GSIT - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's Second Quarter Fiscal 2022 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. are Securities the and uncertainties filed Form and the with Exchange risks described company's in XX-K These Commission.

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

Lee-Lean Shu

Good afternoon, results. us financial review and our joining to fiscal second XXXX you thank quarter for

sales our troubling XX% as and reduced basis. year-to-date marketing result investments quarter end, our and industry. net we year-over-year increase revenue build only $X.X up of SRAM million supply to loss revenue in support the increased to gross to the fiscal to of XXXX. in fiscal cash second short-term of million chain earlier expenses XXXX, of had by and Nokia, quarter half fiscal of in launch compared products by quarter and higher second year-over-year the XX% revenue provided million the opportunities. nearly a the and a on despite sales efforts ongoing We second compared guidance first XX% of to $XX a has stabilized high quarter equivalents the end new and a cash, to At the our $X.X Our XXXX for is profit, modest of challenges through are XXXX operating that in At customer, largest fiscal pipeline

cash the profitable APU development solutions. Our and support and of launch flow legacy the SRAM Gemini our radiation-tolerant devices business to is pending and generate

opportunities. continue and our with advance key ongoing We Rad-Tolerant to initiatives APU

APU. the have new customer and the in had engagements for are beta We engagement current few a for progressing customer both categories

the long-term allocation is for prioritize the to the which given continue we capital to our of all towards the opportunity value APU, company, of We to our central the new, technology. believe the unique

supporting ANS a conference event a The be in in in global least billion is are own evaluated importance receivable GSI all NeurIPS that important ANS. this recommendation. level, conviction teams challenge U.S. help to a building credit performance. the as competition regarding becomes how algorithms AI The a of the legal the preprocessing APU led versus that costs, to conference receivable To consume APU. search data and of TAM Several for that just bill. to of ranking and the our be calls, search market represented strategic mentioned time, scale establish We in machines. evaluating from rural first miners generating being the discuss enables all We information own $XXX recall analysis market against over includes benchmarks its We In as as Recent between for of we systems. panel the applications. more our labor This this call, on large-scale and data, our mission-critical billion. approximate who now Later I recently typically typically of with for building, the to consumption the is A&S the on Power one the XXXX to grows. advantage estimate -- investment. The important the search our a size members problem submission latency, ANS to launched create labor datasets. competition of application power KDS algorithm the by to committed tradeoff in search and nearest and power detailed powering as our scale as will approximately effective industry on teams Didier scenarios, assumption treating the database implementations latency were Microsoft illustrate A techniques and search, vehicles. discussed detail scale is in search, relationship will the requires power December. selected in part by leaders organizer search, have NeurIPS APU's is challenged their are our thought be mentioned datasets will acquiring on at ANS as crypto investment is power which strategic in run even power challenge, and ANS a are these large scale. judge print of on to the lower designers is winning important X advance consensus structure approximate an to at much Participating kind its as recommendations vector our for hardware. we know from consumption hardware such efficient hosted large big a fast enterprise-grade, academia. containing annual for at the is past is processing accuracy, throughput, tradeoff. Rad-Hard today and

a design This become hardware of centers. will new increase data footprint more of component the electricity an specifically estimated and approximately global data-intensive centers problem Here used energy future X% in hours The or the within as Global meaning major be IT a of designed AI-centric, centers doubles the for will carbon likely that of centers couple efficiency years, eye-opening XXX-terawatt are data of X power statistics. the use. furthest sector. chipsets growing amount to data workloads data have XXXX, and every by any of area consume continue

strategic the require panelists, numerous usage GSI saving competition Solving We this our challenge typical overall opportunities relative rank of other -- lowered of because power of total for document power one search Two a the the footprint. building technology. submission technology GSI participants Like -- and ownership. have competition. is will VL to the in organizers costs. will much problem to hardware in the our that dealership smaller system approximate scale and our a brings cost enormous can applications

we hope course, Intel, visibility launched We last Microsoft, for our garner plugin. with our that AWS k-NN other leadership are Nvidia, hardware a by a outcome mentioned other submission on increased we leading Of in vendors. with X.X call attain and competitors, AI Elasticsearch and our including OpenSearch partner to

We are early still stage this in developing of the opportunity.

have in functioning pushing of timing been had of out a our data the where delayed, At We initial protocol new have time, an center the has we this X.X the Valley demo. customer OpenSearch Silicon server our launch. release

of the is OpenSearch once our released. facility in next reversion open round to our next customers goal our XXXX. will happen expect of calendar It's We to demos beta

with quarter, of our in This competition. we in the participation GSI profile raised industry the ANS successfully the

team forward as radiation-tolerant announcement are and GSI We pipeline NASA. and opportunity sincerely of The tirelessly shareholder. that of our data moving I of been in fellow competition your goal to GSI have our followed for business. thank leading the recent with a the profile raise building the success working the APU a with has customers support prior with you

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

Didier Lasserre

you, Thank Lee-Lean.

segments SAM. defined Starting total global market is As we our Lee-Lean and identified market, the grow on based billion our and XXXX the a available TAM, $XXX the search total to the the TAM applications billion market, estimate with APU we approximately or have data, also available for $XXX we CAGR in XX% serviceable at by XXXX. opportunity of to the APU most will believe or stated, relevant and are available

facial is regards Taiwan, our time faces back object segments is a It's a Reidentification our weeks SAM vision Elasticsearch be of object at our unknown plan we beneficial a recognition, we any broad Our factory. segments growing this a include in supply solution. many and aligning automatic $XX and Computer now is or allows XXXX. identification, one is are image a down a like SaaS service helping. supply we in recognition, one, a photo XX% engaged with industry, in tight. in used face that are $X.X due we their target constraints computer in dense capacity, and engagements. have previous database These on remains is SAR With and search lead patterns now facing up -- a include when image sorting chain to and we to our where chip analysis which NoSQL, market facial back and customer Near outbreak cybersecurity registration, note by mapping. reidentification. are relevant. semiconductor for object chip and term which billion we OpenSearch, opportunities is but of all aperture the where robotics, vision, was and which markets X objects place. where they that drug support for substrates includes billion recognition, synthetic which is their subcontractor to in There that the captured. In X-year highly warehouse multiple body COVID June recognition These to with term, currently XXX% fire our not recognized companies, is ongoing in and as related XXXX, to such shut substrate market radar, to markets The in to had suppliers, image have with assembly discovery, are

prices, prices XX% wafer the rising TSMC be -- for means Overall, assembly effective assembly are prices costs, I'm and labor announced all cost, of orders. -- increased impact increase costs substrate our customers. wafer becoming at the are recently the increasing that our costs we Regarding all increased we wafer with sorry, new increases, price looking we in new to will charges of expedite

revenues the to of net shipments were XX.X% period million XX.X% of XX.X% and to for -- SigmaQuad ahead. quarter. second revenues in now compared compared $X.X a $X.X sales prior of the shipments XX.X% quarter call Doug. XX.X% hand in million of were the million ago period Military Doug, prior to to shipments like XX.X% breakdown of quarter. year the to to defense second in over of quarter 'XX the please quarter. net and ago, Sales of to shipments net or XX.X% Moving XX.X% of the in in go of quarter prior XX.X% a and year in Doug Nokia the I'd XXXX. were fiscal the same compared sales $X.X quarter second fiscal to or sales second comparable or revenues the

Douglas Schirle

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

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

March $XX.X ended XXXX, of XX, of XXXX, and XX, investments million in period in of a income and Second XX, interest provision of other September $XX a compared at quarter, equity Stockholders' for investments other first other March long-term short-term included quarter loss of $XXX,XXX million to XX, $XX,XXX loss included At and ago million ago. $XX,XXX and million Total capital compared the Working orders, as in $XXX,XXX. and cash not net $XX.X but some tax We a year. tax a $XX.X investments XXXX. improvement. expense and pretax the $XX,XXX investments compared the a with and modest preceding In to the September million stock-based constraints no year provision net expect the $XX.X chain million second as impact equivalents next was year in net having chain XXXX, fill to the to prior quarter net to comparable still million $XXX,XXX equivalents as year XXXX compensation a $X.X expense period ability of in expense expense of short-term the and $XX fiscal versus our cash, $XXX,XXX significantly our and $XX,XXX March interest and remains and debt. constraints on XXXX. compared before of XX, tax interest at company XXXX, there cash of million September in was quarter. do see fiscal and supply had cash, situation income benefit same $X,XXX of XX, these $X.X The we has been was from all fluid, supply long-term

net for Operator, to this with point, $X.X the Q&A. approximately XX% in million, gross of Given these expectations margin current quarter upcoming range the XX%. call to third $X.X we'll of variables, to are revenues the million open at

Operator

Instructions]. [Operator

question first with from Our Gill of comes Needham & the line Company. Rajvindra

Denis Pyatchanin

is few a Raji. for Denis This questions asking actually

show you on to price So the question to increases. the When do customers that that off in passing about I'll line? just price expect your with increases will start top you're that a the start up

Didier Lasserre

all X. So we orders of and new December backlog are changing as

Denis Pyatchanin

it. the that got APU. new Wonderful. kind other the All question to was orders, relating I then And had Gemini-I of

How chain Can seeing is APU I volume us being that? this -- of you met? production supply in update calls the quarter. beginning ago, kind or volumes? a limiting should the give milestone think current constraints on be the you that that mentioned the Gemini-I production few Are Gemini-I an some you on

Lee-Lean Shu

I before we component preproduction level, the for still think now, in mode, already From are demand the doing challenge it. we this the means the software. is But are right see Yes. is think, qualification. And the the that which on major I still we

of lot We for have customer. the make to ready a software API

So the will that hardware major be software availability. -- for barrier the

Denis Pyatchanin

that get saying that to is ready, you're you will production So kind the Gemini-I? once actual of the closer software the one step of

Lee-Lean Shu

application Yes. point the are need to of We win From view, with we just ready. hardware the software. yes,

Operator

of Our Jeff next line question comes from Cowen. Bernstein with the

Jeffrey Bernstein

the patent, optimized for and it's people not provide on you from be set Congratulations you can patent, to structure just compiler see and there's that in-memory chip were issued on important large the to you And a libraries new to use. that software for guys here make instruction SRAM guys the computing. for going easier

on the So detail can what us you there give deliverables those? the just for are timing some and

Lee-Lean Shu

months I think year. think the really doing things do awareness. spreading XX right are now, -- for a I is lot we a we We of

the a and think compared We the industry. to what have good made win in to performance, solution I work But -- already the to the we still get market -- develop the lot customers. confidence and of of to

-- of have And lot a competition. are as it we -- described have so we the we before, we participating,

And among among we So I our all can and also customers. mean, our the peers for awareness. brand capability demonstrate this hopefully, award. winning is the the

our that's focus So major now.

Didier Lasserre

applications. we is can't to or compiler folks obviously, just a Jeff, that write deliverables, of we're a algorithms as but for -- there's all lot keep to different to And the critical add the to just Lee-Lean of with own that, lot APIs the today, mentioned, the the their up and want because writing stack

stack So is the compiler critical.

to might the have next year. have were by the And be identified. beta looks like do our so into end falling guys. early beta we guys. to of we're that be We the -- going It year it for that And will it to beta release the guys already hoping

break And And with I'm will they'll general will they'll it where XXXX. everyone. for through of and everything try public it, half the and and to we'll play to they'll go it it so hoping available else. then it sometime first be release it XXXX be in sometime

Jeffrey Bernstein

that I'm guys that applications assuming -- et then somewhat object or talk of touched you synthetic are is want for libraries markets And doing make And vertical kinds on going those can that to cetera, for you about you. might vertical to each aperture you are that when like be multiple you certain people. correct? customers recognition, generalizable radar can -- just those of just then Got Is even earlier, analysis so that that easier delivered? of the

Didier Lasserre

Correct.

So you or also have have stack, the both libraries you up, and further APIs the algorithms. the actual

like done either being the things the And done as been mentioned you aperture has SAAR, synthetic for is that radar. so or

and platform. recognition You know it We've for the detection. done. that done already we've been BIOVIA written facial object pilot for pipeline also it It's

the dense we've work process on in the for and doing some are reidentification of We done as it well. registration,

there a already. of lot has been been done So work that's

Jeffrey Bernstein

Got you.

to who verticals covered it So is by using accessible say and of fair these want year, key them? middle start next some will of basically very that be the customers to to

Didier Lasserre

Yes. If is getting algorithms, they our I the with, external like deal want some said, we problem. to entities of a use software And correct.

answer should the their it's relying for stack. folks is, those where we're so for where a that write folks that's to own, want available the problem, on And not be compiler

Jeffrey Bernstein

Got you. Okay.

Intel Okay. market. training there market, instance that Elasticsearch did understand I sales training more to facing model in and little But execution, about the AWS want the on that a are chips. you in what Habana understand an environment terms based part see then guys And out you're the we just of of the in bit not just the

They here? their important have Groq could chips not partners? and among players open doing with, Talk who only are is It big training is invented own as to some partners they're So there about those their that custom look like Trainium Graphcore, chips. outside be the they're Baidu, out Nimbix chip that Alibaba where working own. kind to others and Microsoft of Or at got open outsiders. like of Google the looks

Didier Lasserre

Sure.

point. going you they've chip happening, and that to solution no, a basically open it's going said, our guys we always or do anybody all designing to a to Almost up to going power, internal to bring had search, data accelerate of development haven't certainly, large that's lower own. big it's they're it. you said, or the a have So bring seen But that that's mean with if something I good important the that. we're them,

specific of are very the doing chips a a said, you guys around them. is centered it functions lot lot training, these you as As And for to important of that are are the mentioned.

that what seen is activity haven't for We search, level which of specific focused we're on.

Jeffrey Bernstein

you. feeling your players, delivering of on looking capabilities they offering will at is Got that kinds some these our to be But these of possibly open these and to large networks? instances

Didier Lasserre

Correct. already waiting and a play for we've X.X, and mean Again, demoed on they've on -- X.X, OpenSearch. seen we've but announced that the with us we're already I as that. partner out

open. they're So yes,

Jeffrey Bernstein

you. Got

then And non-Nokia wanted of of before military? just are customers, Or revenue, what's the ask since I customers? customers growing that the non-Nokia sort that's to the of Okay. outside the highest status particular pandemic. XX% on of Any

Didier Lasserre

Yes.

looked So you the we quarter-over-quarter more than Nokia revenue was down at was. as numbers, -- were overall our

our So that. obviously, rest the of grew outside of revenue

in some wasn't saw And sector. in There one certainly some strength particular areas area. it so the strength was we -- military that

customers some by availability order in also and in the quarter. that. year. And shipped that chips half the June quarter had automotive had past Rad-Tolerant do of test equipment, then the earlier had automotive that the also this mentioned. sector things little this We We of the of our shipped it half in like we of for hit the we September of equipment, it bit of end been saw a that Obviously, rebounding last

to quiet bit they up. now so and that little half seems first loosen And in the were a

guys So this quarter back of have come as past well. the to some equipment us

Jeffrey Bernstein

Got a you to you. just to asked That's an the great. which request. sense then makes Ramel, Jim IP get shareholders And largest guys valuation, me.

is that's of now understand that building you shareholders like potentially. significant appraised we're envelope, think biggest additional be I Drive, million you're back would holder. just $XX there worth guys and the kind have. have And the it nonindex at have second looks you your I Elko it that own over to is that that cash think some And beyond asset worthwhile here of

Douglas Schirle

XX lot what's been obviously We true. that buildings on years it is course. believe than the a the in over for worth more books. now, We've That's of

Jeffrey Bernstein

it to be Okay. would appraisal Well, great have of that.

Operator

line of the Reiss from Scott. comes Brett Janney question next with Montgomery Our

Brett Reiss

you in using crypto Have miners, Gemini in any the fact, possibly system? approached

Lee-Lean Shu

look crypto a have at We mining. the

I think, right there dedicated chip developed are now, for in market, the them.

specific design So for it's -- APU is not that.

So a mining doing look though even suitable, the -- that, all are somebody if general okay? revenue the and general believe as the at in purpose usable, so -- -- we But but we Hardly from don't of wants crypto a possibly. we are we that. form not

Brett Reiss

Right. Right.

Now must the done company, it for the revenues engineering is ongoing the Or Gemini system of company? by additional engineering be teams make that into vest the additional the be to in our engineering done must a customer control us? engagements material for that is customers to commercially for viable product potential the

Didier Lasserre

do to depends, both, continue some up potential people to outsource libraries, is and who forward can again, stack yes answer to us keep it that. then to way algorithms, So want there also need they right? it are right? we APIs. too more to more make that more develop many mean, for are compiler that we just applications And available -- there going to But themselves. certainly because, need I don't so The

not it do at stack, have a much to language. basically level. able to it on they'll them, compiler I allow be they'll So will themselves. them registered And mean, do supplying the that higher program to

our enable to we And some is, as need answer well. it their yes, be customers do done to that own of we need and will and the will internally, then do so to

Operator

comes Investor. the Gaspar [ph], of question next line George Private a from Our

Unidentified Analyst

capacity us the superior very testing identify to others example you're out you Just there? the specific that market us on the Can entry specific much of you into that give give ongoing something Can a your with the running with against being last a would question. competition.

Didier Lasserre

Sure.

you bat. give top the right can one the off of I So

my dropped glasses. Sorry,

we now. engaged the with are So customer

POC specifically And SAAR, synthetic where I'm the a about do are today is to the ready We to got is proof sorry, did with off a them we we of are for second which X how X -- we concept, to down aperture based benchmarking a was they kilometer it and kilometer meter of X.X or for them. was X -- X millisecond, benchmark resolution in by sorry. And a image, that needed radar.

so we benchmarking And we CPUs. APU, did and them the on on being ended showed And did up and we all of the that the We them them Gemini, we benchmarking. and on our GPUs, did chosen. the test data and --

so doing now POC And the we're with process definition through going of the them.

And so technologies look chip the three that's our from at GSI. they chose a data application -- is possible the example of and perfect actually

Unidentified Analyst

others? Interesting. the There be for -- to just getting seems defense interpret side. ongoing the is on your work faster military your over of capacity continuing speed the requirement identify military And on on relative that, -- that back side defense you the any that because to speeds. and And space you Okay. the activity to there a higher expanding possibility of have

Didier Lasserre

SAAR, Yes, other and And of ones we've are classification all of absolutely. object the worked there on, a is detection, automatic the about, which are these those military target we've application. Several recognition, ATR, kind such. certainly talked signal applications

won in market. worked processing a ruggedized solution know, the for around essentially of partnered And that our a and is it's space. So applications there an on that then but one we and Micro with calls are several were using board unit, IPU, NASA you was sectors and that -- Space SBIR can as we've certainly which SBIR, what be NASA inference used we

coming that's going testing and SEU XXXX, to years everything it half of time, we testing to, on the to that we And ago, of APU we the SEFI do and follow to so required time and testing the put able discussed, it and round as some almost in X initial space. the did kind hopefully, Gemini SEL back And good. came be on some very first out -- it ago, was was up very, on some are

So going we're avenue yes, continue well. to pursue certainly to that as

Unidentified Analyst

one to issuance many of the got in issuance you for employees I issued? basically, elaborate shares? How been last increase for was this in And interesting. very the That's on have on question shares quarter. that Can aspect? stock the

Douglas Schirle

have of the and actual front me, XXX,XXX but somewhere in I George, shares. XXX,XXX here between don't number it's

Unidentified Analyst

Between XXX,XXX shares? to XXX,XXX

Douglas Schirle

XXX,XXX That must to be somewhere shares. about XXX,XXX

Unidentified Analyst

I see.

those... So

Douglas Schirle

And you have fiscal then some and exercises. purchases ESPP the the option year, of since beginning year,

this some just past options. so, for I we of each believe exercised had week Directors Xs out there fact, or In two And Form those. there are

Unidentified Analyst

And been any has some Okay. -- to there that All is time being outstanding? -- are the shares here, right. for there at the has this in of lower stock been point, marketplace recover that purchasing

Douglas Schirle

haven't We now, year over if a asking. you're for repurchases any done what that's

Unidentified Analyst

right. Yes, right. All

Operator

[Operator Instructions].

John comes Fichthorn next question Dialectic Our line of Capital. the with from

John Fichthorn

a you of guess follow-up buybacks I million it was since as quick doing a why maybe wouldn't million $XX asked? right with question, a and now outlook to building $XX the bright last cash and I've got share to be ask

Douglas Schirle

stock. the XXXX long netted Well, in back March offering. already our of repurchased we've in $XX $XX worth had history shares. buying and public We of over a of went we've And million million

that sense But think it is our But cash that, want sure at already we've bank, the that market development stock And in APU but very we're on was. IPO understand just large makes all based to the of that. -- cheap. at the cash successful. work we There that. in already to is is market this a there's keep we off make we sure in Xx going this the the what have believe done yes, we're We taken, stock we've And make to and feel that And dollars, very we given be we're with repurchases, that point a point, successful to still So efforts. that the with do. addressing terms exciting terms product. we of

John Fichthorn

to it question, leads my second go-to-market. sense, that which really about Well, your makes is and

You've talked you're about going a proof of concept, in.

You've talked in. about you're competitions entering that

also talked You've a maybe that knows or potential are of customers who competitors. even in-house number acquirers your about

it's don't either, pushed extent like love of me fully QX, off missed guess -- that. maybe willing point? QX on And the know next so is to the I it, this I I'd understand that kind of you year, don't although sounds you give to maybe so but I to just strategy until at granularity much go-to-market now And as you're kind of I as don't what it

Didier Lasserre

applications. I the all falls obviously, have certainly, so search just applications. right? is we different mean, But umbrella several under mean, a I possible mean I generic search. that's these term, -- overall the

these so the discussed. obviously, our TAMs as benefit And is markets, So is also, that's analysis, this most by segments. focusing. broken where why through solutions? And sees the up Who it gone TAM right? go-to-market well. That's we've which value the we in where show we've in we've We've where can been

right or value that so process segments the lower it's accurate in going cases, response it's what -- of more our power. In faster these it's And some these some is. customers showing now, more through queries faster -- In cases, responses. times,

it's Sometimes cost. lower

of of put a or to a do racks, could a cabinets solution, in be them beginning offer, for that can what cases, open to is can a One in or have the of it our with other of of submarine and GPU, their eyes, and also require a in a function which to the really it's customers, CPU-based in lot taking at cabinets now some up plane, able stage, certain aspect couple where we servers in to would show their this one while past we're you. benefits mobility van, the a conversations but be solution,

for they so well. mobile And them be possibility as that be the have that that's solution the to -- that things able to understand suddenly one of -- all can there's to

John Fichthorn

I down I little should Maybe though bit -- get drill on a it.

There's signs or today? when -- maybe lot be either But of proof where you just get a big application application along And that of are And piece going furthest what the and you a proof concept exciting a then for think got applications. do I might pay should that you somebody chain furthest. But You've and this? you're a not we for down of couple signs you the or want -- who this paper -- of the of be? says, TAM. furthest is of are what first there's in do When revenue? what think this in to might applications think to you

Didier Lasserre

I would government in military sectors. and it's the say

the obviously, in of X.X, that the SAAR that's we're the be some instances. be and it I working in would like sometime detections we're probably furthest areas will line. OpenSearch XXXX, kick to mean, but that this down where So object know to be application, going going you

for revenue. it a So It's take a model. SaaS a service. will little longer that It's

to kick longer So take will a in. that little

it don't in kick Some will not, much know and is in, question we XXXX. how yet, The is of obviously.

John Fichthorn

if But X.X, you just of before the OpenSearch will customers revenue one NRE? from even this it's year, these defense-type have

Didier Lasserre

they'll need, -- be not But they'll board, a these is boards. the -- where a I under happen answer Possibly. is buy X let's out, themselves there. a at want to guys. prove again, it we and folks. they go easy timing of military really is, -- results it's not talking want may volume year. of were of or board gives we end that the predict The year. least This then from hard mean, we're timing we're It But The now, with early and we'll always should on the what them the POC it and kind this may is predict what that is into not clear, gotten and here. a with to test still it the is by imminent they to couple purchased the have about fall next

be of will it onesie, things... twosie So kind

John Fichthorn

And like real is like that really revenue, XXXX? SaaS else, or being something either production revenue of recurring in terms so

Didier Lasserre

see to next earlier Again, I mean, year of next than hard yes, when half that's of year. into way exactly second half would any I yes, don't not earliest. happen. fall predict it second really the XXXX. could to Certainly be But going

John Fichthorn

the understand, you everything soonest could right, know be, Totally if well. but when it goes

half So fine, next year. of second

defense in again once specify like Department it But a the inside commercial Defense the you're so are. try get market, And time not instances, last same in the lot in product. the competing department these business, and against guys just other I'll you of making the because I

to anyway. street, no, it specifically? to else on is going Baidu competitions like there going guys the me and is just ship? use the just go-to-market ours, it people pay our you have have us Or a hope we've designed you everywhere just help doors? commercial so the Like for is And quick feet you're inside own like knocking on understand strategy me what is because -- still of And recognize win Microsoft you and and and give guys Google

Didier Lasserre

per folks. search talking talking chip all on they're the some of No, Amazon I -- or we're, And is I AWS. these doing And remember we're But again, like of if again, can't And Jeff But who AWS like -- -- as to, part mentioned kind doing course, mentioned guys to it's of own doing you as It's was really say, you that. said. -- haven't where designs, seen OpenSearch we had chips. generally specific it earlier, their the se. is function. the is I

they're already a obviously, anything doing. is why partner? matches as they've So Because we're it what us internal not doing chosen that

And against will of I we're where But say competing chip we what our and always be -- some seen offering value. But haven't we manufacturers. the kind design. internal when so we, --

companies search that effort within the seen We area. haven't these in

Lee-Lean Shu

of search. of The market. large-scale -- that's first still just competition scale this before. competition started never OpenSearch, couple is a And they have this database kind the months kind. new very search ago. competition -- AWS industry just of have I The mean, and bidding this its we a

can it's best kind do hope hardware in the we started. this far, So the have just job. And of that getting only We is, we perform APU Gemini competition. by seen well

this that So area. demonstrate our will in valuations

John Fichthorn

exactly, is concern in this and my new, very X.X, guess that to very 'XX. is I You're start to mean, might ramp late your to get about new, about I point that right? that we're revenue talking

sitting is I People 'XX, This in or well, right? second we're at and path of there end it's know Like point you're in? of like, path? what 'XX, all don't backup evaluations here just if and plan end should it this at your the Or you be another new, -- still are do the path? one doing so what's having I the very and call at we're no And half It's is have 'XX. 'XX.

Lee-Lean Shu

no. No,

that. than more are We

well, -- space. go project, looking the government we project. the search area other we can the the defense device, mean, develop are which at, is is are is right? NASA I into that talk We that to The the thing one the about the and And is

prime put device development, pick can many, and can into this the this a with many, then to So applications. satellite, and and it up companies contractor many apply many

We it's mean, can recognition. more We vision have registration. type the we many computer sensor Many, we I than do things. So can search. object SAAR. do talk about of

right one will not coming that we thing the it's is And hopeful. revenue and we soon, in, is are believe we hope when production are certain So now, so. but we come

Operator

time, this session. question-and-answer At have the we end the reached of

Lee-Lean Shu

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

Operator

conference. This today's concludes

day. and at lines Thank great you, your disconnect time. have this a may You

GSI Technology (GSIT) 30 Oct 212022 Q2 Earnings call transcript