GSI Technology, Inc. Reports Second Quarter Fiscal 2023 Results
GSI Technology (NASDAQ: GSIT) reported its fiscal Q2 results for 2023, revealing net revenues of $9.0 million, a 15% year-over-year increase, mainly driven by high-performance SRAM sales. Gross margin improved to 62.6%, up from 53.6% last year. The operating loss narrowed to ($3.2 million), compared to ($4.5 million) in the same quarter last year. Total operating expenses remained stable at $8.8 million. The cash balance was $38.9 million. Outlook for Q3 is projected revenues between $6.3 million and $7.3 million.
- Revenue growth of 15% year-over-year to $9.0 million.
- Gross margin increased to 62.6%, up 900 basis points year-over-year.
- Narrowed operating loss of ($3.2 million), improved from ($4.5 million) last year.
- Net loss of ($3.2 million) remains significant despite improvements.
- Projected Q3 revenues expected to decline to $6.3 million - $7.3 million.
SUNNYVALE, Calif., Oct. 27, 2022 (GLOBE NEWSWIRE) -- 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 | |||||||||||||||
| Gross margin (%) | |||||||||||||||
| Operating expenses | |||||||||||||||
| Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||
| Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||
| Net loss per share, diluted | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Lee-Lean Shu, Chairman, and Chief Executive Officer commented, “Revenue in the second quarter of fiscal year 2023 grew year-over-year by nearly
“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
Second Quarter Fiscal Year 2023 Summary Financials
The Company reported a net loss of
In the second quarter of fiscal 2023, sales to Nokia were
Total operating expenses in the second quarter of fiscal 2023 were
Second quarter fiscal 2023 operating loss was
Total second quarter pre-tax stock-based compensation expense was
At September 30, 2022, the Company had
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. Schirle
Chief Financial Officer
408-331-9802
Hayden IR
Kim Rogers
Managing Director
385-831-7337
Kim@HaydenIR.com
Media Relations
Finn Partners for GSI Technology
Ricca Silverio
(415) 348-2724
gsi@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 | ||||||
FAQ
What were GSI Technology's revenue results for Q2 2023?
How did GSI Technology's gross margin change in Q2 2023?
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What factors contributed to GSI Technology's revenue growth?
