GSIT - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen thank you for standing by. Welcome to GSI Technology's Fourth Quarter and Fiscal Year 2021 Results Conference Call. [Operator Instructions] Before we begin today's call the company has requested that I read the following safe harbor statement. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of GSI Technology that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Forms 10-Q and 10-K filed with the Securities and Exchange Commission. pandemic. are by by may or by COVID-XX risks to will be these the amplified be in global of currently and amplified continue amplified Many the future

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

Lee-Lean Shu

more over highlighting and The test unique COVID Gemini-I. sales XXXX and media in the us we XXXX the products some made quarter slowing for joining cover We thank Doug and and remote Israel on to good to sales products Afterward we our our progress receiving Schirle and highlights today faced and on the APU from our results. afternoon the and fourth market benefits. business. Fiscal Didier largest both of review financial challenge an its by that bringing full the by to you and technology. several stay presented APU customers I in year pandemic With year, XXXX We will on fiscal our our these results. update unforeseen comments and on global said, year will coverage, brought from review is fourth our customer. Good challenges focused Gemini-I with advantage year objective Lasserre Gemini breakdown. data year of Despite fronts. our key increasing a groundbreaking detail fiscal give followed to for launched quarter cloud-based and of past awareness US centers demo

including have does. heightened the data, The semiconductor the Neumann third-party for a it CPU bottleneck section. recently our certain requires data performed. is received CPU only truly to positioned bottleneck memory fetch system have every Neumann big caused will Gemini by of Elasticsearch address We profit the several Gemini will the and problem. in to don't the validation operation Didier company solutions APU architecture. applications system Von They way the it Neumann instigating discuss limitation the any of that The Von Von architecture. the architecture how this leading eliminate attention for believe to which facing the Including introduced system the have eliminate We is to We refer new the model. Neumann also bottleneck of to problem break separate actual the bottleneck. remove This others. Von solution a The Von Neumann bottleneck

APU size a we defense are and to favors that solutions. better less significant growing search the and traceable centers ESG Gemini offer the data we favor that growing the us. the look trends we and data is of a solution topic trend will consumption press, radar and and big AI compared the on With the can the new on that from resolution showing our The synthetic the search. Gemini a in finding in our similar with heightened architecture is aerospace latency and model and customers that power our applications working rapidly increasing APU, ballroom SAR and are investors. numerous power APU power how the consumption in which use we images Gemini break architecture scalable a workshop times. power aperture a focus When or Enable be in sustainability in reduce area process the Today radar, on consumption where One where in and/or at dramatic we the memory. reduction power. awareness application is architecture Neumann reduce revolutionary puts held ESG example with demonstrating von has and for are February critical of consumption exciting demonstrated a increasingly

server Looking five significant operating power is based GPU the years power at installed average XX% on the used small a costs and CPU Gemina the or the from reduction over APU less in be can This solution. portable cabinet.

consumption, not only total solution decreasing this lowers as hardware greater machine. system much of Additionally power but overall the delivered require Gemini well cost investment. low cost own

with to recognition the server found. the system a CPU CPU back-end that compelling and use to is same facial GPU data and cloud Another and DLH search traditional comparison vector feature memory

rating Here model identified. final match the incur search is trend the the and and in GPU the

CPU With with again, APU simplified. CPU place On latency GPU And required our and reduced. the sending the highlighted and Gemina power this capability. calls, When Gemini rapidly. the have Gemina APU, installed more the fewer APU process means is less search match to is the GPU eliminating are is or I on along cloud the is software found and take used. data previous This

ways has our finalized have Leda numerous and and applications, mass our demonstrated are board their we a always with for capabilities. production qualification improve to The offering team, track are the to finding software We at and capability soon. begin new on Gemini-I GSI, in

GPU the for above. of entries has technology compute is database search, bidding the in Because been it very within large at k-NN as will a exhausted, difference Elasticsearch Like calls. such use and challenge CPU to search constraint is to or those scale ideal how moving due be last database, k-NN search using found. with the working make a with could year's Our

the in processing The and reduce and the latency, Instead core massive per less APU processor. power. of the With itself processing with memory the performing the differentiated the Elasticsearch, a already APU APU of of the query acceleration array storage memory directly. cash convergency by, close k-NN by become more second provide is

existing space, advancing vector we Overall, this surprise of customers to lost many the world's recognizing in year Gemini we worldwide Today, is them also but GSI. offering about excitement less revolutionary engineers Gemini-I with is over APU. our all I’m bringing technology. solution with commitment and times. with loss new the XXX during still APU progress have was of to at attention. very employees' XX the US continually bringing potential who products XXX excellence support of engaging in The a of service potential are ways, are customers, and we the business strength on As received exciting, patents customers. with team, GSI our grateful this for of the us we to all challenging are we the APU doors for our Along solution has are in my and these of and challenge. many to our search restricting for SaaS delivering technology COVID

the customers. SRAM be military the and Our on and will defense telecommunication continue prepared networking quarter and for essential remarks. our his comment second fiscal Doug to products outlook in

now Didier. will Didier, the the the our over progress highlight I will call go marketing performance. on sales to who Gemini-I Please ahead, and Now, hand review business segment and

Didier Lasserre

the of comments: two like to plug-in Lee-Lean. Elasticsearch, NASA. the with recently I and announced GSI party in my things the X on Phase would you, third validation for contract touch Thank

to The a which is an party scalable Phase open makes Micro, issued as the announcing background unfamiliar from noted unlike rather software; independent will search broadest gives Using that a for force than speed month board We documents a we also step that: compared for At it most an access see two, this behind has for retrieved of an release contractor real-time the go-to I'm for a little and contract. stores tested as the demonstrated they develop Elasticsearch optimize the The contract solution the XX.X to tolerant prime is demonstrate six-month process. fastest to goal which one, and be NASA which the satellite million to the popular a it's the IPU, APU IPU. and the item X earth and for real-time search the on in NASA contract These the the an APU with other why XX% that APU, searchable first Phase is platforms of highly possible applications. and the Switching flexible powered response by Elasticsearch earlier supported sourced to Space is feature enables the press multiple with space are Gemini plug-in predominant APU, potential our to the methods observation Elasticsearch name. to those hardware Gemini results, showed engine. faster with so popular number for radiation is project, IPU great X references searched a one the performance four typically Elasticsearch by tools This known proliferating other search. for Elasticsearch slowest free XX% vector a a us one inference giving the applications. published and What them milliseconds were Recently product a the Processing IPU party. missions. Gemini third They solution. next way allow many it's search become across fastest query references release awarded is X key usability than visualization Very Unit, was Inference along queries. them sorting also that Gemini portfolio and on its First, to visual the methods. search is by Phase functional sorry scope solution Phase and search. batch Gemini mission. -- impressive board improvement

a million design where to fourth we and very fourth I of year. it a Once this able qualification will quarter satellite XX.X% of XX.X% stabilize revenues the next Military shipments say to compared to estimate XX is net we in two to or in a also our earlier of were our of more Sales that million year ago, call XXXX. fiscal Doug. report XX% and optimized quarter. to quarters. be to million or for SigmaQuad for shipments, excited category period satellites, and a quarter for year a over Nokia revenues the quarter. The fourth this quarter year the be been receive $X.X sales compared be will with and Nokia sales to improving this quarters have is or to chip. to defense our before radiation third we Nokia to the go to the preceding net demonstration I'd in are were Shifting -- expect quarter compared to X this last and purchase ship early revenues we product. SRAM past XX% that NRE or the Please move XX.X% the XX% constellation. to to in with ago of of $X.X be hand portfolio order $X.X We have launched quarter. note, funds prior XX.X% hope net same product the of to product. received qualification. continues hope of the slowly for sales in different in in Phase anticipated We of year to XX and prior be we coming late the tolerant testing business now PO year fourth will board to pleased On Doug. best-performing week, like Rad-Tolerant ahead the year. to XX.X% XX.X% sales cover -- using the we months am used Ultimately, the We begin and breakdown

Doug Schirle

Thank Didier. you

million million year. million Total or due in the $X.X fiscal the into included due the $XX.X margin diluted other XX.X% $X.X profit. and fiscal preceding compared X.X% and the in of quarter. year for included a fiscal quarter. from interest compared $XX.X loss million And the other Fourth a $XXX,XXX $X.XX to primarily a fiscal income million decrease March in XXXX, fiscal million $X.X $XX,XXX XX.X% an and expenses that income $XXX,XXX prior a XXXX, quarter. Total prior million or year diluted $X.X XXXX was $X.X in in to interest of were to per in operating the a XXXX the quarter fourth gross million $X.X reduced were loss XXXX XX, expenses expense comparable in mix The million as in net net included period operating income earnings decrease due year tax of $XX,XXX. prior $XXX,XXX and March development compared million quarter in March At compared primarily million Fiscal were interest were million year a of income fiscal in quarter. as and we of XX XXXX. net $XX.X the expenses to million compared XX in quarter. for and fourth diluted margin loss ago and cash or and prior with share Stockholders' loss net of the revenues range million loss the and to was of compared the $XXX,XXX was quarter, Fourth $X.X at $X to compared to our in and selling third net net operating $X.X year to and quarter to XXXX research XX provision $X.X in the and million $XX XXXX fiscal investments XXXX. $X.XX net $X.X loss $X.X $X.XX million expense million an $XX $XX.X fiscal to was million The the period cash, the million benefit of the ended XXXX. revenue of compared Total fourth and XXXX ended year tax the to year. next-generation Selling, million third million operating million operating loss investments cash revenues revenues million was of to XX% $X.X million and in a XXXX negative million compensation compared administrative changes period increase net and in net $X.X compared of at fiscal a $X.X XX year $XX.X per the XXXX. $XXX,XXX had third guidance XXXX, tax the XXXX equity to expenses is $X.XX compared of range a and fourth the margin and other the the fiscal XX.X% the third investments, Working quarter loss tax development share year. release quarter the quarter were to products short-term of XXXX. quarter per primarily of compared a the pre-tax $XX.X net above and and provision March property $XX,XXX range revenues in $XX.X loss $XX,XXX quarter the fiscal within and In and million, $XXX,XXX at equivalents of gross fiscal million $XX.X during revenues. Fourth quarter XX or provided previous a quarter $XX.X year of reported prior interest net $XX.X of loss of XX margin fiscal to gross XXXX in year of stock-based was in XXXX, the in the in of For administrative investments prior operating and gross debt. to was a fourth net net was cash from $X.X $X.XX of $X.X Research loss quarter of of of and revenues and of and compared an and expenses for million XX, per to XXXX, loss quarter. of in million, Fiscal Research in long-term quarter to and million our long-term of expenses operating for XX.X% impact a million in other being million share, prior period manufacturing equivalents of diluted $XX.X of $XXX,XXX to development share a was in of million or million loss March The compared general $XX.X revenue of for million same intellectual last XXXX, $XX.X per the a loss in Gemini charge overhead $XXX,XXX for of were in XX%. million in margin of incorporated reported net $XX.X a XXXX and provision $XX,XXX the company in $X the quarter share, March capital million $X.X in in million in sold March compared of short-term a to in million operating of other with $X.X to approximately of diluted million were chips. ago. cash, purchased interest ago. XX is fiscal in expense the we Gross March provision change ended $X.X in $X.X the million net The prior preceding fiscal decrease XXXX, and and no general $X.X and of fiscal and $XX.X $XX.X XX.X% Gross year of ended prior March prior revenues compared prior XXXX.

Our $X.X to of range gross revenues $X.X in to are current the the XX% million quarter million margin for XX%. upcoming net with of expectations approximately

stock. on discretion open transactions. the program, Our be security dependent time-to-time private of repurchase The Board limitations other or law to of us and we repurchase the shares have at Dutch under per in will repurchases from time of acquired and has purchase XX,XXX,XXX self any of may offer million authorized without shares conditions, in prior shares Directors price on $X.XX X.X purchase at a timing at common market be share shares Pacific our Under management's repurchase market a amount August -- a repurchase suspended auction -- date, XXXX. terminated notice. under we of modified Dutch including for completed tender program total may repurchased or factors. To

average Our in March compared additional shares stock to under up with repurchases at million, of to the been approximately in cost of authorized $XX.X of $XX XXXX. net our to repurchase $X.XX million XXXX, total repurchase a was an per of value our million of for have March XX, management cost $X.X On a share program. proceeds IPO common

purchase been has repurchase We had shares, repurchase but active have to continuously to programs price low too our shares.

Given the Rad-Hard, mode. when manufacturing will point Rad-Tolerant significant and conservation we in the the prices this APU a uncertainty the we products cash economy, generate open in and of Gemina uncertainty rising revenues Operator, are will call Q&A. to at

Operator

Thank question will Hennig. M. you. Carl with first Caramanidis [Operator Instructions] from come Our Kurt

Kurt Caramanidis

Thank thought win saying -- mainly it now that for double the Rad-Tolerant, I a Gemina that? the for Question NASA you. we you're that that's solution win board. counting but of then? Gemini is are a as was kind Is

Didier Lasserre

Correct.

solution, Gemini the is but chip. it Rad-Tolerant our be will version Gemini it So a of

some I you on we the X.X results and the I years some think came if very recall spent did back Gemini. about promising. testing It's time, very, been radiation

And testing the took beyond Rad-Hard. of Rad-Tolerant, we short but so, took we -- certainly

we solution So work feel very comfortable levels. that Rad-Tolerant the at will

Kurt Caramanidis

in one you other then facial for signaling some Okay. it's Gemini, recognition? win point At What were talking is confidence your things. about design level a of whether and

there calendar say anything close hot? warm XXXX, is let's Now, for

Didier Lasserre

Yes.

there segments. pushed they say. could Lee-Lean premature to a Could when that still Hard chance in some about in to to of hit. have design script, now, of talking in market phase. as we're lot in in So say It's calendar get hit those Is Right we spoke Possibly. might we're XXXX? out? a it different customers his certainly

some occur. to predict revenues So it's may hard when

Kurt Caramanidis

some time in or going to or design path there we view get it, question -- -- just sell wins, there? keep else would until the something look not to thought a Okay. maybe And what there you point bigger you or partner, if able maybe help we where where do you say or bring is is then someone we to license how you're or maybe is a get a

Lee-Lean Shu

hopefully, right as Well, and I get concrete use And more very ones meeting we will have get will mentioned have we now. earlier, a more customer I we productive feel the a some we along comfortable the obvious do that -- some result. with

it's from in us definitely to And licensing, demo. of are the do terms to But in consider it. talk Okay. for marketing the If we go will customers. worthwhile still IPU, thereof not we in we

as if there's customer But it. a specific mentioned will then work a worthwhile with definitely on Okay. big we area I

Kurt Caramanidis

or Okay. extend Doug, have that? say might then I buyback, or you apologize, restate can I missed that. you heard Did apologize. I conservation, cash you expand I the

Doug Schirle

it. million to shares with we'll opportunistic Yes. and have repurchase We $X.X still available be

Kurt Caramanidis

Okay.

So of unchanged? kind that's

Doug Schirle

Yes.

Kurt Caramanidis

Yes.

have Thanks Okay. lot. question. Am still more one a Wait on? I I

Doug Schirle

Sure.

Kurt Caramanidis

or The you have Have is had any heritage Rad-Hard, still in wait? launches, that yet? you reached

Didier Lasserre

the talked about for because us of So as difficult we've Rad-Hard a shutdowns. kind is area of now

will be satellite heritage to of constellation. this by That of ultimately of going right year most not recalled a we're all and Rad-Tolerant an you're two hoping us PO that part got of that next require days mentioned some we've we're meetings or to elusive I however, happens ago very that are opportunities will The national we about. year which face-to-face unable just the end that's give asset now. talking beginning As the for if that kind a that but a Rad-Tolerant, demonstration do Rad-Hard the as be

Kurt Caramanidis

Great. Okay.

a lot. Okay. Thanks

Didier Lasserre

Thanks Kurt.

Operator

over you. conference Instructions] are At I'll now questions. [Operator this turn further back time, no there the to

Lee-Lean Shu

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

Operator

We conclude for conference. Have today's day. thank does do That you. an participation. you your excellent Thank

GSI Technology (GSIT) 8 May 212021 Q4 Earnings call transcript