GSIT - Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's Third Quarter Fiscal 2022 results conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. At that time, we will provide instructions for those interested in entering the queue for the Q&A.

call, Safe has Harbor today's read that begin following the statement. we the requested company I Before The matters performance discussed could forward-looking that statements in risks cause this conference future involve and call actual events results. the uncertainties future and of Technology, regarding GSI that may include It's materially anticipated. from to differ those in These Exchange Commission. described Form filed the and risks are with XX-K company's uncertainties the and Securities

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

Lee-Lean Shu

Third our Financial Good Results. us to afternoon review you joining and Quarter XXXX for Fiscal thank

increased XX% medical and Our third and automotive, as as quarter measurement basis ability to telecom, well quarter. and chain including the in revenue customers Nokia year-over-year the SRAM lower by increased offset of Gross and by challenges, to our points defense, XXX margin military order orders test in reflecting grew manage due base, network customer The order our increase improved supply sectors. year-over-year and from a other from near-term from cost.

ended and quarter a cash, XX% Our $XX.X narrowed investment. equivalent, we the shorter by lead year-over-year loss and cash with million

API develop GSI to effective system, with based This and software. engage like customers. end SAR including APU the a license, Elta improve Elta is algorithm SAR [Indiscernible] exclusive system of potential processing week to The we with profile and allow the technology. contest using launch Contest sell to capabilities, to SAR algorithm other Last and performance. IAI SAR who R&D APU GSI acceleration GSI our parlor, resolving our place our our year, our the APU increase ways awareness value propositions. our challenge, introduction beginning to industry in further first these also are / challenge XD The the team in to an all Gemini-I the and all February, of of can how on to algorithms market and unique in API which of for our the R&D search. plan provide for capital the we this prominent was industry for leaders Contests and outcome. release leaders will lot Nearest Approximate stack, than and our that The calendar software We in contests We broader showed and with library to that overview of performed the Neighbor At target APU, in resource APU in continue includes the continue Gemini-X. Compilers to GSI. to our Challenge. results software announced the technology Search this the of software among Billion-Scale a us table in for his the by teach In extend all GSI to perpetual our the in Didier end build all Elta. the image much grant development we (ANNS) system GSI a XXXX, such AI, the customers. section. applications The the will encouraged on-par to develop allocation the prioritize on an APU development -- with were a found fast

our system Elta for engagement APU. POC continues POC and the the that team increase the pipeline a is The deploy in will of Assuming activity GSI build successful, to customer volume.

agency to processing. proven The end that the we space APU low-power couple detection are deliver well-funded encrypted results, of a APU Elta chip ready contractor that the move test scalable consumption, have resource develop differentiator be database search influenced and best engagements a and few current target once eventually now In of be and The to testing back, POC key and very better considering the This competitors. are a to chip targeting to for project, A and the text, the already power And POC a impact natural market. image large, of trained fulfillment. continue portion is strategy We deliver we Gemini-I with include the rapidly are good application search worked more discussions POC significant APU. capital to remained are chain search our our performed in to in cost we to decided we APU, variety training large and well total constraints We've who footprint, for design a for production. for anticipate recording reducing low-latency, military medical ultimately a pursue to for for live Because indexing Supply seeing language user facial and object efficiently, we instead has wins, this A search defense will committed of and we to configuration. markets applications. testing, made interested the and our that market. lowering addition we strategic with Accuracy, technology with smaller market. the dedicating years -- to decision our all [Indiscernible] a recognized to we to consumption. SAR organizations applications, all level may prime ownership, search the order search recognition. a a had engage several in available We decision. cases of in communication, for and

improvement, fluid. While remains the some has situation been there

But year price factor concern not this and passed we do relief some significant of increase from have the expect in of the have the before end We on [Indiscernible] XXXX.

to on will the APU our of crucial be will we We our fulfill operation the provide the chain technology. year all in in-hand prepared orders to This the groundbreaking year comments. quarters fourth all have increased upcoming the a outlook feasibility that have supply focus for managing that for quarter proving

milestones our taken technology less the and of age. capacity servers important [Indiscernible], shows customer print up in and spend lower Stack capability release end February. capacity breaking the release Compiler This along ground the are adoption as debt -- AI a sale Our to of

are potential the It The exciting our an We focused achieving our for their who to early opportunities. recognize help pipeline customers is run. stage engagement continuing our APU while for new Stack applications. and grow GSI in current to path build goals engaging should customer Compiler team is with us our for time

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

Didier Lasserre

Lee-Lean. you. Thank

now, the e-commerce multiple that fully various our with is opportunities use field for align and search we best In and we suited. team is from feel APU are applications that lean the Right defense seeding bear pursuing expect have some of the applications this our As to fruit. stated, we military engagements new customer to will cases. the approach in we ranging market,

customer approach supporting depends to end Our the on needs. these engagements - users'

the is For the may to board measure. target the access data vary. and to some, Sunnyvale market their are Since But we Others our in each early a and ultimate opportunity center that applications size engagements purchased Each models, unique also contractors run it at demo. them with Today, challenging loan of also are could of we of then to they prime to some of said, have these development, have broad stages evaluating with many boards. some e-commerce a unique are and company border government applications, processing. eventually we opportunities, all our working an size There's large with looking allocating into the APU have turn market sufficient resources. APU for to orders natural universities language that agency and merit for for security.

these can why You growth could as we're see into engagements, and potentially excited customers they markets. about develop

each expecting design as as wins production. a portion the POC Our eventually for to objectives and entity, to to possible are make to s successful move

of own Stack or own APU Computing be most a an use low applications one the write and Leda-E of our Python of example High acceleration using include GSI strategy Achieving software part As we our vector algorithm soon in functions deliver to edit write the C next and release and specific environment customer accelerate or level. This the AI their in the product. applications important milestone using large PCIe will and APU -- for should The APU will Compiler for move front release collection of developers the fragments training Leda-S a materials. boards. full HPC Customers their Belexstag market, Stack. library case that APU and for releasing is write to Compiler level will steps need AI can to the the developing and adoption us our Performance

and enterprise, at language creating applications As in indexing, I APIs edge. team well object signal as workloads the HPC classification earlier, search been has and the for SAR, image like like workloads natural busy said as processing, recognition, GSI ATR, the real-time

documented as a and server acceleration. that offer a that of highly unlimited of server installed for processor. introduce powerful stack AP in millions detail promises servers. a The we APU APIs the for cloud-based GSI edge per boards alone to support scalable, enterprise technology to the us board. our in searching in search can elastic for build to AI significantly more to of and we provide PCIe hardware pipeline, the seminars the function a tens applications applications. open plan software-as-a-service help of the expand of for compiler technology a our stand vectors board connect To Once The capacity developers researchers capable of also and is The available will tool platform launch market support series and press Compiler release. Stack, is capability can is that APU search an enterprise applications, non-Von-Neumann training The in allowing migration. for specific have We edge in customization

quarter. of we Doug. costs, over times year. Doug, Let were charges hand XX% fiscal customers year a increased and me million in go of of of call the million third ago, the third labor $X.X and for in defense In period all revenues than of compared now assembly XX% are prior quarter. switch chain supply substrate the the period wafer year expediting million the shipments XX.X% the the XX.X% shipments, quarter of XXXX, the third more with breakdown sales now ago, of to $X.X and to of compared XX.X% constraints, in impact or and us XX% to Military quarter. a of in to to customer prices, third of revenues, of sales were prior to in XX.X% shipments In our in lead like to challenges revenues closing, a product or comparable sales compared Lean quarter. please. the Overall, with quarter $X.X in led same or substrate the net have XX.X% prior prices, Nokia prices SigmaQuad shipments as to XX.X% Fiscal quarter mentioned, and third raise rising out I'd ahead, December. ongoing quarter XXXX, to has the

Douglas Schirle

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

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

and comparable versus thousand the expense cash, investments a third of investments to a and ago. quarter provision December XXXX interest expense prior and tax $XX.X XXst, other net $XX and year provision quarter, at Third stock million short-term cash short-term of the $XX no capital long-term second expense of investments, $XX.X XXst, long-term equivalents, the net $X,XXX at million ago fiscal cash, net and equivalents, loss a $X.X thousand year and in XXXX. debt, compared March compared in At million cash $XX was December same net million in a and quarter. XXXX, $XX,XXX included thousand and to included March pre-tax preceding to $XXX $X.X of loss in $XXX,XXX XXst, million we $XX,XXX. interest in for and working $XX in other XX, XXXX period Total With was of compared XXXX. $XXX,XXX and million as had other a provision interest income, investments, tax $XX In and the compensation tax quarter, based quarter of

all December stockholder’s XXXX. calendar year relief our $XX.X these from Where fill as our of constraints end XXXX. of impacted end constraints million of of before million, chain And year has the there $XX.X XX, situation fluid. XXst, was remains some March expect we of improvement, equity not to do XXXX, been have significant the compared ability the Supply As to fiscal orders.

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

Operator

One Instructions]. while poll please, we a At be you. conducting [Operator we will session. for questions. moment, Thank question-and-answer time, this

comes first of Cowen. line the with Our question Bernstein from Jeffrey

with proceed questions. You may your

Jeffrey Bernstein

guys. Hi

is In terms go building that been backlog those not to of that able up? have orders the gone, or that's are someone those you do fulfill, else, to

Didier Lasserre

have it of very of have certainly is it's a where built majority be it may is that said them sitting not gone. and and there it's multiple some is small sources of fulfilled later. With The backlogged we of up. our -- business, -- I will majority percentage mean,

Jeffrey Bernstein

Got you.

then the just And quick on you can Okay. us give update a efforts? Rad-Tolerant

Didier Lasserre

Sure.

the had spoke Rad-Tolerant, in some the past, we out. So we've shipments

In as fact, some Rad-Hard on well.

of so prototype is It device. their them do in discuss, time. for the takes some actually stages. we we of some waiting those this And for booked in testing. amount to we We're actually What another are prototype quarter, Rad-Hard didn't a

that ship couple into for prototyping, Rad-Hard a And hopefully books of years. quarter. the it's will that again, on go So a production now we this will for have a in satellite

So we're still prototyping. to see some starting

a As still seeing, the still we the we mentioned, some challenge the meetings past still -- Rad-Tolerant traction. because Rad-Hard the have. But is a there. bit we're can't of of certainly,

Jeffrey Bernstein

Okay. space parts then some look at ride? are we would some of actually of getting issue the there Where into getting on them. people was before these And a using

Didier Lasserre

Exactly. Right.

So that's called heritage.

job your get heritage, it you easy. is parts very proving once customers space, work that makes So certainly our which in most with

several said they before going forward. customers for had they're In fact, we've have heritage to move wait that

get in, Those want year, going of summer, late last were into shipped quarter. maybe sometime was don't first space. being put on it the when be calendar have that parts to that hoping parts this I our can assembled we're it's the satellites we third being of now happens. and that summer certainly are we to Some so launched year, Those say control

be in sometime customer often space. will calendar that XXXX are We that with and it's right in up now following

but If for our demo would this heritage you we're system recall, us first the that year. hoping possible that in was future, constellation a that's and give

Jeffrey Bernstein

right, All thanks.

Operator

I'd it Okay, like I'm for to [Operator seeing Shu Mr. at this remarks. pass more not back questions. time, Instruction] any closing over to

Lee-Lean Shu

and When speaking full-year you Thank with again. for our you fourth XXXX forward fiscal you. waiting us. results. look to for we're joining Thank all quarter We

Operator

conference. concludes today's This

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

GSI Technology (GSIT) 28 Jan 222022 Q3 Earnings call transcript