GSIT - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's second quarter fiscal 2021 results conference call for the quarter ended September 30, 2020. 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.

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

Lee-Lean Shu

our afternoon our everyone financial to thank joining the you continued results. disruption for Good to and results. half impact fiscal to business year second COVID-XX Throughout related XXXX, XXXX financial first of discuss us

quarter quarter gross exceeding million revenue of the midpoint to at our margin guidance. second Higher sales our in was forecast. revenue XX.X%, SigmaQuad The of $X.X improved

they Nokia their Nokia segments. quarter its customers their is from but outlook were our demand, the due as below customer. Second up downgraded to to growth consumer year last XXXX, largest sales earlier spending XX% in for weakness prior were year year's delay year, this other declining levels the quarter, full And plans. offsetting

multiple fronts on the significant APU. made Gemini-I have progress We with

our through to to amaze to the improve new continued the has applications with us processor performance in-memory its revolutionary software. chip's adaptability ability and Our

providing companies algorithm given Learning BayLearn Bay name rate. at developed Netflix, and Neural from XXXX software to including learning high BayLearn the is Hash to Francisco Senior a from of organization a October, conference members up industry. machine speed team exposure new Symposium. our similarity BayLearn the Area offered key held make In research The exposure accuracy few, Machine to event industry technology we the Google, scientists goal community the First, Neural search level the This Apple for committees and bring in to together improve the presented San of for a people advisory Hash, Area. Bay the has GSI. and the of Symposium's by

making and code to Second, will a simply generator calendar for the APU, APU a Python to to compiler in Gemini-I XXXX. write code written language. plan in we machine This release translate code will writing compiler developed stack developers early program to code The allow level to architecture market, high and requiring without tool the programming logic most over in details. popular one-third like the with gaining is of chip the the to them traction in Python load now internal language the Python programming key market. language this

the MHz production calendar half product of a in the XXXX, to goal and final we quarter expect in testing first for start to of calendar Gemini-I. Third, The qualification the mass first is the XXXX. prepare begin XXX

in on the Gemini-I. the progress closing, want I XXXX planned our In improvement magnitude in second Gemini-II, made highlight have family, the capability a over with late performance-cost we Lastly, launch product software to orders of of APU with calendar APU.

In component. APU to sophisticated the addition robust software a very a has architecture,

There APU are software. large four a levels to to APU team have We dedicated development. software

like image for discovery, HAS market drug Integration facial discovery. processing application for for drug specific Biovia and First, search applications. recognition,

enhance to developed APU Second, machine learning algorithm a dual-level applications. We algorithm.

improve arm performance the level will over support for GSI the and the give The This we point, heighten competition the on made simplified advantage competitive GSI various that prize to in Radar algorithm are specific at Ministry it could that conversion, the The and applications. MAFAT If the The on. a prestigious a solutions next top working and official total pronounced changing that Defense GSI team developed animals will more our few of hard We working MAFAT is low radar apps. of code contest, the week the investment. The lastly, And developed. library application hardware this to leaderboard. validate announce deliver MAFAT research the without am award I reward are credibility monetizing mentioned leaders' notified announce earlier, software officially see have because in the Third, to most X,XXX eligibility as achievements, distinguish than our compiler Israeli Israeli software which APU and framework generation. for stack, the, and recent us capability projects learning side. winners. a allow us pleased our MAFAT the algorithm drew of Challenge, Science event is software of GSI X,XXX machine to currently between are for APU. I competitions. Data to and winner, beginning humans launched we the to submissions. this we In weeks, is With challenge, with series will entire of bring participants is the that investment attention stack goal particularly the

that support, awareness. has making pandemic, for technology I your line extended progress build all, shareholders. are COVID-XX for grateful team but thank accomplished are the first we marketing and to of material time been and GSI you my I everything am has Our on to due

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

Didier Lasserre

prior period quarter million of the million Sales shipments XX.X% second shipments to to of $X.X breakout revenues SigmaQuad Thank were XX.X% net shipments compared in quarter. quarter XX.X% the net second the for and XXXX. same quarter. of were or XX.X% a Military $X.X XX.X% were million to of and compared fiscal of second in you XX.X% in XX.X% or in shipments a XX.X% period the quarter in revenues the fiscal the sales of revenues $X.X with quarter Starting of to Nokia ago and net ago compared prior XX.X% sales quarter. defense Lee-Lean. the year the of XXXX comparable for or sales year of previous second

For XXXX change buying the person are in of are customers SRAM communications in our and as anticipate to In close practices. Without released, a workshops, products. funding selling customers impact pace late sales we lack prospects XXXX, is once Changes Sales new new in mostly their and solution. our Gemini-I fiscal moving several will remainder assets Ideally, educating XXXX, communications to the imaging With anticipate our how to customer spend our for the applications. progress communications time constraints new radiation face-to-face calendar access with may investment sale secure national channel related patterns, restricted customer process the the hardened our products targets early established we continue this taking COVID-XX training The fronts customers, current to sales Similarly, requires meetings, distributors top-secret slowed. postponement cycle restrictions. the or and in ability business to space challenging SRAMs satellites year the and demand making tolerant on activity the conduct orders of forward of on facilities. we on sales than of product environment force product usual. for and our test than this backdrop, longer across radiation has we due is applications. process a longer sales segments. Selling and meetings slowed the

and business given with potential we customers calendar the closely challenges to sales said, initial Leda now. That XXXX. large working design Gemini are train wins new boards customers, anticipate of few a educate and We into now

marketing front, APU the in awareness raise our company. the relevant GSI to sectors steps On for and has taken Gemini-I the

to market industry intelligence analysts with leading the gain engaging for to and of telecommunication are markets. exposure We technology providers

can the industry redesigning Our team including with participation revolutionary image we and developer high gain sector. a profile in market leaders' identity. conferences is and are companies recognition for a to and our of our leading its facing messaging solution computing website, events leading align Globally, technology have exposure our in this GSI as expanding to AI collateral, where

All to in SRAM our in the hand a as the to reputation efforts Doug, to innovator relationships leader I over and the of bridge AI to market. market the call new support go ahead, teams sales they Doug. like these memory an GSI build as please.

Douglas Schirle

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

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

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

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

Operator

[Operator Instructions].

take go Pyatchanin on will Raji Denis our first Gill. We ahead. behalf from question of Please

Denis Pyatchanin

you Thank taking my Hi for call. guys.

of a questions. I ask to want couple So

then expect Gemini-I maybe processing this For should of a is doing talk about as the and revenue the mean feedback startups first just Could that in-memory And how one, how different revenue from I little you from product well? AI the bit opportunity? see early some it when to we APU. adopters? other about

Didier Lasserre

the has So so been far. feedback really good

we government with calendar along working been feedback our couple facial that we guys of mentioned, some discovery now the has the to good. some that quarter. a And we have to with in have and And drug As are past very recognition I companies. then larger the talk starting all new been folks,

as as concentrating training. have on now with are. their the where that's is far the Now far how seen efforts is, we everyone compare And do competitors? What we we

similarity on efforts our concentrating search. are we So

who startup does it's the Intel. or So we don't for training, us, a Nvidia or care whether

all take vectorized over. a we us, where For need database and is that's we

are we really not with So those competing folks.

done If done today, search you in look mostly functions CPUs. are at how it's those

some So standard function. really search we using are replacing servers the in CPUs old

Denis Pyatchanin

product anything Kind give terms impact And mix? forward? going then margins is us the the you provide color the Got there can Nokia on about any can gross on other business of you the in the it. Nokia situation? Or of Thanks.

Didier Lasserre

about So that Nokia quarters we been for the is tracking along a now. few predicting have lines

that quarter they calendar what be happened. and down quarter March second predicted recovering be the and And of the would the half that would We have June XXXX. that's in

we and we quarters kind now. two are quarter. so we recovered this the continue have far of the bring at were seen The us to to down back levels forecast then So

kind more of So of the run rate levels.

Denis Pyatchanin

Great. RadHard kind customer you there do of guys really see of is just about that there anything the that? trying person thinking kind the Is can't about differently And about or have of to them then marketing plans in about the COVID? you something doing briefly, issues any that been virtually because whole with

Didier Lasserre

So virtually, has communication. secure it some of work. doesn't be to It kind

out. And within calls or ways. is Phone secure encrypted that buildings. They It's a really there so face-to-face are out. Zoom two some in out. those secure not are we communications There have. also are is anything Emails are are facility that

meetings. face-to-face few a had we So

But to on hampering had One to certainly, that. RadHard. of our the it's do New Mexico effort to that folks travel

As a lot not the that notations the in them. script, in generally have top-secret discussed we the of on does rad-tolerant

starting So in see first it the hopefully if this to rad-tolerant happen quarter and seeing we assuming the are funding has movement quarter, should released. some been our order, next not anticipate certainly

Denis Pyatchanin

That for all me. was Thank you very right. All much.

Didier Lasserre

Denis. Thanks

Operator

will Bernstein ahead. from question go now from Please We Cowen. our next Jeff take

Jeff Bernstein

guys. timing I heard to want I just here. the Hi of make sure Yes. some right

So for megahertz is see APU that HX sales XXX XXXX? you in testing in the now? the I And of right? Is board

Didier Lasserre

So the solution is two-pronged.

the on. board it's chip the So and

solution and looking megahertz have at the what have Leda-G That's who So all are what right what have now we tested we customers our of demos. chip today we in our board. with the call XXX that's

XXX next rev be beginning the the the we would it So at XXXX. chips, which will megahertz chip, see of

in In by should we fact, have hand it January.

in called bit And different Now some little the that month board, Leda-E Leda of November. by solution especially next hand also a board, in requires those Leda-E have we board. should

we January testing at start won't until any So the soonest.

Jeff Bernstein

of speed sort bump. an that's interim And Okay.

to You actually don't have really that? to make some that have sales before

Didier Lasserre

Correct.

we are looking look the and the are discovery the and of some the that facial megahertz is solutions for you So government we at solution fine these drug of if recognition, applications going are like after, some at, military than we in even where why XXX is to Certainly, performance megahertz fine. said, bump a see there we offering And we are that's But XXX like the have. what them. applications you the further megahertz. XXX

Jeff Bernstein

you. Got Yes.

scheduling? May what Or Gemini-II, the have XXXX, think, will I in you that on then did And you say hand? Okay. was that

Lee-Lean Shu

We the have of Yes. a calendar end will XXXX, chip said XXXX, hand. we on at

Jeff Bernstein

So the XXXX? calendar end of

Lee-Lean Shu

Yes.

Jeff Bernstein

Got you.

some a it to Okay. radar applications that or targets UAV what subsystem are go, whatever like? and is design they before Computer APU, of et wow, Great. or in buying superfast, off-the-shelf recognition And just that long Mercury of signal this like actually of great, then is? for of drone it in and and you terms So that, guide for cetera, is like to We can in that things the the guy signals, cetera. applications want right, that processing using it have kind look that. cycles for a CQ they et RadHard be How use is if does and military specializes talking

Didier Lasserre

So to question. that's predict. good hard a It's

the do their So thing we obviously solution first is, the hands. need get in to

we we anticipate, arrow, So just two have have military we boards this anticipate mentioned, folks yet, kind we purchased quarter. more the market boards the we already the the that of that should sell to have two segment kind Leda orders bought already and you have segment of Leda don't five but in that

customers are within And so realm. different all these that

to need start with they playing the board and so get And it.

microcode code in already. Lee-Lean generator them we until ready to earlier mentioned compiler how But January. be full-blown the going write Now, isn't stack their a that showing as we have a and talk own to were

be compiler are get to throw year early that's And into one next so or now. if be to their be to started can kind algorithms they feel language, it and high-level If they looking before write to softwares going of they to that. do they own, take a of looking our can are their at able able

So at hard predict little to point. it's timing this the a

Jeff Bernstein

you. Thank Great.

Operator

no time, there And this appears to Instructions]. questions. at [Operator be further

So I you conference like or to would additional remarks. closing the back any for to turn

Lee-Lean Shu

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

Operator

concludes for thank That participation. today's you We your call.

You may now disconnect.

GSI Technology (GSIT) 1 Nov 202021 Q2 Earnings call transcript