GSIT - Earnings call transcript Q2 2018

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology’s Second Quarter Fiscal 2018 Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. At that time, we will provide instructions for those interested in entering the queue for the Q&A.

call, safe has harbor today’s read that begin following the statement. we the requested company I Before The matters performance discussed could those forward-looking that statements anticipated. in risks cause this conference future involve differ and call actual events results the materially uncertainties future and of to Technology regarding GSI that may from include These filed and Securities with uncertainties Exchange described the in are and the risks company’s XX-K Form Commission.

October is XX, asked turn President to at Executive advise that Mr. being Shu. conference have recorded GSI go Chief Vice Schirle, I Lasserre, over ahead, call are today, Lee-Lean Shu, Douglas Please the of call also been sir. request the Additionally, Chief the company’s to today Financial XXXX, a President of this and would the the you Hosting With and I Didier Chairman, conference Officer. Technology. to Officer; Sales. is him like now

Lee-Lean Shu

thank quarter provided were Today, range and the XX.X%. us. Both guidance you below joining of everyone, quarter. gross in of and we that revenue afternoon, million of net Good margin for second earlier the reported we $X.X

of for this are samples qualification during for processing Class SigmaQuad ship in-place revenue-generating very available networking the That parts, in our aerospace third our be SRAM calendar product defense the segment, our APU. the shipments quarter they see to SRAM computing targeted second said, equivalent have radiation-hardened quarter, or products, slowness We associative products. Once marketing patented During of now XXXX. telecommunication technology, these applications, beginning product fiscal we at and week, finish and we parts our V radiation-hardened we process to packaged primary development Starting in all newest market our fiscal continued as MIL-PRS-XXXXX excited and remain and for about markets. we efforts high-performance XXXX. our the SigmaQuad will

the position high-speed by complemented RadHard design XXXX, we of end low-latency on market segments, complete the continue SRAM and product and our focused are to initial in APU schedule the SRAM to our products. overall be of on by We DRAM January our expanding

also We which how is large patent APU such Natural applications, associative research leading the on Language on to the the part recently the architecture in-place to emerging is about development, We Computing as that cybersecurity. one APU development a EE presented well-suited Processing. under and intellectual Stanford also In-Memory technical and aerospace computer receive to were at University APU their present invited invited properties focus at big At continue to Systems markets computing and inquiries and were summit, as the vision the make centers recent presentation our Colloquium. we data Computer technology of

in to concept the array. data marketing in of is from currently number As the acquisition and including computation learning MikaMonu a and where the U.S. development, processing, our is our the computation new are back associative data computing an November directly big be continue readily we moved times a obtained to patents for technology. main changed of data both improve to objective parallel of such design We will from our customers users. are still to to execute We in data through our product computing to data anticipate in-place and processor technology And evolving will XXXX. to neural in products technology the time memory future. the patents once we the search market. in serial market our market we of convolutional in processing in our applications. technology The RadHard This technology hold XX currently bring bring APU customer active our processes, cybersecurity. computer forth Whilst base of have we response sets big currently and near region Overall, new data, we machine XXXX. primary will network, products pending and deep calendar to This completing to believe very markets variety and and applications variety will a from we that for us business APU reminder, bring to a on as product of broaden required this and segments the base growing potential remain this new and into technology

Douglas Schirle

and compared of of share second on and fiscal XXXX. net XXXX for the Gross margin first $X.X a a million on was the $X.XX the quarter million million or quarter share of XX.X% revenues $X.X $X.XX on net reported net $XX.X of diluted second in XX% year net loss to per XX, quarter. XXXX, loss or prior revenues per share of first in quarter fiscal or of income XXXX revenues of net net $XX.X $XXX,XXX compared diluted ended period of for million $X.XX June the the to We to fiscal $X.X diluted XX.X% of per million

second development XXXX compared million fiscal quarter prior million Research and stock-based to the $X.X XXXX the September expenses compared $X.X to operating year compared an Second were year prior administrative in $X in preceding $XXX,XXX $X.X expense to operating in the and million the operating the was pretax and quarter. down income $X.X million operating fiscal ago. $X.X in were the quarter. at $X.X $XXX,XXX in prior sequentially and $X.X quarter comparable quarter XX, in million the expenses was in Selling, period were Total year compared Total ended expenses XXXX million million year-over-year from quarter in quarter $X.X million comparable quarter of $X.X and compensation $XXX,XXX second general the and second of $XXX,XXX the a the to loss loss preceding XXXX, in and of quarter quarter compared $X.X ago. preceding million to fiscal million million quarter. a first of in

period X.X% to of equity XX.X% net prior working ago. cash, investments; million. Cisco of Direct XXXX. XX.X% the long-term million Nokia $X.X included or fiscal revenues X% revenues of quarter $XX.X and of XXXX, year preceding benefit of shipments the XX% XX.X% quarter net $XXX,XXX and compared a in to other $XXX,XXX in investments; the $XX,XXX quarter and or revenues year and in year million net $XXX,XXX $X.X compared the XX.X% of and and the and – the in and we to net $XX,XXX quarter, to second a in income and income net a indirect capital, or XXXX year XX.X% prior the period provision short-term tax interest XX.X% of million and Second In shipments net million quarter sales XX, prior tax $XX.X included $XX,XXX. in equivalents shipments or In period loss to same SigmaQuad sales compared tax of $XX,XXX X% or the were of in year quarter in of Military/defense prior $X.X XX.X% in revenues quarter prior of million a ago. million stockholders’ the a of net ago. $XXX,XXX in or Systems income sales to of were of revenues had net in other and provision interest XXXX, cash were fiscal revenues other compared interest to of ago. in fiscal same sales At a income a and compared shipments debt; of the second and $XX.X XX.X% of in comparable no September were $XX.X $XXX,XXX of the quarter

XXXX, fiscal revenues of net quarter to range third million of we the $XX to million. $XX currently in forward the be Looking expect to

in margin gross quarter. the at we’ll call to expect XX% the Operator, point, open to this We of third approximately XX% Q&A.

Operator

Instructions] M. first Inc. Caramanidis take [Operator from question We’ll you. from Kurt Thank Hennig, our Carl

Kurt Caramanidis

Hi guys.

Didier Lasserre

Hi, Kurt.

Kurt Caramanidis

or level Can question quarter, talk maybe the think interest that��s quarter? the First any calendar I’m looking since use – we changed the going are most at RadHard. to last on that I And what to if of just you may are revenues dollar-wise about at calendar in XXXX? QX probably any looking we revenues calendar – be of And in in it is one mainly that people understand QX starting if QX start? calendar is roughly

Didier Lasserre

Didier. it’s Kirk,

also little think call were that of I level – that the and family. accelerating have, of in mentioned the that introduction a our which a XXX-megabit different interest, is high there both offering we SigmaQuad bit NBT interest original we a is XXX-megabit the level So SyncBurst the within yes, for And sector. of I the in also, last as well application device

engineering samples family, So the the then qualification equivalent. And starting sold On had this that full a in that the we week, be family we expecting XXX-megabit is will for V packages that Lee-Lean parts, starting this of in-house. handful are we Class mentioned quarter. production being the

is answer yes. the So

has is out pushed some the from been level some freezing There has some anticipated the the still which family. revenues So of interest of from in of that IRAD, there. funds

So revenue. the funds bit expecting this quarter, it some of but frozen because a those we being of more pushed were has little out temporarily,

I this the quarter of ramping will about revenue we starting next if and have somewhere, in So guess, to were then year. first $XXX,XXX quarter calendar

Kurt Caramanidis

quarter? you What in thinking are that

Didier Lasserre

tell. to hard It’s

different still little and telecom a It’s classic used than military dependent bit with funding. classic model our on we’re customers. We’re to

calendar going going not a quarter. first for – following lot to or to actually fall the requires the this it’s much is that is government, and much funding released clear the from funding Now the how of quarter how be into

it’s for at So this predict point. hard me to

Kurt Caramanidis

you APU And Okay. get period to in it years done, stages when to about on of to roughly and chip? the time that just Can then times? design test time the And then what’s unit, now time that the the it – overall, of it the then that kind two from taken of the review. it design Is those That’s line fair. it’s then manufacture we’re – January, there, do getting kind you of and takes TSMC? to kind goes about frame you to what if talk

Lee-Lean Shu

to Yes, silicon. it once TSMC, release design the normally eight weeks six takes to generate the we to around

the packaging. probably to testing. will be car silicon, This the two, three of out few instead start So weeks product After we that fueling the to the take will package another it extending can weeks, the once we parts. generate do

mid the we of year. out So hopefully next be by hopefully, the everything we car. And car parts hopefully, do the the now calendar work testing put into able quarter, send third to if will well, another should to

Douglas Schirle

Kurt, package the probably still Actually, latest. middle at get July of expecting April parts the we’re of initial end back, those sometime or around to

in talked our been currently there’s product. that what change we previously So expectations no than regarding about

Didier Lasserre

of Doug. End March,

Douglas Schirle

End of March.

Didier Lasserre

And… Yes.

Douglas Schirle

time of and the March April frame. like middle

Kurt Caramanidis

about that’s more have – about manufacturing we how – far testing? as difficulty is the difficult when done? the think a mountain when you the how we climbed design by then and and difficulty? than the think got and do do to the chances you Or phases the Or we of better three design So – how success end the of its about are

Lee-Lean Shu

is Of learning course, any curve chip don’t design. to the we start This design, first we the very before. have

So sort that time process. we hopefully, targeting learning we’ll have product. And the the also process come some the once out, first silicon testing Again, that’s for debugging that’s a very debugging are the curve. of

down to out hopefully, going there’s the the So for a debugging XXXX, the you’ll ongoing we the to anyway, product have and for But come And testing very have to development. do of is. I should sometime design second process. well be will think half less how overall, customers thorough we design,

Kurt Caramanidis

one – got Or Okay. got get recorded available on you’ve Great. they’re got you live, and an these then to coming you’ve you’ve like another it one. not if And some can them extent? online, website presentations the when space sounds aerospace then

Douglas Schirle

Stanford us presentations give at they’re – that I Well, be that. know that going a will standard And the believe to I copy recorded. of at

somehow. to So can get yes, website the available we on try that

Lee-Lean Shu

will Actually, EEXXX, you Stanford EE University get search the you webcast if the the if you can Systems Stanford agenda that’s Colloquium, see there. and for you to from go University Computer EEXXX,

Kurt Caramanidis

it website be It’ll good yes. to the Okay. too, have on

Douglas Schirle

that In-Memory the a a this there anything But regarding Computing was that if was I were not meeting. presentation made the available was we don’t with recorded that just talked there’s necessarily at others were Didier that presenting about, that. It’s one But at that’s customers. The aerospace presentation. know or not if specific week. meetings seminar a or

Kurt Caramanidis

Okay, no problem.

wasn’t any developments – is of to APU pretty Dr. the Finally What view be he going to XXXX? year on seems as about your he on that. apologize, not position Does kind there this track to in I a talked major position compared have current he seen, I which top and thinking advancement products? still a that area, January be about major in and Akerib really

Douglas Schirle

we against, and mean, encompassing than believe the what look we that can are that more aspects terms search when I of am. competing this I significantly it’s at we��re product is still And Didier this from Lee-Lean perspective Yes. But technical it and search. and of significantly then parts in – do. more better

more we greater more this presentation areas on much need made for and Natural to, into we and more is there we one customers than anticipated the more lot a see get part. of So this Processing. that The and in a we talked originally Language we

if So we have into that when say think we ago anything, initially we’re than years got opportunities would this. more expected would I two seeing we

Didier Lasserre

Right. to And add Kurt, that. me let

we these as show aggressive approach of talked as see Computing, – to implementing of further wanted that then the So the Doug and were slated the the there what the we company for a have they the we we’ve few their we underneath along shows what looking we’re this are in promotion in-depth certainly companies, doing large be we had silicon. the now they companies, gentlemen technologies been that mentioned, until touch us doing found had radar and flying that had kind presented to with at after we But just doing. were not highly companies actually fact, in remotely about be of technical device. In-Memory anything one Because some much – And more and were from us. and we’ll conversations we’re week,

So they excited. were very

the we’ve there. radar, have we out we technical of shows these a certainly, under So – and a interest been gotten into bit the have but haven’t out us community, again, lot

Kurt Caramanidis

Great, sounds good quarter. luck for the next

Didier Lasserre

Kurt. Thanks

Operator

Jeff hear Instructions] And [Operator Cowen. next we’ll from Bernstein with

Jeff Bernstein

lines the those Just wanted along to up on APU. follow

done you guys So on already the have emulation part?

Lee-Lean Shu

we a – do we the We no, software hardware model don’t emulation for have APU. but

academics at so some the we university. thinking were studied paying they getting have professors software our actually, the can simulating. So Actually, such model that in start

have them. in do So interest they

Jeff Bernstein

speed new of don’t of have you’ve the you processing – you any what So was. talked thought past terms in the kind metrics in in about improvement

changed? that So hasn’t really

Lee-Lean Shu

Correct.

Jeff Bernstein

order the Got you. to differently bit side I going And the people to to to how do that Are supply how assuming be then things I guess, are you about in take? a to And there program have out? are of for software new I’m take that of talk parallelism. little there’s this? And going this. software. that guess, play written will any – long if think that will tools that And software need advantage you

Lee-Lean Shu

addition, our team – with – to the a the is and group. chip. that search No, just we do we them. with save, actually, can function function we their typical have use to a call software like use of of how big people of the at it’s modify, it will do what to concurrent they chip’s be they in it top-level language programming. do. library that for functions library, So the common common function library pretty go Basically, still underneath, the supposed They use a use we will okay? can algorithm use what can And the in or built, at will so at the we keying Basically,

Jeff Bernstein

Great.

ship when be then able start using the So cards, should you them to right people away?

Lee-Lean Shu

Correct.

Didier Lasserre

let that. Jeff, me And add to

of meeting write about to to as they about software. always for said, the will libraries Lee-Lean hardware learn physical, libraries we’re that leading APU, a or that the Lee-Lean us. we Obviously, tasks needed. and with other about talking be – we’re large there major wanted certainly So all we team going but that’s the part writing other earlier of the I’m aerospace are going mentioned functions, a And the the Doug the – have was it. be the met APU. But portion recently company sorry, had to the

majority And that libraries about that them they the So available entities keep what’s some will especially folks by our to will we’re all want government, or own training the own sectors, be be of able government nice that to not program going their should and to writing folks, in-house we’re the these will that the parts. be and them of with military I libraries. their whatever what in of aspects to getting the obviously, anticipating say, the by back majority be will But to that share. lot And their users. library of users. is, write, I mean And write, use a be start is for available for be libraries all written they for by

So the the them software only also once the folks the academia’s going that that put of will we’re these expand but out, in the Lee-Lean other us is portion. getting that for that get some nice thing out this help will hands, to writing libraries of we said, about cards card not board start

Jeff Bernstein

Got you.

missed you through And just Okay. talk new of in there when Nokia. then I stand? some where And think guys terms you about think and products going you going were of their I revenue concentrations, anything can on that’s you

Didier Lasserre

Sure.

we’ve this of that correction give they’ve the correction. the been quarter on some inventory about They shows SQ-III. So the with Certainly, hard talked ones up. our use quarter back past them XX-megabit coming a us that this took last quarters couple they systems, forecast older having the

it we’re of talked of calls the systems, far the was off last I’ve XX-meg new router edge in router that platform it mentioned as the shipping kicker core and I not as same as mid-life a a – past, ago, was the don’t about call, Now I’m in. we our think couple based

XXX-megabit kicker at used a be will that So mid-life SQ-III.

coming up. some that past super wasn’t this we’re those. quarter, seeing started slowly we yet, high-volume of It So forecast shipping but

generation kicker is and XXXX that’s on Nokia so platforms. the really And XXXX that of the mid-life the us next for kind

Jeff Bernstein

Great.

Okay.

business from forward? have are going in you some there there So and will

Didier Lasserre

already quantities, yes. it’s that’s And the pieces ramp. will quarter, a mid-life It’s kickers, mostly On hundreds started. correct, that of but prototype-ish hopefully

Jeff Bernstein

you. Okay, perfect. Thank

Didier Lasserre

Jeff. Thanks

Operator

[Operator Instructions] gentlemen. show no I queue, in the further questions

Lee-Lean Shu

Thank with We quarter joining will Annual you you look we presenting to webcast again forward well. – us. XXth Investment Los our be speaking at X. those IT be will third on fiscal XXXX Main This results. all December Conference, you. Micro attending, for we as Thank presentation for Also report upcoming the Angeles, LD when Event

Operator

thank that concludes We for call. conference today’s joining. And you

GSI Technology (GSIT) 27 Oct 172018 Q2 Earnings call transcript