GSI Technology, Inc. (NASDAQ: GSIT), developer of
the Gemini® Associative Processing Unit (APU) for AI and
high-performance parallel computing (HPPC) and a leading provider
of high-performance memory solutions for the networking,
telecommunications and military markets, today reported financial
results for its fourth fiscal quarter and fiscal year ended March
31, 2023.
|
Fourth Quarter and Fiscal Year 2023 Summary Financial
Results Table (in thousands, except per share
amounts) |
|
|
Three Months Ended |
Twelve Months Ended |
|
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Net revenues |
$5,381 |
$6,447 |
$8,731 |
$29,691 |
$33,384 |
Gross margin (%) |
55.9% |
57.5% |
58.6% |
59.6% |
55.5% |
Operating expenses |
$6,879 |
$8,495 |
$8,059 |
$33,488 |
$34,890 |
Operating loss |
$(3,872) |
$(4,789) |
$(2,943) |
$(15,807) |
$(16,353) |
Net loss |
$(3,962) |
$(4,812) |
$(3,011) |
$(15,977) |
$(16,368) |
Net loss per share,
diluted |
$(0.16) |
$(0.20) |
$(0.12) |
$(0.65) |
$(0.67) |
|
|
|
|
|
|
Lee-Lean Shu, Chairman and Chief Executive Officer, commented,
“Our focus for Gemini-I has been sharpened to prioritize near-term
opportunities for applications, such as SAR and satellites, where
we have a superior solution, an understanding of the market, and
know whom we can support and help with our offering. Another
near-term focus is vector search engines, where our APU plug-in has
demonstrated enhanced performance. To this end, we have dedicated
more resources and prioritized the target customers that are
interested in leveraging our solution. Additionally, we are
improving Searchium AI's SaaS platform to support our go-to-market
strategy for search and also advancing our L-Python compiler stack
to expand future Gemini-I opportunities. Our L-Python software
stack is designed to provide both Python's development advantages
and C's high performance. Although our priority opportunities do
not require a compiler, we have a beta version in use and are on
track to release a production-ready version later this year.”
Mr. Shu continued, “We are on track to complete the tape-out for
Gemini-II this summer and evaluate the first silicon chip by the
end of 2023. We aim to bring this solution to market in the second
half of 2024, offering exceptional performance improvements with
reduced power consumption and latency. These features will expand
the addressable market for the APU to larger markets such as edge
applications, Fast Vector Search, and advanced driver-assistance
systems. Recently, we were granted a new patent (US 11,604,850) for
Gemini-II's in-memory full adder, which, in combination with the
100MB processing SRAM, delivers a sustainable 1,400 Tera bits per
second operations at 1.4GHz. This combination provides a
best-in-class solution for AI applications like Fast Vector Search,
a growing market driven by the proliferation of big data and the
need for fast and accurate processing. We are having discussions
with a leading AI innovator on Gemini-II’s capacity to accelerate
Large Language Models, which further validates the potential value
of our technology.”
Mr. Shu concluded, “Our fourth quarter revenue of $5.4 million
was within our guidance range. The decline in revenue from the
prior quarter reflects the impact of fluctuating customer order
patterns related to the macroeconomic environment and, in some
cases, inventory rationalization. The fourth quarter gross margin
exceeded our guidance, primarily due to product mix. We ended the
year with $30.6 million in cash, cash equivalents, and short-term
investments. We have implemented our cost reduction programs and
are moving ahead with the team fully committed to the success of
the APU. As we move forward, we will look at additional
opportunities to enhance our cash position.”
Commenting on the outlook for GSI’s first quarter of fiscal
2024, Mr. Shu stated, “Current expectations for the upcoming fiscal
first quarter are net revenues in a range of $5.0 million to $5.8
million, with gross margin of approximately 57% to 59%.”
Fiscal Year 2023 Summary Financials
For the fiscal year ended March 31, 2023, the Company reported a
net loss of $(16.0 million), or $(0.65) per diluted share, on net
revenues of $29.7 million, compared to a net loss of $(16.4
million), or $(0.67) per diluted share, on net revenues of $33.4
million in the fiscal year ended March 31, 2022. Gross margin for
fiscal 2023 was 59.6%, compared to 55.5% in the prior year. The
increase in gross margin was primarily due to product mix.
Total operating expenses were $33.5 million in fiscal 2023,
compared to $34.9 million in fiscal 2022. Research and development
expenses were $23.6 million, compared to $24.7 million in the prior
fiscal year. Selling, general and administrative expenses were $9.9
million, compared to $10.2 million in fiscal 2022. The decline in
research and development expenses was primarily due to the cost
reduction measures announced by the Company in November 2022.
The operating loss for fiscal 2023 was $(15.8 million) compared
to an operating loss of $(16.4 million) in the prior year. The
fiscal 2023 net loss included interest and other income of $202,000
and a tax provision of $372,000, compared to $(60,000) in interest
and other expense and a tax benefit of $45,000 a year ago.
Fourth 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 $5.4 million for the
fourth quarter of fiscal 2023, compared to 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 and a net
loss of $(4.8 million), or $(0.20) per diluted share, on net
revenues of $6.4 million for the third quarter of fiscal 2023.
Gross margin was 55.9% in the fourth quarter of fiscal 2023
compared to 58.6% in the prior-year period and 57.5% in the
preceding third quarter. The decrease in gross margin in the fourth
quarter of 2023 was primarily due to the effect of lower revenue on
the fixed costs in our cost of goods.
In the fourth quarter of fiscal 2023, sales to Nokia were $1.2
million, or 21.8% of net revenues, compared to $2.0 million, or
23.1% of net revenues, in the same period a year ago and $1.3
million, or 20.0% of net revenues, in the prior quarter.
Military/defense sales were 44.2% of fourth quarter shipments
compared to 22.3% of shipments in the comparable period a year ago
and 26.2% of shipments in the prior quarter. SigmaQuad sales were
46.3% of fourth quarter shipments compared to 47.6% in the fourth
quarter of fiscal 2022 and 45.2% in the prior quarter.
Total operating expenses in the fourth quarter of fiscal 2023
were $6.9 million, compared to $8.1 million in the fourth quarter
of fiscal 2022 and $8.5 million in the prior quarter. Research and
development expenses were $5.0 million, compared to $6.5 million in
the prior-year period and $5.5 million in the prior quarter.
Selling, general and administrative expenses were $1.9 million in
the quarter ended March 31, 2023, compared to $1.5 million in the
prior-year quarter and $3.0 million in the previous quarter.
Fourth quarter fiscal 2023 operating loss was $(3.9 million)
compared to an operating loss of $(2.9 million) in the prior-year
period and an operating loss of $(4.8 million) in the prior
quarter. Fourth quarter fiscal 2023 net loss included interest and
other income of $101,000 and a tax provision of $191,000, compared
to $(47,000) in interest and other expense and a tax provision of
$21,000 for the same period a year ago. In the preceding third
quarter, net loss included interest and other income of $61,000 and
a tax provision of $84,000.
Total fourth quarter pre-tax stock-based compensation expense
was $515,000 compared to $714,000 in the comparable quarter a year
ago and $654,000 in the prior quarter.
At March 31, 2023, the Company had $30.6 million in cash, cash
equivalents, and short-term investments and no 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 $34.7 million as
of March 31, 2023, versus $45.8 million at March 31, 2022, with no
debt. Stockholders’ equity as of March 31, 2023, was
$51.4 million compared to $64.5 million as of the fiscal year ended
March 31, 2022.
Conference Call
GSI Technology will review its financial results for the quarter
and fiscal year ended March 31, 2023, and discuss its current
business outlook during a conference call at 1:30 p.m. Pacific
(4:30 p.m. Eastern) today, May 16, 2023. To participate in the
call, please dial 1-800-584-2088 in the U.S. or 1-212-231-2913
for international approximately 10 minutes prior to the above start
time and provide Conference ID 22026695. You may also listen to the
teleconference live at www.gsitechnology.com, where the event 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; 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 and partner
relationships for the sale of such products; GSI Technology’s
ability to successfully implement its cost- reduction initiatives;
the impact of GSI Technology’s cost-reduction initiatives on its
business and operations, including any possible disruption of GSI
Technology’s business, and the failure to realize the anticipated
benefits of its cost-reduction initiatives; and delays or
unexpected challenges related to the establishment of customer
relationships and orders for GSI Technology’s 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, economic and geopolitical conditions, such as
rising interest rates, worldwide inflationary pressures, bank
failures, military conflicts, significant fluctuations in energy
prices and declines in the global economic environment. 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, |
|
2023 |
2022 |
2022 |
|
2023 |
2022 |
|
|
|
|
|
|
|
Net revenues |
$ |
5,381 |
|
$ |
6,447 |
|
$ |
8,731 |
|
|
$ |
29,691 |
|
$ |
33,384 |
|
Cost of goods sold |
|
2,374 |
|
|
2,741 |
|
|
3,615 |
|
|
|
12,010 |
|
|
14,847 |
|
|
|
|
|
|
|
|
Gross profit |
|
3,007 |
|
|
3,706 |
|
|
5,116 |
|
|
|
17,681 |
|
|
18,537 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & development |
|
5,007 |
|
|
5,529 |
|
|
6,510 |
|
|
|
23,550 |
|
|
24,672 |
|
Selling, general and administrative |
|
1,872 |
|
|
2,966 |
|
|
1,549 |
|
|
|
9,938 |
|
|
10,218 |
|
Total operating expenses |
|
6,879 |
|
|
8,495 |
|
|
8,059 |
|
|
|
33,488 |
|
|
34,890 |
|
|
|
|
|
|
|
|
Operating loss |
|
(3,872 |
) |
|
(4,789 |
) |
|
(2,943 |
) |
|
|
(15,807 |
) |
|
(16,353 |
) |
|
|
|
|
|
|
|
Interest and other income (expense), net |
|
101 |
|
|
61 |
|
|
(47 |
) |
|
|
202 |
|
|
(60 |
) |
|
|
|
|
|
|
|
Loss before income taxes |
|
(3,771 |
) |
|
(4,728 |
) |
|
(2,990 |
) |
|
|
(15,605 |
) |
|
(16,413 |
) |
Provision (benefit) for income taxes |
|
191 |
|
|
84 |
|
|
21 |
|
|
|
372 |
|
|
(45 |
) |
Net loss |
$ |
(3,962 |
) |
$ |
(4,812 |
) |
$ |
(3,011 |
) |
|
$ |
(15,977 |
) |
$ |
(16,368 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
$ |
(0.16 |
) |
$ |
(0.20 |
) |
$ |
(0.12 |
) |
|
$ |
(0.65 |
) |
$ |
(0.67 |
) |
Net loss per share, diluted |
$ |
(0.16 |
) |
$ |
(0.20 |
) |
$ |
(0.12 |
) |
|
$ |
(0.65 |
) |
$ |
(0.67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing per share
amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
24,685 |
|
|
24,621 |
|
|
24,484 |
|
|
|
24,595 |
|
|
24,303 |
|
Diluted |
|
24,685 |
|
|
24,621 |
|
|
24,484 |
|
|
|
24,595 |
|
|
24,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
2023 |
|
2022 |
2022 |
|
2023 |
2022 |
|
|
|
|
|
|
|
Cost of goods sold |
$ |
39 |
|
$ |
54 |
|
$ |
56 |
|
|
$ |
202 |
|
$ |
248 |
|
Research & development |
|
246 |
|
|
328 |
|
|
372 |
|
|
|
1,316 |
|
|
1,676 |
|
Selling, general and administrative |
|
230 |
|
|
272 |
|
|
286 |
|
|
|
951 |
|
|
1,069 |
|
|
$ |
515 |
|
$ |
654 |
|
$ |
714 |
|
|
$ |
2,469 |
|
$ |
2,993 |
|
|
GSI
TECHNOLOGY, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
March 31, 2023 |
March 31, 2022 |
Cash and cash equivalents |
|
$ |
27,212 |
|
$ |
36,971 |
Short-term investments |
|
|
3,363 |
|
|
6,992 |
Accounts receivable |
|
|
3,471 |
|
|
4,518 |
Inventory |
|
|
6,415 |
|
|
4,655 |
Other current assets |
|
|
1,414 |
|
|
1,555 |
Net property and equipment |
|
|
7,423 |
|
|
7,359 |
Long-term investments |
|
|
0 |
|
|
3,345 |
Other assets |
|
|
10,578 |
|
|
11,027 |
Total assets |
|
$ |
59,876 |
|
$ |
76,422 |
|
|
|
|
|
Current liabilities |
|
$ |
7,202 |
|
$ |
8,861 |
Long-term liabilities |
|
|
1,302 |
|
|
3,110 |
Stockholders' equity |
|
|
51,372 |
|
|
64,451 |
Total liabilities and stockholders' equity |
|
$ |
59,876 |
|
$ |
76,422 |
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