GSI Technology, Inc. (NASDAQ: GSIT) today reported
financial results for its fourth fiscal quarter and fiscal year
ended March 31, 2021.
Fourth Quarter and Fiscal Year 2021 Summary Financial
Results Table (in thousands, except per share
amounts)
|
Three Months Ended |
Twelve Months Ended |
|
Mar. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Net revenues |
$7,686 |
$6,763 |
$8,535 |
$27,729 |
$43,343 |
Gross margin (%) |
50.2% |
47.3% |
52.5% |
47.7% |
58.5% |
Operating expenses |
$9,123 |
$8,348 |
$8,390 |
$34,481 |
$36,145 |
Operating loss |
$(5,265) |
$(5,151) |
$(3,907) |
$(21,264) |
$(10,802) |
Net loss |
$(4,982) |
$(5,216) |
$(3,824) |
$(21,505) |
$(10,337) |
Net loss per share,
diluted |
$(0.21) |
$(0.22) |
$(0.16) |
$(0.91) |
$(0.45) |
Lee-Lean Shu, Chairman and Chief Executive Officer, commented,
“The COVID-19 pandemic presented challenges and unexpected
obstacles that impacted key operational areas and our sales efforts
in fiscal year 2021. In the fourth quarter, revenue and gross
margin improved sequentially, and we see improvement in our
forecast trends for the new fiscal year.”
Mr. Shu continued, “The APU teams in the U.S., Taiwan, and
Israel have worked tirelessly to continuously enhance Gemini-I’s
functionality on both the hardware and software front. We now have
a Leda board and Gemini chip ready to begin qualifications. The
software team has expanded the libraries and applications. We have
provided demonstrations of Gemini-I to several leading global
companies in online marketplaces, natural language processing, and
search while making inroads into new applications and
opportunities. Increasingly, we are receiving recognition that
Gemini-I is the in-memory solution that breaks the Von Neumann
model, delivers better outcomes using significantly less power, for
a lower total cost of ownership. In addition, I am pleased to
report that earlier this week, we received a purchase order for our
rad tolerant product. The PO is for demonstration satellites
anticipated to be launched late this year, or early next year.
Ultimately it is for a constellation. We hope to be able to say
more in the coming quarters.”
Commenting on the outlook for GSI’s first quarter of fiscal
2022, Mr. Shu stated, “Our current expectations for the upcoming
quarter are net revenues in a range of $8.1 million to $9.1
million, with gross margin of approximately 54% to 56%. We maintain
an attractive balance sheet with a high cash balance and no debt.
As we pursue customers for our radiation-tolerant and
radiation-hardened SRAM products and develop the market for
Gemini-I, I remain optimistic that we can land new revenue streams
in fiscal year 2022 to grow our business and improve long-term
shareholder value.”
Fiscal Year 2021 Summary Financials
For the fiscal year ended March 31, 2021, the Company reported a
net loss of $(21.5 million) or $(0.91) per diluted share, on net
revenues of $27.7 million, compared to net loss of $(10.3 million)
or $(0.45) per diluted share, on net revenues of $43.3 million in
the fiscal year ended March 31, 2020. Gross margin for fiscal 2021
was 47.7% compared to 58.5% in the prior year.
Total operating expenses were $34.5 million in fiscal 2021, a
decrease of 4.6% from $36.1 million in fiscal 2020. Research and
development expenses were $23.3 million, compared to $25.2 million
in the prior fiscal year, and selling, general and administrative
expenses were $11.1 million, compared to $10.9 million in fiscal
2020. The decrease in research and development expenses was
primarily due a charge of $2.7 million during the third quarter of
fiscal 2020 for purchased intellectual property that is being
incorporating into the next generation of Gemini™ chips.
The operating loss for fiscal 2021 was $(21.3 million) compared
to an operating loss of $(10.8 million) in the prior year. The
increase in the operating loss was primarily due to the decrease in
revenue and gross profit. The fiscal 2021 net loss included
interest and other income of $94,000 and a tax provision of
$335,000, compared to $712,000 in interest and other income and a
tax provision of $247,000 a year ago.
Fourth Quarter Fiscal Year 2021 Summary
Financials
The Company reported 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, compared to a net loss of $(3.8
million), or $(0.16) per diluted share, on net revenues of
$8.5 million for the fourth quarter of fiscal 2020 and a net
loss of $(5.2 million), or $(0.22) per diluted share, on net
revenues of $6.8 million for the third quarter of fiscal 2021.
Gross margin was 50.2% in the fourth quarter of fiscal 2021compared
to 52.5% in the prior-year period and 47.3% in the preceding third
quarter. The change in gross margin was primarily due to changes in
the mix of products sold and the negative impact of manufacturing
overhead on reduced revenues.
In the fourth quarter of fiscal 2021, sales to Nokia were $2.8
million, or 36.5% of net revenues, compared to $2.4 million, or
28.3% of net revenues, in the same period a year ago and $2.8
million, or 42.0% of net revenues, in the prior quarter.
Military/defense sales were 22.5% of fourth quarter shipments
compared to 30.9% of shipments in the comparable period a year ago
and 26.0% of shipments in the prior quarter. SigmaQuad sales were
52.9% of fourth quarter shipments compared to 44.7% in the fourth
quarter of fiscal 2020 and 62.0% in the prior quarter.
Total operating expenses in the fourth quarter of fiscal 2021
were $9.1 million, compared to $8.4 million in the fourth quarter
of fiscal 2020 and $8.3 million in the prior quarter. Research and
development expenses were $6.1 million, compared to $5.6 million in
the prior-year period and $5.7 million in the prior quarter.
Selling, general and administrative expenses were $3.0 million in
the quarter ended March 31, 2021, compared to $2.8 million in the
prior-year quarter and $2.6 million in the previous quarter.
Fourth quarter fiscal 2021 operating loss was $(5.3 million)
compared to an operating loss of $(3.9 million) in the prior-year
period and an operating loss of $(5.2 million) in the prior
quarter. Fourth quarter fiscal 2021 net loss included interest and
other expense of $(21,000) and a tax benefit of $304,000, compared
to $148,000 in interest and other income and a tax provision of
$65,000 for the same period a year ago. In the preceding third
quarter, net loss included interest and other income of $25,000 and
a tax provision of $90,000.
Total fourth quarter pre-tax stock-based compensation expense
was $753,000 compared to $644,000 in the comparable quarter a year
ago and $693,000 in the prior quarter.
At March 31, 2021, the Company had $54.0 million in cash, cash
equivalents, and short-term investments and $5.8 million in
long-term investments, compared to $66.6 million in cash, cash
equivalents, and short-term investments and $4.1 million in
long-term investments at March 31, 2020. Working capital was $56.0
million as of March 31, 2021, versus $70.9 million at March 31,
2020, with no debt. Stockholders’ equity as of March
31, 2021 was $75.6 million compared to $89.6 million as of the
fiscal year ended March 31, 2020.
Conference Call
GSI Technology will review its financial results for the quarter
ended March 31, 2021 and discuss its current business outlook
during a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern)
today, May 6, 2021. Please dial 1-866-269-4261 in the U.S. or
1-856-344-9207 for international approximately 10 minutes prior to
the above start time and provide Conference ID 6971714. You may
also listen to the teleconference live via the Internet 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 (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
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, |
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
7,686 |
|
$ |
6,763 |
|
$ |
8,535 |
|
|
$ |
27,729 |
|
$ |
43,343 |
|
|
Cost of goods sold |
|
3,828 |
|
|
3,566 |
|
|
4,052 |
|
|
|
14,512 |
|
|
18,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
3,858 |
|
|
3,197 |
|
|
4,483 |
|
|
|
13,217 |
|
|
25,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & development |
|
|
6,124 |
|
|
5,736 |
|
|
5,587 |
|
|
|
23,344 |
|
|
25,223 |
|
|
Selling, general and administrative |
|
|
2,999 |
|
|
2,612 |
|
|
2,803 |
|
|
|
11,137 |
|
|
10,922 |
|
|
Total operating expenses |
|
|
|
|
9,123 |
|
|
8,348 |
|
|
8,390 |
|
|
|
34,481 |
|
|
36,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(5,265 |
) |
|
(5,151 |
) |
|
(3,907 |
) |
|
|
(21,264 |
) |
|
(10,802 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
other income (expense), net |
|
|
|
|
(21 |
) |
|
25 |
|
|
148 |
|
|
|
94 |
|
|
712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(5,286 |
) |
|
(5,126 |
) |
|
(3,759 |
) |
|
|
(21,170 |
) |
|
(10,090 |
) |
|
Provision (benefit) for income taxes |
|
(304 |
) |
|
90 |
|
|
65 |
|
|
|
335 |
|
|
247 |
|
|
Net loss |
|
|
$ |
(4,982 |
) |
$ |
(5,216 |
) |
$ |
(3,824 |
) |
|
$ |
(21,505 |
) |
$ |
(10,337 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
$ |
(0.21 |
) |
$ |
(0.22 |
) |
$ |
(0.16 |
) |
|
$ |
(0.91 |
) |
$ |
(0.45 |
) |
|
Net loss per share, diluted |
$ |
(0.21 |
) |
$ |
(0.22 |
) |
$ |
(0.16 |
) |
|
$ |
(0.91 |
) |
$ |
(0.45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
23,912 |
|
|
23,716 |
|
|
23,194 |
|
|
|
23,671 |
|
|
22,968 |
|
|
Diluted |
|
|
|
23,912 |
|
|
23,716 |
|
|
23,194 |
|
|
|
23,671 |
|
|
22,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ |
86 |
|
$ |
88 |
|
$ |
73 |
|
|
$ |
346 |
|
$ |
257 |
|
|
Research & development |
|
400 |
|
|
343 |
|
|
344 |
|
|
|
1,509 |
|
|
1,487 |
|
|
Selling, general and administrative |
|
267 |
|
|
262 |
|
|
227 |
|
|
|
999 |
|
|
822 |
|
|
|
|
|
|
$ |
753 |
|
$ |
693 |
|
$ |
644 |
|
|
$ |
2,854 |
|
$ |
2,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GSI
TECHNOLOGY, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
March 31, 2020 |
Cash and cash equivalents |
|
$ |
44,234 |
|
$ |
51,506 |
|
Short-term investments |
|
|
|
9,717 |
|
|
15,061 |
|
Accounts receivable |
|
|
|
3,665 |
|
|
6,330 |
|
Inventory |
|
|
|
|
4,343 |
|
|
4,282 |
|
Other current assets |
|
|
|
1,487 |
|
|
1,934 |
|
Net property and equipment |
|
|
7,328 |
|
|
8,119 |
|
Long-term investments |
|
|
|
5,792 |
|
|
4,117 |
|
Other assets |
|
|
|
|
11,046 |
|
|
11,212 |
|
Total assets |
|
|
|
$ |
87,612 |
|
$ |
102,561 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
$ |
7,462 |
|
$ |
8,260 |
|
Long-term liabilities |
|
|
|
4,558 |
|
|
4,660 |
|
Stockholders' equity |
|
|
|
75,592 |
|
|
89,641 |
|
Total liabilities and stockholders' equity |
$ |
87,612 |
|
$ |
102,561 |
|
|
|
|
|
|
|
|
|
|
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