• GSI Technology, Inc. Reports First Quarter Fiscal 2023 Results

    Source: Nasdaq GlobeNewswire / 28 Jul 2022 15:05:00   America/Chicago

    SUNNYVALE, Calif., July 28, 2022 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its first fiscal quarter ended June 30, 2022.

    Summary Financial Results Table (in thousands, except per share amounts)

     Three Months Ended
     June 30, 2022March 31, 2022June 30, 2021
    Net revenues$8,909 $8,731 $8,791 
    Gross margin (%)60.2%58.6%54.4%
    Operating expenses$9,307 $8,059 $9,143 
    Operating loss($3,942)($2,943)($4,361)
    Net loss($3,976)($3,011)($4,209)
    Net loss per share, diluted($0.16)($0.12)($0.17)

    Lee-Lean Shu, Chairman and Chief Executive Officer, commented, "Our legacy SRAM business remains stable and continues to fund our APU hardware and software R&D. In the first quarter of fiscal 2023, our gross profit increased by 12% on modest revenue growth compared to the first quarter of fiscal 2022. The rise in gross margin to 60.2% reduced our operating loss from the same quarter a year ago, and, as a result, we narrowed our net loss for the quarter.”

    “The team continues to advance APU opportunities on several fronts. Searchium.ai, our SaaS platform that runs on our LEDA boards, is expected to be launched in August for alpha users and is on-track to go live later in calendar 2022. Searchium.ai accelerates Elasticsearch and OpenSearch workloads by 6x and can scale to a billion-vector dataset without losing accuracy. The platform also offers fast vector search, providing high-speed, accurate searches of large vectorized databases of text, images, video and audio. In addition, our pipeline of defense and military POCs and engagements continues to grow. Currently, we have numerous early-stage projects that are in the initial discussions phase. Several of the larger opportunities are with new contacts that arose from our first place win in the MoSIAC challenge.”

    “Our current expectations for the second fiscal quarter are net revenues in a range of $8.5 million to $9.5 million, with gross margin of approximately 61% to 63%. We maintain an attractive balance sheet with a surplus of cash and no debt."

    First Quarter Fiscal Year 2023 Summary Financials

    The Company reported a net loss of $(4.0 million), or $(0.16) per diluted share, on net revenues of $8.9 million for the first quarter of fiscal 2023, compared to a net loss of $(4.2 million), or $(0.17) per diluted share, on net revenues of $8.8 million for the first quarter of fiscal 2022 and a net loss of $(3.0 million), or $(0.12) per diluted share, on net revenues of $8.7 million for the fourth quarter of fiscal 2022.

    Gross margin in the first quarter of fiscal 2023 was 60.2%, compared to 54.4% in the prior year quarter and 58.6% in the preceding fourth quarter. The improvement in gross margin was primarily due to changes in product mix sold in the quarter compared to prior periods.

    In the first quarter of fiscal 2023, sales to Nokia were $1.3 million, or 14.7% of net revenues compared to $3.8 million, or 42.7% of net revenues, in the same period a year ago and $2.0 million, or 23.1% of net revenues in the prior quarter. First quarter fiscal 2022 net revenues included orders for buffer stock shipped to Nokia amounting to approximately $1.1 million that were made in anticipation of continued market tightness.

    Military/defense sales were 22.3% of first quarter shipments compared to 20.0% of shipments in the comparable period a year ago and 22.3% of shipments in the prior quarter. SigmaQuad sales were 44.8% of first quarter shipments compared to 63.6% in the first quarter of fiscal 2022 and 47.6% for the previous quarter.

    Total operating expenses in the first quarter of fiscal 2023 were $9.3 million, compared to $9.1 million in the first quarter of fiscal 2022 and $8.1 million in the prior quarter. Research and development expenses were $6.6 million, compared to $6.1 million in the prior year period and $6.5 million in the prior quarter. Selling, general and administrative expenses were $2.7 million in the quarter ended June 30, 2022, compared to $3.0 million for the previous year quarter and $1.5 million in the previous quarter.

    First quarter fiscal 2023 operating loss was $(3.9 million) compared to $(4.4 million) in the prior year period and $(2.9 million) in the prior quarter.

    First quarter fiscal 2023 net loss included interest and other expense of $26,000 and a tax provision of $60,000, compared to interest and other expense of $(20,000) and a tax benefit of $(172,000) in the prior year. In the preceding fourth quarter, net loss included interest and other expense of $(47,000) and a tax provision of $21,000.

    Total first quarter pre-tax stock-based compensation expense was $638,000 compared to $823,000 in the comparable quarter a year ago and $714,000 in the prior quarter.

    At June 30, 2022, the Company had $41.5 million in cash, cash equivalents, and short-term investments and $875,000 in long-term investments, compared to $44.0 million in cash, cash equivalents, and short-term investments and $3.3 million in long-term investments at March 31, 2022. Working capital was $44.8 million as of June 30, 2022, versus $45.8 million at March 31, 2022, with no debt. As of June 30, 2022, stockholders' equity was $61.3 million compared to $64.5 million as the fiscal year ended March 31, 2022.

    Conference Call

    GSI Technology will review its financial results for the quarter ended June 30, 2022 and discuss its current business outlook during a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern) today, July 28, 2022. To listen to the teleconference, please call toll-free 1-877-407-3982 in the U.S. or 1-201-493-6780 for international approximately 10 minutes before the above start time and provide Conference ID 13731441. You may also listen to the teleconference live via the Internet at www.gsitechnology.com, where it 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 and partner 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.

    Company

    GSI Technology, Inc.
    Douglas M. Schirle
    Chief Financial Officer
    408-331-9802

    Investor Relations
    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
        June 30,March 31,June 30,
        202220222021
           
    Net revenues$8,909 $8,731 $8,791 
    Cost of goods sold3,544 3,615 4,009 
           
    Gross profit5,365 5,116 4,782 
           
    Operating expenses:   
           
     Research & development6,619 6,510 6,103 
     Selling, general and administrative2,688 1,549 3,040 
       Total operating expenses9,307 8,059 9,143 
           
    Operating loss(3,942)(2,943)(4,361)
           
    Interest and other income, net26 (47)(20)
           
    Loss before income taxes(3,916)(2,990)(4,381)
    Provision (benefit) for income taxes60 21 (172)
    Net loss($3,976)($3,011)($4,209)
           
           
    Net loss per share, basic($0.16)($0.12)($0.17)
    Net loss per share, diluted($0.16)($0.12)($0.17)
           
    Weighted-average shares used in   
     computing per share amounts:   
           
    Basic24,523 24,484 24,095 
    Diluted24,523 24,484 24,095 
           
           
    Stock-based compensation included in the Condensed Consolidated Statements of Operations:
           
           
        June 30,March 31,June 30,
        202220222021
           
    Cost of goods sold$60 $56 $70 
    Research & development351 372 470 
    Selling, general and administrative227 286 283 
        $638 $714 $823 
           


    GSI TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
    (Unaudited)
        
     June 30, 2022March 31, 2022
    Cash and cash equivalents$33,533  $36,971 
    Short-term investments7,928  6,992 
    Accounts receivable4,309  4,518 
    Inventory4,780  4,655 
    Other current assets1,809  1,555 
    Net property and equipment7,234  7,359 
    Long-term investments875  3,345 
    Other assets11,201  11,027 
    Total assets$71,669  $76,422 
        
    Current liabilities$7,569  $8,861 
    Long-term liabilities2,835  3,110 
    Stockholders' equity61,265  64,451 
    Total liabilities and stockholders' equity$71,669  $76,422 
        

     


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