GSI Technology, Inc. Reports Second Quarter Fiscal 2025 Results
GSI Technology (GSIT) reported Q2 fiscal 2025 financial results with net revenues of $4.6 million, down from $5.7 million in Q2 fiscal 2024. Gross margin decreased to 38.6% from 54.7% year-over-year. The company reported a net loss of $(5.5) million, or $(0.21) per diluted share. Management anticipates Q3 fiscal 2025 revenues between $4.7-$5.5 million with gross margin of 50-52%. The company implemented cost-cutting measures expected to yield $3.5 million in annual savings. Cash and cash equivalents stood at $18.4 million as of September 30, 2024.
GSI Technology (GSIT) ha riportato i risultati finanziari del secondo trimestre dell'anno fiscale 2025 con ricavi netti di 4,6 milioni di dollari, in calo rispetto ai 5,7 milioni di dollari nel secondo trimestre dell'anno fiscale 2024. Il margine lordo è diminuito al 38,6% dal 54,7% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di $(5,5) milioni, pari a $(0,21) per azione diluita. La direzione prevede ricavi per il terzo trimestre dell'anno fiscale 2025 compresi tra i 4,7 e i 5,5 milioni di dollari, con un margine lordo del 50-52%. L'azienda ha implementato misure di riduzione dei costi, che si prevede porteranno a un risparmio annuale di 3,5 milioni di dollari. La liquidità e le disponibilità liquide erano pari a 18,4 milioni di dollari al 30 settembre 2024.
GSI Technology (GSIT) reportó los resultados financieros del segundo trimestre del año fiscal 2025 con ingresos netos de 4.6 millones de dólares, una disminución con respecto a los 5.7 millones de dólares en el segundo trimestre del año fiscal 2024. El margen bruto disminuyó al 38.6% desde el 54.7% en comparación con el año anterior. La compañía reportó una pérdida neta de $(5.5) millones, o $(0.21) por acción diluida. La dirección anticipa ingresos para el tercer trimestre del año fiscal 2025 entre 4.7 y 5.5 millones de dólares, con un margen bruto del 50-52%. La compañía implementó medidas de reducción de costos que se espera generen ahorros anuales de 3.5 millones de dólares. El efectivo y equivalentes de efectivo se situaron en 18.4 millones de dólares al 30 de septiembre de 2024.
GSI Technology (GSIT)는 2025 회계 연도 2분기 재무 결과로 순수익 460만 달러를 보고했으며, 이는 2024 회계 연도 2분기 570만 달러에서 감소한 수치입니다. 총 마진은 전년 대비 54.7%에서 38.6%로 감소했습니다. 회사는 순손실 550만 달러, 즉 희석 주당 0.21달러를 기록했습니다. 경영진은 2025 회계 연도 3분기 매출이 470만~550만 달러로 예상되며, 총 마진이 50-52%가 될 것으로 보입니다. 회사는 연간 350만 달러 절감을 기대하는 비용 절감 조치를 시행했습니다. 2024년 9월 30일 기준으로 현금 및 현금성 자산은 1840만 달러에 달했습니다.
GSI Technology (GSIT) a publié les résultats financiers du deuxième trimestre de l'exercice 2025, avec un chiffre d'affaires net de 4,6 millions de dollars, en baisse par rapport à 5,7 millions de dollars au deuxième trimestre de l'exercice 2024. La marge brute a diminué à 38,6 % contre 54,7 % d'une année sur l'autre. L'entreprise a enregistré une perte nette de $(5,5) millions, soit $(0,21) par action diluée. La direction prévoit des revenus pour le troisième trimestre de l'exercice 2025 compris entre 4,7 et 5,5 millions de dollars, avec une marge brute de 50-52 %. L'entreprise a mis en œuvre des mesures de réduction des coûts, dont on s'attend à ce qu'elles génèrent des économies annuelles de 3,5 millions de dollars. La liquidité et les équivalents de liquidités s'élevaient à 18,4 millions de dollars au 30 septembre 2024.
GSI Technology (GSIT) hat die Finanzberichte für das zweite Quartal des Geschäftsjahres 2025 mit Nettoerlösen von 4,6 Millionen US-Dollar veröffentlicht, was einen Rückgang von 5,7 Millionen US-Dollar im zweiten Quartal des Geschäftsjahres 2024 darstellt. Die Bruttomarge sank im Jahresvergleich von 54,7 % auf 38,6 %. Das Unternehmen meldete einen Nettoverlust von $(5,5) Millionen, oder $(0,21) pro verwässerter Aktie. Das Management erwartet für das dritte Quartal des Geschäftsjahres 2025 Erlöse zwischen 4,7 und 5,5 Millionen US-Dollar mit einer Bruttomarge von 50-52 %. Das Unternehmen hat Kostensenkungsmaßnahmen umgesetzt, von denen ein jährliches Einsparpotenzial von 3,5 Millionen US-Dollar erwartet wird. Der Cashbestand und die liquiden Mittel beliefen sich zum 30. September 2024 auf 18,4 Millionen US-Dollar.
- Implementation of cost-cutting measures expected to save $3.5 million annually
- Anticipated significant increase in orders from existing customer over next 12 months
- Cash position improved to $18.4 million from $14.4 million in March 2024
- Working capital increased to $21.1 million from $19.1 million in March 2024
- Net revenues decreased 20.3% YoY to $4.6 million from $5.7 million
- Gross margin declined to 38.6% from 54.7% YoY
- Net loss widened to $(5.5) million from $(4.1) million YoY
- Operating loss increased to $(5.6) million from $(4.1) million YoY
Insights
The Q2 FY2025 results reveal concerning trends with
The company's cash position of
The shift in revenue mix is noteworthy, with military/defense sales increasing to
SUNNYVALE, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its second fiscal quarter ended September 30, 2024.
Summary Financial Results Table (in thousands, except per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Sept. 30, 2024 | June 30, 2024 | Sept. 30, 2023 | Sept. 30, 2024 | Sept. 30, 2023 | |||||||||||||||
| Net revenues | $ | 4,550 | $ | 4,671 | $ | 5,708 | $ | 9,221 | $ | 11,295 | |||||||||
| Gross margin (%) | 38.6 | % | 46.3 | % | 54.7 | % | 42.5 | % | 54.8 | % | |||||||||
| Operating expenses | $ | 7,341 | $ | 1,081 | $ | 7,214 | $ | 8,422 | $ | 15,422 | |||||||||
| Operating income (loss) | $ | (5,584 | ) | $ | 1,080 | $ | (4,093 | ) | $ | (4,504 | ) | $ | (9,232 | ) | |||||
| Net income (loss) | $ | (5,458 | ) | $ | 1,078 | $ | (4,055 | ) | $ | (4,380 | ) | $ | (9,165 | ) | |||||
| Net income (loss) per share, diluted | $ | (0.21 | ) | $ | 0.04 | $ | (0.16 | ) | $ | (0.17 | ) | $ | (0.37 | ) | |||||
Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “We are seeing early indications of a turnaround in our SRAM business. Existing customers are depleting their channel inventory, and we anticipate they will resume ordering in the upcoming quarters. Furthermore, we expect a significant increase in orders from an existing customer over the next 12 months. This opportunity for additional orders involves collaborating on a cutting-edge product for a leading AI chip developer, which is expected to drive consistent demand for this customer's equipment and our SRAM chips going forward.”
Mr. Shu continued, “Looking at our financial results for the second quarter of fiscal 2025, we reported revenue of
Mr. Shu concluded, “We are on track to meet our deadlines for the Gemini-II benchmarking project and remain committed to fulfilling our SBIR contract with the U.S. Air Force Labs by December 31, 2024, followed by the delivery of the software algorithm in the first quarter of calendar 2025.”
Commenting on the outlook for GSI's third quarter of fiscal 2025, Mr. Shu stated, "Our current expectations for the upcoming third quarter are net revenues in a range of
Second Quarter Fiscal Year 2025 Summary Financials
The Company reported net revenues of
In the second quarter of fiscal 2025, sales to Nokia were
Total operating expenses in the second quarter of fiscal 2025 were
Second quarter fiscal 2025 operating loss was
Net loss in the second quarter of fiscal 2025 was
Total second quarter pre-tax stock-based compensation expense was
At September 30, 2024, the Company had
Conference Call
Management will conduct a conference call to review the Company's financial results for the second quarter of fiscal year 2025 and its current outlook for the third quarter of fiscal 2025 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 13749240. The call will also be streamed live via the internet at www.gsitechnology.com.
A replay will be available from October 24, 2024, at 7:30 p.m. Eastern Time through October 31, 2024, 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 13749240. 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; 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 workforce reductions; the impact of GSI Technology’s workforce reductions on its business and operations and the failure to realize the anticipated benefits of its workforce reductions; 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 changing interest rates, worldwide inflationary pressures, military conflicts 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.
Contacts:
Investor Relations:
Hayden IR
Kim Rogers
385-831-7337
kim@haydenir.com
Media Relations:
Finn Partners for GSI Technology
Ricca Silverio
415-348-2724
gsi@finnpartners.com
Company:
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 | Six Months Ended | |||||||||||||||||||||
| Sept. 30, | June 30, | Sept. 30, | Sept. 30, | Sept. 30, | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Net revenues | ||||||||||||||||||||||
| Cost of goods sold | 2,793 | 2,510 | 2,587 | 5,303 | 5,105 | |||||||||||||||||
| Gross profit | 1,757 | 2,161 | 3,121 | 3,918 | 6,190 | |||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Research & development | 4,788 | 4,214 | 4,691 | 9,002 | 9,895 | |||||||||||||||||
| Selling, general and administrative | 2,553 | 2,604 | 2,523 | 5,157 | 5,527 | |||||||||||||||||
| Gain from sale and leaseback transaction | - | (5,737 | ) | - | (5,737 | ) | - | |||||||||||||||
| Total operating expenses | 7,341 | 1,081 | 7,214 | 8,422 | 15,422 | |||||||||||||||||
| Operating income (loss) | (5,584 | ) | 1,080 | (4,093 | ) | (4,504 | ) | (9,232 | ) | |||||||||||||
| Interest and other income, net | 149 | 55 | 71 | 204 | 151 | |||||||||||||||||
| Income (loss) before income taxes | (5,435 | ) | 1,135 | (4,022 | ) | (4,300 | ) | (9,081 | ) | |||||||||||||
| Provision for income taxes | 23 | 57 | 33 | 80 | 84 | |||||||||||||||||
| Net income (loss) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
| Net income (loss) per share, basic | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
| Net income (loss) per share, diluted | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
| Weighted-average shares used in computing per share amounts: | ||||||||||||||||||||||
| Basic | 25,467 | 25,374 | 25,161 | 25,421 | 25,014 | |||||||||||||||||
| Diluted | 25,467 | 25,686 | 25,161 | 25,421 | 25,014 | |||||||||||||||||
| 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, | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Cost of goods sold | ||||||||||||||||||||||
| Research & development | 336 | 290 | 369 | 626 | 755 | |||||||||||||||||
| Selling, general and administrative | 276 | 312 | 250 | 588 | 617 | |||||||||||||||||
| GSI TECHNOLOGY, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Sept. 30, 2024 | March 31, 2024 | |||||||
| Cash and cash equivalents | ||||||||
| Accounts receivable | 2,411 | 3,118 | ||||||
| Inventory | 4,127 | 4,977 | ||||||
| Other current assets | 1,724 | 1,954 | ||||||
| Assets held for sale | - | 5,629 | ||||||
| Net property and equipment | 980 | 1,148 | ||||||
| Operating lease right-of-use assets | 10,166 | 1,553 | ||||||
| Other assets | 9,630 | 9,656 | ||||||
| Total assets | ||||||||
| Current liabilities | ||||||||
| Long-term liabilities | 8,622 | 1,129 | ||||||
| Stockholders' equity | 33,284 | 35,970 | ||||||
| Total liabilities and stockholders' equity | ||||||||
FAQ
What was GSIT's revenue in Q2 fiscal 2025?
How much annual cost savings does GSIT expect from recent measures?
What is GSIT's revenue guidance for Q3 fiscal 2025?
What was GSIT's cash position as of September 30, 2024?
