GSIT - Earnings call transcript Q4 2018

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Operator

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

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

Lee-Lean Shu

sales carry net margin. will offset in to results financial by provide and detail comments. we Good net increase gross afternoon, fourth of primary sales, the fiscal joining everyone, and for in the and fourth networking telecommunications a in the gross market quarter compared million that the increased decline A military defense on our you the earlier and was we above a both margin year-over-year. and quarter us. report higher Today, sequentially quarter. Net thank provided revenue to XX.X%, in revenue $XX.X which the prior our of additional quarter Doug in his guidance

new discussion quarter In initial products SRAM the our RadHard, associative products, and products, anticipate products technology, aerospace fourth patented RadHard our are the has targeted rad-powered. During we our or we and artificial APU, interest focused for computing in of our the there of defense December X remain calling quarter, intelligence customers, significant SRAM for in-place applications or the namely, been application. our primarily SigmaQuad radiation-hardened, on that new shown We at currently XXXX. with shipments

as ASP the ability to and robust a the the aerospace in essentially the harsh, will to a are extreme the low and of Due profile our these RadHard second design Our By in have ASPs, could conditions, high very rad-powered tolerate anticipate orders compared chip the we RadHard the previously have configuration. we which elevation, temperature for where extremely applications, We not the higher high lower initial line their be this missiles are and laid line military to require with milestones aerospace tracking to product This elevation environments. the SRAMs out attractive them the gross rad-powered carry similar the product would make lower-cost product APU. comparison, half as applications for and applications. designed gross satellite pressure XXXX. the used chip and having for for Overall, calendar in of margin margin. development

APU applications, who industry applications. U.S., the China in We market to the our in the building add a community. we systems, of and customers Recently, the U.S. academic and will security AI experts base XX and broad currently which member technology commercializing We with are for meantime, increase summer. in in pending to checks profitability customer conducting confident first and designs package to the and to rad-powered the completing the our table our market multiple AI the that industry video and support our the and the to our primary we a preparation objective patents and including white revenue hold broaden to base, beyond. quality number potential and we our a improve bringing RadHard papers of highly In alliance XXXX, we business innovative and Korea. end We marketing for releasing and fiscal new APU having SRAMs fiscal fab. our have AI new in We anticipate over across are the XXXX Processing, our parts marketing team, remain anticipate Language the Natural recommender will test been older patents of will execute

Douglas Schirle

ended XXXX, $X.X loss year fiscal we the March For net per $X.XX XX, diluted or reported million share. of

XXXX the XX.X% of prior $XX in million quarter. $X.XX of to fiscal and compared XXXX XXXX. $X.XX share $XX.X fiscal or and the of in and million $X.XX revenues of fiscal were diluted Total net the was net prior quarter revenues in share to Our $X.X in March fiscal operating of year. XX, a $XX.X third unchanged XX, year of and expenses compared XX.X% loss preceding Gross $XX.X expenses XXXX to net margin diluted a year XXXX. revenues $XX.X on fiscal in net in million quarter administrative on income of a ended of $XX.X $X.X $XX.X quarter period fourth Gross $X.XX per XXXX. We diluted per loss $X.X was net million in XX.X% or And net share or million per third $XX.X fiscal essentially net share ended on fiscal compared compared revenues million compared per of of in XXXX on $XXX,XXX million to to XX% in fiscal the $XXX,XXX were margin and for to million general were $XX.X year. net fiscal million the million fourth or prior from development loss XXXX million reported expenses million compared the XXXX. the Research selling, December revenues of on diluted XX.X% the of net

Revenue earnings. by $XXX,XXX Act resulted in was gross operating signed $X into the million operating Code. quarter were mix Jobs million Total in fiscal direct the to XXXX the in was in of Cisco the in ago. fiscal of of $X.X in Military/defense fourth revenues third in Research a Fourth of for quarter $XXX,XXX expenses or ago. prior to million Internal net foreign sales prior period and fiscal XX, in sequentially a in XXXX, $XXX,XXX $X.X value At fourth $XX.X in to fourth compensation in from was $X.X XX.X% shipments million XXXX, in resulting year quarter in tax $X.X product period XXXX of cash year net in year in quarter, cash, prior an same $X.X XX, during investments stock-based the $XXX,XXX comparable XX% compared increase pretax compared loss provision down sections million million of inventory. of prior to several revenues XX.X% ended $X.X reserves of of period in in March and legislation a operating quarter expenses in the repatriation impacted compared X.X% $X.X a reminder, shipments revenues million quarter. or were quarter. fiscal administrative $X.X quarter the development net $XXX,XXX XXXX, compared fiscal same and were were the of operating million fiscal Total quarter $X.X of in XX.X% quarter in from the in comparable $X.X were $X.X in impacting quarter to XXXX. $X.X preceding in the in and fiscal in we million million cash to preceding loss XXXX quarter Cuts short-term March and ago. million were quarter. year long-term December investments expenses and short-term prior the long-term fourth prior $XXX,XXX XX.X% the compared to XX% XXXX quarter the were to and and Fourth third write-down indirect and $X.X million law, quarter compared or an compared X.X% This XX, XX, or $XXX,XXX of revenues the of the in negatively year net the period the of loss XXXX the and revenues quarter sales investments quarter revenues of fourth of and million million million million XX.X% in the million March had excess compared of the the net a and Selling, deemed was XXXX fiscal general and XX.X% prior significantly Nokia fourth of net margin the the ago. million quarter amount net quarter and year a compared Sales to As On equivalents SigmaQuad and expense Tax preceding in the fiscal $XX.X the XXXX sales and fourth $XX.X in ago. Systems the $X.X XXXX or at quarter investments to quarter the to $XXX,XXX of or quarter compared equivalents XX% prior X.X% and cash, a and XXXX. to fourth

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

gross first approximately mass at our fiscal be open We include the expected $X.X product. to call quarter expenses APU of are initial the of XX% in this point, and expect quarter. approximately Operating in XX% we’ll Operator, the first margin expenses Q&A. to to XXXX to million related

Operator

Cowen. take first question We’ll from ahead. Instructions] our go with [Operator Bernstein Jeff Please

Jeff Bernstein

of couple you. questions A for

on you or mentioned could then And there. don’t APU so designs. I talk a whatever, derivatives going you they’re variance think about follow-up. something I I whether what’s additional if about just had know or

Didier Lasserre

are derivatives There at no this time.

us So more all certainly, we derivative will this on, Certainly, get the road device on no working we map on. applications, is hopefully of technology we’re time, into along. adding IoT there we’re into plan the we’re mentioned out applications. this with other using But coming a at that first that having

up and APU our we’re current mentioned, Lee-Lean Doug design. As finishing

Jeff Bernstein

you. Got

really design of was silicon? reference the for the tweaks So potential another to spin

Didier Lasserre

this technology. again, at be tweak. would I of mean, a map than we’re It using products a type for looking more future road

Jeff Bernstein

business Got the indirect networking think you I you. be appreciable guys with side. some there just Understood, don’t and an do of on or I think might other but amount sales. ZTE, question Huawei then

quantify what And band you if up or if anything? might that a wondering share Would ZTE any the be, of for impact to you your little just pick bit. other expect the then So customers could feeling anything?

Didier Lasserre

$XXX,XXX to. Huawei smaller our years. as about ZTE, we’re you ZTE are the of ship year, revenues. customers customers allowed they to become of have They mentioned, over longer no So attributed certainly and both Last ours.

Huawei’s time. not a little shrunk but over they’ve bigger, a chunk. big certainly So

million. trending closer Let if well. to $XXX,XXX-or-so, again, us, they happen were see been year, huge something for hit here, a as they’ve $XXX,XXX, not about about me last there $X.X to But were

Operator

take our from Kurt Hennig. question Carl ahead. next [Operator Caramanidis go Instructions] M. We’ll Please with

Kurt Caramanidis

a a APU? data One, had of is somewhat couple mining I significant still questions. for the target

Didier Lasserre

target. be certainly a will It

though, advantages, recommender the our we mentioned we’ve systems in where see and are largest As search. visual far, by

efforts initially and as the like the other our I spend So be markets, you have that’s to with demo the where But those what we’re data going said, will eval targets boards. boards and mining well. certainly

Kurt Caramanidis

have term? so product or of hands a test do August, Okay. to some like you And when, you these driving, think, in customers’ for of lack would be some better

Lee-Lean Shu

I over customer. products and spend fourth we getting a possible the quite it’s in bit a hands quarter. of we we think amount think I can product by customers’ we ship of the package that, will our before to our have summer, product a to Well, But categorize saying think are can I it time

Kurt Caramanidis

you’d would just be through some or mean, obviously, have I they it work bugs something? And out? Okay. to trying

Lee-Lean Shu

and have our a thing up training have training customer have we to we for No, actually, a benchmark, develop have software library that the customers, or in course kind to the center training of customer. And and all, facility. first well, do a build with the we do of

training then So we have come for in out. it them a hardware to for can and have check a customer

Kurt Caramanidis

okay. Okay,

bit So there’s a little more it. to

cash what a million I base at market let’s your $XX business, with success of It on the net base We’ve your whatsoever say, business is, in sales not thought. Xx position that? though any as or mean, margin. the maybe of valuation. $XX got, Just with based of with cap cash APU is million, it’s thoughts on the appears selling cash pricing your good is, Any RadHard stock the net

Douglas Schirle

control to taken I’m on stock a the of just has day, look not little a but and the of red, a see I think GSI is my more it’s what it’s believe time. we more every Well, are phone, I to things an But of the we market. worth hit recently. we’re not out kind of But in where bit tracking entire indication of today. all market I what than green. hard happening, the much Yes, happens lot

Kurt Caramanidis

the and of interesting It’s I the have that chips kind it’s in Yes. kind late interesting. thing, just we’re of kind you. getting of been hear game and weak but

Operator

the to for this there any call time. And further no over additional to turn at questions back conference comments. I’d like it are appears Lee-Lean

Lee-Lean Shu

with first for us. look again Angeles be we in you Also, Thank you quarter presenting X. Los we joining will all June Micro XXXX to LD fiscal speaking at when We forward results. Invitational report our Thank you. in

Operator

concludes conference now call. all thank And your you And today’s that participation. you may disconnect. for We

GSI Technology (GSIT) 6 May 182018 Q4 Earnings call transcript