GSIT - Earnings call transcript Q3 2018

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's Third 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.

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

Lee-Lean Shu

for quarter of $XX.X Today, and range of Good us. quarter the we provided joining guidance everyone, that that All primarily margin XX%. and guidance to mix. third reported above due million the gross in came we came revenues thank the afternoon, while third in of in below range of revenue gross you earlier product net our margin

through fiscal third the the continued modest primary markets to networking During feel quarter, our sales and telecommunication declines year-over-year.

year. However, bringing products this we on market focused remain to our

segment. to are aligned support development newest and efforts market for Our efforts marketing this

APU. high-performance be in-place we'll market patented the to first launch SRAM year, or our applications. computing would radiation-hardened calendar defense at technology, associative products, this The and SigmaQuad targeted Later aerospace our

the the have along US recently across end our parts now quarter. APU of presented industry SigmaQuad as completion industries. a of product this at detailing hardened the packaged EE Language of the helps and Artificial design to product track new pending packaged Processing, our enable our of quarter consumers patent parts with initial technology and SRAM XX the product. patents we Intelligence APU APU for of the and experts how Global terms quarters Systems their a Stanford of line end In end technology as June of Computer we Colloquium to products, launch anticipated for and market now potential University milestones the by on our range by APU of Conference, of We in of activity of We a marketed have previous We of remain radiation our and the achieving Learning. and Machine hold part APU at Natural Few-Shot range Learning,

enable We also will presented confident an ODSC provided of the bringing West our sector. we're defense primary we in training to aerospace and organizations eschew objective Overall Webinar our RadHard and multiple the that both will us the and potential. anticipate calendar enter to capacity segments year. growing our We this products that products market APU to base and revenue and broaden faster to market customer

Douglas Schirle

or margin $X.X in ended sales. for September basic quarter in to for the our no per and $X.XX XXXX. from for million Unfortunately of quarter product net For million we've this and increase of in the longer supporting income XX% piled and XXXX, $X.XX compared was stock product this of of net diluted $XX.X and forecasted. was per we write the XXXX and had of $X.X assembly loss unique fiscal an second compared share of diluted basic revenues restock was million piled in and million, to XX.X% net with never fiscal was third XXXX, product the since $X.X a of $XXX,XXX revenues reserves product the inventory a and share XX%, third a loss $X.XX the and not line, quarter prior net or product; other our of This quarter. and per fiscal of down share for the or situation net still XX, revenues and reported the sale basic particular lines net were million forecast diluted but margins viability. gross of second $XX.X year a Gross by quarter product mix vendor period current comfortable we are in negatively excess primarily with resulting value In impacted the inventory, an

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

in law, was revenue Cuts interest December XX, year resulted in a interest of provision and This the to a $XXX,XXX Third and legislation net $XX,XXX. the for provision $XX,XXX a and ended quarter, internal other quarter $XX,XXX is Act other included $XXX,XXX mentioned That in loss and of benefit signed the and net of sections income $XXX,XXX included other of tax ago. of tax provision income tax tax XXXX In the net At code. XXXX, included December fiscal several XX, previously. of preceding income quarter interest XXXX. and a the $XX,XXX into compared significantly impacted $XXX,XXX Tax loss of Jobs and

revenues a of comparable XX% compared up of payable be shipments per net year of period $X.X ago. to in shipments a shipments revenues to net compared the to of or and period million fiscal $X.X X.X% $XX,XXX XX.X% Systems years. X.X% to year and net taxes XX.X% shipments quarter prior or were XX.X% recorded XXXX. revenues prior long-term quarter million of XXXX, the in ago. or of net sales million in XXXX, eight and or in compared year working million At the a sales $X.X XX.X% were XX, to of or to revenues million in capital, company at of the third million and $X.X In were the In compared in the of investments; third stockholders' liability December the $XXX,XXX net in revenues had million over addition, net indirect $XX.X XX.X% that or from were $XX.X in Cisco Military/defense no the sales of XX.X% SigmaQuad same Nokia million. of of will prior ago. of Direct December short-term quarter equity same in XX.X% cash, sales period quarter XX.X% quarter prior fiscal XXXX, $XX.X debt; the of in $X.X period X.X% cash and in equivalents XX, the the company of quarter and $XXX,XXX investments; paid and revenues

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

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

Operator

Thank take [indiscernible]. first you. our question [Operator Instructions] We'll from

Your line open. is now

Unidentified Analyst

This How is Sameer Mike. guys. actually for Hi, on you? are

Douglas Schirle

Hi.

Didier Lasserre

Good.

Unidentified Analyst

you kind technology. learning learning as I APU Could you on market from in the the size follow opportunity Would up had machine guys a net So from shot new this based of four just technology? quick to try in question kind see learning? APU one you and quantify machine what the on of have shot guys

Didier Lasserre

be be the is opportunities that and outside this broken see, certainly the those the we addressing but and in exactly training of because are Didier. markets in talked data, we'll for processing, We're that's the billions lining, but where isn't that focusing dollars. the searches, market the that's certainly been - seen through in certainly going market market of we're and it, advantages depending on I because dollars area resistance language we've recommend and but have point, first think some French at data certainly the that be about training have natural So way an billions largest still we'll reports up is we everything the going always we've to addressing

Unidentified Analyst

what Got shot about four it, opportunities makes you sense. earlier, one sense give in us a And also could think on like you shot call shot the learning? few or learning I - mentioned

Lee-Lean Shu

is and one I meaner, shot definitely, low the always think it few the Yeah, will. shot shot

Unidentified Analyst

call Thank you for the that's I'll all had. so over. turn Okay, I the time.

Lee-Lean Shu

you. Thank

Operator

Martin from comes the Thank & you. And our Company. line from Robert Needham next of question

open. Your line is now

Robert Martin

satellite, product on wanted just I about question. my your little sort just taking more progress of SigmaQuad get for you the clarity technology. your bit thank Hi, to a for that

taking this product You're quarter? out currently the or shipping

Douglas Schirle

So let's because for first missiles. for say first and clear. I our for kind that just missiles all of actually of be it I satellite, opportunity is - Not be will find also

on where now we've XX about push the and call had bit talked months. earnings the And so samples, had of a this we out last right products have customer - pushed have the - we've been dollars little off we the from

So party time increase make and it's robust the given the yield. little more bit be to us a to

the but it slight be So We're that be making we well fleet certainly of Calendar customers, the even do a this schedule of timeframe year. of our better, have December parts now. would which around make ahead will to

Robert Martin

great. I sorry; I'm very helpful. it. missed And Okay, just That's think I

product give it bit there? little the just a line Can of mentioned a be that and shelf on discontinued. You you was will clarity

Douglas Schirle

year we half the product haven't it's our - product, would of anticipated revenue the expected at and doing No, had to but the particle so a supporting data assembly years package, it's levels the product, that we the the time that density was we a we that not vendor liked. ago discontinued all within, discontinued LLDRAM system that just we seen low a materializing have had we the assembled the and

quarter so inventory some we nothing the that product. life, haven't the So anticipating. wrong has need to long very that very is look business take with they that. did were It's a product long that seen reserves, and our life decided at That we There we shelf just we every cycle. consciously inventory

Robert Martin

of gross And of all we a little quarter, about guys for great. longer trying to you there? to term. with I I think are Thanks rate idea one are Okay, where is margin sort regard of in then next if the an businesses in, but get of terms lumpy, that just know could can run that squeeze some bit one clarification. last the at

Douglas Schirle

to in obviously better bit the last with the be the corporate or the been talk past margins should XX% we will years the and in be going terms our because - to the our longer of so, mid margins than Yeah, And recent me doing of of of those are term in product, be average. couple a let where where that we've know RadHard little just minimum. XX% been. believe terms of of know In nature business APU, the at we've the then We range we're and what the we business margins net manufacturing. or

would in we So we of the the the would to be that to term range, that so information somewhere long XX% about in be margin years. the XX% couple certainly XX% gross we're to at is next looking expect hope

Robert Martin

Thank appreciate great. I Okay, so it. you much.

Douglas Schirle

you. Thank

Operator

from our of Jeff you. line the Bernstein question And next comes Cowen. from Thank

Your line is now open.

Jeff Bernstein

Yeah, guys. hi

RadHard the SigmaQuad. Just on a quick up follow

about revenue And going a have that had who talk that's is either think XXK, you interest. had be be that earlier said said customer the you you clarify maybe you but on the just year at year in would bit? end, to I that I that else Could part added another the that you revenue was going someone that ASP right? little expected guys that or some that that think to - to and

Douglas Schirle

Correct.

have introducing Mb we two SigmaQuad-II+ have one offerings, NBT. XXX and been be shortly SyncBurst introduced So is will XXXMb we've about then the talking first a also or the we

targeting very were first goes. meant that it's far one that we for quite XXX one funded program, the programs the natured the part. of that one as the we're - which is design what is we $XX,XXX funded actually added And ASP, them a was as year. around revenue a not around this Mb, and we numbers was end that was there two different And of of but So that said, is similarly when

other but hasn't may got looks it the it The like happen. it one, funding yet,

So may the programs we in both December have shipped quarter.

order than And that - if first slightly and so to will anticipated number production larger our just happens number be. be we that that had revenue

Jeff Bernstein

Great, thank you.

Douglas Schirle

Welcome.

Operator

Thank you. [Operator Hennig. comes Carl of Instructions] from Kurt And our from the line next M. question Caramanidis

now is line open. Your

Kurt Caramanidis

about little coming? different I you some of the at conference Can that Stanford of and how the or with guess about that You helped talked that's work guys. Invedia kind where talk kind Stanford. and relationship to [ph] did seminar with how at after a had Academia just you is bit with uses did went you Hi,

Douglas Schirle

Yes, in certainly do Virginia. and on we to at certainly to going I EVal that's in to of certainly forward put have we came we focus us what or present always it's - for it. we there. That's opportunity and kind when certainly a focused The strategy is, and us Stanford the the be demo jumped them going are mean occasion want to boards,

area a them us for the drive an take So be basis other can University really focus ecosystem talks Academia on and particular case-by-case for type of certainly that's up will that help family. because our and we'll open

Kurt Caramanidis

anymore then Okay, a find And to website the see review because on you some demos fast the I the was could it that and at so webinar again. on presentation Is were kind get if interesting slide, search then done, great. some speed didn't recently of not get it that I that I went thought to by there can't was that quite least possible? because

Didier Lasserre

definitely already is that with. this it back we just Didier. put webinar did I've a we the put the and from that. on the Chris, request for website. But haven't Yeah, it gotten out We group get will

Kurt Caramanidis

showed your niche and and good where a helpful how think things thing. and it - is great. that's because differences Yeah, the Okay, I

Okay, appreciate it. I a thanks guys. lot

Douglas Schirle

Kurt. Thanks,

Operator

And comes you. Thank from our Kennedy of the next Jim Marathon question line Capital. from

open. now Your is line

Jim Kennedy

afternoon. Good

Douglas Schirle

doing How Jim? are you

Jim Kennedy

you you government that to Good, one it? at it Do quick it hands customer's demand in point or put anticipate non-government APU, at. from when the customer's over when hands prefer you into on at testing to do of terms sources it is for some question - potential looking look would other and equal or and ready

Douglas Schirle

wants There's certainly the access a XX folks and it's guys early that both of line and Classic the on government.

say. both to over mean anticipate favoring boards heavy both or certainly I that's entities both sure don't I - that from sides interest other. we I is want we it's into The the So get make and one certainly should segments

Jim Kennedy

you. was Great, okay, me. it from Thank that

Douglas Schirle

Yeah.

Operator

turn over And to Shu our I question-and-answer for session Lee-Lean you. today. Thank concludes like that back would the remarks. to closing call

Lee-Lean Shu

us. results. We report with you. fourth joining forward look speaking for all again you you Thank Thank to when our we quarter XXXX fiscal

GSI Technology (GSIT) 25 Jan 182018 Q3 Earnings call transcript