GSIT - Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen thank you for standing by. Welcome to GSI Technology’s First Quarter Fiscal 2023 Results Conference Call. [Operator Instructions] Before we begin today’s call, the company has requested that I read the following Safe Harbor statements. 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 Form 10-K filed with the Securities and Exchange Commission.

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

Lee-Lean Shu

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

revenue R&D. and APU Our the cash modest continues gross legacy its SRAM fiscal our software business profit to a of of hardware quarter stable and delivered year-over-year In with first fund on we XX% growth. generation XXXX, revenue increase in

XX.X% in gross retention to the to the was Our quarter. mix product margin related

year quarter. The ago GSI the by equivalents narrowed loss APU SRAM result, for the cash, we of net at In $XX.X and a million. the foundation of phase reduced loss we from a As our first of operating short-term business. growth investments with cash have business next provided our the end and supports quarter, the historical the quarter our same

opportunities our We growth Tolerant from further Radiation Radiation Hardened SRAM have products. and

the Radiation quarter. have contractor to prime order in We from expected a SRAM Hardened a receive June

team to a detail on We this there been delay ship to Didier provide more for quarter APU XXXX. continued will The a advance several However, fronts. expect of additional announcement specification second has his review. this the request due opportunities now in to order fiscal on comments. year in

with vector customers capacity, database. cloud and a Elasticsearch.com. deployment The search uses into This accelerates of the delivered as fast the and subscription integration search approach GSI economic be queries provide to The large Searchium.ai growing our ability analysis and launch capabilities accuracy. a providing losing support in and high-volume for users of service, quarter servers data large is image, OpenSearch datasets a uses to launch address in the as speed growth Searchium.ai available Elasticsearch with growing platform visualization or Searchium.ai, real-time workload. only. run of when and a video and for high-speed, offering SaaS few audio Working enhanced market a business success the text, simultaneously. bidding increased vectorized also segment the meeting search factor expect our without evidenced our log scalability without query simple scaling workflow, offer use. table, accuracy. XXX alpha API platform search, leaderboard. a Database to a can and by is accurate to enabling of to provides the is We including SaaS losing The with with customer’s rapidly solution and speed and the big SaaS for growing this crucial platform need, interested rapid

and the available of effort currently available used are for library that to to library In the algorithm select accomplishment host acceleration the from video excited release migrate supports distance APU. add APU a compiler the the [indiscernible], migration place C from quarters. our software customers, The increase and other GSI. efficiency are This linear level win combination to low has intermediate this the sourced big C Using [indiscernible] internally development many processors by supported of of we conditions [indiscernible] numerous and compiler breakthrough python We will at created all discussions well [indiscernible]. APU. capability of over This various that array. security most python are military the under in compiler environment product first shifted large the projects phase. applications is image real-time which APU the to occur application the months brought the application that business of next July, with processing Currently currently mid-calendar library performed development two of familiarity our arose diverse large is as opportunities companies in processing, and data benefit for we Several the APU In customers accurate the of We have GSI being core a to real-time embedded challenge. brings programming general about high has applications development new making the AI in python, provides of the for development external currently are as MoSAIC [indiscernible]. is market. SAR the This algebra, leveraging AO and for intent end we to XXXX. and by early-stage high-level Searchium.ai development the the within speed cost the global initial GSI called previous AO from HD that core convolution, contacts image full of and which to defense fastest XX processor, for XXXX. context, to generally version has stack released calendar first lighting challenge, using by exposure our and with scheduled

have platform. and one companies the to Institute, of the to several new to the connections is facilitate U.S. And as growth and promote of engaging the sponsors development. economic addition, organization we Gemini between result, MoSAIC valuable with In Merage made Challenge institute One a discuss the an was committee business Israel function new

with funding of based APU on of Challenge our technology. This was Elta final existing our we extended Another preparing and Elta/MAFAT. scope SAR is advancing, project SAR is system The the the processor project MoSAIC with for are imaging outcome the integrations. POC

year to perpetual APU Elta shipping Track mid-calendar from [indiscernible] develop agreement Elta sell XXXX, segments. market by NIE pursue made the server The fiscal algorithm. X GSI in In an we algorithm. the the funds containing are anticipating for XXXX. will in being entire and intend projection currently contact this customer to product SAR lasers allow the with market with engagement increased Elta Fast used the new system We are product. of server We with SAR This to APU exclusive to

our POCs XXXX, team proof through products. with we the and need expect the pipeline in outage engagement. manage customers numerous concept from to early process we the further year Gemini to We stage and moving win of ship to building start of initiate fiscal working of and In design are

final have been APU We is at design layoff and Gemini of we the track. are for finalized, Gemini-II next roadmap a The generation of the the stage. has on present and

a point feel a on that sense calendar closing more next create input. on pipeline reduce and internal with shareholder, are highly with and for understand a market. the large speed, team of a add I is for for market intention the that our fiscal a cost the APU me memory, has It on frustration year. I plus We is company We whom taking for great shareholders will over by to level Xx APU value currently and and quarter shareholder are embedded to is the greatly Xx our have my intend that urgency for I people for myself. new on have possible. the current deliver My our goals GSI improvement improve as worked decades. year-end. target meaningful welcome your Many groundbreaking QX expand of Gemini-I. calendar building out asking and offers been shareholders product largest also for that for our know on Gemini-II accountability having some I unit our assure integrated this transparency. the I Gemini-II addressable your the open by I the make and year to to business dialogue the [indiscernible] want performance by turning technology. XXXX shareholders, first

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

Didier Lasserre

Thank you, Lee-Lean.

an separate last shipped Let prototypes with update are our conditions. me Radiation-Hardened SRAM year. or chips that customers withstand the the business. start currently Rad-Hard require Rad-Hard testing All X systems customers X harsh to fiscal these on to We in

prototype quarter. release from purchase we first was The the of contractor delayed quarter. prime Lee-Lean to order fiscal As another mentioned, Rad-Hard current this the in order this expected

ship. parts the ready to have We

So orders parts the fiscal This be year. the order potentially revenue all magnitude order, prototype of will the in once the same last of hardened radiation we have ship. could our

a Rad-Hard for prototypes us. XXXX incrementally of revenues. it product high-growth could move is XXXX And profit these into add if a a few production, As to and reminder, fiscal years

now in million XX% quarter. XX.X% product or in customer net first net quarter million switch ago breakdowns $X.X quarter. revenues first fiscal, sales same and year revenues of million or or me to and to were the In period in sorry, of the prior $X.X revenues of a the the XXXX, net to Nokia for $X.X Let compared of the I’m fiscal XX.X%

shipments comparable XX.X% a quarter Nokia quarter first previous to compared in fiscal XXXX prior made sales shipments tightness. buffer fiscal shipments of sales orders in Military $X.X revenues amounting that and XX.X% first approximately market period included shipments XX.X% ago XX.X% shipped net year for of were were in million anticipation XX.X% in were First of to the and SigmaQuad to quarter. the of stock compared the XX.X% the of first of continued quarter XXXX for defense quarter. to quarter

comment to lockdowns suppliers could delays majority the any to our COVID-related We limit on of year of potential the chain want China the I China substrate supply move last currently current Lastly, cause. chip out by situation. in

the but variances remains that in passed impact potentially Overall to situation the chain increases customers our most supply addressing of actively on cost fluid. suppliers are XXXX. from order fulfillment, could of our were successfully our We December

large industry whole of are prices FPGAs we and potentially for We in leaderboards, are if costs change constrained need use watching closely APU a an GSI we on the a platform. the we if constrained as we receive be could to future. FPGAs. the Since by and our evaluating order availability

are in SRAM this turn and for sufficient for are Doug. the that quarters have confident can capacity meet call we Go that to Doug. customers we I’d still now we to that the like have fulfill hand to ahead, we demand. orders upcoming optimistic over So and

Douglas Schirle

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

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

tax had a of net a of tax $XXX,XXX and included compared $XX,XXX prior fourth quarter the compensation In the included XXXX expense the to first in Total interest other and expense of fiscal net $XX,XXX quarter, preceding company compared provision in XXXX. and long-term million of ago March other was comparable $XXX,XXX XXXX, prior XX, June and in and to investments $XX.X interest and March million as provision June cash and loss pre-tax no cash, $XX,XXX. the $XXX,XXX expense $XX.X equivalents stock-based XXXX, loss and $XX,XXX year. capital $XX a other tax of and the in At at and to investments quarter. expense quarter benefit quarter with cash, year was million cash debt. investments short-term $X.X XX, equivalents in million $XX.X XX, investments at compared and million short-term in long-term in XX, $XXX,XXX compared Working XXXX, $XX,XXX to First of a interest $XXX,XXX of

the compared of XXXX, As XX, as was June ended $XX.X of XXXX. million March equity $XX.X XX, fiscal stockholders’ million year to

fiscal margin second surplus XX%. this the for sheet the balance approximately quarter XX% no point, to million attractive expectations are of to maintained We will with current net million we of range gross Our and Q&A. the $X.X an to revenues debt. at $X.X of with cash in call open Operator, a

Operator

first with Our from your [indiscernible]. Please Instructions] question. is [Operator question proceed

Unidentified Analyst

the retention thanks have Gemini-I? I’m with Hi, for yes, you taking questions or, to software for any from between currently the for some yes, got seeing that the going to Gemini-X any will or that. be wondering and inefficiencies if have transition for be there all now have the hardware X. heated concept Will servers replaced service foundation my – of the Gemini-X? and on applications, to one software about in be So call. will there currently customers have you’re Slide be for Gemini-X retention software been building reporting I’ve that that

Lee-Lean Shu

to thing that we a learning the to need have we the library But migrate is curve. software, from Gemini-X Yes, already good Gemini-X.

I So be – from X X. as smoother making software anticipate much we will we migration the to the

Unidentified Analyst

So integral you’d code be templates there? using of able be similar to the retain to some

Lee-Lean Shu

think detailed the is because think implementation curve circuit that different. there. the I will Well, But I be learning the

a to done need be utilize the fully be strong to will Gemini-X. it So implementation

Unidentified Analyst

mentioned Okay. that I lot certainly transparency updates. really Yes, you it, see your of traction. you’ve a I appreciate and got appreciate and I outlook about the the in call development

developments we these that yes, interested. that share at say reason and So shareholders can I are least definitely your other exciting or

on about your publicly? project, to releasing So website Gemini have so roadmap thought post the for you a

Lee-Lean Shu

about talking you Are Gemini-X?

Unidentified Analyst

the overall Gemini comprehensively Yes, project.

Lee-Lean Shu

I we at into this it. can have probably look Yes. don’t it We guess moment.

Unidentified Analyst

Conveniently Okay. producible.

I would Yes. networking for think purposes. nice that be

sure being What So the the base FPGAs. Elasticsearch? to might up the initial you open the are scalability about using to imagine Gemini-X, be they do are will they of even have able from like processing And looks bring production companies produce you’ll what to for database able exactly space of overall up would thinking – or that MBV, you larger have customers? proprietary mentioned first have And that the with alpha this kind be you or your to providers or I’m Snowflake limitations, are those rack launch? not like do for how public, capacity to saturated you sales customer able access organizations products

Douglas Schirle

let that So of me answer the beginning question.

that facility CoreSite, in installed for installed servers Sunnyvale the our our upcoming and third-party engagement CoreSite can also also used is the we some already it a have facility, was Israeli for have, we So which be and location OpenSearch Elasticsearch.

already So those installed. have been – that hardware has

the to We the hardware amount. components, additional being a up components have in-house, with FPGAs build raw along certain raw

the We have script the the that everybody hand at mean, market time we on I these parts. have comment we It’s deal issues certainly – in FPGAs unlimited on I don’t the do point. material guess in to just lead order. have with same was else buying space this that

in were would case to break, for beta just have issues It’s That’s would our to we sure what centers. enough comment that time really adding very certainly have lead was for. the something – some for hardware. supplying certainly it we So alpha, more and data even customers large

Unidentified Analyst

model And Elasticsearch what searching or information Okay. do rollout? Will any revenue about and for will be that the that have you initial that for be a-la-carte? subscription the

Douglas Schirle

Yes, on working we still that. are

So we this point. forecast haven’t revenue any released at

Unidentified Analyst

kind have the now, is of from right Act benefit question anticipate last My development or moving all and CHIPS through that’s Congress about the any clarification. incentives maybe actually, other then Act, of I the the one CHIPS development? that, Okay. But you

Lee-Lean Shu

Yes.

more But see overall, And SCIR. don’t the the will government direct more looking the to are projects. for I and be to funding actively funding think we industry it benefit. we

benefit your definitely Did be question? will of answer it. we that So indirectly I think

Unidentified Analyst

of more Kind collaboration – the the was then [indiscernible] U.S. side of overall demand name your some catch side, supply didn’t certainly. I okay. And than influenced Yes, organization I to facilitate helping wondering, Israel your based of

Lee-Lean Shu

us understand. to I’m repeat that? hard for you sorry, cutting out. It’s can You’re

Unidentified Analyst

an facilitation it was you I working catch all are Yes, Yes. the is of I that name Israel didn’t it? and apologies. there with mentioned organization collaboration

Douglas Schirle

Yes, it’s Merage Institute.

sponsored few we challenge DoD MAFAT MoSAIC a last another the the the being Merage was entities, So then in, and challenge Institute. by participated that one,

Merage Institute APU win to our seminar that, with division high-level access the because so of the that out Institute a Merage with opened customers influential And X-week our a of up in be very invited of APU. Israel to the of members was VP other lot very of and meetings using could

but relationship we process that just seen movement And competition that was certainly that some Institute this Merage so because already early on off have. POCs year, it’s potential in based we’ve of Merage

Unidentified Analyst

all those Excellent. the my to really questions. retaining Congratulations relationships. all. asked appreciate you development. on Yes, all I it’s great see I you

Douglas Schirle

Luke. Thanks,

Operator

Instructions] questions no remarks. turn appears call would for at this Mr. to now It more like closing that [Operator there to Shu over I are back time. the

Lee-Lean Shu

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

Operator

today’s concludes conference. This

may at your You this disconnect time. Thank for participation. your you lines

GSI Technology (GSIT) 31 Jul 222023 Q1 Earnings call transcript