GSI Technology, Inc. (NASDAQ: GSIT) is issuing
this press release to revise the reporting of its financial results
for its fourth fiscal quarter and fiscal year ended March 31, 2022.
After issuing the original earning release, GSI Technology
re-evaluated the methodologies and procedures involved in
developing forecasts used to calculate its contingent consideration
liability and used in the recoverability test over intangible
assets. This re-evaluation of forecasting methodologies and
procedures resulted in a reduction of approximately $1.3 million in
selling, general and administrative expense with a corresponding
decrease in the contingent consideration liability, which impacted
other amounts on the consolidated statement of operation and
consolidated balance sheet.
The revised release reads as follows:
Fourth Quarter and Fiscal Year 2022 Summary Financial
Results Table (in thousands, except per share
amounts)
|
Three Months Ended |
|
Twelve Months Ended |
|
|
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Net revenues |
$8,731 |
|
$8,065 |
|
$7,686 |
|
$33,384 |
|
$27,729 |
|
Gross margin (%) |
58.6% |
|
55.3% |
|
50.2% |
|
55.5% |
|
47.7% |
|
Operating expenses |
$8,059 |
|
$8,994 |
|
$9,123 |
|
$34,890 |
|
$34,481 |
|
Operating loss |
$(2,943) |
|
$(4,532) |
|
$(5,265) |
|
$(16,353) |
|
$(21,264) |
|
Net loss |
$(3,011) |
|
$(4,581) |
|
$(4,982) |
|
$(16,368) |
|
$(21,505) |
|
Net loss per share,
diluted |
$(0.12) |
|
$(0.19) |
|
$(0.21) |
|
$(0.67) |
|
$(0.91) |
|
Lee-Lean Shu, Chairman and Chief Executive Officer, commented,
“We finished fiscal year 2022 on a strong note, growing
year-over-year revenue by more than 20% to $33.4 million as a
result of new projects and expanded business in all our categories,
particularly, military and defense. Our gross margin improved by
780 basis points and operating expenses rose by only 1%, which
helped to narrow our net loss for the year. For the fourth quarter,
we delivered an 8% rise in revenue and gross margin improvement of
330 basis points compared to the prior quarter, which, combined
with modest growth in operating expenses, narrowed our net loss for
the quarter.
Mr. Shu continued, “The majority of our R&D is dedicated to
the tape-out of Gemini-II, which we anticipate completing by the
end of calendar 2022, and ongoing software development, including
the upcoming launch of version 2 of the Gemini-I compiler stack
that is expected to be released in July. This version will be
entirely Python enabled for coding algorithms, applications and
libraries. We anticipate the availability of the enhanced version
to be a catalyst for Gemini-I customer engagement. The GSI software
team has successfully competed in several high-profile contests, in
most cases winning first place. These contests have raised GSI’s
profile in key market sectors, such as U.S. and Israeli military
and defense agencies, as well as other governmental agencies and
organizations related to defense and security.”
Commenting on the outlook for GSI’s first quarter of fiscal
2023, Mr. Shu stated, “Our current expectations for the upcoming
quarter are net revenues in a range of $8.5 million to $9.5
million, with gross margin of approximately 60% to 62%, reflecting
a Rad Hard order expected to be booked and shipped in the quarter.
We maintain an attractive balance sheet with a surplus of cash and
no debt.”
Fiscal Year 2022 Summary Financials
For the fiscal year ended March 31, 2022, the Company reported a
net loss of $(16.4 million), or $(0.67) per diluted share, on net
revenues of $33.4 million, compared to a net loss of $(21.5
million), or $(0.91) per diluted share, on net revenues of $27.7
million in the fiscal year ended March 31, 2021. Gross margin for
fiscal 2022 was 55.5%, compared to 47.7% in the prior year.
Total operating expenses were $34.9 million in fiscal 2022, an
increase of 1.2% from $34.5 million in fiscal 2021. Research and
development expenses were $24.7 million, compared to $23.3 million
in the prior fiscal year. Selling, general and administrative
expenses were $10.2 million, compared to $11.1 million in fiscal
2021. The increase in research and development expenses was
primarily related to the development of Gemini-II.
The operating loss for fiscal 2022 was $(16.4 million) compared
to an operating loss of $(21.3 million) in the prior year. The
improvement in the operating loss was primarily due to the increase
in revenue and gross profit. The fiscal 2022 net loss included
interest and other expense of $(60,000) and a tax benefit of
$45,000, compared to $94,000 in interest and other income and a tax
provision of $335,000 a year ago.
Fourth Quarter Fiscal Year 2022 Summary
Financials
The Company reported a net loss of $(3.0 million), or $(0.12)
per diluted share, on net revenues of $8.7 million for the
fourth quarter of fiscal 2022, compared to a net loss of $(5.0
million), or $(0.21) per diluted share, on net revenues of
$7.7 million for the fourth quarter of fiscal 2021 and a net
loss of $(4.6 million), or $(0.19) per diluted share, on net
revenues of $8.1 million for the third quarter of fiscal 2022.
Gross margin was 58.6% in the fourth quarter of fiscal 2022
compared to 50.2% in the prior-year period and 55.3% in the
preceding third quarter. The improvement in gross margin was
primarily due to changes in the mix of products sold and price
increases effective in December 2021.
In the fourth quarter of fiscal 2022, sales to Nokia were $2.0
million, or 23.1% of net revenues, compared to $2.8 million, or
36.5% of net revenues, in the same period a year ago and $1.9
million, or 24.0% of net revenues, in the prior quarter.
Military/defense sales were 22.3% of fourth quarter shipments
compared to 22.5% of shipments in the comparable period a year ago
and 27.1% of shipments in the prior quarter. SigmaQuad sales were
47.6% of fourth quarter shipments compared to 52.9% in the fourth
quarter of fiscal 2021 and 40.5% in the prior quarter.
Total operating expenses in the fourth quarter of fiscal 2022
were $8.1 million, compared to $9.1 million in the fourth quarter
of fiscal 2021 and $9.0 million in the prior quarter. Research and
development expenses were $6.5 million, compared to $6.1 million in
the prior-year period and $6.2 million in the prior quarter.
Selling, general and administrative expenses were $1.5 million in
the quarter ended March 31, 2022, compared to $3.0 million in the
prior-year quarter and $2.8 million in the previous quarter.
Fourth quarter fiscal 2022 operating loss was $(2.9 million)
compared to an operating loss of $(5.3 million) in the prior-year
period and an operating loss of $(4.5 million) in the prior
quarter. Fourth quarter fiscal 2022 net loss included interest and
other expense of $(47,000) and a tax provision of $21,000, compared
to $(21,000) in interest and other expense and a tax benefit of
$304,000 for the same period a year ago. In the preceding third
quarter, net loss included interest and other income of $15,000 and
a tax provision of $64,000.
Total fourth quarter pre-tax stock-based compensation expense
was $714,000 compared to $753,000 in the comparable quarter a year
ago and $740,000 in the prior quarter.
At March 31, 2022, the Company had $44.0 million in cash, cash
equivalents, and short-term investments and $3.3 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 $45.8
million as of March 31, 2022, versus $56.0 million at March 31,
2021, with no debt. Stockholders’ equity as of March 31, 2022, was
$64.5 million compared to $75.6 million as of the fiscal year ended
March 31, 2021.
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
by performing massive parallel search directly in the memory array
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. |
Investor RelationsHayden IRKim RogersManaging
Director385-831-7337Kim@HaydenIR.com
Media Relations Finn Partners for GSI
TechnologyRicca Silverio(415) 348-2724gsi@finnpartners.com
CompanyGSI Technology, Inc.Douglas M.
SchirleChief Financial Officer408-331-9802
GSI
TECHNOLOGY, INC. |
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
(in
thousands, except per share data) |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
|
|
|
|
|
March
31, |
Dec.
31, |
March
31, |
March
31, |
March
31, |
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
8,731 |
|
$ |
8,065 |
|
$ |
7,686 |
|
|
$ |
33,384 |
|
$ |
27,729 |
|
|
Cost of goods sold |
|
3,615 |
|
|
3,603 |
|
|
3,828 |
|
|
|
14,847 |
|
|
14,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,116 |
|
|
4,462 |
|
|
3,858 |
|
|
|
18,537 |
|
|
13,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & development |
|
|
|
|
6,510 |
|
|
6,152 |
|
|
6,124 |
|
|
|
24,672 |
|
|
23,344 |
|
|
Selling, general and administrative |
|
|
|
|
1,549 |
|
|
2,842 |
|
|
2,999 |
|
|
|
10,218 |
|
|
11,137 |
|
|
Total operating expenses |
|
|
|
|
8,059 |
|
|
8,994 |
|
|
9,123 |
|
|
|
34,890 |
|
|
34,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(2,943 |
) |
|
(4,532 |
) |
|
(5,265 |
) |
|
|
(16,353 |
) |
|
(21,264 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
other income (expense), net |
|
|
|
|
(47 |
) |
|
15 |
|
|
(21 |
) |
|
|
(60 |
) |
|
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(2,990 |
) |
|
(4,517 |
) |
|
(5,286 |
) |
|
|
(16,413 |
) |
|
(21,170 |
) |
|
Provision (benefit) for income taxes |
|
21 |
|
|
64 |
|
|
(304 |
) |
|
|
(45 |
) |
|
335 |
|
|
Net loss |
|
|
$ |
(3,011 |
) |
$ |
(4,581 |
) |
$ |
(4,982 |
) |
|
$ |
(16,368 |
) |
$ |
(21,505 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
$ |
(0.12 |
) |
$ |
(0.19 |
) |
$ |
(0.21 |
) |
|
$ |
(0.67 |
) |
$ |
(0.91 |
) |
|
Net loss per share, diluted |
$ |
(0.12 |
) |
$ |
(0.19 |
) |
$ |
(0.21 |
) |
|
$ |
(0.67 |
) |
$ |
(0.91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
24,484 |
|
|
24,406 |
|
|
23,912 |
|
|
|
24,303 |
|
|
23,671 |
|
|
Diluted |
|
|
|
24,484 |
|
|
24,406 |
|
|
23,912 |
|
|
|
24,303 |
|
|
23,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in the Condensed Consolidated Statements of
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
|
|
|
|
|
March
31, |
Dec.
31, |
March
31, |
|
March
31, |
March
31, |
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ |
56 |
|
$ |
58 |
|
$ |
86 |
|
|
$ |
248 |
|
$ |
346 |
|
|
Research & development |
|
372 |
|
|
416 |
|
|
400 |
|
|
|
1,676 |
|
|
1,509 |
|
|
Selling, general and administrative |
|
286 |
|
|
266 |
|
|
267 |
|
|
|
1,069 |
|
|
999 |
|
|
|
|
|
|
$ |
714 |
|
$ |
740 |
|
$ |
753 |
|
|
$ |
2,993 |
|
$ |
2,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GSI
TECHNOLOGY, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2022 |
March 31, 2021 |
|
Cash and cash equivalents |
|
$ |
36,971 |
|
$ |
44,234 |
|
|
Short-term investments |
|
|
|
6,992 |
|
|
9,717 |
|
|
Accounts receivable |
|
|
|
4,518 |
|
|
3,665 |
|
|
Inventory |
|
|
|
|
4,655 |
|
|
4,343 |
|
|
Other current assets |
|
|
|
1,555 |
|
|
1,487 |
|
|
Net property and equipment |
|
|
7,359 |
|
|
7,328 |
|
|
Long-term investments |
|
|
|
3,345 |
|
|
5,792 |
|
|
Other assets |
|
|
|
|
11,027 |
|
|
11,046 |
|
|
Total assets |
|
|
|
$ |
76,422 |
|
$ |
87,612 |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
$ |
8,861 |
|
$ |
7,462 |
|
|
Long-term liabilities |
|
|
|
3,110 |
|
|
4,558 |
|
|
Stockholders' equity |
|
|
|
64,451 |
|
|
75,592 |
|
|
Total liabilities and stockholders' equity |
$ |
76,422 |
|
$ |
87,612 |
|
|
|
|
|
|
|
|
|
|
|
|
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