GSI Technology, Inc. (Nasdaq: GSIT), a leading
provider of memory solutions for the networking, telecommunications
and military markets, and developer of the Associative Processing
Unit (APU), a highly parallel in-place computing
solution
, today reported financial results for its
third fiscal quarter ended December 31, 2018.
Summary Financial Table (in thousands, except per share
amounts)
|
Three Months Ended |
|
Nine Months Ended |
|
Dec. 31, 2018 |
Sept. 30, 2018 |
Dec. 31, 2017 |
|
Dec. 31, 2018 |
Dec. 31, 2017 |
Net revenues |
$ |
14,702 |
|
$ |
12,832 |
|
$ |
11,118 |
|
|
$ |
38,800 |
|
$ |
31,452 |
|
Gross margin (%) |
|
68.3 |
% |
|
62.6 |
% |
|
51.0 |
% |
|
|
61.5 |
% |
|
51.3 |
% |
Operating expenses |
$ |
7,803 |
|
$ |
8,425 |
|
$ |
6,712 |
|
|
$ |
23,675 |
|
$ |
20,497 |
|
Operating income
(loss) |
$ |
2,236 |
|
$ |
(394 |
) |
$ |
(1,037 |
) |
|
$ |
183 |
|
$ |
(4,360 |
) |
Net income (loss) |
$ |
2,262 |
|
$ |
(351 |
) |
$ |
(1,528 |
) |
|
$ |
265 |
|
$ |
(4,780 |
) |
Net income (loss) per
share, diluted |
$ |
0.10 |
|
$ |
(0.02 |
) |
$ |
(0.07 |
) |
|
$ |
0.01 |
|
$ |
(0.23 |
) |
“Net revenues and gross margin for the quarter exceeded our
guidance, primarily due to increased sales to our largest
networking and telecommunications customer, which has seen an
increase in their sales as a result of sanctions against certain
Chinese vendors. Gross margin improved in the quarter primarily due
to increased sales of higher margin products,” stated Lee-Lean Shu,
Chairman and Chief Executive Officer. “We’re focusing our R&D
investment on the development of the APU, our in-place associative
processing solution for Artificial Intelligence applications.
Currently, we are testing packaged units of the first silicon
wafers. Our hardware and software teams are working on demo boards
with the APU for testing by our select alpha customers, which we
anticipate shipping later in the year.”
“Looking ahead to the fourth quarter of fiscal 2019, we expect
the first shipments of our prototype SigmaQuad radiation hardened
SRAM,” continued Mr. Shu. “We expect to make production shipments
of fully qualified product later in 2019.”
Commenting on the outlook for GSI’s fourth quarter of fiscal
2019 Mr. Shu stated, “Our current expectations for the upcoming
fourth quarter are net revenues in a range of $11.6 million to
$12.6 million, with gross margin of approximately 60% to 62%.”
The Company reported net income of $2.3 million, or $0.10 per
diluted share, on net revenues of $14.7 million for the third
quarter of fiscal 2019, compared to a net loss of $(1.5 million),
or $(0.07) per diluted share, on net revenues of $11.1 million for
the third quarter of fiscal 2018 and a net loss of $(351,000), or
$(0.02) per diluted share, on net revenues of $12.8 million
for the second quarter of fiscal 2019, ended September 30,
2018. Gross margin was 68.3% compared to 51.0% in the prior
year period and 62.6% in the second quarter of fiscal 2019.
In the third quarter of fiscal 2019, sales to Nokia were $6.6
million, or 45.2% of net revenues compared to $6.0 million, or
46.6% of net revenues in the prior quarter, and $3.9 million, or
34.7% of net revenues in the same period a year ago.
Military/defense sales were 16.7% of shipments compared to 16.4% of
shipments in the prior quarter and 20.7% of shipments in the
comparable period a year ago. SigmaQuad sales were 69.7% of
shipments compared to 66.4% in the prior quarter and 54.5% in the
third quarter of fiscal 2018.
Total operating expenses in the third quarter of fiscal 2019
were $7.8 million, compared to $6.7 million in the third quarter of
fiscal 2018 and $8.4 million in the preceding second quarter.
Research and development expenses were $5.2 million, compared to
$4.2 million in the prior year period and $5.8 million in the
preceding quarter. Research and development expenses in the quarter
ended September 30, 2018 included an expense in the amount of
approximately $1.0 million related to a non-production mask set for
our initial APU product. Selling, general and administrative
expenses were $2.6 million compared to $2.5 million in the prior
year quarter, and $2.7 million in the preceding quarter.
Third quarter fiscal 2019 operating income was $2.2 million,
compared to an operating loss of $(1.0 million) in the comparable
period a year ago, and an operating loss of $(394,000) in the prior
quarter. Third quarter fiscal 2019 net income included interest and
other income of $96,000 and a tax provision of $70,000, compared to
$99,000 in interest and other income and a tax provision of
$590,000 in the comparable period a year ago; in the preceding
quarter, net loss included interest and other income of $145,000
and a tax provision of $102,000.
Total third-quarter pre-tax stock-based compensation expense was
$592,000 compared to $535,000 in the comparable quarter a year ago,
and $552,000 in the prior quarter.
At December 31, 2018, the Company had $57.1 million in cash,
cash equivalents and short-term investments, $10.2 million in
long-term investments, $65.5 million in working capital, no debt,
and stockholders’ equity of $91.2 million.
Conference Call
GSI Technology will review its financial results for the quarter
ended December 31, 2018 and discuss its current business outlook
during a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern)
today, January 31, 2019. To participate in the call, please dial
1-800-239-9838 in the U.S., or 1-856-344-9316 for international,
approximately10 minutes prior to the above start time and provide
Conference ID 6654710. The call will also be streamed live via
the internet at www.gsitechnology.com.
A replay will be available from January 31, 2019 at 7:30 pm
Eastern Time through February 8, 2019 at 11:59 pm Eastern Time by
dialing toll free for the U.S. 1-844-512-2921 or international
1-412-317-6671 and entering pin number 6654710. 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
currently focused on bringing new products to market that leverage
existing core strengths, including radiation-hardened memory
products for extreme environments, and the APU 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 closing
process. Examples of risks that could affect our current
expectations regarding fourth quarter 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; 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; and 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. 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.
Hayden IR Kimberly Rogers385-831-7337
GSI Technology, Inc. Douglas M. Schirle Chief Financial Officer
408-331-9802
|
|
GSI TECHNOLOGY, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Dec. 31, |
Sept. 30, |
Dec. 31, |
|
Dec. 31, |
Dec. 31, |
|
2018 |
|
2018 |
|
|
2017 |
|
|
2018 |
2017 |
|
|
|
|
|
|
|
Net
revenues |
$ |
14,702 |
$ |
12,832 |
|
$ |
11,118 |
|
|
$ |
38,800 |
$ |
31,452 |
|
Cost of
goods sold |
|
4,663 |
|
4,801 |
|
|
5,443 |
|
|
|
14,942 |
|
15,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
10,039 |
|
8,031 |
|
|
5,675 |
|
|
|
23,858 |
|
16,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
& development |
|
5,171 |
|
5,752 |
|
|
4,231 |
|
|
|
15,773 |
|
12,726 |
|
|
Selling,
general and administrative |
|
2,632 |
|
2,673 |
|
|
2,481 |
|
|
|
7,902 |
|
7,771 |
|
|
|
|
Total operating
expenses |
|
7,803 |
|
8,425 |
|
|
6,712 |
|
|
|
23,675 |
|
20,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
2,236 |
|
(394 |
) |
|
(1,037 |
) |
|
|
183 |
|
(4,360 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and other income (expense), net |
|
96 |
|
145 |
|
|
99 |
|
|
|
264 |
|
300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
2,332 |
|
(249 |
) |
|
(938 |
) |
|
|
447 |
|
(4,060 |
) |
Provision
for income taxes |
|
70 |
|
102 |
|
|
590 |
|
|
|
182 |
|
720 |
|
Net income
(loss) |
$ |
2,262 |
$ |
(351 |
) |
$ |
(1,528 |
) |
|
$ |
265 |
$ |
(4,780 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share, basic |
$ |
0.10 |
$ |
(0.02 |
) |
$ |
(0.07 |
) |
|
$ |
0.01 |
$ |
(0.23 |
) |
Net income
(loss) per share, diluted |
$ |
0.10 |
$ |
(0.02 |
) |
$ |
(0.07 |
) |
|
$ |
0.01 |
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
21,979 |
|
21,844 |
|
|
21,165 |
|
|
|
21,798 |
|
21,003 |
|
Diluted |
|
22,769 |
|
21,844 |
|
|
21,165 |
|
|
|
23,139 |
|
21,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in the Condensed Consolidated
Statements of Operations: |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Dec. 31, |
Sept. 30, |
Dec. 31, |
|
Dec. 31, |
Dec. 31, |
|
2018 |
|
2018 |
|
|
2017 |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
$ |
71 |
$ |
61 |
|
$ |
73 |
|
|
$ |
185 |
$ |
186 |
|
Research
& development |
|
330 |
|
321 |
|
|
292 |
|
|
|
974 |
|
843 |
|
Selling,
general and administrative |
|
191 |
|
170 |
|
|
170 |
|
|
|
527 |
|
492 |
|
|
|
|
|
$ |
592 |
$ |
552 |
|
$ |
535 |
|
|
$ |
1,686 |
$ |
1,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GSI TECHNOLOGY, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
Dec. 31, 2018 |
|
March 31, 2018 |
Cash and cash
equivalents |
|
$ |
40,529 |
|
$ |
40,241 |
Short-term
investments |
|
|
16,557 |
|
|
18,124 |
Accounts
receivable |
|
|
8,160 |
|
|
5,279 |
Inventory |
|
|
5,949 |
|
|
5,547 |
Other current
assets |
|
|
2,558 |
|
|
2,080 |
Net property and
equipment |
|
|
9,184 |
|
|
8,172 |
Long-term
investments |
|
|
10,183 |
|
|
7,923 |
Other assets |
|
|
10,957 |
|
|
12,174 |
Total assets |
|
$ |
104,077 |
|
$ |
99,540 |
|
|
|
|
|
|
|
Current
liabilities |
|
$ |
8,213 |
|
$ |
7,404 |
Long-term
liabilities |
|
|
4,657 |
|
|
5,321 |
Stockholders'
equity |
|
|
91,207 |
|
|
86,815 |
Total liabilities and
stockholders' equity |
|
$ |
104,077 |
|
$ |
99,540 |
|
|
|
|
|
|
|
GSI Technology (NASDAQ:GSIT)
Historical Stock Chart
From Mar 2024 to Apr 2024
GSI Technology (NASDAQ:GSIT)
Historical Stock Chart
From Apr 2023 to Apr 2024