 | 8,959 | ||||||||||||||
| Operating bills: | |||||||||||||||||||
| Research & growth | 6,395 | 6,619 | 5,907 | 13,014 | 12,010 | ||||||||||||||
| Selling, common and administrative | 2,412 | 2,688 | 2,787 | 5,100 | 5,827 | ||||||||||||||
| Total working bills | 8,807 | 9,307 | 8,694 | 18,114 | 17,837 | ||||||||||||||
| Operating loss | (3,205 | ) | (3,942 | ) | (4,517 | ) | (7,147 | ) | (8,878 | ) | |||||||||
| Interest and different revenue, internet | 14 | 26 | (8 | ) | 40 | (28 | ) | ||||||||||||
| Loss earlier than revenue taxes | (3,191 | ) | (3,916 | ) | (4,525 | ) | (7,107 | ) | (8,906 | ) | |||||||||
| Provision for revenue taxes | 37 | 60 | 42 | 97 | (130 | ) | |||||||||||||
| Net loss | $ | (3,228 | ) | ($ | 3,976 | ) | $ | (4,567 | ) | $ | (7,204 | ) | $ | (8,776 | ) | ||||
| Net loss per share, fundamental | $ | (0.13 | ) | ($ | 0.16 | ) | $ | (0.19 | ) | $ | (0.29 | ) | $ | (0.36 | ) | ||||
| Net loss per share, diluted | $ | (0.13 | ) | ($ | 0.16 | ) | $ | (0.19 | ) | $ | (0.29 | ) | $ | (0.36 | ) | ||||
| Weighted-average shares utilized in | |||||||||||||||||||
| computing per share quantities: | |||||||||||||||||||
| Basic | 24,554 | 24,523 | 24,229 | 24,538 | 24,162 | ||||||||||||||
| Diluted | 24,554 | 24,523 | 24,229 | 24,538 | 24,162 | ||||||||||||||
| Stock-based compensation included within the Condensed Consolidated Statements of Operations: | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | |||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Cost of products offered | $ | 49 | $ | 60 | $ | 64 | $ | 109 | $ | 134 | |||||||||
| Research & growth | 390 | 351 | 418 | 741 | 888 | ||||||||||||||
| Selling, common and administrative | 222 | 227 | 234 | 449 | 517 | ||||||||||||||
| $ | 661 | $ | 638 | $ | 716 | $ | 1,299 | $ | 1,539 | ||||||||||
| GSI TECHNOLOGY, INC. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in 1000’s) | ||||||||||
| (Unaudited) | ||||||||||
| Sept. 30, 2022 | March 31, 2022 | |||||||||
| Cash and money equivalents | $ | 32,803 | $ | 36,971 | ||||||
| Short-term investments | 5,422 | 6,992 | ||||||||
| Accounts receivable | 4,819 | 4,518 | ||||||||
| Inventory | 5,532 | 4,655 | ||||||||
| Other present property | 1,649 | 1,555 | ||||||||
| Net property and tools | 7,156 | 7,359 | ||||||||
| Long-term investments | 628 | 3,345 | ||||||||
| Other property | 10,992 | 11,027 | ||||||||
| Total property | $ | 69,001 | $ | 76,422 | ||||||
| Current liabilities | $ | 8,001 | $ | 8,861 | ||||||
| Long-term liabilities | 2,300 | 3,110 | ||||||||
| Stockholders’ fairness | 58,700 | 64,451 | ||||||||
| Total liabilities and stockholders’ fairness | $ | 69,001 | $ | 76,422 | ||||||
