GSI Technology, Inc. (NASDAQ:GSIT) today reported
financial results for its first fiscal quarter ended June 30, 2019.
|
Three Months Ended |
|
|
|
June 30, 2019 |
Mar. 31, 2019 |
June 30, 2018 |
|
|
|
|
Net revenues |
$13,019 |
$12,686 |
$11,266 |
|
|
|
|
Gross margin (%) |
63.3% |
61.3% |
51.4% |
|
|
|
|
Operating expenses |
$8,472 |
$8,135 |
$7,447 |
|
|
|
|
Operating loss |
$(229) |
$(365) |
$(1,659) |
|
|
|
|
Net loss |
$(125) |
$(102) |
$(1,646) |
|
|
|
|
Net loss per share, diluted |
$(0.01) |
$0.00 |
$(0.08) |
Lee-Lean Shu, Chairman and Chief Executive Officer, said,
“Fiscal year 2020 is off to a solid start with sequential and
year-over-year revenue growth as well as gross margin improvement,
driven by continued strong sales of our SigmaQuad SRAM line. In
particular, SigmaQuad sales have been concentrated in our highest
ASP and gross margin products. The performance of our core business
is supporting our new product roadmap.”
“Our new radiation hardened SigmaQuad product is nearing
completion of GSI’s internal qualification processes. The next step
will be customer qualifications, which we anticipate will put us on
track to ship initial orders by calendar year-end 2019,” continued
Mr. Shu. “In addition, we continue to meet our milestones for
Gemini™, our in-place associative computing technology for
artificial intelligence applications. Currently, we are testing the
second silicon that we received in May. Our AI team is placing the
device on evaluation boards and continues to develop software
libraries and algorithms. We anticipate broad customer demos later
this year. We will also perform a third tape-out and re-spin to fix
minor bugs in preparation for our expected release of Gemini™ in
fiscal 2020.”
Commenting on the outlook for GSI’s second quarter of fiscal
2020, Mr. Shu stated, “Our current expectations for the upcoming
quarter are net revenues in a range of $11.6 million to $12.6
million, with gross margin of approximately 54% to 56%. In
addition, we expect to incur a charge of approximately $3.0 million
during fiscal 2020 for purchased intellectual property that will be
incorporated into our next generation Gemini™ chip.”
First Quarter Fiscal Year 2020 Summary
Financials
The Company reported a net loss of $(125,000), or $(0.01) per
diluted share, on net revenues of $13.0 million for the first
quarter of fiscal 2020, compared to net loss of $(1.6 million), or
$(0.08) per diluted share, on net revenues of $11.3 million
for the first quarter of fiscal 2019 and a net loss of $(102,000),
or $0.00 per diluted share, on net revenues of $12.7 million
in the fourth quarter of fiscal 2019. Gross margin was 63.3%
compared to 51.4% in the prior year period and 61.3% in the
preceding fourth quarter.
In the first quarter of fiscal 2020, sales to Nokia were $6.0
million, or 45.7% of net revenues compared $5.2 million, or 46.5%
of net revenues, in the same period a year ago and $5.2 million, or
41.1% of net revenues in the prior quarter. Military/defense sales
were 21.0% of first quarter shipments compared to 19.7% of
shipments in the comparable period a year ago and 22.1% of
shipments in the prior quarter. SigmaQuad sales were 67.9% of first
quarter shipments compared to 59.7% in the first quarter of fiscal
2019 and 57.4% in the prior quarter.
Total operating expenses in the first quarter of fiscal 2020
were $8.5 million, compared to $7.4 million in the first quarter of
fiscal 2019 and $8.1 million in the preceding fourth quarter.
Research and development expenses were $5.6 million, compared to
$4.9 million in the prior year period and $5.6 million in the
preceding fourth quarter. Selling, general and administrative
expenses were $2.9 million in the quarter ended June 30, 2019
compared to $2.6 million in the prior year quarter ended June 30,
2018, and up sequentially from $2.6 million in the preceding fourth
quarter.
The first-quarter fiscal 2020 operating loss was $(229,000)
compared to an operating loss of $(1.7 million) a year ago and an
operating loss of $(365,000) in the prior quarter. The
first-quarter fiscal 2020 net loss included interest and other
income of $147,000 and a tax provision of $43,000, compared to
$23,000 in interest and other income and a tax provision of $10,000
for the same period a year ago. In the preceding fourth quarter,
net loss included interest and other income of $186,000 and a tax
benefit of $77,000.
Total first quarter pre-tax stock-based compensation expense was
$651,000 compared to $542,000 in the comparable quarter a year ago
and $580,000 in the prior quarter.
At June 30, 2019, the Company had $64.7 million in cash, cash
equivalents and short-term investments and $7.3 million in
long-term investments, compared to $61.8 million in cash, cash
equivalents and short-term investments and $9.0 million in
long-term investments at March 31, 2019. Working capital improved
to $73.1 million from $68.6 million at March 31, 2019, with no
debt, and stockholders’ equity for the first quarter was $96.1
million as compared to $93.2 million as of the fiscal year ended
March 31, 2019.
Conference Call
GSI Technology will review its financial results for the quarter
ended June 30, 2019 and discuss its current business outlook during
a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern) today,
July 25, 2019. To listen to the teleconference, please call
toll-free 888-254-3590 approximately 10 minutes prior to the above
start time and provide Conference ID 4748507. You may also listen
to the teleconference live via the Internet at
www.gsitechnology.com, where it will be archived.
About GSI Technology
Founded in 1995, GSI Technology, Inc. is a leading
provider of semiconductor memory solutions. GSI’s resources are
currently focused on bringing new products to market that leverage
existing core strengths, including radiation-hardened memory
products for extreme environments and the associative processing
unit that is 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;
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; and 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 relationships for the sale of such
products. 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
GSI TECHNOLOGY, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
Three Months Ended |
|
June 30, |
|
Mar. 31, |
|
June 30, |
|
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
Net
revenues |
$13,019 |
|
$ |
12,686 |
|
$11,266 |
|
Cost of goods
sold |
4,776 |
|
|
4,916 |
|
5,478 |
|
|
|
|
|
|
|
|
Gross
profit |
8,243 |
|
|
7,770 |
|
5,788 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research &
development |
5,595 |
|
|
5,582 |
|
4,850 |
|
|
Selling, general
and administrative |
2,877 |
|
|
2,553 |
|
2,597 |
|
|
|
|
Total operating expenses |
8,472 |
|
|
8,135 |
|
7,447 |
|
|
|
|
|
|
|
|
Operating income
(loss) |
(229 |
) |
|
(365 |
) |
(1,659 |
) |
|
|
|
|
|
|
|
Interest and other
income, net |
147 |
|
|
186 |
|
23 |
|
|
|
|
|
- |
|
|
|
Income (loss)
before income taxes |
(82 |
) |
|
(179 |
) |
(1,636 |
) |
Provision
(benefit) for income taxes |
43 |
|
|
(77 |
) |
10 |
|
Net income
(loss) |
($125 |
) |
$ |
(102 |
) |
($1,646 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share, basic |
($0.01 |
) |
$ |
- |
|
($0.08 |
) |
Net income (loss)
per share, diluted |
($0.01 |
) |
$ |
- |
|
($0.08 |
) |
|
|
|
|
|
Weighted-average
shares used in |
|
|
|
|
computing per
share amounts: |
|
|
|
|
|
|
|
Basic |
22,605 |
|
|
22,169 |
|
21,567 |
|
Diluted |
22,605 |
|
|
22,169 |
|
21,567 |
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in the Condensed Consolidated Statements of
Operations: |
|
|
|
|
|
Three Months Ended |
|
June 30, |
|
Mar. 31, |
|
June 30, |
|
|
2019 |
|
2019 |
|
2018 |
|
|
|
|
|
Cost of goods
sold |
$55 |
|
$ |
49 |
|
$53 |
|
Research &
development |
399 |
|
335 |
|
323 |
|
Selling, general
and administrative |
197 |
|
196 |
|
166 |
|
|
$651 |
|
$580 |
|
$542 |
|
|
|
|
|
GSI TECHNOLOGY, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
June 30, 2019 |
|
March 31, 2019 |
Cash and cash equivalents |
$46,435 |
|
|
$ |
42,495 |
|
Short-term investments |
18,282 |
|
|
|
19,346 |
|
Accounts receivable |
7,375 |
|
|
|
7,339 |
|
Inventory |
5,463 |
|
|
|
5,685 |
|
Other current assets |
3,009 |
|
|
|
2,500 |
|
Net property and
equipment |
8,726 |
|
|
|
9,001 |
|
Long-term investments |
7,264 |
|
|
|
8,997 |
|
Other assets |
11,712 |
|
|
|
10,860 |
|
Total assets |
$108,266 |
|
|
$ |
106,223 |
|
|
|
|
|
|
Current liabilities |
$7,440 |
|
|
$ |
8,733 |
|
Long-term liabilities |
4,744 |
|
|
|
4,335 |
|
Stockholders' equity |
96,082 |
|
|
|
93,155 |
|
Total liabilities and
stockholders' equity |
$108,266 |
|
|
$ |
106,223 |
|
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