Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's First Quarter Fiscal 2024 Results Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. At that time, we will provide instruction for those interested in entering the queue for the Q&A.

calls, Safe has Harbor today's read that begin following the statement. we the requested company I Before The matters performance discussed could those forward-looking that statements anticipated. in risks cause this conference future involves differ and call actual events results the materially uncertainties future and of to Technology regarding GSI that may from include

These filed and Securities with uncertainties Exchange described the in are and the risks company XX-K Form Commission.

July is XX, asked to at advise that being have recorded GSI I call today, of also been request Additionally, XXXX this the you conference Technology.

Chief the Hosting Sales. Officer. the Lee-Lean Schirle, Didier is are call and Chief of President him today company's Lasserre, Shu, Chairman, Financial Vice Officer; President and With Douglas Executive

turn conference Shu. now to like to would I the ahead, over sir. Mr. Please go

Lee-Lean Shu

to earnings our year welcome fiscal And call. quarter XXXX first everyone. day, Good

update on We growth. achievement on you to journey are innovation our happy our and of to milestones

allowed and our fiscal quarter of focus dedication progress good Our during have to first XXXX. us of make

with now our Let's we move start the demo innovation forward Gemini-I our targets. to our with have to with objective. customer, to soft the fencing lend in growth of commitment two our progress on And

will this our to we market more home Additionally, fast application. product provide in on Didier vector for resource the color his at comments. this search add address new

following Additionally, stack of satisfaction. end this I'm of is product X to our edge customer pleased compiler enabling customers to a solutions roadmap, deliver by the cutting summer. step share our on significant release L-Python our that us Version into marks beta track to for This

the improve easy designed developers is contribute other software. and pattern make it for Your to to

level. and so OS. systems code means can because before it to both the more is performs fast like optimization efficient high the The be try reason The Windows, used on that is low L-Python and different level it it. appeal at at This running it make it's, L-Python operating Mac Linux, of

be which useful convert preference. or for you customization the Additionally, different specific can easy code L-Python allow the ways days can of for

applications. only we stack refreshable, readily APU. the fast other create but believe We is for the usable L-Python could the beyond Not and is also ecosystem

We [indiscernible] to send achievement chip finalize weeks. is push showcase AI in a our are of TSMC the off closing the cave table This and the few commitment and boundaries next on major completing in Gemini-II art technology. successfully be to to to of

of during [Indiscernible] propel our second tool solution serves us focused remain completion leveraging driving is We innovation, that half talented testimony anticipate XXXX. on to the successful hard [indiscernible] exceptional to We strategic a this extremely products trends work the will and year of the and forward. delivering teams equities. partnership help and our master centering calendar faster company those

commitment strategic customer. to addition to drive growth, innovated faster reinforce to our The deliver our and solution team partnership in our

for our bring opportunities, and team about will dedicated shareholders who excited us We build we value a company. brighter our our are and position have to continue commitment. Together, I organization work our support and will the employees, to as understand they future and customers to unwavering their for success. individuals our with for

and Now, over Please I operating discuss call ahead, will go Didier hand development sales the will who to Didier. activities.

Didier Lasserre

Thank Lee-Lean. you,

respective establishing highly point strategic partnerships I These strengthened vector the and developing the hyperscalers fast in by our individuals who extensive start their search have our earlier roles in addressing wealth skilled want knowledge pivotal fields. in team of we mentioned market. presence play by experience Lee-Lean, a addition to with will bring two with of a and professionals

government related Israel. applications, from some to some team, division including U.S., functions undertaking with of members, software U.S. the our team assume that new based transfer the and in our With will role scientist senior of projects on who require various projects developing will data lead we team the workload this One our will collaboration functions, and employees. offload

benchmarks play platforms. science the U.S. crucial assisting in role conducting compiler and customers with Our a team different across data will

Our search, of new business company. collaborate to the data will the scientists vector paving for with our deployment this successful for line way for plugin this optimize team our fast

wealth Our second engage form leading having of top experience the hyperscalers. strive as companies. industry new the background from resource afforded sector, FPGA will for be him invaluable extensive our with partnerships brings we worked and a semiconductor This which has to connections

the lead platform our APU the explore our development. We strategic APU to platform partners revenue to will sorry, resources he - building to technology develop lead I'm of building future our fund and licensing will for of service

were hyperscaler our for architecture for growth. holds On we added recently we mentioned the resources last we a major Gemini language of team. relationship large models. potential And great inference additional working with this to call, based on This

We a have architecture. future this progress great in study we APU. utilizing GPT exploring conducted feasibility study I say And delighted specifically is to Gemini on focuses a making are inference am that The prospect.

fast memory models technologies the fast a APU way GPT is store existing to achieve levels gigabyte and memory. very that GPT while to process external the large XXX to XXX the required intensive billion memory very from processors can performance it the found hierarchy application, enhanced compared requires parameters. memory working We And a utilizing when technology. the same significantly of the storage internal model, is memory all

high the a on performed large fast requires incorporating very and HBM, as to matrix the next processor memory internal memories. a bandwidth d core. by core be working to large It be X.X several This a multiplication are also internal memory processor which by and we'll processor accomplished memory And the substrate. can put support die

provides built GPUs achieve throughput, as very performance computation. only large inherently memory high not and in architecture node. similar Gemini process large but memory technology memory per that tops same can supports on watt also bandwidth the APU peak has state-of-the-art

and However, our the the large tops size GPU. sustain can tops nearly peak with same APU bandwidth, a average LX massive as unlike

performance than that six generate we than and more three XX plus with point the node. to technology token XXX calculated watt, Gemini slightly a a input size six times X-nanometer XX output per dye per be a dye tokens second more better GPU single This is in by module model. HBM the that state-of-the-art have tokens a delivered of XX context could And a achieve could of GPT composed of billion we

study levels, The was power memory in done peak further low in distinctive the The processing move advantage III conjunction out holds roadmap for capability. the with Gemini territory. laying a at in delivering generative consumption performance given to AI development into APU

like seen, applications As we ChatGPT, each have generation. are more generative with AI capable becoming

is more higher computation, parameters parameters model and energy them. a require leading force to combat reduce of power larger carbon capability trade-offs researchers much requirements. More carbon driving new compress behind large are usage used format's growth, footprint. the language the To to improvement between this that to the are are number These The ways memory by that the footprint investigating. researchers help exploring data

resolution trade-offs and set these solution. GSI Unfortunately, data need Technology's, a APU technology to limited flexibility formats. size be performed methods. navigate to To on flexibility single a level bit. explore can the with new this element small provides CPUs they flexible fixed lack are bid a of By GPUs to and allowing any computation fine as as a the performed data computation be at

transfer. we developed. each energy solutions to by number allow usable bits the optimizing reduce of And be will innovative data This for

of awareness our of strategic biggest work with capabilities partners, potential some challenges. the can we increase we AI's solve licensing to As

Regarding we notable two our SAR work with progress I of on Gemini targets. solution, made our have

these one presence commitment in of our in have FY Underscoring we expanding with sale our closing a a XXXX market, set customers. to this goal of

As in of I mentioned, we a support recently to additional search our SaaS we resources place anticipate building end fast added vector vector fiscal with revenue year. solution fast source beta the the With before resources customized customers. customers search for

or switch compared revenues and In prior the $X.X XX% million XX% Sales or period quarter ago, Kia $X.X the first XX.X% the were product net a new same to net in of me $X.X fiscal now customer of net revenues Let and revenues the or for year to in million of quarter. the to of first XXXX. breakdown quarter. million

prior quarter the compared first in to and quarter of prior fiscal XX.X% first sales XX.X% of XXXX the compared in first shipments a in XX.X% and shipments XX.X% the XX.X% ago SigmaQuad were shipments XX.X% quarter. in defense year of of quarter. shipments comparable the Military were to period quarter of sales

like to now I Doug. Doug? Please the hand ahead. go call over to

Douglas Schirle

Didier. you, Thank

on quarter or a of revenues net of loss the $X.X $X.XX $X first loss XXXX fiscal diluted $X a the per net share million XXXX. per $X.XX $X.X and million net net loss on for million of revenues diluted diluted of fiscal first net per fourth revenues quarter XXXX million or of net of reported or a on share share the for million, million $X.X $X.X fiscal compared to GSI $X.XX quarter for of of

XXXX on first the The was preceding year our compared fixed first quarter and margin manufacturing XX.X% fourth net to of the gross in XXXX primarily XX.X% in was fiscal in lower costs fiscal impact Gross and quarter year-on-year to the in due the margin decrease of in prior the of XX.X% of quarter. period, revenue. cost goods

the period million in the expenses quarter million XXXX first were $X.X and the to expenses quarter. prior prior operating the $X.X Total compared $X.X and and million of quarter. fiscal million in of first $X.X Research year $X.X quarter the fiscal in Development in compared to prior million, $X in million were XXXX

in the in June We XX, general million quarter the Selling, million were $X.X quarter. prior XXXX. previous administrative that million XX, in ended quarter the and $X compared year through and June $X.X expenses XXXX estimate

excess offering. We product development, have of our incurred on spending and in $XXX research AP million

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

of loss $XX,XXX net the and a ago. provision a income interest, First year quarter compared of period fiscal in $XX,XXX and and for tax tax $XX,XXX $XX,XXX to XXXX, interest provision a other other same included of expense

compensation tax net the income interest of ago, included quarter $XXX,XXX and comparable other to $XXX,XXX compared and fourth a $XXX,XXX loss was in prior In the the provision based pretax quarter, preceding quarter quarter. $XXX,XXX. in of stock- Total first and year expense a $XXX,XXX

equity at $XX.X XX, $XX.X as XX capital at as million to no XXXX, fiscal the June Stockholders' XXXX, is of XXXX. investments, cash short-term with $XX.X June year Working compared of the XX, March compared short-term XXXX. XX, dollars million investments March June million in as million equivalents $XX.X was of had XXXX million million, XX, March cash, cash, company equivalents At to ended in compared and debt. cash $XX.X XXXX, XX, $XX.X to and

the a S-X arises. on and registration to position would so Form that raise the a June the access quarter, quickly statement the opportunity in company markets company During be if the filed capital

up we'll point, open this Q&A. at for Operator

Operator

Our Thank you. Needham and Nick [Operator Instructions] first comes Please from Doyle, go sir, question Company. ahead.

Nick Doyle

taking my for Thanks Needham. questions. Nick from Doyle

drivers expand quarter? Just the could this Could So, quarter expected could see to decline a we quarter you're you next a first, on and quarter? expand you of on just next gross behind increase and this happening? bit that's why margin little

Douglas Schirle

so Yes, have be strictly during what of quarter, product to to beginning it's that to our to or do best to related the third estimate is the about quarter. where nothing mix booked with product It mix. We come we we the quarter more. only the at revenues a going effort believe at obviously the going in forecasting tied up are are from. really revenues But

Nick Doyle

what part you margin? mix quarter the higher tell was the us, lower this Could just driving that's Okay. of

Douglas Schirle

and a thing Alcatel also good Nokia revenues - level Yes, business highest generally that reasonable impacts bit sorry, that the have quite revenues margin of has was margin. margin. military a at Lucent biggest is we are that are that the and the

this dependent really at So point. the factors biggest is probably on military it sales

Nick Doyle

sense. Makes Great. Okay.

you done your and CPUs your on will That entirely the at just GPUs it higher So you was any specific the there how great? how from APU performance computations that's market? do be with on per sustain bit the drive to and ability application. Is my do tested GPT differentiates expand APU can yes Can talked tops watt level? about, detail with to understanding, basically better this which you how

Lee-Lean Shu

processing only cash. has But processing. you graphic fraction few is do key future for a a huge the And they the very a can calculate view. top, all, we the language model, a of do, GPU, memory. chip. a good huge, can the - larger parameter we with the very, of what from of first the inside the how particularly about from have Yes, and I can small think point the they future, talk in And our And we support when memory top

Okay. we That's with out the how come top.

pick or have we spend or why to top that's top. So able

Okay.

question? So, I answered hope your I

Nick Doyle

one sneak can more. Okay. know I I

in still the that you us behind ongoing? case? cost And is think costs that entire tape it's or I still about past, million. the talked Gemini of out is II $X.X the about Is

Lee-Lean Shu

[indiscernible].

Douglas Schirle

Yes, cost. $X.X million out is a tape

have will you quarter in yes, line. excess of our what $XXX or quarter. hit just G-II. out we said this this October tape out, that's We've want about incurred we could So, later million But the the developing comments, part in And of expense quarter. a as in probably that's tape product early the

Nick Doyle

Great. Thanks.

Lee-Lean Shu

we have on a website. comment, white larger know is paper good we published a one on why language Just further our discussion for APU And model. you a the

interested www.gsitechnology.com. at look So, if you are

Operator

[Operator Luke Please sir, from Bohn, go next comes Instructions] question Investor. Our Private ahead.

Unidentified Analyst

Thanks.

engineering that is limit that that supposing architecture get you there on the more the physics even that to a further you yes, say - feasible, APU of you about project mentioned terms So, was the the and yes performance? dense based for GPUs I the lower of than study can study, more could with is reducing a understanding is architecture? your that that to project your net architecture And terms in and of dense comparing and even projecting of in X-nanometer peak case? that's

Lee-Lean Shu

peak sale the .X either at our X-nanometer. of is processor moment, phenomenon this we Yes, or because

you have to want we So, apple-to-apple know, comparison.

So a nanometer base. pick study we as

to Of more to a think chip, we do we want it want even implement with course, advanced if I technology. real

adjusting everybody So with else.

Unidentified Analyst

Yes. Okay.

Gemini the Gemini X the III? from to the current tentative basically for is to I lead that all is So plan the you make said and way think XX. II your

Lee-Lean Shu

is no Gemini sorry. Yes. X-nanometer to III the everybody is We be else pick just, determined. because on I'm X-nanometer. No,

it's So fair comparison.

Didier Lasserre

Right.

on the X-nanometer. said, for as comparison study, are for as Lee-Lean that's what just - So that's because the just what GPUs

do aggressive. So, we not more something could be straight comparison technology, does it on on a wouldn't technology. mean to that wanted That be Gemini-III

Unidentified Analyst

Okay, yes. It's a point. limit not

Didier Lasserre

Correct.

Unidentified Analyst

in yes machine terms larger How the of the about paper. apply vision, and read - and machine vision real to to that vehicles in cache, referencing that does APU like And for kind other the memory the of having memory advantages vision, I all buying flexibility more Excellent. and their autonomous advantages? about the in EVs, of you market, world Are many all in the to to comparing of still NVIDIA references the talking white GPUs earnings get that as well as Tesla you call also as saying And medicine, the being on. they're apply able that. of things similar lay that GPUs hands they genetic you can APU as discovery more like seeing the abstract drug yes, fact

Didier Lasserre

so anticipate fit, mean, advantage, for the not just was a fit the better is, Yes, about you Gemini answer of be ADAS. yes, II, know, to talked you our a understood line know, same, we Gemini on place. we in the lack the what on I going because board the the that, fundamental bit fact of the gym. an the is unique memory But the you be FPGA to the with architecture search or the we're is which computation I doing

data, fetch rewriting and then chip going the And data. we're to not going and the so, off back

architecture Gemini is in that's, or there fundamental, available unique I have Gemini the the regardless II. that of market, and So and we is with

Unidentified Analyst

one's Yes, because GPUs that since, being for even talked yes, Orford Awesome. get about this processing. about kind yes visual of the being clarification apt performance

visual of Yes, yes processing great. wonder get So more, that's I markets the vision, broader about kind that machine clarification I there.

prominently shade pathway. with to there more get name it noticed that definitely And definitely much networks in value computing, to vector you yes funny announcements with search, And of traction about kind think and seeing want SaaS all been me I just have the associated I search so one address? of you're sense have most there Yes getting recently just curiosity, vector more putting moving made processing. Google. most accelerated I've of Yes, you NLP, applaud I of broadly, how TAM, the Gemini with question. that the parallel and yes large forward can because the terms neural always for all many recently,

and You Or be that that Gemini? have you're if historical encroachment at first and kind adopted Google, intellectual reference. trademark? if or Since spin your wondering Gemini all not wondering, is have yes and also a just the you Gemini, of humorous the a find on But name Q affirmation. your an to

Didier Lasserre

No, is And into trademark and we our related. issue that is for it. have definitely devices, the looked semiconductor device, is software we hardware Google

there's So no overlapping.

Unidentified Analyst

that Okay, makes sense.

concrete in you models? your and, so SAM, projections in point have timeline there sure TAM. how of numbers, terms crunched not and terms of but on this at is of actually do updated the the you've large Okay, anything language And you bigger, concrete shifted? these have and new Yes, addressable see focuses you kind I'm size? market if

Didier Lasserre

those we're different You for retrieval have generative. so that, you there's and you the working still Yes, have TAMs right? and and the segments, know, on

And Gemini so, retrieval can with it's just now not those yes, now. are I on Gemini Gemini yet. II, III. be But generative a of side, certainly two to going feel more for SAMs we and different working we're the certainly available areas. They're TAMs, we And address those the

Unidentified Analyst

know yes. over that's to in all side Yes, all it's I've I things. I reflected Yes the hard got. yes which a thing think you. is Thank analyst of that's, value

Didier Lasserre

Thank you, Luke.

Operator

TD from Jeff Please came ahead. go Bernstein, Cowen. sir, question next Our

Jeff Bernstein

questions Couple just guys. on that last for hi, Yes, One you. the answer.

Gemini and retrieval. I II, Gemini about talking were You addressing

So you or mean a bit? are training there? you that talking about say And generative little when just clarify you queries addressing

Didier Lasserre

The response, right.

well the now, something And very really the data. So but generating we that's you're it's yes, retrieving do so response.

HBM with III very And in mean very bandwidth, pairing we talked why so general. I requires very, high for which in cache that's memory up have memory very, that about high we that.

on side. and that's, that's more so generative the And

Jeff Bernstein

training? Okay, so

Lee-Lean Shu

No, no inference.

Didier Lasserre

It's not yes. inference, to It's training.

Jeff Bernstein

still Okay, inference.

or as III, more more the as the know X-nanometer then talking potential like Gemini a for current memory. with, processor, what tape line kind I long you're of were aggressive, you out cost? And is a that not about Okay. a

But a do think tape out be cost of would be might So now? it you less what expensive. X-nanometer

Lee-Lean Shu

mass costs we for itself to X-nanometer, probably $XX the million million, like the have five X-nanometer design design. to need about have $XXX a one

So what we we are are doing the now for partner. right is looking

not it to are ourselves so. planning We do

Jeff Bernstein

Yes.

Okay. capital to about situation. talk just And the I then want

a sell about have got the up preferentially started and you tangible headquarters You've now back place. we raising more Unfortunately, in progress big then missed in you run registration stock. show? for to talking wouldn't equity? Why lease Before the some and funds, the statement

Didier Lasserre

have decided still of sale and the Well, looked But into building, that that do the we an we haven't yet. to option. is

values certainly higher is as purchase You Board, considered building, an with opportunity made and of know, property the we a years are but have has decision sell that than And ago. yet it we building. we've to discussed many it no been the

Jeff Bernstein

Got you.

Nokia just if then the business And Okay. in. remember I on guys you were that correctly,

routers. this Would et reference get don't at they Nokia are that you time might some point XXXX there you I anymore were Just cetera? you out for and that old How see XXXX Now feeling your with XX. to of they and revenue a the of you that? and Nokia business? licensing going on understanding life What's If would lucrative of be where even kind the pretty know, give little us there? lead any get? much

Didier Lasserre

Sure, yes.

get cycles you as month XXXX, rolling and we CEO seeing, as platforms been extremely from said in they Nokia. long a XX and life have So forecast XXXX as the we've there,

more the midlife go as did while bit XXX far try a little back, meant they density those megabit And part a went what's is and that they do What for to a is XX called that's months XX midlife to looks that us from existing so that kicker. healthy. far, and kicker, for And performance still and did as it what a megabit they systems. density a give into

so density And ASPs larger part. are obviously the the higher on

just down the So the fairly saw it's ASPs over quantity. even the because in been come is, of offset in what some though volumes increase flat we revenue the the the decrease have on side, time,

visibility point, it's going that's and have forecast get. this at healthy, So XX-month the as still much as still looks we we it

Jeff Bernstein

the then to shortages kind thing. that chip Got here you. we of more shortages forward? packaging movement obviously, And rate and there normalized around now and a Are is going

Didier Lasserre

have or So, times the become costs the more have the normalized, pricing not. lead

increases in there. prices So that that us to price the raise us, to still turn, forced subjected our to which They're customers. were

keep change times folks And from lead or up, movement them kept kind prices. until the that come at real of the is time, so any normalized to we've down lead area. our there's substrate more ASPs any a there point, this we'll of TSMC have But raise and their the

Jeff Bernstein

Got of should of inventory at just more situation terms in be we a But forward inventories, normal here? kind you. going

Douglas Schirle

the what them of our that's And last inventories have believe Yes, next to, and so. we dropped quarter expect drop in. couple we the quarters fully to or

Jeff Bernstein

you. Thank Right.

Operator

while for we questions. One moment, please, poll

George Our Private Please next go Gaspar, sir, question ahead. comes from Investor.

Unidentified Analyst

you. It's George Gasper. Thank

position. Just like profile. and again, do view situation at is on your based financing to progress see, financing your cash I'd your And forward looking the the What need on requirement? exercise you do to current current development

Douglas Schirle

we've than the 'XX. discussed point, next And fiscal this actually maybe up. will some up year, more of year that, to the cash fiscal revenue at and materials hold certainly and cash corner at end million the if the $XX at $XX numbers Well, of revenue If numbers million. given with fiscal the XXXX the burn this the we could end turning start having Board hold

Unidentified Analyst

I see.

talking So what is what the you're at saying over on the that see year? based for along, and your you're way next targets - - you're sufficient that position what cash moving are is you the present development your

Douglas Schirle

true. a That's that's situation. Currently,

Unidentified Analyst

That is you. right. All you. Thank okay. Thank

Operator

for close the is go floor comments. There question Mr. I'd Chu, ahead. time. to at Thank turn over no further like sir, now Please, closing back to the for you.

Lee-Lean Shu

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

Operator

teleconference. today's concludes This

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

GSI Technology (GSIT) 27 Jul 232024 Q1 Earnings call transcript