GSIT - Earnings call 2 2024 | GSI Technology, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's Second Quarter Fiscal 2024 Results Conference Call. [Operator Instructions] Before we begin today's call, the company has requested that I read the following safe harbor statement.

The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of GSI Technology that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's 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, October XX,

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

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

Lee-Lean Shu

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

achieved have we significant that share to pleased XXXX am we since QX two reported I milestones earnings.

in of First, successful can version production alpha the the Copperhead Copperhead releasing was available early our be capabilities release will suite compiler the a launch Gemini in XXXX. that the tool A general XXXX. version anticipate We the the Python-based full of later APU. of suite, of harness compiler

and developing Currently, with technology university the we University companies algorithms developing consortium Riverside. MIT of the and architecture, our the like compiler, space, research using partners generation of learning, [indiscernible] a future of and academic California, have these computing group, exploring and including for

the was milestone tape-out, the of last week. second The which were Gemini-II launched completion

as sampling our half we As chip expect in to calendar on hands XXXX. of the begin we year early have are back to device in next second the track a result, the

driver functions Gemini-II vehicle and are systems [indiscernible] center of expansions edge. at center drone, include assistance data targeting delivery partners enabling Example advanced We applications and satellite. customers data in [indiscernible] and low-power and autologous Edge in could

year second revenue several end of inventory worth Also $X.X customers, the was quarter. builds which year-over-year of high comparison. boosted was financial XXXX presents noting quarter million by at it's for our the a guidance. results fiscal second to that our key with Turning challenging our Revenue

collaborated Gemini-II, notable To invaluable these with design to dialogue area ongoing insights has into [indiscernible], compute while partners the our resource conversion for successful are of memory making the and charge early essential engagement identifying table enabled required with this partner. precised the effort us engineering significant advantage. In -- architecture, recent key align harness development, to thereby centered full financial computing has the our bring progress. provider, the discussions table the delighted in-memory the can for report gained launch high-bandwidth a of that to will have Gemini-III engagement around leading cloud with focus evolution requirement. This advancing potential hyperscaler and who manufacturing the leverage Gemini-III. of of the into addition to I'm APU of potential specification constructive we the The to

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

Didier Lasserre

Thank you, Lee-Lean.

last I with GSI's to team Following hosted latency engagements. to our minimal mentioned from major opportunities throughout their data APU-accelerated customer vector XXXX, search available to the advance up on pursue quarter, the that plug-in fiscal a continued workloads, our hosted allows to add cloud-provided of seamlessly search centers. GSI Currently, search with users has quarter second vector projects cloud Gemini-I fast

enabling times, response will to up larger opening also service points be low that us. and search neighbor at access small- power nearest This approximate price markets businesses. large accelerated provides for plug-in medium-sized a FVS for This enterprise meets

version. with, processing the customer our decided feedback, or as of on-prem opportunities. SAR highly to low-powered, also launch SAR efficient SaaS to course, a Switching Due we have along to offering,

service favorably market. on We bring to Moreover, set. completed engaging customer's that data now to benchmarking a are we

The solutions addition radiation-tolerant computational that satellites differentiator, its with can One satellites target preferred big space identified we building a is low-power computing for feature. product's provider the start-up provide has on and performance, as in engaged the Gemini capabilities to are space. APU for

the Gemini-I tests full on note, using full I mean, required space. radiation customers conducting for next By be range that we testing of tolerant will Gemini-I this, On considering month. in

which radiation target the for that applications be tolerant space ideally ATR, and SAR of suited a for recognition, would automatic to and name is Gemini-I few. One computing and

GSI I'm perform awarded a we sorry, force. computing the an to was contract announced and to to contract Force to at edge SBIR -- in SBIR an This feasibility Gemini-II Air adapt that U.S. collaboration the with summer, perform study space

on financial We development, a are is award a win. SBIR promising the as very on second working the and similar currently software which potentially, based first Gemini-II

number future they use as APU benefits: create a they We continue U.S. revenue, government two within bring to opportunities. for of source one, file more also SBIR key cases and the

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

of sales quarter XX.X% comparable shipments comparable of year and XXXX I'm the period sorry, quarter and compared shipments second defense quarter. in XX.X% XX.X% were second year shipments shipments the quarter sales XX.X% fiscal ago XX.X% prior to second XX.X% SigmaQuad of Military the of were -- compared in quarter. to a the in of prior in

Doug. now hand to like would Go the I call to Doug. over ahead,

Douglas Schirle

a $X quarter million XXXX share of $X.X of second the million on the revenues per loss and quarter diluted fiscal of of million compared for fiscal We or of per loss Didier. $X.XX $X.X second you, net loss diluted XXXX of $X.X first $X.XX million for share a $X.X of or on for the on net reported share quarter fiscal million per revenues million net or to 'XX. $X.XX of revenues net net Thank net of $X.X a diluted

the primarily XX.X% the product XX.X% first period gross in prior year and sold margin Gross margin preceding compared The mix was in and quarter. of million in due quarter. Total XXXX to were second quarter XXXX in changes changes $X.X XX.X% $X.X fiscal the to million the periods. to in fiscal $X.X prior in three the the expenses in second operating of compared in million quarter were

expenses Selling, expenses administrative $X.X development September compared to year million to were $X.X in quarter. previous XXXX, the prior the $X.X the million were million year and ended and and the $X.X period in prior and general quarter XX, million in the prior $X.X $X compared quarter million in million Research in quarter.

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

loss and a ago. a XXXX In $XX,XXX and of net provision $XX,XXX fiscal other of quarter net tax and income the to Second income period the of net interest of a preceding other and first other of $XX,XXX $XX,XXX provision and tax net year included $XX,XXX income loss interest tax of interest same compared provision and included a $XX,XXX. for quarter,

a million pretax the short-term year March and and and capital as XXXX, XXXX, XXXX, investments as second XXXX. $XXX,XXX investments March quarter. was quarter compared to compensation $XXX,XXX comparable XX, cash compared September in the in with March million equivalents XX, short-term September fiscal to $XX.X $XX.X of September as million Total Working stock-based At no at of XX, in cash, million year was XX, $XX.X cash, the XXXX. versus XX, ended $XXX,XXX debt. prior million of $XX.X was XX, the $XX.X cash Stockholders' equivalents to ago million expense XXXX, company $XX.X compared in had quarter equity

gross approximately $X.X third Given are quarter to the of million the the environment, million, current XX%. of with $X.X net global economic range revenues to margin current our for upcoming XX% in expectations

point, Operator, Q&A. to the like at to we this would open call

Operator

Brett [Operator first from Janney Instructions] Scott. Our comes Montgomery question Reiss with

Brett Reiss

of you on do burn think the Until just last you rates? How financing? will gain traction, long some having comment initiatives sort corporate cash how without you -- do can cash to

Douglas Schirle

We've at taken at least which should point. Yes. expect, this We a at that. look And at typically have don't cash we quarter. nothing couple improves, of last it take a a look every that if years we

Brett Reiss

be And do follow following if just your this will burn I up, think may for you year? what

Douglas Schirle

million somewhat that's set $XX today. of that around one irregular And year $XX outlay. the to up happens the that for an mask that few expense $X.X be only about out for we'll have That's Gemini-II extraordinary million year taped that kind we years. cash every mentioned of Lee-Lean fiscal previously just million. Yes, this occurrence coming requires product This

Operator

comes Partners. question Investment next from line the AIGH Orin with Our Hirschman Instructions] [Operator of

Orin Hirschman

-- give have a And in Can Have understand for the it or you attracting any only Gemini-II And Gemini-I purpose us is one can better? color data I is interested the Gemini-III? to customer little center architecture? on more what bit to they you them played with Gemini follow-up.

Didier Lasserre

Okay.

let start that. So with me

discussions we're And with had with, and engaged we've So the hyperscalers. with other opened ongoing other had since discussions we've up hyperscaler, when -- we've with.

be future and his we instrumental Certainly, the comments, our conversations. as to was first Lee-Lean earlier for our able gathered engagement from in hyperscale to our story sharp mentioned offering information

something specifically, they're what one or geared be to now is towards for interested we'll Because Gemini-III be right next-generation, -- that now. going LLM the so call a models. really would GenAI And

you are hyperscalers know, very With companies. that these said, large as

And not GenAI them, so certainly, the just for out we're Gemini-II is of play the certainly wouldn't conversations be specifically solution it having. with

Orin Hirschman

be sounds benchmarks and think it? point Have level terms of of characterize gotten important note that customers, there's center it would if would in to like other And with How I you've of it's you an played hyperscalers some progress. any them? data yet people if true for far.

Didier Lasserre

Correct.

done the because shown here. what Gemini-I so obviously we've is silicon And with technology is we've

then off obviously here. We benchmarks benchmarks. is Software Gemini-II. true We've can run run of expected

very a was, question bit there's GPU remember interesting XX-bit, into folks But on of performance and I of patterns. features depending processor. what's important our certainly traffic So back, they're them? now, a them. -- to a technology going low or other also This locked your And really is because fact right earlier about important we're areas. of their lot using they're is power has if like or certainly grabbed what the so X-bit XX-bit to eye. that And few to Obviously, the a the kind GPU, just XX-bit part the these

We're processor. bit a

a can what so can looks be fly traffic be cycle bit. to It and X,XXX bit, like. don't It we your of can And cycle. adapt be up -- care we that bit. to XX make It can and the number on X

that flexibility to And is very important them. so also

Orin Hirschman

one that is one. life, in you of And been bit becomes the about that processor in fashion. programmable in what really so super of it's Are had two, there's very a of some In real Number literature. that where applications enticing? commercially where today type lot talk number fashion, are no programmable obviously, one's a the

Didier Lasserre

talking about bit the you're So processing?

Orin Hirschman

Yes.

Didier Lasserre

Yes.

a out XX-bit coming going some that aren't now. finding right on And lot efficiencies expected So they're research in the XX-bit. like there's of and

I came don't candidly, X-bit remember or research was the I mentioned, on up that. And exact the recently. application one As that

of important. But was that them was X one bit

needs bit that in million of future-proof. have is we're our as told we comes customers number I X be that if bit, fact one the X our there's benefits XXX-bit, needs between that to as that an X there. bit, make I we're part we're needs our can on so X is redesign don't or bit X processors Gemini-I. mean us, one a We address processing If what the application And XXX there's to with this And because work, bit And as to those that they mentioned, have of up million. million able and there.

from obviously respect, future-proof we're opening eye so them. And to is which that

Lee-Lean Shu

Yes.

Just the Right model, very model. the now, a to big comment. very very, is language memory-intensive It's large application. a GenAI,

lead memory. a fast will They big to they were memory. So

then you -- is [indiscernible]. calculate, memory, if you you less number try to effort one the So data format, bit reduce memory for can to less less of the require have they them to of

Okay.

X be keep have up the with So and there. of we with which some we more And this capability, the customer that's mention likes can X, deprocessing software -- we capability just about you issue. this is have and to innovation will

Orin Hirschman

to just of done hyperscaler benchmarking customers? benchmarking, going and And data back have some for you center the

Didier Lasserre

off So we've have and of what been "This the said, benchmarking is have where customers candidly, I'm done using. come in essentially most based of POCs,

SAR we've that of Here's talked my also customers We've we recent one one And data real look our done our then that numbers set. your and of life about do done customers. like?" for What Israeli POCs. so case

benchmarking, that's important, haven't lot, next to happen. critical that's on It's that's and we just far make something it's for to to a we're agenda us what broad as done able been we doing. list. be As understand that know resource our But and on the start but that's we market issue a

Orin Hirschman

more questions, then I'll people and Two I see. I may, other And let ask. if

customer and using sets the data, terms So in to data concept of of show of proof hyperscalers you it? any can't what with actually them you have do given can

Didier Lasserre

discussions hyperscalers next-generation The other other mentioned, device. No. SAR These early around as are been this the These I applications. on have applications. know. applications revolving have Because and been

them could anticipate the benchmarks, true And have absolutely, given we so calculated they're they're we benchmarking what not do, benchmarking. but we've given -- we

Orin Hirschman

Okay. and a as or offering Where tests of last mentioned a plug-in customers to some the be back as question, for you you with or up needed Process potential as the And Service revamped APIs. and had early ago using a just while you're the on anything the you going to that, are people's data, like any some that? additional that it

Didier Lasserre

Yes.

areas area. that was in two SaaS vector SAR. my after one folks there's of And and SAR that So focusing I comments talking with to mentioned on, discussions search that we're as the the fast we're earlier, in the

the you to on is to So And solution, we guys have satellite. an their then this customers, on-prem put needed. one for the capability of talking some obviously, we're wants of which

be well. is over they're instances. most SaaS AWS GPU right would using a as But of their sale via production now, that So physical doing

that's something so with discussing them, we -- looked we that And after when that's at.

obviously for that to do. so makes sense us And

up So vX. The SAR the and opening search like factor guys been we've some some we're place, the we're doing for putting search still for internally of fast benchmarking in vector databases, that.

us. so And project ongoing an for that's

Orin Hirschman

of customers like something through trying that it get to or Any there? fast searches actually progress with that a play so factor terms In plug-in AWS that. could

Didier Lasserre

I'm see trying can -- is understand There what there. to I

center So system very easier large we've integrate recently had to some with now. their a basically discussions data right into company

last been And so happening those weeks. the of have over discussions couple

have it's a be those facility out, get you Because able offloading then they're now, we're offering as certainly, the to have that to smoother data our called a we'll worked we right now. once CoreSite. basically put right off -- then searches -- know, into And center

And so to that trying we're streamline offering.

Operator

next from [Operator line Our the Benett, comes an Luke Instructions] question investor.

Unknown Attendee

to Gemini-I the outperform of and Samsung, current AMD, tooled the even the safe we when on from applications that the to various say? are out that custom and partnerships, to that offerings computer will Is you be that are parsing leaders zoom users, for scene a high-performance by NVIDIA, including assume able large various the market, Google, could hits To swath of chips. prospects that all offer

Didier Lasserre

so okay, trying So your I'm follow -- to here. question

all, of Gemini-I we have already. So first do

So I'm referring assuming you Gemini-II. were to

Orin Hirschman

Gemini-II, correct.

Didier Lasserre

Yes.

Gemini-II, and so a then custom also And you mentioned chip.

Gemini-II is So not a chip. custom

have. a standard going that offering going is Gemini-II be we're to So to

we spend looked we've benchmarkings, and said, some in so Lee-Lean And favorable. have in have hand, yes, year, very going really can chip do done the take calculated it we'll least as obviously, hand have which next get something the to And we to once benchmarking. early it's probably at

be we summertime true do can it So will benchmarking. before around

But what's favorable we the yes, and we very have be in to them what over market space. anticipate

chip. do but Now add the want I you to -- comment, said custom to

as to a mentioned of past, and we've IP one that offer we in things obviously So the technology. sales we also -- this looking we're the have well. unique understand is do do because

we'll certainly, lot do custom own a silicon. of their with that the also understand we start They But hyperscalers.

we're conversations hyperscalers custom the IP one talking GenAI for about the that having of their own. they're any about talking Gemini-III also And on with is the besides doing basis for we're as sales that so well

you asked topics. So hit I'm in of lot there. hoping all questions a the I

Douglas Schirle

how or two to how competitor Yes, that answer but [indiscernible] will that on be or rendering it will. you're able the implications VIP and directly, depending much benchmark does kind compelling to Gemini-X and it requires there. a of ship That tooling

the these high-performance lot mean Yes, out of essentially, in X-nanometer leading clearly at or chips. toe-to-toe XX-nanometers, competing competing you a

Didier Lasserre

there have the what's If positive in we've out very benchmarking been today. Gemini-I, against done past you recall, the

performance we the on and memory Now Xx Gemini-II, it has as the past, XXx LX chip. discussed of in with

something to to compelling So going it's that's for the certainly market. going very be be

Operator

comes Our from next an question George Gasper, investor.

Unknown Attendee

out applications Could you approach information in and the of little came Israel Gemini the that on defense company go interconnect additional the had whole us has into initially there? for fact, a in the the military and over years,

of on military-related what's right considering space? for in is that advancements situation the applications you're that this Is effort? happen anything the could making what's a going into create in there Israel is happening there terms are Middle in broader you And seeing -- more now going with space, East. And

Didier Lasserre

Okay.

to try questions going and all I'm So get those now.

let's military. start the with So

of with are there lot use that military, why yes, the had also which possible we've a some with different filing. successes So these SBIR cases been is recently we've

of with, detection, for well for we'll the two customers data change area putting some target is imaging loan sure. in the detection. start have fact, to another have also servers So that the engaged space. doing another. just as in been that recognition, seen they of that demonstrations interest on also of SAR and is we're like for we've mill they're arrow automatic with Object -- is one kind -- our from want -- certainly of We've call centers they

standard And a so space. center just data that's application another -- in

And so that's another one.

not I'm as the sure Israel far As site. what

as say, Israel. we made, what acquisition. out question of that not But company an and around was the technology acquisition So I'm revolving this the you original was sure was

Brett Reiss

Well, things. Israel basically, applications think that to just trying reference, right get mentioned Israel, going I I connections there the a in considering to Middle and the has monitor on now that to would moving it. how more with what's some a to and had attempt forward try the an be recognition But would company as give they're -- East

Didier Lasserre

Yes.

past we're what's more obviously happening pressing certainly So Israel to right I areas accelerated with having obviously, now. because entities most applications. talked in them But about we'll but we've now. talked issues sure will, get discussions There's will of right now, right fat on those some that not go there now -- won't there's -- certain now. likely -- we've other I'm with several discussions, and we've that in the had about there detail, exact

Unknown Attendee

I see.

Okay. to going you're would year. looks fiscal around terms There's Well, some forward. the some make about in momentum comment going of movements and it that to starts the turn with III. Gemini-II this Hopefully, Can generally expect of real to company end like on volume really this revenue forward its by you it?

Didier Lasserre

Yes. And be Gemini-I. But revenue announce to comes on, as from the There's traction. year, the fiscal hope of time momentum. that will goes coming end any more we certainly

So going not year. be to summer sampling as even Gemini-II, we've next discussed, it until of we're

'XX. And so that falls into fiscal

Operator

questions, further conference closing As I for there remarks. hand management the would now to their no are the over

Lee-Lean Shu

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

Operator

The Thank you you. concluded. participation. for Technology Thank now conference of GSI has your

may disconnect now You your lines.

GSI Technology (GSIT) 26 Oct 232024 Q2 Earnings call transcript