GSIT - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the GSI Technology's Second Quarter Fiscal 2020 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 to at advise that being have recorded GSI I call today, of also been request Additionally, XXXX, this the you conference Technology.

Chief the Hosting Sales. Officer. the Lee-Lean Schirle, Didier is are call and Chief of President him today company's Lasserre, Shu, Chairman, Financial Vice Officer; President and With Douglas Executive

turn conference Shu. like to now to would I the ahead, over sir. Mr. Please go

Lee-Lean Shu

you second million. to for review the provided revenue thank to first within XX.X Net results. guidance call and quarter million financial the range of us our XX.X quarter for were on quarter’s the million joining everyone, afternoon, our XXXX of Good XX.X

quarter our Gross Schirle, of in provided Doug margin quarter. financial in the on additional earlier last our to was XX% guidance comments commentary. XX% our results the will XX% provide end CFO, his high at second

for successfully In on GSI exciting second quarter, the we an is fronts. This advanced time chip Gemini-X our Technology. numerous

training We at customer on are track search for sessions applications similarity in upcoming our U.S. headquarters.

benchmarks. also have standard device benchmarking begun industry We against our

calendar our be testing the year-end. before items, database million databases X we of billion against expect currently XXX device benchmarks testing XX against to all soon are with and X We and million million, will of item benchmark complete which larger

calendar our to CAST database large device. systems demonstrate run the We early are preparing to of benchmark from also the scalability multiple year next the

in expected spin back of the Gemini-I later The third fiscal quarter. silicon third TSMC from is

in customer early be In for addition, and the calendar the expecting to next bringing preparation demonstrations ready are boards production boards year. are up we

XXXX. in release our team continues libraries and for algorithms Gemini-X software AI of Our the calendar expected to develop

fortunate our Gemini-II. ongoing very and our and roadmap the is sufficient Gemini-I to generates of support of are our our work budgets. the We team our spending R&D engineering cash focus roadmap and includes product funding which that the Gemini new The business that core the R&D

preliminary we that of device data our processing will architecture. customers benchmarking All with operating a that done our have work and power scalable with our speed the very low shows and increase

distinct the memory the Gemini circuit combining most The software to our chip memory with levels multiple interface Gemini including custom allows impressive expertise. assembly feature is capability programming from python. core core that GSI’s designs design capability of has up of in AI program [indiscernible]

solid path core have company numerous clear exciting new tremendous progress goals and performance vision. thank We on business products for clear to making hard new our ahead making are our our by for our made are and to all progress on [indiscernible]. obtaining my team obtaining There sustaining financial we I we launch progress opportunities work our goals. the on the are our to commitment like market and in their would

will ahead, who in business discuss to go our further hand I'll Now Didier detail. the Please Didier. call performance

Didier Lasserre

to gears Switching our Lee-Lean. product category. you, Thank new

year. We our been have of the internal completion qualifications our radiation-hardness progress RadHard have device of to end continues SRAM. delayed. made significant The on this by sales, track RadHard however,

a program time the program. schedule The legacy decision aggressive the the due made awarded of has with who contractor prime a to design to stay

quarters. are radiation the next tracking tolerant the close programs two we On family, currently two to anticipate that in we

ago million million the revenue revenue second quarter. breakdown. in of In sales of and Nokia a or of compared or quarter X.X X to fiscal our XXXX, of year were the revenue sales at X.X million prior XX.X% Looking or to XX.X% XX.X%

and quarter prior shipments compared XX.X% shipments sales be quarter of defense XX.X% quarter. second continues and our of year the best-performing to year SigmaQuad second last quarter. sales category ago of in XX.X% product to the with a XX.X% Military were and compared preceding to in XX.X% XX.X%

over Doug. go the to ahead Doug, I'd please. like now hand to call

Douglas Schirle

Thank Didier. you,

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

million the Total quarter. quarter $X.X fiscal in of were million were to $X.X $X.X in in to operating from $X.X second $X.X XXXX expenses the in in million $X.X million expenses and expenses the and quarter. up prior previous preceding prior quarter. year XXXX Research of and and million XXXX quarter, million the second ended to in and period million administrative million quarter the compared prior compared $X.X quarter the in in general compared $X.X development XX, fiscal year from million $X.X September the were the Selling, sequentially down

quarter. compared ago the prior operating $XXX,XXX Second period million in loss to year was $X.X and XXXX $XXX,XXX quarter in the fiscal

other income Second interest tax $XXX,XXX of income interest provision provision and net the $XXX,XXX other and ago. a $XX,XXX. a a and a compared same in income of loss $XXX,XXX of quarter interest of other $XXX,XXX for quarter, of loss year fiscal preceding included tax tax In $XX,XXX the XXXX period and included to and and provision net

expense stock-based in the comparable $XXX,XXX compensation $XXX,XXX a Total ago year fiscal and pre-tax $XXX,XXX in quarter XXXX prior was compared second quarter. quarter the to

investments million fiscal investments company March cash year in cash $X.X $XX.X investments At million September to XXXX, million XX, $X in in XXXX. long-term at investments and short-term short-term cash, the XX, long-term and ended had million cash, equivalents compared in and equivalents $XX.X and

net of $X.X range the For the $XX.X revenues million expectations upcoming million, in XX%. our to XX% approximately of gross third margin current quarter fiscal with are XXXX, to

to point, this at open Operator, we'll the Q&A. call

Operator

time. appears go are call questions a of no to I’d you It additional Ari this at the Thank ahead. you. remarks. question Needham for have & Company. turn do there Please from Instructions]. We back to Shusterman [Operator me. Pardon like

Ari Shusterman

Hi, you guys. for taking Thank my questions.

we So the future? the no And delivering provide one the with sure the delay. more and timeline on bit will color now delays how first a to in this? start be Thank that Can off more for you you. can the be product what

Didier Lasserre

product? I’m assuming the talking you’re radiation-hardened about

Ari Shusterman

Correct.

Didier Lasserre

what the decision. assets the delivery for or of made is is shipment and the there multiple ultimately prime responsible the involved entities I mean So contractor the who’s

up the it prime been not a it’s affected well the system. was affect sub. part the program companies yet our the It’s in The of doing schedule higher performance. for a is didn’t – in end a was just space because – pushing subcontractor. So in it that any sub a ended actually this much the the hadn’t products for GSI, also tested but contractor was against of it were they in ultimate products and obviously new gave program At we’re a actually day, contractor, wall new solution allowed this case and the what the that up other all prime with as

of be this our said, went we of what And at qualification, is continue so mentioned with this will I they With need an to design. completed year. which with that old do end legacy And part then put is that it. we into so be the need place, can of push the getting some gets to which next we for in space heritage deployment when program

As far as be timing, the calendar XXXX. But it will unclear. sometime in

Ari Shusterman

it sense. how larger? ongoing? your with something with makes has been Okay. Weizmann the When them Thank How cooperation comes segueing That you. cooperation to your that into being has Institute,

Lee-Lean Shu

as [indiscernible] we identify do Bioinformatics Weizmann for – a a to improvement demonstrate have and to market covered today. helped of all viable us we magnitude us

the demonstrate our view, helped point a to establish space. campaign get And of So Weizmann, capability. biopharmaceutical to go marketing market big from into that’s [ph] with to marketing and us in can I go we touch that we company think tremendous

Ari Shusterman

the estimate product then the XXXX, modeling what the That makes would a to contribution given for – in what be of purposes hardened be would comes And reasonable just delay? sense. expected it

Didier Lasserre

to say. Hard

for next to release be. get that feel the trying because we’re We’re would understand to now when a trying

comfortable I So number there until feel out I yet a it. to with put want don’t

this So to trying I’m all fairly more because news. of is both new get timeframe a a number and

So point, before hold I’m off to number. at this you going I a give

Ari Shusterman

can it year one you And modeling more question sense. calendar say just makes what XXXX to Okay, for regards on APU, the that to XXXX? with comes when

Lee-Lean Shu

No.

I be demonstrating all and our think capability market. XXXX will – most the the the benchmarking to that likely

assembling volume So you you will be more think I also phases. any – in the will

XXXX up come think I in volume will that period. more significant likely

Didier Lasserre

testing would like they and already we’ve boards had customers the the buy who So for for evaluation mentioned that have to the internally.

hard selling be predict when for boards individual basically those testing. trial So actual for kind It’s purposes to will in. production kick we will the of

Ari Shusterman

right, All from That’s Thanks. you. me thank today. all

Didier Lasserre

Ari. Thanks,

Operator

of Hennig. comes Our Kurt next question M. Please go ahead. Carl from Caramanidis

Kurt Caramanidis

color then end Hi, – will now? testing? on guys. You how seeing APU? in that’s with got you’ll put what we two on some some other something a that or the seeing And next tracking month on can and the testing you will you’ve by you’re When year your have get of said the you What are we talking with I’m get your more. now on release

Lee-Lean Shu

right think the we can we much earlier, expecting now functional the coming our I Yes. but still silicon I back. mentioned pretty present fully benchmark, quarter complete

improvement initial in we today. to to solution, with until think factor and us see the in capability. So anyway, a package, and definitely other although number significant we then doing a case better have but all better I general, we a for put are than I a we number I But [indiscernible] fiber the will existing we see it change think don’t to I now of words, think solution publish silicon benchmark use solutions. is say hold have the our the we In complete But want I better again. to demonstrate the our much tensor the we that half-baked think magnitude [ph] back to benchmark right silicon over can silicon, we even number

Didier Lasserre

and performance off-the-shelf that, the that card Kurt, boards besides AP for boards putting [indiscernible] it. on FPGA to and a And add board on now the first we’re board. created itself, we’ve limitations also them an that on doing has is off-the-shelf to we’re

which now we have own a that do through the and that our production use custom board one in board we’re designed samples We would We of will debug in process. have production. going be hand

to have the numbers is said, going off-the-shelf there’s benchmarking want the very release as board, also because we’re board, the we may far the as the good decide we release to that we’re over Lee-Lean on but space public best we numbers. as The the into improvement of we But to internally to performance So on to the benchmark to because show the board. consideration going full solutions. off limited take still what hold-off of sure there current production make we what produce,

Kurt Caramanidis

So year. that wouldn’t be this

Didier Lasserre

If would it’s next year. it not spill to this early year,

Lee-Lean Shu

year. Yes, away. we – year not still talk the far early It’s about latest very next

Kurt Caramanidis

are is kind bit of been second the or your that you’re testing you’re second making board you’re the delay? you why third are a silicon with little So a waiting that or you silicon that’s of silicon, testing using and

Lee-Lean Shu

have are to have concrete we a wafer we also a software picture factors. two [indiscernible]. a cast There more One, then get and silicon

three we testing all tests. right now are So

report So with out probably the will I but first second silicon, the come [indiscernible] think on boards. production the we

can a of phase data end the few back data. published. of will probably more out So like And – then silicon so first quarter, that months next the we course first later, get silicon come quarter of with end we it get will of first the the we will that be

Kurt Caramanidis

Okay.

so So having you’re going when because things January that take a are schedule your it is board will that the you you’re you’ll When the for with training having the have the you’re chip customers when saying office your headquarters. for training and then at or couple be you saying place? research of at on to there’s – timelines, because similarly

Didier Lasserre

the beginning we’re to in be November targeting week the first we’re of either the be going having of or we’re internal in that the the dependent It’s for to going on the December. beginning was So and an through last training November customers or also – training. folks what run

off-the-shelf the for to limitations for is want to the So for for using the training training. have board board, fine. off-the-shelf fine that obviously workshops which don’t the Again, board is that, be the going benchmarking but we performance of we’ll and

the end So you’ll now. of best like November, it’s see well, see or first be not the second we’ll like – right have but looking but I’m or workshops saying I would we’ll December case said week sometime

Kurt Caramanidis

is a that expressed it was few increased handful And months how Has many parties looking? think or I how a ago. that? have in interest that

Didier Lasserre

more will training we’re capacity. it’s that – XX the than holds room probably doing The Yes, in have mostly to a going handful. be and it

Kurt Caramanidis

Okay. would I queue And anyone I not in apologize. I’m so I go sure waiting, there��s but guess back if

If of to was is hullabaloo because you the or an tell? police was mind. chief accuracy I well. you have were able a facial news think at it something indication want, Detroit your chip commentary that Have looking was recently better I any can very Do recognition to do in any early do too recognition that around area that There are may that the software. to some Facial Detroit facial recognition? and that. work there it gotten be doesn’t areas you for comes with the the that you

Didier Lasserre

a with is the done cheminformatics. now what our Weizmann have that demo a right very in all we know working as quick we’re we’ve of actually haven’t silicon was space for buggy. we’ve done which So you do that on a And partner – kind we first

not We strong solution some we on done also we them our that actually What a we’ll current hardware platforms their show have well. do is hardware silicon. software of – upcoming use haven’t demo the algorithms the which second we to very them as have on done with again, have a but though show only

them. off So algorithms based done our demo have which we a of impress

demo feel now about of be on them performance both to Certainly second we’re they we’re a into that point an that we like have very the hit level we to So how accuracy? does showing target a certainly going we’re they them of and and improve But silicon. a talking have are accuracy gotten we going the target easily. of detail haven’t shortly at where

Kurt Caramanidis

can you just talk And Gemini-II. quickly Okay. then about

one do one What is then would the difference? Gemini-I board, chip. what’s Gemini-II So and magnitude

Lee-Lean Shu

Okay.

second we lot the the is along this chip we curve so of all, are doing, going of First learning have a way.

more So because can probably we – FPGA Gemini-I of can can we the like performance do think course with integration interface. one tremendously, better of Gemini-II And mode on have we improved the we be magnitude.

that’s that, another hold improvement. So Gemini-II so magnitude of integrates of cost

across we is then and on Gemini-II product. market be cost [indiscernible]. the magnitude think establish cost Gemini-I, Hopefully, performance point the will I view, better So the better of of a of Gemini-I probably couple it than can the Gemini-II much position performance but the

Kurt Caramanidis

Would is concept? feel say you’ve out that concept of goal with Okay. too it’s That’s early improved still kind you or you’ve your that was working? improved you what it Gemini-I. the Do

Lee-Lean Shu

[indiscernible] Even though a viable the the to Gemini-I but we we viable much a have think product, are that compared Gemini-II in already. the is bigger into and solution market, solution pivot a

in So my even a revolutionary Gemini-I is product itself mind. very

customers. the capability So the can demonstrate hopefully, and we roadmap among establish then the Gemini

Didier Lasserre

limited board, we So board. have it’s benchmarking on done again the FPGA limited some and off-the-shelf

technology not and side. also certainly and pure a also side much much have that And performance. marking our it’s to market yes, better So just But best power is but performance show on which architecture power has we’re the important on power numbers. the this those space. not releasing we does The is lower unique

is the not We haven’t those do performance. like production limited to mentioned, with waiting yet, our So proven do We board yes. answer we’ve that we’re is as because feel which benchmarks it just I out. in released

Kurt Caramanidis

enough. Okay, fair

soon That’s Finally, not doing will that you at Web this point. technologies? matches getting that really a site be the new

can actually You works doing. more have what the something applicable to be in that you’re

Didier Lasserre

for changes be going details, we’re coming. have through those Web some don’t I the know now. there but upgrades do site I will all some

Kurt Caramanidis

certainly opportunity certainly really person where Board saw a the show should. got it improvement I to Certainly for site which I your going. of doesn’t in for lots of about Gemini think marketing and you there’s new do kind you’re it much Okay. Web more with

Thanks a appreciate lot. I it. Okay.

Didier Lasserre

Kurt. Thanks,

Operator

question Bernstein Our Jeff next go Cowen. Please comes from ahead. of

Jeff Bernstein

Yes. Hi, guys.

your on outlook? an Nokia Just get wanted update to

Douglas Schirle

two solid, our be And be normal down quarters We’ve They of calendar forecast the would give next the first received the XXXX. I will quarter be it’s Nokia us quarters why back like to XX this also the a so run rate. forecast. quarter it’s guess and It usually months next two second them. quarter explains for for which the calendar looks really rolling down. going which will

that they be next returning this will rate forecasted second quarter in have So will and down first be normal run and of year. then to quarter

Jeff Bernstein

Okay, all great. much. Thanks That’s right. very

Douglas Schirle

Jeff. Thanks,

Operator

T. ahead. Shoran from comes go question investor. Please next Our private [ph],

Unidentified Analyst

a question training. the had Hi. I regarding

is be going it or using a solution have in else – be? So it play anyone or can app online – [indiscernible] to to to going a is be there you – training somewhere can you is like going office your can place how it cloud by only in

Didier Lasserre

Yes. It be will both.

understand will but limitations we the of a be So workshop, hands-on attendance. workshop the

can’t tell the certainly based. not down but you workshop road the first be would cloud having through I not, So to be also if training be the will that will we long cloud or

Unidentified Analyst

solution will And it you’re about it the talking about? -- Is software how what like be?

Didier Lasserre

the specifically on depending algorithms application. it’s and So for software, and device libraries

As it be the can through low Lee-Lean earlier, from the level mentioned the python. very all way

based. and So library it’s more algorithm

train can the So too that on device. how of they write will libraries their specifically be to part the for workshop own folks

Unidentified Analyst

you are [ph]. software the well – mentioned with performing even hardware package even You current have with the the

are to your to going or from concerned you So solution going more with be be side? it software is

Didier Lasserre

so It wasn’t python I library. It’s gave a algorithm. the an example the – was

specific So the for have the libraries are APU/Gemini. we that

be. on So algorithm, could a The be those used cannot platform. however, separate hardware

apples-to-apples. different So not it’s a – that’s

or to going write far a how As deliverable I but show folks device. we package the library we’ll have mentioned, software possible algorithm with have as the to every that’s own. not package, every their can as possible it’s But

Unidentified Analyst

going future it going be Is is what is about market cloud-based market, solution strategy? your for [indiscernible] example Okay. And or what plan? like for to the your what

Didier Lasserre

and market driven. be would customer It

are So there the hardware want that solution are there are and are cloud. going [indiscernible] going that an going going to be to be to be folks through going folks to

will customer a depending it the on combination be market. the So and

Unidentified Analyst

have. That’s I all Thank Okay. you.

Didier Lasserre

welcome. You’re

Operator

Our comes next of question from M. go Caramanidis Carl ahead. Kurt Please Hennig.

Kurt Caramanidis

service haven’t large as forget you’re Is and too to any enough. can you one. Collaborations, together meeting has collaboration other you had revenue starting that early larger your hardware engage? do do a Like work you see department companies? with any I opportunities IT see someone of kind and it

Didier Lasserre

The initially isn’t actually So you’re what the answer probably we’re focusing that on yes. to. collaboration is talking

we’re the collaboration in right So looking do some now to more cheminformatics.

As solution we mentioned, Weizmann packages software they’re right with now their using for Institute this market. specifically

that about, So and markets with we’re make integrate work sure couple a them. working folks to collaborate the you’re discussions too but with of may type now it’s known soon we started we those we’re talking about – kind with collaboration having in starting of as What there’s to data that as we’ve internal about talk approach. of do that far center what way to

Kurt Caramanidis

you. Okay, great. Thank

Didier Lasserre

Kurt. Thanks,

Operator

like It appears back remarks. to are any turn you at further there no time. conference the to I’d this for additional questions

Lee-Lean Shu

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

Operator

call. participation. your for concludes Thank This you today's

now may You disconnect.

GSI Technology (GSIT) 24 Oct 192020 Q2 Earnings call transcript