GSIT - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Please stand by, we’re about to begin. Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology’s First Quarter Fiscal 2021 Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. will the for Q&A. we entering interested time, for queue that provide those instructions in At safe [Operator the that following company Before has statement. Instructions] we requested I begin read today’s call, harbor the this The and materially risks from to events performance and conference matters that future discussed call include cause regarding the that forward-looking Technology GSI differ could those may of uncertainties anticipated. future statements involve results in actual Exchange with Commission. are uncertainties in company’s the described Securities filed and These results and Form the XX-K

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

Lee-Lean Shu

thank us disruptive technology everyone, XXXX processor. has truly a afternoon, our to developed financial the results. for Gemini quarter quarter, fiscal and with APU first Good our GSI review you joining

whitepapers in Recently, funding Linley a our leading Group, overview indication a including few whitepaper APU the semiconductor recent designs is for in [ph] performance analyzing from We of to industry Gemini’s analysis, the April, published our model compute documenting we functions. Very message human revolutionary are the several detail function [room] the to the human and market from computation data, advantage the APU. with supported performance to and facial discovery, and and in-memory with are the the out [bidding] Both in as To growing working memory related item search computing having on closer ultimate publisher customers now do the for that, recognition, overall processes. benchmark and on on whitepaper application, a available database. [ph] advantage one separate competitive military software Recognition the dataset, solution on describes technology on drug an of give website. examples. application. paper getting defense in This architecture their

performance, solutions Beyond tremendous capability. software and also enables Gemini’s hardware

massive datasets. cost architecture power. data systems more, can footprint expansion processor/memory from Gemini’s times processor the less and consumption overall XXX growth dataset hardware human allowing of search the removing reducing compute in working less CPUs search with board servers, memory, by solutions of optimal has GPU applications in as installed we competitive servers, whitepaper to installed standard chip smaller can bottleneck. ownership call multiple contrast, we of is particular, processors Each delivering This use search total better this, applications. of chip Gemini very of use on high capability to [ph] and the license. datasets, solution large But much data board, the solution Gemini-I well the into solutions, outcome. pace a for PC to billion load hardware, In expensive. power Gemini’s This the multiple with out that have outperformed Linley more Gemini ownership, require PCIe beyond of Group’s the total manage combining XX% greater the making cost that records drives reduced Leda-G Gemini’s datasets. limitation plugs The the significantly own Gemini a by or application. boards. when smaller advantage working now With by for this keep and for which and have millions linear and with scalability increased for systems with XX by has while standard power for highlights CPU dataset upgrade GPUs designed exit [bidding] as and the shown

such As and conferences magnified by technology, we under COVID. with GSI with face company a are build and Resources our unfamiliar customers, on-site process business to restrictions. pipeline, become and the business challenge enter industry new workshops, could unavailable sales as which COVID more markets engage our training

and experiencing challenging Europe these everywhere, connect are and X quarter brand agencies. build [indiscernible] with and We indications for with government in and is North Gemini-I. California America, The more Asia to awareness

we year calendar Gemini-I As challenges a achieve. have in result, the allow to goals more that for XXXX set

is environment. also by is COVID impacted our reduced business this visibility legacy the Overall, restriction year. Our business in

$XX application cash a these we and with of fiscal in challenges, said, in Nokia no boards field remains customers have are on progress financial the in balance improvement year. to anticipate our early adopters. strong with with making the total shipped we balance half As second solid footing Despite million sheet, GSI on with debt.

expect this application. defense We discovery, year in few drug applications, the win the various DRAM search to and recognition facial military and see

earlier, the Leda-G stated I and meantime, tech the improvements In yearend we have software this team front. focused several sales modest of is as our by So board on at and time wins design AI on limited hardware XXXX. visibility by

increase providing Gemini-I’s improved performance. speed By improvement power [lispo] further have consumption. and [ph], to Gemini-I to lower we First, continuously we anticipate

are to the adaptable software to developing readily provide we solutions. customer tool Second, the with develop

software. easier supporting own and language write developed GSI So to for compiler will launch compiler their with for will we the a customers instructions. that The is programming it APU-specific Titan-based make researchers

is simulator deducting interactively. and tool generate developing own is high-level This automatically stage software We program. and will internal design machine to software allow see in calling also and language APU also undergoing NanoSim, are visualize array early the a processing that from allows to prototyping. manipulate APU their programmers of instruction code a NanoSim programmer and

a including search Library. to Search functions product-specific is developed a libraries, for We GSL GSI GSL, used support few have short completely database. inside

technology collaborating Resilient Computing. give GSI’s and on High-performance, will for ecosystem solutions partnership to K-NN a GSI function an We Neighbor, Foundation KNN, as access of higher team our used technology the For per example, The be for supports well variety as as knowledge with is experts. to Center, develop our National improve awareness the billion-scale of research. and a Space, GSL FRACTALS [indiscernible] research, wide like Science Project technology. K-Nearest or SHREC, used to molecular on increased framing APU

Lastly, making I’m we -- as heavily and shareholder My to committed investment developing goals APU. are GSI, invested monetize goal in the on delivering CEO well. team the of largest this our is to fully

company it of as at our to strategy our crucial thank evolution our We that successfully. to point shareholders. a confidence are execute We semiconductor. have sincerely in legacy from a shareholders our long-term parity your in understand an we the support I innovator is for you to

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

Didier Lasserre

companies the want we will on in Lee-Lean. and the and project in community. is to it already universities, technology, to partnership working improve the defense This functionality. tolerant from using is the and work. advance of Linley is to and with be I creating for will the lines leverage k-Nearest Leda-G radiation of references agencies made has a discusses performance flexible product you, suitable us community. The our tolerant our solutions with databases. FRACTALS the Weizmann board resources our some brings sectors. paper, like of also members highly radiation Thank collaboration new government Group the biomedical identifying is search many GSI up and that project FRACTALS Neighbor, In us it APU. Gemini Lee-Lean. SHREC paper research solutions. based points as APU’s GSI’s to to sphere GSI, that SHREC, large making influence benefited is focus molecular this this k-NN, space characteristics. new hardened, radiation increase Their k-NN white performance based help Institute working resources and relationships this analyzing algorithm for SHREC pharmaceutical data military implement expand expand data molecules easy of covered known in partnership able and by And classifying on similarity, for their with on focused sets on from to

at However, GSI lots record a technology helping in of CPUs and fingerprint. COVID-XX Institute its performs for The Institute using board search be a of search is Leda-G treatment. limits Weizmann to use need database search performing in excited k-NN this the loaded molecular searches with million XX the the researchers costs for Weizmann computational with application. this memory high performing k-NN of

the boards, the XXXX Leda-G too out processed different flexible load data be bits in or and gigabyte be performance when X.X X.X run only XXX fingerprint ways, on and of they require become to bits the The long APU’s complex. as entry fingerprint searched. handle would XX.X set per loaded into XXX design, as database stands gigabyte. The take even would database that Given XXXX CPU-based board more than and can on comparison, fingerprints, bits can of formatted and such APUs or can the XXXX million fingerprints such database truly seconds Leda-G X.X hour bits X as to a more By per a data CPUs. XXX on The X set system. has megabyte to larger taking larger

important sequentially. which multiple of compared is performance differentiator feature APU, the which in searches, the to the can batches time-saving search’s ability Another the an improves as them This do GPU, cannot instead, for parallel data. but This APU parallel X searches is in also. queries do parallel do process to on ability a batch

to GPUs a X.XX Institute the or discussed loaded same COVID-XX For structurally the in Gemini-I or will researches are to Weizmann compounds search query Weizmann CPU active the COVID-XX. by to in compounds single identify and the on develop on as take may different for second, seconds. million patients. efficient. that researchers of example, the useful an seconds above are researchers Leda-G searches Gemini process APU molecules in Leda-G fingerprints card cannot board severe that molecule with time similar function perform their on The the board is perform in not as database using antiviral to APU Leda-G drug per in XX effective prove accelerate in-house new recently the to rapid data Remdesivir for The a be can – X very set compounds discovery uses XX shown structure queries their at treatments queries board, for COVID-XX of to similarity The being XXX molecular the treating treatments. and X.X Remdesivir, used query

efficient. the available of faster We earlier, generation Gemini-I stated AI enhanced moving the ahead having this As making power more version Lean later APU. are target also team and is year. an next The we on

fiscal Sales our the the Shifting Nokia We stages of XX.X% of quarter. or of million to in period and XX.X% quarter and Military/defense of compared of a to to same in revenues prior to to ago $X.X period first XX.X% a shipments in XXXX $X the hand or in sales net compared of net the quarter. the prior and XX.X% revenues year Doug. SigmaQuad million were or year please, awareness revenues ago like chip’s are of functionality. Go shipments and were XX.X% first XX.X% I’d quarter ahead, now early compared sales prior first quarter first breakout the shipments capability were to Doug. XX.X% of in the building call over the in for new quarter. comparable million of XX% the $X.X the to sales quarter. shipments XX.X% the in the of

Douglas Schirle

$X.X to of of first prior Didier. $X.X or $XXX,XXX $X.X share, periods. on first expenses margin in quarter to were loss revenues fiscal fourth margin million of million for $X.X were prior development fourth to fiscal quarter compared per the $X.X and million compared $X.X net the of you, $X.XX net million primarily in on sold Total compared the of in million $X.XX first XXXX $X.X XX, million the quarter. prior in Selling, due XXXX was year million quarter. in in of XXXX, revenues revenues the loss loss XXXX. changes first to quarter million per were The the diluted quarter net expenses previous share year $X.X $X.X ended of gross $X.X from We XXXX of of or diluted XX.X% and year reported Gross general net share per the quarter and quarter. $X.X period million million period quarter compared XX.X% expenses mix fiscal Research net and product the and $X.XX Thank fiscal in to the for in compared quarter. were operating fiscal and on million in to the June the the million in of net XX.X% a up in and prior a $X.X XXXX, changes the million a preceding million in the or of prior in $XX diluted X quarter $X.X administrative in

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

compared period XX, and short-term investments long-term $XXX,XXX investments XX, to tax had in First tax $XXX,XXX settlement million in years was March from $XX.X March XXXX, quarter and XXXX through $X.X of the and the interest XX, no XXXX provision included XXXX Stockholders’ and and resulting June other fiscal fiscal million company primarily capital year Working tax of $XXX,XXX compared short-term income net $XXX,XXX, provision XXXX, as $XXX,XXX and to included quarter, other XXXX. equity in cash, audit in and loss and of and cash cash million million of the pre-tax Israel cash, in XX, the million interest a million income fiscal a as $XX.X compared million In and interest debt. ago. XXXX, million provision At $XX.X June a to for ago expense a XX, March of income investments comparable the net in $XX.X quarter. ended investments $XX.X $XXX,XXX stock-based year compared prior $XX,XXX XXXX. long-term versus $X.X in equivalents preceding loss to a with and of equivalents compensation for $XX.X year same at first in XXXX was June the a of of $XX,XXX. as XX, Total of quarter at quarter fourth other was $XXX,XXX tax the

quarter second to current range call in the $X.X XX%. our approximately to of Operator, million this the $X with point, XX% are XXXX, upcoming gross For expectations million fiscal revenues of net margin Q&A. we’ll at the open of to

Operator

We’ll Instructions] ahead. Shusterman [Operator go you. first Ari our question Company. Thank take with Please & from Needham

Ari Shusterman

Thank guys. you questions. Ari taking taking my for This question [indiscernible]. is Hey, the for

to can want ask Nokia you. about customers. about first the for think we defense rest Thank how the I versus So of like trending year

Didier Lasserre

we’ve be quarter seen Yes, the then so this forecast up they and quarter the slightly again should from trending up them, after.

down, and trend was X forecasts quarter the holding that. So the the the are anticipated happened. the we forecasted which still half then, to quarter, had up, March And to and second June

Ari Shusterman

you that, it mean, can big, some – said due And about of you. Got you revenue? how was talk delays. maybe exactly this give guidance lower-than-expected more know weak color – you the COVID, to some quarter right, on like the especially I I Can was

Didier Lasserre

already June, quarter we track revenues, So continuously. from track obviously, was if past – And and May before in shelter – very I’m when quarter you quarter. the April the March down April backlog that’s we And was and were look this versus And at May. very of prior steady. then the is of revenue it through before. sorry, June – substantially May steady loaded and the place the part for all was

the And June really you affected it that see quarter. so, could

folks challenge home, have and of I lot So of these that’s place, if a in lot it’s for worked at really folks. never a still shelter the think booking. the you Again, a look from

seeing some of result of as And the we’re a so, slowness that.

Ari Shusterman

just tell one if they’ve you. Thank the about regarding the there like Got If is Rad-Tolerant product. us – any you – anything more yeah, how term? question you. like been coming trending? up near in And Can

Didier Lasserre

progressing So is the well. Rad-Tolerant

We opportunities. have some

close. to The trying bit Rad-Hard little more a challenging. has been We’re

security-type to tend the go at asset so into look type Rad-Hard, they you applications. national of applications, If higher more

over do customers need of that. you can a the and our the to to have there over national should what need. that unsecure is is, be insecure the where those and into these communications reason so, most to aren’t say. of or since communications. secured And facilities right some we we And ourselves now, Well, is done allowed and which the we’re it’s part customers not a shelter-in-place or cannot buildings, that with are to asset, have certain we’re communications the for go that rooms with finding have so of conversations able e-mail And cell-phone, I be

The And more challenging Rad-Hard progressing. so in little a bit this Rad-Tolerant is the is environment.

Ari Shusterman

a big expecting? for you’re Got why it. such that decline is there gross And margin,

Douglas Schirle

down? clearly. repeat did Why go come It it the didn’t through question? Can you

Ari Shusterman

Okay.

So to XX%... the XX%

Douglas Schirle

product gross strictly gross fact the is also margin a and – yeah, that mix Yeah, the down. of revenues the margin are function

quarter. impact continue the back overhead September just to higher to also the in It’s got in and margin. higher June being it quarter ASP or gross on of to margin, It You’ve shipped be to expect shipped lower, quarter. products impacted the forecasted we get the quarter

long-term and up Our more. Rad-Tolerant be certainly sales or it should with business above well XX%. And existing new then again, Rad-Hard, XX% and the APU outlook with business, it’s if picks

dependent think experiencing thing, right it’s conditions on short-term now. I we’re just the business a

Ari Shusterman

you. Thank

Operator

And Cowen. ahead. Please question our from we’ll go next ahead go Jeff and take Bernstein with

Jeffrey Bernstein

I million this. partnership. follow Yeah, high-performance Department there exactly? that the just or the computing Energy in getting research? money how you this to was of funding Is Are does work I SHREC some on hi, wanted guess, to of allocated recently up that this $X.X was federal

Didier Lasserre

so not of we it or with. it? Yeah, that of as involved consortium grant. get a group it’s What Think is a more

in And gives actually it other researchers, again, a And PhD into in membership professors us does so, access it And prime fee it. it get government folks contractors have universities. in also, then has what there, it. like these pay at that it’s candidates, some you along to folks to you it is with agencies to are and

agencies but these we we have with that researchers So why getting that additional are to important want these we us to into only us. doing access it’s work exposed and and contractors, government also professors the is environment are not for prime

things so utilize to be our ways an looking at other at besides we Leda-G the we’re board have at to board, on if looking in able and using there, they’re As the and that and it they’re for FPGA, enhancements, look other applications Leda-G FPGA what functions, we you mentioned like, script, improvements for.

to it’s ecosystem the build and a get for help the also So Gemini way exposure just program.

Jeffrey Bernstein

Thank you.

Operator

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

Kurt Caramanidis

Hi, guys.

the if early other that adopters. will it early shipped are to you wondering year, Weizmann said that’s prototype get people the I’m are You there if just this adopters. or earlier

Didier Lasserre

the purchased actually board? That

Kurt Caramanidis

Weizmann. prototype purchased the or had shipped January, I in it’s February. then And sold whether commentary mentioned, you through think adopters. either a early to Yeah, then And

means? So out I’m what to figure trying that

Didier Lasserre

Right.

So actually correct. –

have boards and X one prime a out last the a actually the one to Well, government U.S. – actually another them they’re more agencies. that is agency of we shipped So government is gone in

see – so of probably the of continuing, SHREC. It out end with with We should these a boards by may few We and have certainly we’ll And quarter, we’re handful but year. that boards that shipping. entities. more work have trend ship this not more will ship the other to especially it a should doing see the gone

Kurt Caramanidis

Okay. Thanks.

Operator

Jeff from with go We’ll Instructions] Cowen. Please Bernstein a question take [Operator follow-up ahead.

Jeffrey Bernstein

Yeah.

Rad-Tolerant, the Rad-Hard on Just opportunities.

Rad-Hard, I they’re to have think Rad-Tolerant parts around can’t Is space things you space. to the of who’s think also lot about one ends needing work. a some going that true you you into and get if with And in obviously, want satisfy you find to do well? meetings of long desires have guys to people’s Rad-Hard taking? actually have up know as talked these to that How somebody to put

Didier Lasserre

Right.

that so – is them heritage. space called So putting in

have offered a offer Folks is been a mean Rad-Tolerant themselves, of different is heritage really have kind I hasn’t they the folks Rad-Tolerant market. parts there Rad-Tolerant space. Rad-Hard that, gotten used commercial And what issue. more fact Rad-Hard or either The is that a but parts. the actually that much of historically, the market So

prices upstream then a to some the product commercial and were to Rad-Hard so parts And didn’t take happening of to folks required would through what try them that pay is testing. and want have was

doing And offering we’re taking we’re them a so away from just what them part is that burden and instead.

under we’re at least to the in most So fall heritage, not going same cases.

heritage with that fall to the Rad-Tolerant. issue Rad-Hard going not We’re under same

Jeffrey Bernstein

the hear I pricing so using up lowest the using I – shelf. they’re you talked that in commercial that guess, – case aren’t then and just people, these the a off-the-shelf it And fine. people appeal a satellites I mean, orbit of type works commercial lot of there off of differential all Great. sort applications, the for long, about, lot to and

going to So other insurance are that that serve after? you them sort is on of there function? that Rad-Tolerant going policy market the are Or up-selling segments you’re

Didier Lasserre

other So segments. there’s

So for LEOs of said, the you’re there of a satellites. aren’t. and while you the about are like them And talking LEO some some up

You’re right.

up these X there done. Some new or years, for and of launches are Satellites they’re are X happening.

that you be And few that’s so where like that there for are call satellites finding have And we’re or really get you. years, than so the more it all what sorry, up a I’m But – to care. crazy there the going the they’re is you LEO, more folks closer are also, to again, to imaging don’t and Earth important. sun, what have these, issues with

you, of some or projects sun. And so or going to what to Mars the do have boards we’re away we’re some to seeing probes that or what these going is from like things actually going of are these working on, that’s mining asteroids

And Rad-Tolerant things is a need Rad-Hard, to don’t are are so these the out there going that But while. be sufficient. for they

off-the-shelf the you robustness. insurance chance or They of fail have have year. They And some parts of or form and a things within cannot to to have it so need Mars have commercial getting some take months what sending that isn’t going these do to just something work.

Jeffrey Bernstein

you. Thank great. That’s

Operator

to session. or that turn I’m any Shu over the no are today’s further Mr. additional questions. closing seeing call there like would to This I now question-and-answer back concludes for remarks.

Lee-Lean Shu

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

Operator

conclude Once much your again, that you Thank does for very participation. conference. today’s

lines. phone your disconnect now may You

GSI Technology (GSIT) 2 Aug 202021 Q1 Earnings call transcript