GSIT - Earnings call transcript Q3 2025

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Operator

Welcome to GSI Technologies Third Quarter Fiscal 2025 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.

Additionally, I have also been asked to advise you that this conference call is being recorded today, January 30, 2025, at the request of GSI Technology. Chairman, call Chief today. company's be Officer, the the hosting Shu, President Executive and will Lee-Lean now the With Officer; Vice would and are Didier to him Douglas Lasserre, President Schirle, of Mr. over to conference Chief Financial like turn Sales. I Shu. Please go ahead, sir.

Lee-Lean Shu

for you performance with I third meaningful results. us to pleased progress quarter and demonstrated to initiative report in thank quarter and review APU. XXXX financial fiscal the afternoon, ongoing the joining Good third our financial am our that our

before representing highlights the the a financial into increase our our generated In with start growth previous me and development. diving third revenue product Let from year-over-year sequential XX% of a we quarter. quarter, $X.X million, X%

net fiscal More initiatives fruit, begun importantly, in bear XXXX. cost the to have reduction third quarter compared losses to operating of a our and resulting reduction in

inventory and becoming growing customer systems AI am existing this customer anticipate Looking core our SRAM segment. Revenue momentum XXXX. XXX-meg SAM our fiscal business, customer at chip. We resume year SRAM customers by manufacturing our the integral over [indiscernible] came the continued in to quarter in are encouraged their demand largest growth level leading in from SRAM from our this SRAM SRAM, I at whose for

on Let me the key share a few developments front. APU

our the far, made Gemini-II's technology a We APU using So is first progress has good steadily. progressing [indiscernible]. silicon, which

library functional on board the development. and sufficiently and put the to software chips the made Fortunately, workaround for testing software

deliver neural silicon. based Air first to models on able the quarter, Force SBIR be will March with our the We network for Gemini-II in program this

Gemini-II's with to address on low large growing will its at additional new mass work details will power solution we for edge chip language of prepared have our provide begun models be preparing on will Plato. be comments. In for We The for built his are features. now in spin Didier parallel, architecture. Gemini-II second Gemini-II architecture AI application chip Plato market on designed in production. the

pathways funding program, strategic multiple million We to with are support financial including development pursuing discussion $XX and this partners.

our multiple to In within Department share programs. Gemini-II. the a phase, will more edge U.S. X across Our remain applications Phase on government dedicated Defense. execution are strengthen of securing best Didier of and $XXX,XXX. with all of we contract our will areas. recently relationship progress, new our agencies AI while identify encouraged SAR announced computing the SBIR summary, develop specialized with the disciplined We solutions win this projects. In to to This business will our details this by expand with explore and fit continues status we to we Army

Our alternatives. With provide strategic in improved it [indiscernible] we government and sustainable and to that, Didier to initiatives continue APU on more details opportunities business I to sales our well operating markets cover and growing position efficiency, hand for us third breakdown. over strategic growth sales as the commercial evaluate quarter

Didier Lasserre

Lee-Lean. you, Thank

pivot with can a As on for design for track for cost-effective, growing SBIR. capabilities ultra-low neural the development algorithm of solutions. high-value quarter to shape delivery calendar by and good library low it we markets. Meeting Plato, SAR for defense put plan proposed the to version strategy. performance third these Leveraging faster-to-market accelerate in a can target development language should applications and XD edge use power target previous data path XXXX. a in market imaging will is milestones development complete it architecture, capability edge. for Gemini-II's and distinguishing Gemini-III. The building using markets at us more February our strategic aerospace mentioned, a Plato's together targeted next-generation of very This the June. network of Plato for a of the center is deliver Plato new levels have board availability with with the aligns in Gemini-II in next-generation suitable than large tape-out enhances that Gemini-II May, Lee-Lean with Gemini we'll faster and milestone with Force's and Air LLM leader a previously models for AI feature economical is our from developing and power, the chip, model rapidly the new making a

on be As we line XX development mentioned, potential milestones. with customers who meeting are ongoing that to discussions with months. Lee-Lean track in our XX also say sources an pleased users our expected projects to am be and may SBIR I could time initial funding are and of

reminder, Phase contracts Phase and with the recently a a Labs currently Air Army. X Space Research announced contract Agency we with As X on most Force U.S. are Development working and

for to preparing including in are real-time the the We benchmarks Labs application. detection Research a the deliver for quarter, algorithm Force a object Air YOLO current

reminder, you that look stands image a identifying around algorithms only placement in YOLO, which once, them As the determine exact of objects. of for by types boxes and immediately are an drawing the objects

for delivery the Our board. a second the waiting Space is Gemini-II of Development SBIR with Agency

will on balance required received we the within board's mentioned million frame. As the have are of time we contract to earlier, upon $X.XX date, the and receive track To this I the deliver XX% delivery.

X, $X now solutions X using opportunity for be Army compete on focus Phase be could win, the will latest executing our Phase contract the computing to million. X, projects have their benefit determine will to the Gemini-II's up capabilities. After of The U.S. from which We for would we Gemini-II. edge ongoing to worth Phase which are AI

gaining the The and is algorithm the of this for Our this army Defense. military feasibility with assessment And of to AI key Department we are largest validation objectives of the integration, X branch. branches applications. are exposure SBIR,

fiscal projects, we in is low-power applications. that in mentioned SAR evaluating Gemini-II for The organization our in-flight have R&D ongoing and the progress Asian been defense past regarding QX. there Lastly, has

SAR. Gemini-II for Plato. applications with advancing image are a onboard for to partner aerospace This are X them We other prepare to few more companies evaluating potential a our is and organization funding also for deliverables Also, purchase board. creation technology satellite a

Military customer Nokia and were of to XX.X% of ago XX.X% shipments of the to period third year sales year X.X% fiscal fiscal breakdowns or shipments quarter. $XXX,XXX XXXX prior of a or to or revenues quarter. quarter the prior third net shipments quarter. in to XX.X% net revenues sales $XXX,XXX quarter. comparable compared the the the compared of same XX.X% and in in to our quarter period were $XXX,XXX compared move of shipments I'll third the a ago of quarter and third of and the in net in XX.X% the revenues XXXX, defense were XX% for sales XX.X% in the third product Now of SigmaQuad In prior quarter XX.X%

Doug. Doug. the hand I'd to Now Go like ahead, to over call

Douglas Schirle

of second preceding in net quarter the million in for primarily $X.X expenses quarter year the were XX% fiscal $X.X third year manufacturing in the in million was in in general period third million million in the and in fiscal expenses Selling, were and XXXX XX, to of third million Total mix in and the third operating XXXX the $X.X quarter $X XXXX. Gross in revenue, margin quarter in the million the second of $X $X.X the million development of quarter fiscal quarter. prior third the associated third prior XXXX The compared compared fiscal fiscal $X.X XXXX. costs XXXX XXXX of due for and $X to the and and million compared million quarter sequential quarter to increase quarter. Research higher was third reported of to XXXX prior ended $X.X of in revenues the XX.X% to were $X and product in the of million workforce quarter reductions quarter. $X.X in quarter. fiscal million XX.X% quarter expenses to compared of gross previous margin the compared and and with severance December prior fiscal administrative the We quarter fiscal of XXXX the prior XXXX, fiscal million for quarter $X.X

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

loss quarter. $XX,XXX same interest In $XX,XXX included interest share that to million compared and $XXX,XXX a tax the special Stockholders' XXXX $X.X as company interest March of other Net December XX, in announced million diluted third preceding cash $X.XX quarter Board compared of capital to a $XXX,XXX ago compared and and compensation provision Third ago. loss XXXX. Total a share comparable On December second strategic the loss $XX,XXX. $X.XX net $XX income for third of committee versus XXXX, to comprehensive of the XXXX. the XXXX. initiated to period quarter a various $XXX,XXX in of quarter, or a share company in tax million at XX, in for $XXX,XXX equity of $XX.X $XX.X March XX, loss XX, XXXX, the the fiscal pretax other provision March in other the a a cash quarter of the and quarter included fiscal evaluate had fiscal prior was quarter for of to income of $X.X per to December of we a alternatives. was provision net loss or XXXX, tax million million million a as review XXXX and and quarter per net $XX.X had million the of year Working expense year of established fiscal was compared $XX,XXX million $XX.X compared XX, at $X XX, and per strategic XXXX. Previously, and and income $XX.X net ended diluted second equivalents stock-based was $XXX,XXX XXXX fiscal on million of the diluted and third year $X.XX the or

strategic will to call & continue this the Needham Company process. Operator, with adviser work We assist point, Q&A. and financial in at we this our to as open to

Operator

question investor. Instructions] the first comes a line Christian, Our of Robert [Operator private from

Unknown Attendee

do Yes. on company going get software? are benchmarks for Gemini-II? to and I'd a paper its white we the is to AI algorithms to like the the utilizing And know,

Didier Lasserre

writing actually have we're algorithms, our folks in the ourselves division. the So that Israeli with we

a as As far yes. paper, white

will model, mentioned, we the on the YOLOvX. as algorithm be first So specifically YOLO Gemini-II

we publishing the be that that's We will YOLOvX, also correct. following when will benchmarks up be done, with but

Unknown Attendee

Okay. the valuation. was company it question enhance We're have brought partner? to was second on the I actually the or last now it was Needham And we was right than back they lower in Are year when were. May, announced

Douglas Schirle

they to and we've them brought Well, with the are at, the investment say company. brought don't know we've find grow company continue looking company's strategic that it's was have that at to the intent look opportunities. working into to I opportunities we to further been provide The alternatives increase and and been they to valuation. that fair

Unknown Attendee

stated positive. much. very was you That's I thank anyway, But I in almost wrong. what was be May. Well, could

Operator

Shu for looks will are remarks. turn [Operator Instructions] call Therefore, over there Lee-Lean It closing I like further questions. to the back no

Lee-Lean Shu

us. when you joining you we Thank our speaking year fiscal fourth report results. you. quarter again with forward all full for to We Thank XXXX the look and

Operator

and Ladies and time. today's for this you. your gentlemen, disconnect at conference, may you lines your Thank this Thank participation. concludes you

GSI Technology (GSIT) 30 Jan 252025 Q3 Earnings call transcript