GSI Technology, Inc. Reports Third Quarter Fiscal 2023 Results
GSI Technology, Inc. (NASDAQ: GSIT) reported its third quarter fiscal 2023 results, revealing net revenues of $6.4 million, down from $8.1 million a year earlier. Gross margin increased to 57.5% but operating loss widened to $4.8 million. The company anticipates fourth quarter revenues between $5.0 million and $5.6 million, with a gross margin forecast of 49% to 51%. Significant cost reduction initiatives aim for $7 million in annual savings. As of December 31, 2022, cash and equivalents were $35.2 million, showing a decline from the previous period.
- Gross margin for Q3 at 57.5% exceeded guidance.
- Initiated cost-reduction initiatives targeting $7 million in annual savings.
- Third quarter revenues decreased from $8.1 million to $6.4 million year-over-year.
- Operating loss increased to $4.8 million compared to $4.6 million a year ago.
- Guidance for Q4 revenue is lower than Q3.
SUNNYVALE, Calif., Jan. 26, 2023 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its third fiscal quarter ended December 31, 2022.
Summary Financial Results Table (in thousands, except per share amounts)
Three Months Ended | Nine Months Ended | ||||||||||||||
Dec. 31, 2022 | Sept. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |||||||||||
Net revenues | $ | 6,447 | $ | 8,953 | $ | 8,065 | $ | 24,309 | $ | 24,653 | |||||
Gross margin (%) | 57.5 | % | 62.6 | % | 55.3 | % | 60.4 | % | 54.4 | % | |||||
Operating expenses | $ | 8,495 | $ | 8,807 | $ | 8,994 | $ | 26,609 | $ | 26,831 | |||||
Operating loss | $ | (4,789 | ) | $ | (3,205 | ) | $ | (4,532 | ) | $ | (11,936 | ) | $ | (13,410 | ) |
Net loss | $ | (4,812 | ) | $ | (3,228 | ) | $ | (4,581 | ) | $ | (12,016 | ) | $ | (13,357 | ) |
Net loss per share, diluted | $ | (0.20 | ) | $ | (0.13 | ) | $ | (0.19 | ) | $ | (0.49 | ) | $ | (0.55 | ) |
Lee-Lean Shu, Chairman and Chief Executive Officer, commented, “Third quarter revenue of
Mr. Shu continued, “We want to assure our investors that we remain fully committed to delivering a high-quality APU solution to the market. To ensure success and align our resources with the Company's goals, we announced the implementation of several cost-reduction initiatives at the end of November 2022. We are on track to achieve
Commenting on the outlook for GSI’s fourth quarter of fiscal 2023, Mr. Shu stated, “current expectations for the upcoming fiscal fourth quarter are net revenues in a range of
Third Quarter Fiscal Year 2023 Summary Financials
The Company reported a net loss of (
In the third quarter of fiscal 2023, sales to Nokia were
Total operating expenses in the third quarter of fiscal 2023 were
Third quarter fiscal 2023 operating loss was (
Total third quarter pre-tax stock-based compensation expense was
At December 31, 2022, the Company had
Conference Call
GSI Technology will announce financial results for its third fiscal quarter ended December 31, 2022 after the market close on Thursday, January 26, 2023. Management will also conduct a conference call to review the Company's third quarter financial results and its current outlook for the fourth quarter of fiscal 2023 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) on that same day.
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 13735485. The call will also be streamed live via the internet at www.gsitechnology.com.
A replay will be available from January 26, 2023 at 7:30 p.m. Eastern Time through February 2, 2023 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 13735485. 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 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, 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 | Nine Months Ended | |||||||||||||||||||
Dec. 31, | Sept. 30, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Net revenues | $ | 6,447 | $ | 8,953 | $ | 8,065 | $ | 24,309 | $ | 24,653 | ||||||||||
Cost of goods sold | 2,741 | 3,351 | 3,603 | 9,636 | 11,232 | |||||||||||||||
Gross profit | 3,706 | 5,602 | 4,462 | 14,673 | 13,421 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research & development | 5,529 | 6,395 | 6,152 | 18,543 | 18,162 | |||||||||||||||
Selling, general and administrative | 2,966 | 2,412 | 2,842 | 8,066 | 8,669 | |||||||||||||||
Total operating expenses | 8,495 | 8,807 | 8,994 | 26,609 | 26,831 | |||||||||||||||
Operating loss | (4,789 | ) | (3,205 | ) | (4,532 | ) | (11,936 | ) | (13,410 | ) | ||||||||||
Interest and other income, net | 61 | 14 | 15 | 101 | (13 | ) | ||||||||||||||
Loss before income taxes | (4,728 | ) | (3,191 | ) | (4,517 | ) | (11,835 | ) | (13,423 | ) | ||||||||||
Provision for income taxes | 84 | 37 | 64 | 181 | (66 | ) | ||||||||||||||
Net loss | $ | (4,812 | ) | $ | (3,228 | ) | $ | (4,581 | ) | $ | (12,016 | ) | $ | (13,357 | ) | |||||
Net loss per share, basic | $ | (0.20 | ) | $ | (0.13 | ) | $ | (0.19 | ) | $ | (0.49 | ) | $ | (0.55 | ) | |||||
Net loss per share, diluted | $ | (0.20 | ) | $ | (0.13 | ) | $ | (0.19 | ) | $ | (0.49 | ) | $ | (0.55 | ) | |||||
Weighted-average shares used in | ||||||||||||||||||||
computing per share amounts: | ||||||||||||||||||||
Basic | 24,621 | 24,554 | 24,406 | 24,566 | 24,244 | |||||||||||||||
Diluted | 24,621 | 24,554 | 24,406 | 24,566 | 24,244 | |||||||||||||||
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, | ||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Cost of goods sold | $ | 54 | $ | 49 | $ | 58 | $ | 163 | $ | 192 | ||||||||||
Research & development | 328 | 390 | 416 | 1,069 | 1,304 | |||||||||||||||
Selling, general and administrative | 272 | 222 | 266 | 721 | 783 | |||||||||||||||
$ | 654 | $ | 661 | $ | 740 | $ | 1,953 | $ | 2,279 | |||||||||||
GSI TECHNOLOGY, INC. | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(in thousands) | |||||||||||
(Unaudited) | |||||||||||
Dec. 31, 2022 | March 31, 2022 | ||||||||||
Cash and cash equivalents | $ | 31,870 | $ | 36,971 | |||||||
Short-term investments | 3,331 | 6,992 | |||||||||
Accounts receivable | 3,644 | 4,518 | |||||||||
Inventory | 6,199 | 4,655 | |||||||||
Other current assets | 1,318 | 1,555 | |||||||||
Net property and equipment | 6,995 | 7,359 | |||||||||
Long-term investments | 0 | 3,345 | |||||||||
Other assets | 10,791 | 11,027 | |||||||||
Total assets | $ | 64,148 | $ | 76,422 | |||||||
Current liabilities | $ | 7,144 | $ | 8,861 | |||||||
Long-term liabilities | 2,204 | 3,110 | |||||||||
Stockholders' equity | 54,800 | 64,451 | |||||||||
Total liabilities and stockholders' equity | $ | 64,148 | $ | 76,422 | |||||||
FAQ
What were GSI Technology's revenues for Q3 fiscal 2023?
What is GSI Technology's forecast for Q4 fiscal 2023?
How did GSI Technology's gross margin change in Q3 fiscal 2023?
What is the operating loss reported by GSI Technology for Q3 fiscal 2023?