GSI Technology, Inc. (NASDAQ: GSIT) today reported
financial results for its second fiscal quarter ended September 30,
2022.
Summary Financial Results Table (in thousands, except
per share amounts)
|
Three Months Ended |
Six Months Ended |
|
Sept. 30,2022 |
June 30,2022 |
Sept. 30,2021 |
Sept. 30,2022 |
Sept. 30,2021 |
Net revenues |
$8,953 |
|
$8,909 |
|
$7,797 |
|
$17,862 |
|
$16,588 |
|
Gross margin (%) |
|
62.6% |
|
|
60.2% |
|
|
53.6% |
|
|
61.4% |
|
|
54.0% |
|
Operating expenses |
$8,807 |
|
$9,307 |
|
$8,694 |
|
$18,114 |
|
$17,837 |
|
Operating loss |
|
($3,205 |
) |
|
($3,942 |
) |
|
($4,517 |
) |
|
($7,147 |
) |
|
($8,878 |
) |
Net loss |
|
($3,228 |
) |
|
($3,976 |
) |
|
($4,567 |
) |
|
($7,204 |
) |
|
($8,776 |
) |
Net loss per share,
diluted |
|
($0.13 |
) |
|
($0.16 |
) |
|
($0.19 |
) |
|
($0.29 |
) |
|
($0.36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lee-Lean Shu, Chairman, and Chief Executive Officer commented,
“Revenue in the second quarter of fiscal year 2023 grew
year-over-year by nearly 15% to $9.0 million, the mid-point of our
guidance range. Revenue growth was primarily due to increased
high-performance SRAM sales and the shipment of radiation-hardened
SRAMs in the quarter. As a result, gross margin increased by 900
basis points year-over-year to 62.6%. Higher gross margin along
with flat operating expense year-over-year, led to a lower
operating loss for the quarter. Net loss for the second quarter
narrowed to $3.2 million. As of September 30, 2022, GSI
Technology’s cash balance, which includes cash and cash
equivalents, as well as short- and long-term investments, was $38.9
million.”
“Our team is now primarily focused on developing two near-term
markets for our APU technology, Synthetic Aperture Radar (SAR)
image processing acceleration and Searchium.ai, GSI’s Software as a
Service, or SaaS platform that optimizes neural search
applications,” continued Mr. Shu. “At the end of September, we
announced that our Synthetic Aperture Radar (SAR) image processing
acceleration system using GSI’s APU technology was approved for use
by IAI/Elta System Ltd, a subsidiary of Israeli Aerospace
Industries (IAI). This win showcases the technological superiority
of our APU technology and opens new opportunities in the field of
accelerating SAR image formation. The Searchium.ai website is now
live and available for trials, and currently users are exploring
the platform. The compelling feature of the Searchium platform is
the ability to reduce time and latency in large complex database
searches.”
Commenting on the outlook for GSI's third quarter of fiscal
2023, Mr. Shu stated, “Given the current global economic
environment, our current expectations for the upcoming third
quarter are net revenues in a range of $6.3 million to $7.3
million, with gross margin of approximately 53% to 55%.”
Second Quarter Fiscal Year 2023 Summary
Financials
The Company reported a net loss of $(3.2 million), or $(0.13)
per diluted share, on net revenues of $9.0 million for the
second quarter of fiscal 2023, compared to 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 and 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.
Gross margin was 62.6% compared to 53.6% in the prior year period
and 60.2% 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 2023, sales to Nokia were $1.2
million, or 13.6% of net revenues compared to $1.9 million, or
23.8% of net revenues, in the same period a year ago and $1.3
million, or 14.7% of net revenues in the prior quarter.
Military/defense sales were 22.4% of second quarter shipments
compared to 27.4% of shipments in the comparable period a year ago
and 22.3% of shipments in the prior quarter. SigmaQuad sales were
58.1% of second quarter shipments compared to 52.4% in the second
quarter of fiscal 2022 and 44.8% in the prior quarter.
Total operating expenses in the second quarter of fiscal 2023
were $8.8 million, compared to $8.7 million in the second quarter
of fiscal 2022 and $9.3 million in the prior quarter. Research and
development expenses were $6.4 million, compared to $5.9 million in
the prior year period and $6.6 million in the prior quarter.
Selling, general and administrative expenses were $2.4 million in
the quarter ended September 30, 2022, compared to $2.8 million in
the prior year quarter, and $2.7 million in the previous
quarter.
Second quarter fiscal 2023 operating loss was $(3.2 million)
compared to $(4.5 million) in the prior year period and $(3.9
million) in the prior quarter. Second quarter fiscal 2023 net loss
included interest income and other expense, net of $14,000 and a
tax provision of $37,000, compared to interest income and other
expense, net of $(8,000) and a tax provision of $42,000, for the
same period a year ago. In the preceding first quarter, net loss
included interest and other expense of $26,000 and a tax provision
of $60,000.
Total second quarter pre-tax stock-based compensation expense
was $661,000 compared to $716,000 in the comparable quarter a year
ago and $638,000 in the prior quarter.
At September 30, 2022, the Company had $38.2 million in cash,
cash equivalents and short-term investments and $628,000 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 $42.2
million as of September 30, 2022, versus $45.8 million at March 31,
2022, with no debt. Stockholders’ equity as of September 30, 2022,
was $58.7 million compared to $64.5 million as of the fiscal year
ended March 31, 2022.
Conference Call
GSI Technology will announce financial results for its second
fiscal quarter ended September 30, 2022 today after the
market close. Management will also conduct a conference call to
review the Company's second quarter financial results and its
current outlook for the third quarter of fiscal 2023 at 1:30
p.m. Pacific time (4:30 p.m. Eastern Time) today. 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 13733700. The call
will also be streamed live via the internet at
www.gsitechnology.com.
A replay will be available from October 27, 2022 at 7:30 p.m.
Eastern Time through November 3, 2022 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 13733700. 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 (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; 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, including those for SAR image processing
acceleration and the Searchium.ai platform; and delays or
unexpected challenges related to the establishment of customer
relationships and orders for our radiation-hardened and tolerant
SRAM 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 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 |
|
Six Months Ended |
|
|
|
|
Sept. 30, |
June 30, |
Sept. 30, |
|
Sept. 30, |
Sept. 30, |
|
|
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
8,953 |
|
$ |
8,909 |
|
$ |
7,797 |
|
|
$ |
17,862 |
|
$ |
16,588 |
|
Cost of goods sold |
|
3,351 |
|
|
3,544 |
|
|
3,620 |
|
|
|
6,895 |
|
|
7,629 |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
5,602 |
|
|
5,365 |
|
|
4,177 |
|
|
|
10,967 |
|
|
8,959 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & development |
|
6,395 |
|
|
6,619 |
|
|
5,907 |
|
|
|
13,014 |
|
|
12,010 |
|
|
Selling, general and administrative |
|
2,412 |
|
|
2,688 |
|
|
2,787 |
|
|
|
5,100 |
|
|
5,827 |
|
|
|
|
Total operating expenses |
|
8,807 |
|
|
9,307 |
|
|
8,694 |
|
|
|
18,114 |
|
|
17,837 |
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(3,205 |
) |
|
(3,942 |
) |
|
(4,517 |
) |
|
|
(7,147 |
) |
|
(8,878 |
) |
|
|
|
|
|
|
|
|
|
|
Interest and other income, net |
|
14 |
|
|
26 |
|
|
(8 |
) |
|
|
40 |
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(3,191 |
) |
|
(3,916 |
) |
|
(4,525 |
) |
|
|
(7,107 |
) |
|
(8,906 |
) |
Provision for income taxes |
|
37 |
|
|
60 |
|
|
42 |
|
|
|
97 |
|
|
(130 |
) |
Net loss |
$ |
(3,228 |
) |
($ |
3,976 |
) |
$ |
(4,567 |
) |
|
$ |
(7,204 |
) |
$ |
(8,776 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
$ |
(0.13 |
) |
($ |
0.16 |
) |
$ |
(0.19 |
) |
|
$ |
(0.29 |
) |
$ |
(0.36 |
) |
Net loss per share, diluted |
$ |
(0.13 |
) |
($ |
0.16 |
) |
$ |
(0.19 |
) |
|
$ |
(0.29 |
) |
$ |
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
24,554 |
|
|
24,523 |
|
|
24,229 |
|
|
|
24,538 |
|
|
24,162 |
|
Diluted |
|
24,554 |
|
|
24,523 |
|
|
24,229 |
|
|
|
24,538 |
|
|
24,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ |
49 |
|
$ |
60 |
|
$ |
64 |
|
|
$ |
109 |
|
$ |
134 |
|
Research & development |
|
390 |
|
|
351 |
|
|
418 |
|
|
|
741 |
|
|
888 |
|
Selling, general and administrative |
|
222 |
|
|
227 |
|
|
234 |
|
|
|
449 |
|
|
517 |
|
|
|
|
|
$ |
661 |
|
$ |
638 |
|
$ |
716 |
|
|
$ |
1,299 |
|
$ |
1,539 |
|
|
|
|
|
|
|
|
|
|
|
GSI TECHNOLOGY, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30, 2022 |
March 31, 2022 |
Cash and cash equivalents |
|
|
$ |
32,803 |
|
$ |
36,971 |
|
Short-term investments |
|
|
|
5,422 |
|
|
6,992 |
|
Accounts receivable |
|
|
|
4,819 |
|
|
4,518 |
|
Inventory |
|
|
|
|
5,532 |
|
|
4,655 |
|
Other current assets |
|
|
|
1,649 |
|
|
1,555 |
|
Net property and equipment |
|
|
|
7,156 |
|
|
7,359 |
|
Long-term investments |
|
|
|
628 |
|
|
3,345 |
|
Other assets |
|
|
|
|
10,992 |
|
|
11,027 |
|
Total assets |
|
|
|
$ |
69,001 |
|
$ |
76,422 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
$ |
8,001 |
|
$ |
8,861 |
|
Long-term liabilities |
|
|
|
2,300 |
|
|
3,110 |
|
Stockholders' equity |
|
|
|
58,700 |
|
|
64,451 |
|
Total liabilities and stockholders' equity |
|
$ |
69,001 |
|
$ |
76,422 |
|
|
|
|
|
|
|
|
|
|
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