GSI Technology, Inc. (NASDAQ: GSIT) today reported
financial results for its second fiscal quarter ended September 30,
2021.
Summary Financial Results Table (in thousands, except
per share amounts)
|
|
|
|
Three Months Ended |
Six Months
Ended |
|
Sept. 30, 2021 |
June 30, 2021 |
Sept. 30, 2020 |
Sept. 30, 2021 |
Sept. 30, 2020 |
Net revenues |
$7,797 |
|
|
|
$8,791 |
|
|
|
$6,659 |
|
$16,588 |
|
|
|
$13,280 |
Gross margin (%) |
|
53.6% |
|
|
|
54.4% |
|
|
|
46.7% |
|
|
54.0% |
|
|
|
|
46.4% |
Operating expenses |
$8,694 |
|
|
|
$9,143 |
|
|
|
$8,265 |
|
$17,837 |
|
|
|
$17,010 |
Operating loss |
$(4,517) |
|
|
|
$(4,361) |
|
|
|
$(5,153) |
|
$(8,878) |
|
|
|
$(10,848) |
Net loss |
$(4,567) |
|
|
|
$(4,209) |
|
|
|
$(5,231) |
|
$(8,776) |
|
|
|
$(11,307) |
Net loss per share, diluted |
($0.19) |
|
|
|
$(0.17) |
|
|
|
$(0.22) |
|
($0.36) |
|
|
|
$(0.48) |
Lee-Lean Shu, Chairman, and Chief Executive Officer, commented,
"Sales to Nokia, our largest SRAM customer, have stabilized
year-to-date and, despite ongoing supply chain constraints, we
achieved second quarter revenue of $7.8 million, at the high end of
our guidance range provided earlier in the quarter. Higher revenue
and gross profit combined with a modest increase in operating
expenses reduced our net loss year-over-year. We continue to
advance our key initiatives with ongoing APU and radiation tolerant
opportunities. For both categories, we are progressing in the
current customer engagements and have added a few new beta customer
engagements for the APU.”
"To best allocate our resources and prioritize our focus, we
defined the total addressable market (TAM) for the APU,” continued
Mr. Shu. “We believe that the TAM for APU search applications is
approximately $137 billion in 2021, growing at a compound annual
growth rate (CAGR) of 20% to $287 billion by 2025, and that the
Serviceable Available Market (SAM) is $4.5 billion in 2021,
anticipated to grow at a CAGR of 21% to $10 billion by 2025. The
search market segments reflected in this analysis include computer
vision, synthetic aperture radar, drug discovery, cybersecurity,
and service markets such as NoSQL, elasticsearch, and OpenSearch,
which we plan to support with a SaaS solution. These are market
segments where we currently have ongoing customer engagements.”
Commenting on the outlook for GSI's third quarter of fiscal
2022, Mr. Shu stated, "the impact of the supply chain constraints
is having a modest impact on our ability to fulfill all our orders.
While there has been some improvement, the situation remains fluid,
and we do not expect significant relief from these constraints
before next year. Given the supply chain challenges, current
expectations for the upcoming third quarter are net revenues in a
range of $7.2 million to $8.2 million, with gross margin of
approximately 52% to 54%."
Second Quarter Fiscal Year 2022 Summary
Financials
The Company reported a net loss of $(4.6 million), or $(0.19)
per diluted share, on net revenues of $7.8 million for the
second quarter of fiscal 2022, compared to a net loss of $(5.2
million), or $(0.22) per diluted share, on net revenues of
$6.7 million for the second quarter of fiscal 2021 and a net
loss of net loss of $(4.2 million), or $(0.17) per diluted share,
on net revenues of $8.8 million for the first quarter of
fiscal 2022. Gross margin was 53.6% compared to 46.7% in the prior
year period and 54.4% in the preceding first quarter. The changes
in gross margin were primarily due to changes in product mix sold
in the three periods.
In the second quarter of fiscal 2022, sales to Nokia were $1.9
million, or 23.8% of net revenues compared to $3.4 million, or
51.7% of net revenues, in the same period a year ago and $3.8
million, or 42.7% of net revenues in the prior quarter.
Military/defense sales were 27.4% of second quarter shipments
compared to 26.9% of shipments in the comparable period a year ago
and 20.0% of shipments in the prior quarter. SigmaQuad sales were
52.4% of second quarter shipments compared to 65.4% in the second
quarter of fiscal 2021 and 63.6% in the prior quarter.
Total operating expenses in the second quarter of fiscal 2022
were $8.7 million, compared to $8.3 million in the second quarter
of fiscal 2021 and $9.1 million in the prior quarter. Research and
development expenses were $5.9 million, compared to $5.7 million in
the prior year period and $6.1 million in the prior quarter.
Selling, general and administrative expenses were $2.8 million in
the quarter ended September 30, 2021, compared to $2.6 million in
the prior year quarter, and $3.0 million in the previous
quarter.
Second quarter fiscal 2022 operating loss was $(4.5 million)
compared to $(5.2 million) in the prior year period and $(4.4
million) in the prior quarter. Second quarter fiscal 2022 net loss
included interest income and other expense, net of $(8,000) and a
tax provision of $42,000, compared to interest income and other
expense, net of $(16,000) and a tax provision of $62,000, for the
same period a year ago. In the preceding first quarter, net loss
included interest and other expense of $(20,000) and a tax benefit
of $172,000.
Total second quarter pre-tax stock-based compensation expense
was $716,000 compared to $653,000 in the comparable quarter a year
ago and $823,000 in the prior quarter.
At September 30, 2021, the Company had $50.7 million in cash,
cash equivalents and short-term investments and $2.8 million in
long-term investments, compared to $54.0 million in cash, cash
equivalents, and short-term investments and $5.8 million in
long-term investments at March 31, 2021. Working capital was $53.6
million as of September 30, 2021, versus $56.0 million at March 31,
2021, with no debt. Stockholders’ equity as of September 30, 2021,
was $69.9 million compared to $75.6 million as of the fiscal year
ended March 31, 2021.
Conference Call
GSI Technology will review its financial results
for the quarter ended September 30, 2021 and discuss its current
business outlook during a conference call at 1:30 p.m. Pacific
(4:30 p.m. Eastern) today, October 28, 2021. To join the call,
please dial 1-877-407-3982 in the U.S. or 1-201-493-6780 for
international approximately10 minutes prior to the above start time
and provide Conference ID 13724053. The call will also be streamed
live via the internet at www.gsitechnology.com.
A replay will be available from October 28, 2021
at 7:30 p.m. Eastern Time through November 4, 2021 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 13724053. 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. The Company recently launched
radiation-hardened memory products for extreme environments in
space and the Gemini® Associative Processing Unit (APU), a
memory-centric design that delivers significant performance
advantages for diverse AI applications. The Gemini APU architecture
removes the I/O bottleneck between the processors and memory arrays
and performs massive parallel search directly in the memory where
data is stored. The novel architecture delivers
performance-over-power ratio improvements compared to CPU, GPU, and
DRAM for applications like image detection, speech recognition,
e-commerce recommendation systems, and more. Gemini is an ideal
solution for edge applications with a scalable format, small
footprint, and low power consumption where rapid, accurate
responses are critical. 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 (including the ongoing COVID-19
global pandemic and the governmental and regulatory actions
relating thereto); 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. Many of these risks are currently
amplified by and will continue to be amplified by, or in the future
may be amplified by, the COVID-19 global pandemic. 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 Relations Finn Partners for GSI TechnologyJulie
Ortega510-697-5599 gsi@finnpartners.com
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, |
|
|
|
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
7,797 |
|
$ |
8,791 |
|
$ |
6,659 |
|
|
$ |
16,588 |
|
$ |
13,280 |
|
|
Cost of goods sold |
|
3,620 |
|
|
4,009 |
|
|
3,547 |
|
|
|
7,629 |
|
|
7,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
4,177 |
|
|
4,782 |
|
|
3,112 |
|
|
|
8,959 |
|
|
6,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & development |
|
5,907 |
|
|
6,103 |
|
|
5,659 |
|
|
|
12,010 |
|
|
11,484 |
|
|
|
Selling, general and administrative |
|
2,787 |
|
|
3,040 |
|
|
2,606 |
|
|
|
5,827 |
|
|
5,526 |
|
|
|
|
|
Total
operating expenses |
|
8,694 |
|
|
9,143 |
|
|
8,265 |
|
|
|
17,837 |
|
|
17,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(4,517 |
) |
|
(4,361 |
) |
|
(5,153 |
) |
|
|
(8,878 |
) |
|
(10,848 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income, net |
|
(8 |
) |
|
(20 |
) |
|
(16 |
) |
|
|
(28 |
) |
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(4,525 |
) |
|
(4,381 |
) |
|
(5,169 |
) |
|
|
(8,906 |
) |
|
(10,758 |
) |
|
Provision for income taxes |
|
42 |
|
|
(172 |
) |
|
62 |
|
|
|
(130 |
) |
|
549 |
|
|
Net loss |
|
|
$ |
(4,567 |
) |
$ |
(4,209 |
) |
$ |
(5,231 |
) |
|
$ |
(8,776 |
) |
$ |
(11,307 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
$ |
(0.19 |
) |
$ |
(0.17 |
) |
$ |
(0.22 |
) |
|
$ |
(0.36 |
) |
$ |
(0.48 |
) |
|
Net loss per share, diluted |
$ |
(0.19 |
) |
$ |
(0.17 |
) |
$ |
(0.22 |
) |
|
$ |
(0.36 |
) |
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
24,229 |
|
|
24,095 |
|
|
23,617 |
|
|
|
24,162 |
|
|
23,529 |
|
|
Diluted |
|
|
|
24,229 |
|
|
24,095 |
|
|
23,617 |
|
|
|
24,162 |
|
|
23,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ |
64 |
|
$ |
70 |
|
$ |
84 |
|
|
$ |
134 |
|
$ |
172 |
|
|
Research & development |
|
418 |
|
|
470 |
|
|
353 |
|
|
|
888 |
|
|
766 |
|
|
Selling, general and administrative |
|
234 |
|
|
283 |
|
|
216 |
|
|
|
517 |
|
|
470 |
|
|
|
|
|
|
$ |
716 |
|
$ |
823 |
|
$ |
653 |
|
|
$ |
1,539 |
|
$ |
1,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GSI
TECHNOLOGY, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30, 2021 |
March 31, 2021 |
|
Cash and cash equivalents |
|
|
$ |
40,943 |
|
$ |
44,234 |
|
|
Short-term investments |
|
|
|
9,791 |
|
|
9,717 |
|
|
Accounts receivable |
|
|
|
3,653 |
|
|
3,665 |
|
|
Inventory |
|
|
|
|
4,449 |
|
|
4,343 |
|
|
Other current assets |
|
|
|
1,899 |
|
|
1,487 |
|
|
Net property and equipment |
|
|
|
7,335 |
|
|
7,328 |
|
|
Long-term investments |
|
|
|
2,759 |
|
|
5,792 |
|
|
Other assets |
|
|
|
|
10,727 |
|
|
11,046 |
|
|
Total assets |
|
|
|
$ |
81,556 |
|
$ |
87,612 |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
$ |
7,144 |
|
$ |
7,462 |
|
|
Long-term liabilities |
|
|
|
4,491 |
|
|
4,558 |
|
|
Stockholders' equity |
|
|
|
69,921 |
|
|
75,592 |
|
|
Total liabilities and stockholders' equity |
|
$ |
81,556 |
|
$ |
87,612 |
|
|
|
|
|
|
|
|
|
|
|
|
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