GSI Technology, Inc. (NASDAQ: GSIT) today reported
financial results for its first fiscal quarter ended June 30, 2022.
Summary Financial Results Table (in thousands, except
per share amounts)
|
Three Months Ended |
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
Net revenues |
$8,909 |
|
$8,731 |
|
$8,791 |
|
Gross margin (%) |
60.2 |
% |
58.6 |
% |
54.4 |
% |
Operating expenses |
$9,307 |
|
$8,059 |
|
$9,143 |
|
Operating loss |
($3,942 |
) |
($2,943 |
) |
($4,361 |
) |
Net loss |
($3,976 |
) |
($3,011 |
) |
($4,209 |
) |
Net loss per share,
diluted |
($0.16 |
) |
($0.12 |
) |
($0.17 |
) |
Lee-Lean Shu, Chairman and Chief Executive Officer, commented,
"Our legacy SRAM business remains stable and continues to fund our
APU hardware and software R&D. In the first quarter of fiscal
2023, our gross profit increased by 12% on modest revenue growth
compared to the first quarter of fiscal 2022. The rise in gross
margin to 60.2% reduced our operating loss from the same quarter a
year ago, and, as a result, we narrowed our net loss for the
quarter.”
“The team continues to advance APU opportunities on several
fronts. Searchium.ai, our SaaS platform that runs on our LEDA
boards, is expected to be launched in August for alpha users and is
on-track to go live later in calendar 2022. Searchium.ai
accelerates Elasticsearch and OpenSearch workloads by 6x and can
scale to a billion-vector dataset without losing accuracy. The
platform also offers fast vector search, providing high-speed,
accurate searches of large vectorized databases of text, images,
video and audio. In addition, our pipeline of defense and military
POCs and engagements continues to grow. Currently, we have numerous
early-stage projects that are in the initial discussions phase.
Several of the larger opportunities are with new contacts that
arose from our first place win in the MoSIAC challenge.”
“Our current expectations for the second fiscal quarter are net
revenues in a range of $8.5 million to $9.5 million, with gross
margin of approximately 61% to 63%. We maintain an attractive
balance sheet with a surplus of cash and no debt."
First Quarter Fiscal Year 2023 Summary
Financials
The Company reported a net loss of $(4.0 million), or $(0.16)
per diluted share, on net revenues of $8.9 million for the
first quarter of fiscal 2023, compared to a 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 and 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.
Gross margin in the first quarter of fiscal 2023 was 60.2%,
compared to 54.4% in the prior year quarter and 58.6% in the
preceding fourth quarter. The improvement in gross margin was
primarily due to changes in product mix sold in the quarter
compared to prior periods.
In the first quarter of fiscal 2023, sales to Nokia were $1.3
million, or 14.7% of net revenues compared to $3.8 million, or
42.7% of net revenues, in the same period a year ago and $2.0
million, or 23.1% of net revenues in the prior quarter. First
quarter fiscal 2022 net revenues included orders for buffer stock
shipped to Nokia amounting to approximately $1.1 million that were
made in anticipation of continued market tightness.
Military/defense sales were 22.3% of first quarter shipments
compared to 20.0% of shipments in the comparable period a year ago
and 22.3% of shipments in the prior quarter. SigmaQuad sales were
44.8% of first quarter shipments compared to 63.6% in the first
quarter of fiscal 2022 and 47.6% for the previous quarter.
Total operating expenses in the first quarter of fiscal 2023
were $9.3 million, compared to $9.1 million in the first quarter of
fiscal 2022 and $8.1 million in the prior quarter. Research and
development expenses were $6.6 million, compared to $6.1 million in
the prior year period and $6.5 million in the prior quarter.
Selling, general and administrative expenses were $2.7 million in
the quarter ended June 30, 2022, compared to $3.0 million for the
previous year quarter and $1.5 million in the previous quarter.
First quarter fiscal 2023 operating loss was $(3.9 million)
compared to $(4.4 million) in the prior year period and $(2.9
million) in the prior quarter.
First quarter fiscal 2023 net loss included interest and other
expense of $26,000 and a tax provision of $60,000, compared to
interest and other expense of $(20,000) and a tax benefit of
$(172,000) in the prior year. In the preceding fourth quarter, net
loss included interest and other expense of $(47,000) and a tax
provision of $21,000.
Total first quarter pre-tax stock-based compensation expense was
$638,000 compared to $823,000 in the comparable quarter a year ago
and $714,000 in the prior quarter.
At June 30, 2022, the Company had $41.5 million in cash, cash
equivalents, and short-term investments and $875,000 in long-term
investments, compared to $44.0 million in cash, cash equivalents,
and short-term investments and $3.3 million in long-term
investments at March 31, 2022. Working capital was $44.8 million as
of June 30, 2022, versus $45.8 million at March 31, 2022, with no
debt. As of June 30, 2022, stockholders' equity was $61.3 million
compared to $64.5 million as the fiscal year ended March 31,
2022.
Conference Call
GSI Technology will review its financial results for the quarter
ended June 30, 2022 and discuss its current business outlook during
a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern) today,
July 28, 2022. To listen to the teleconference, please call
toll-free 1-877-407-3982 in the U.S. or 1-201-493-6780 for
international approximately 10 minutes before the above start time
and provide Conference ID 13731441. 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 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 (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 and partner
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.
Company
GSI Technology, Inc.Douglas M. SchirleChief Financial
Officer408-331-9802
Investor RelationsHayden IRKim RogersManaging
Director385-831-7337Kim@HaydenIR.com
Media Relations Finn 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 |
|
|
|
|
June 30, |
March 31, |
June 30, |
|
|
|
|
2022 |
2022 |
2021 |
|
|
|
|
|
|
|
Net revenues |
$8,909 |
|
$8,731 |
|
$8,791 |
|
Cost of goods sold |
3,544 |
|
3,615 |
|
4,009 |
|
|
|
|
|
|
|
|
Gross profit |
5,365 |
|
5,116 |
|
4,782 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research & development |
6,619 |
|
6,510 |
|
6,103 |
|
|
Selling, general and administrative |
2,688 |
|
1,549 |
|
3,040 |
|
|
|
|
Total operating expenses |
9,307 |
|
8,059 |
|
9,143 |
|
|
|
|
|
|
|
|
Operating loss |
(3,942 |
) |
(2,943 |
) |
(4,361 |
) |
|
|
|
|
|
|
|
Interest and other income, net |
26 |
|
(47 |
) |
(20 |
) |
|
|
|
|
|
|
|
Loss before income taxes |
(3,916 |
) |
(2,990 |
) |
(4,381 |
) |
Provision (benefit) for income taxes |
60 |
|
21 |
|
(172 |
) |
Net loss |
($3,976 |
) |
($3,011 |
) |
($4,209 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
($0.16 |
) |
($0.12 |
) |
($0.17 |
) |
Net loss per share, diluted |
($0.16 |
) |
($0.12 |
) |
($0.17 |
) |
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
Basic |
24,523 |
|
24,484 |
|
24,095 |
|
Diluted |
24,523 |
|
24,484 |
|
24,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in the Condensed Consolidated Statements of
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
March 31, |
June 30, |
|
|
|
|
2022 |
2022 |
2021 |
|
|
|
|
|
|
|
Cost of goods sold |
$60 |
|
$56 |
|
$70 |
|
Research & development |
351 |
|
372 |
|
470 |
|
Selling, general and administrative |
227 |
|
286 |
|
283 |
|
|
|
|
|
$638 |
|
$714 |
|
$823 |
|
|
|
|
|
|
|
|
GSI
TECHNOLOGY, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
June 30, 2022 |
March 31, 2022 |
Cash and cash equivalents |
$33,533 |
|
|
$36,971 |
|
Short-term
investments |
7,928 |
|
|
6,992 |
|
Accounts
receivable |
4,309 |
|
|
4,518 |
|
Inventory |
4,780 |
|
|
4,655 |
|
Other
current assets |
1,809 |
|
|
1,555 |
|
Net property
and equipment |
7,234 |
|
|
7,359 |
|
Long-term
investments |
875 |
|
|
3,345 |
|
Other
assets |
11,201 |
|
|
11,027 |
|
Total
assets |
$71,669 |
|
|
$76,422 |
|
|
|
|
|
Current
liabilities |
$7,569 |
|
|
$8,861 |
|
Long-term
liabilities |
2,835 |
|
|
3,110 |
|
Stockholders' equity |
61,265 |
|
|
64,451 |
|
Total
liabilities and stockholders' equity |
$71,669 |
|
|
$76,422 |
|
|
|
|
|
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