GSI Technology, Inc. (NASDAQ: GSIT) today reported
financial results for its third fiscal quarter ended December 31,
2023.
Summary Financial Results Table (in thousands, except
per share amounts)
|
|
Three Months Ended |
Nine Months Ended |
|
|
Dec. 31, 2023 |
Sept. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
| Net revenues |
$5,318 |
$5,708 |
$6,447 |
$16,613 |
$24,309 |
| Gross margin (%) |
55.9% |
54.7% |
57.5% |
55.2% |
60.4% |
| Operating expenses |
$9,660 |
$7,214 |
$8,495 |
$25,082 |
$26,609 |
| Operating loss |
($6,685) |
($4,093) |
($4,789) |
($15,917) |
($11,936) |
| Net loss |
($6,601) |
($4,055) |
($4,812) |
($15,766) |
($12,016) |
| Net loss per share,
diluted |
($0.26) |
($0.16) |
($0.20) |
($0.63) |
($0.49) |
| |
|
|
|
|
|
Lee-Lean Shu, Chairman and Chief Executive Officer, commented,
“GSI achieved several key milestones this past quarter. First,
radiation testing performed in November showed Gemini-I can meet
the radiation tolerance needs of satellite compute-in-space
applications. We are pursuing several opportunities in this market.
Second, we completed the Gemini-II tape out and will evaluate the
initial spin soon. Sampling is targeted for the second half of
calendar year 2024, with potential alpha deployments by year-end.
Third, we shipped radiation-hardened SRAMs for two new programs,
and finally, we received a second SBIR Direct-to-Phase II contract
in the amount of $1.1 million for Gemini-II.”
Mr. Shu continued, “Recently published research by Cornell
University demonstrated the unique efficiency of our Gemini-I APU
for accelerating location filtering in DNA mapping. Leveraging the
APU's massively parallel in-memory scalable architecture in a
server, researchers achieved up to 6X faster processing than a CPU.
These results highlight the potential of our technology to
transform genomics and other data-intensive applications, such as
medical data analysis, search, security, and more. The versatility
of our APU architecture has the potential to unlock
multi-billion-dollar market opportunities across industries that
rely on rapid bit-wise data matching and comparisons."
Commenting on the third quarter results and fourth quarter of
fiscal 2024 outlook, Mr. Shu stated, “Third quarter revenue was at
the low end of our guidance, and gross margin was at the mid-point
of our guidance. An infrequent $2.4 million charge for a
pre-production mask set for Gemini-II increased operating expenses
for the quarter and contributed to a higher operating loss compared
to the second quarter of fiscal 2024. For the fourth quarter of
fiscal year 2024, we anticipate net revenues in a range of $4.8
million to $5.4 million, with gross margin of approximately 55% to
57%.”
Third Quarter Fiscal Year 2024 Summary
Financials
The Company reported a net loss of ($6.6 million), or ($0.26)
per diluted share, on net revenues of $5.3 million for the third
quarter of fiscal 2024, compared to a net loss of ($4.8 million),
or ($0.20) per diluted share, on net revenues of $6.4 million for
the third quarter of fiscal 2023 and a net loss of ($4.1 million),
or ($0.16) per diluted share, on net revenues of $5.7 million for
the second quarter of fiscal 2024. Gross margin was 55.9% compared
to 57.5% in the prior year period and 54.7% in the preceding second
quarter. The changes in gross margin were primarily due to changes
in product mix and volume sold in the three
periods.
In the third quarter of fiscal 2024, sales to Nokia were
$807,000, or 15.2% of net revenues compared to $1.3 million, or
20.0% of net revenues, in the same period a year ago and $1.2
million, or 20.3% of net revenues in the prior quarter.
Military/defense sales were 28.2% of third quarter shipments
compared to 26.2% of shipments in the comparable period a year ago
and 34.8% of shipments in the prior quarter. SigmaQuad sales were
46.9% of third quarter shipments compared to 45.2% in the third
quarter of fiscal 2023 and 55.8% in the prior quarter.
Total operating expenses in the third quarter of fiscal 2024
were $9.7 million, compared to $8.5 million in the third quarter of
fiscal 2023 and $7.2 million in the prior quarter. Research and
development expenses were $7.0 million, compared to $5.5 million in
the prior year period and $4.7 million in the prior quarter.
Selling, general and administrative expenses were $2.7 million in
the quarter ended December 31, 2023 compared to $3.0 million in the
prior year quarter and $2.5 million in the previous
quarter.
Third quarter fiscal 2024 operating loss was ($6.7 million)
compared to ($4.8 million) in the prior year period and an
operating loss of ($4.1 million) in the prior quarter. Third
quarter fiscal 2024 net loss included net interest and other income
of $155,000 and a tax provision of $71,000, compared to net
interest and other income of $61,000 and a tax provision of $84,000
for the same period a year ago. In the preceding second quarter,
net loss included net interest and other income of $71,000 and a
tax provision of $33,000.
Total third quarter pre-tax stock-based compensation expense was
$649,000 compared to $655,000 in the comparable quarter a year ago
and $676,000 in the prior quarter.
At December 31, 2023, the Company had $21.6 million in cash and
cash equivalents, compared to $30.6 million in cash, cash
equivalents and short-term investments at March 31, 2023. Working
capital was $23.1 million as of December 31, 2023 versus $34.7
million at March 31, 2023, with no debt. Stockholders’ equity as of
December 31, 2023 was $39.6 million compared to $51.4 million as of
the fiscal year ended March 31, 2023.
Conference Call
GSI Technology will announce financial results for its third
fiscal quarter ended December 31, 2023 after the market
close on Thursday, January 25, 2024. Management will also
conduct a conference call to review the Company's third quarter
financial results and its current outlook for the fourth quarter of
fiscal 2024 at 1:30 p.m. Pacific time (4:30
p.m. Eastern Time) on that same day.
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 13743563.
The call will also be streamed live via the internet at
https://ir.gsitechnology.com/.
A replay will be available from January 25, 2024 at 7:30 p.m.
Eastern Time through February 1, 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 13743563. 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; and delays or
unexpected challenges related to the establishment of customer
relationships and orders for GSI Technology’s radiation-hardened
and tolerant semiconductor 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 rising interest rates, worldwide inflationary
pressures, military conflicts, significant fluctuations in energy
prices 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.
GSI Technology, Inc.Douglas M. SchirleChief
Financial Officer408-331-9802
Hayden IRKim RogersManaging
Director385-831-7337Kim@HaydenIR.com
Media RelationsFinn Partners for GSI
TechnologyRicca Silverio(415) 348-2724gsi@finnpartners.com
| GSI
TECHNOLOGY, INC. |
| CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
| (in
thousands, except per share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
| |
Three Months
Ended |
|
Nine Months
Ended |
| |
Dec.
31, |
Sept.
30, |
Dec.
31, |
|
Dec.
31, |
Dec.
31, |
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
|
|
| Net
revenues |
$5,318 |
|
$5,708 |
|
$6,447 |
|
|
$16,613 |
|
$24,309 |
|
| Cost of
goods sold |
|
2,343 |
|
|
2,587 |
|
|
2,741 |
|
|
|
7,448 |
|
|
9,636 |
|
| |
|
|
|
|
|
|
| |
|
2,975 |
|
|
3,121 |
|
|
3,706 |
|
|
|
9,165 |
|
|
14,673 |
|
| |
|
|
|
|
|
|
| Operating
expenses: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Research & development |
|
6,976 |
|
|
4,691 |
|
|
5,529 |
|
|
|
16,871 |
|
|
18,543 |
|
|
Selling, general and administrative |
|
2,684 |
|
|
2,523 |
|
|
2,966 |
|
|
|
8,211 |
|
|
8,066 |
|
|
Total operating expenses |
|
9,660 |
|
|
7,214 |
|
|
8,495 |
|
|
|
25,082 |
|
|
26,609 |
|
| |
|
|
|
|
|
|
| Operating
loss |
|
(6,685 |
) |
|
(4,093 |
) |
|
(4,789 |
) |
|
|
(15,917 |
) |
|
(11,936 |
) |
| |
|
|
|
|
|
|
| Interest and
other income, net |
|
155 |
|
|
71 |
|
|
61 |
|
|
|
306 |
|
|
101 |
|
| |
|
|
|
|
|
|
| Loss before
income taxes |
|
(6,530 |
) |
|
(4,022 |
) |
|
(4,728 |
) |
|
|
(15,611 |
) |
|
(11,835 |
) |
| Provision
for income taxes |
|
71 |
|
|
33 |
|
|
84 |
|
|
|
155 |
|
|
181 |
|
| |
($6,601 |
) |
($4,055 |
) |
($4,812 |
) |
|
($15,766 |
) |
($12,016 |
) |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Net loss per
share, basic |
($0.26 |
) |
($0.16 |
) |
($0.20 |
) |
|
($0.63 |
) |
($0.49 |
) |
| Net loss per
share, diluted |
($0.26 |
) |
($0.16 |
) |
($0.20 |
) |
|
($0.63 |
) |
($0.49 |
) |
| |
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Basic |
|
25,256 |
|
|
25,161 |
|
|
24,621 |
|
|
|
25,094 |
|
|
24,566 |
|
|
Diluted |
|
25,256 |
|
|
25,161 |
|
|
24,621 |
|
|
|
25,094 |
|
|
24,566 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Stock-based
compensation included in the Condensed Consolidated Statements of
Operations: |
| |
|
|
|
|
|
|
| |
Three Months
Ended |
|
Nine Months
Ended |
| |
Dec.
31, |
Sept.
30, |
Dec.
31, |
|
Dec.
31, |
Dec.
31, |
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
|
|
| Cost of
goods sold |
$51 |
|
$57 |
|
$54 |
|
|
$175 |
|
$163 |
|
| Research
& development |
|
325 |
|
|
369 |
|
|
328 |
|
|
|
1,080 |
|
|
1,069 |
|
| Selling,
general and administrative |
|
273 |
|
|
250 |
|
|
272 |
|
|
|
890 |
|
|
722 |
|
| |
$649 |
|
$676 |
|
$654 |
|
|
$2,145 |
|
$1,954 |
|
| |
|
|
|
|
|
|
| GSI
TECHNOLOGY, INC. |
| CONDENSED
CONSOLIDATED BALANCE SHEETS |
| (in
thousands) |
|
(Unaudited) |
| |
|
|
|
|
| |
Dec. 31, 2023 |
March 31, 2023 |
|
Cash and cash equivalents |
$21,575 |
|
$27,212 |
|
|
Short-term investments |
|
0 |
|
|
3,363 |
|
| Accounts
receivable |
|
2,377 |
|
|
3,471 |
|
|
Inventory |
|
5,504 |
|
|
6,415 |
|
| Other
current assets |
|
2,079 |
|
|
1,414 |
|
| Net property
and equipment |
|
6,916 |
|
|
7,423 |
|
| Other
assets |
|
10,604 |
|
|
10,578 |
|
| Total
assets |
$49,055 |
|
$59,876 |
|
| |
|
|
|
|
| Current
liabilities |
$8,420 |
|
$7,202 |
|
| Long-term
liabilities |
|
1,051 |
|
|
1,302 |
|
|
Stockholders' equity |
|
39,584 |
|
|
51,372 |
|
| Total
liabilities and stockholders' equity |
$49,055 |
|
$59,876 |
|
| |
|
|
|
|
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