GSI Technology, Inc. (NASDAQ: GSIT) today reported
financial results for its fourth fiscal quarter and fiscal year
ended March 31, 2024.
Fourth Quarter and Fiscal Year 2024 Summary Financial
Results Table (in thousands, except per share
amounts)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
Mar. 31,2024 |
|
Dec. 31,2023 |
|
Mar. 31,2023 |
|
Mar. 31,2024 |
|
Mar. 31,2023 |
|
Net revenues |
$5,152 |
|
|
$5,318 |
|
|
$5,381 |
|
|
$21,765 |
|
|
$29,691 |
|
| Gross margin (%) |
51.6% |
|
|
55.9% |
|
|
55.9% |
|
|
54.3% |
|
|
59.6% |
|
| Operating expenses |
$7,172 |
|
|
$9,660 |
|
|
$6,879 |
|
|
$32,254 |
|
|
$33,488 |
|
| Operating loss |
$(4,514 |
) |
|
$(6,685 |
) |
|
$(3,872 |
) |
|
$(20,431 |
) |
|
$(15,807 |
) |
| Net loss |
$(4,321 |
) |
|
$(6,601 |
) |
|
$(3,962 |
) |
|
$(20,087 |
) |
|
$(15,977 |
) |
| Net loss per share,
diluted |
$(0.17 |
) |
|
($0.26 |
) |
|
$(0.16 |
) |
|
$(0.80 |
) |
|
$(0.65 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lee-Lean Shu, Chairman and Chief Executive
Officer, commented, "In the fourth quarter and subsequently, we
achieved significant milestones across our core initiatives. First,
we launched two high-capacity, low-power 1U and 2U servers
integrated with the High-performance Gemini-I APU. These servers
are designed specifically for SAR and Fast Vector Search
applications, enabling mobile applications and enterprise-level
processing at the edge. Second, notable progress has been made in
testing and debugging Gemini-II, which has been mounted on a board
for comprehensive performance assessment. We aim to have a second
spin in the third quarter of fiscal 2025 and initiate benchmarking
shortly after, allowing us to begin preliminary customer sampling.
Last, our discussions with potential strategic and technology
partners continue to show promise. We remain committed to product
innovation and steadfast in forging strategic alliances, both of
which position us for growth and success."
Mr. Shu concluded, “In early April, we entered
into an agreement to sell our property in Sunnyvale for $11.9
million in cash and will enter into a lease agreement for the
property at the close of escrow. The funds from the sale will
fortify our financial standing and extend our operational
runway.”
Commenting on the outlook for GSI’s first
quarter of fiscal 2025, Mr. Shu stated, “Our current expectations
for the first quarter of fiscal 2025 are net revenues in a range
of $4.6 million to $5.2 million, with gross margin
of approximately 52% to 54%.”
Business Update
In addition, the Company announced that it has
initiated a broad strategic review to maximize stockholder value.
The review will be administered by a special committee of the board
of directors to bring focus on strategic alternatives while the
Company’s management focuses on the development of its family of
compute in memory solutions for high performance computing and
Artificial Intelligence. The Company plans to consider a wide range
of options including equity or debt financing, divestiture of
assets, technology licensing or other strategic arrangements
including the sale of the Company. Over the course of the last
eight years, the Company has invested approximately $150 million of
internally generated capital to develop its novel associated
processer (APU) architecture and built a team of approximately 80
engineers in both hardware and software development. The Company’s
Board of Directors is of the opinion that the market has yet to
recognize the progress and promise of the Company’s position. Any
actions taken as a result of the strategic review will be directed
at driving stockholder value. The Company hired Needham &
Company, LLC as strategic and financial advisor in addressing these
alternatives. There can be no assurance that this strategic review
process will result in the completion of any transaction. The
Company has not set a timetable for completion of this strategic
review process.
Fiscal Year 2024 Summary Financials
For the fiscal year ended March 31, 2024, the
Company reported a net loss of $(20.1) million, or $(0.80) per
diluted share, on net revenues of $21.8 million, compared to a net
loss of $(16.0) million, or $(0.65) per diluted share, on net
revenues of $29.7 million in the fiscal year ended March 31, 2023.
Gross margin for fiscal 2024 was 54.3%, compared to 59.6% in the
prior year. The decrease in gross margin was primarily due to
product mix and the effect of lower revenue on the fixed costs in
our cost of revenues.
Total operating expenses were $32.3 million in
fiscal 2024, compared to $33.5 million in fiscal 2023. Research and
development expenses were $21.7 million, compared to $23.6 million
in the prior fiscal year. Selling, general and administrative
expenses were $10.6 million, compared to $9.9 million in fiscal
2023. The decline in research and development expenses was
primarily due to cost reduction measures announced by the Company
in November 2022.
The operating loss for fiscal 2024 was $(20.4)
million compared to an operating loss of $(15.8) million in the
prior year. The fiscal 2024 net loss included interest and other
income of $414,000 and a tax provision of $70,000, compared to
$202,000 in interest and other income and a tax provision of
$372,000 in the prior year.
Fourth Quarter Fiscal Year 2024 Summary
Financials
The Company reported a net loss of $(4.3)
million, or $(0.17) per diluted share, on net revenues of
$5.2 million for the fourth quarter of fiscal 2024, compared
to a net loss of $(4.0) million, or $(0.16) per diluted share, on
net revenues of $5.4 million for the fourth quarter of fiscal
2023 and a net loss of $(6.6) million, or $(0.26) per diluted
share, on net revenues of $5.3 million for the third quarter
of fiscal 2024. Gross margin was 51.6% in the fourth quarter of
fiscal 2024 compared to 55.9% in both the prior-year period and the
preceding third quarter. The decrease in gross margin in the fourth
quarter of 2024 was primarily due to product mix and the effect of
lower revenue on the fixed costs in our cost of revenues.
In the fourth quarter of fiscal 2024, sales to
Nokia were $694,000, or 13.5% of net revenues, compared to $1.2
million, or 21.8% of net revenues, in the same period a year ago
and $807,000, or 15.2% of net revenues, in the prior quarter.
Military/defense sales were 35.5% of fourth quarter shipments
compared to 44.2% of shipments in the comparable period a year ago
and 28.2% of shipments in the prior quarter. SigmaQuad sales were
42.4% of fourth quarter shipments compared to 46.3% in the fourth
quarter of fiscal 2023 and 46.9% in the prior quarter.
Total operating expenses in the fourth quarter
of fiscal 2024 were $7.2 million, compared to $6.9 million in the
fourth quarter of fiscal 2023 and $9.7 million in the prior
quarter. Research and development expenses were $4.8 million,
compared to $5.0 million in the prior-year period and $7.0 million
in the prior quarter. Selling, general and administrative expenses
were $2.4 million in the quarter ended March 31, 2024, compared to
$1.9 million in the prior-year quarter and $2.7 million in the
previous quarter.
Fourth quarter fiscal 2024 operating loss was
$(4.5) million compared to an operating loss of $(3.9) million in
the prior-year period and an operating loss of $(6.7) million in
the prior quarter. Fourth quarter fiscal 2024 net loss included
interest and other income of $108,000 and a tax benefit of
$(85,000), compared to $101,000 in interest and other income and a
tax provision of $191,000 for the same period a year ago. In the
preceding third quarter, net loss included interest and other
income of $155,000 and a tax provision of $71,000.
Total fourth quarter pre-tax stock-based
compensation expense was $693,000 compared to $515,000 in the
comparable quarter a year ago and $649,000 in the prior
quarter.
At March 31, 2024, the Company had $14.4 million
in cash and cash equivalents, compared to $30.6 million in cash,
cash equivalents and short-term investments at March 31, 2023.
Working capital was $19.1 million as of March 31, 2024 versus $34.7
million at March 31, 2023. Stockholders’ equity as of March 31,
2024 was $36.0 million, compared to $51.4 million as of the fiscal
year ended March 31, 2023.
Conference Call
GSI Technology will review its financial results
for the quarter and fiscal year ended March 31, 2024, and discuss
its current business outlook during a conference call at 1:30 p.m.
Pacific (4:30 p.m. Eastern) today, May 2, 2024. To participate in
the call, please dial 1-800-717-1738 in the U.S. or 1-646-307-1865
for international approximately 10 minutes prior to the above start
time and provide Conference ID 1133885. The call will also be
streamed live via the internet at https://ir.gsitechnology.com/
where the event will be archived.
About GSI Technology
GSI Technology is at the forefront of the AI
revolution with our groundbreaking APU technology, designed for
unparalleled efficiency in billion-item database searches and
high-performance computing. GSI’s innovations, Gemini-I® and
Gemini-II®, offer scalable, low-power, high-capacity computing
solutions that redefine edge computing capabilities. GSI Technology
is not just advancing technology; we're shaping a smarter, faster,
and more efficient future.
Founded in 1995 and headquartered in Sunnyvale, California, GSI
Technology has 149 employees and over 125 granted patents.
For more information, please visit www.gsitechnology.com.
Forward-Looking Statements
The statements contained in this press release
that are not purely historical are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, including statements regarding GSI Technology’s
expectations, beliefs, intentions, or strategies regarding the
future. All forward-looking statements included in this press
release are based upon information available to GSI Technology as
of the date hereof, and GSI Technology assumes no obligation to
update any such forward-looking statements. Forward-looking
statements involve a variety of risks and uncertainties, which
could cause actual results to differ materially from those
projected. These risks include those associated with the normal
quarterly and fiscal year-end closing process, as well as the
Company’s initiation of a strategic review. Examples of risks that
could affect our current expectations regarding future revenues and
gross margins include those associated with fluctuations in GSI
Technology’s operating results; GSI Technology’s historical
dependence on sales to a limited number of customers and
fluctuations in the mix of customers and products in any period;
global public health crises that reduce economic activity; the
rapidly evolving markets for GSI Technology’s products and
uncertainty regarding the development of these markets; the need to
develop and introduce new products to offset the historical decline
in the average unit selling price of GSI Technology’s products; the
challenges of rapid growth followed by periods of contraction;
intensive competition; delays or unanticipated costs that may be
encountered in the development of new products based on our
in-place associative computing technology and the establishment of
new markets and customer and partner relationships for the sale of
such products; and delays or unexpected challenges related to the
establishment of customer relationships and orders for GSI
Technology’s radiation-hardened and tolerant semiconductor
products. The strategic review is subject to risks related to the
process by which GSI Technology evaluates its strategic
alternatives, the terms, timing, structure, benefits and costs of
any strategic transaction and whether one will be consummated at
all and the impact of any strategic transaction on GSI Technology.
Many of these risks are currently amplified by and will continue to
be amplified by, or in the future may be amplified by, economic and
geopolitical conditions, such as rising interest rates, worldwide
inflationary pressures, military conflicts, significant
fluctuations in energy prices and declines in the global economic
environment. Further information regarding these and other risks
relating to GSI Technology’s business is contained in the Company’s
filings with the Securities and Exchange Commission, including
those factors discussed under the caption “Risk Factors” in such
filings.
Source: GSI Technology, Inc.
GSI Technology, Inc.
Douglas M. SchirleChief Financial Officer408-331-9802
Hayden IR
Kim RogersManaging Director385-831-7337Kim@HaydenIR.com
Media Relations
Finn Partners for GSI TechnologyRicca Silverio(415)
348-2724gsi@finnpartners.com
| |
| GSI
TECHNOLOGY, INC. |
| CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
| (in
thousands, except per share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
|
|
March 31, |
|
Dec. 31, |
|
March 31, |
|
March 31, |
|
March 31, |
| |
|
|
|
2024 |
|
2023 |
|
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
5,152 |
|
|
$ |
5,318 |
|
|
$ |
5,381 |
|
|
$ |
21,765 |
|
|
$ |
29,691 |
|
|
Cost of goods sold |
|
2,494 |
|
|
|
2,343 |
|
|
|
2,374 |
|
|
|
9,942 |
|
|
|
12,010 |
|
| |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
2,658 |
|
|
|
2,975 |
|
|
|
3,007 |
|
|
|
11,823 |
|
|
|
17,681 |
|
| |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Research & development |
|
4,818 |
|
|
|
6,976 |
|
|
|
5,007 |
|
|
|
21,689 |
|
|
|
23,550 |
|
| |
Selling, general and administrative |
|
2,354 |
|
|
|
2,684 |
|
|
|
1,872 |
|
|
|
10,565 |
|
|
|
9,938 |
|
|
|
|
|
Total operating expenses |
|
7,172 |
|
|
|
9,660 |
|
|
|
6,879 |
|
|
|
32,254 |
|
|
|
33,488 |
|
| |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(4,514 |
) |
|
|
(6,685 |
) |
|
|
(3,872 |
) |
|
|
(20,431 |
) |
|
|
(15,807 |
) |
| |
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net |
|
108 |
|
|
|
155 |
|
|
|
101 |
|
|
|
414 |
|
|
|
202 |
|
| |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(4,406 |
) |
|
|
(6,530 |
) |
|
|
(3,771 |
) |
|
|
(20,017 |
) |
|
|
(15,605 |
) |
|
Provision (benefit) for income taxes |
|
(85 |
) |
|
|
71 |
|
|
|
191 |
|
|
|
70 |
|
|
|
372 |
|
|
Net loss |
$ |
(4,321 |
) |
|
$ |
(6,601 |
) |
|
$ |
(3,962 |
) |
|
$ |
(20,087 |
) |
|
$ |
(15,977 |
) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic |
$ |
(0.17 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.65 |
) |
|
Net loss per share, diluted |
$ |
(0.17 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.65 |
) |
| |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in |
|
|
|
|
|
|
|
computing per share amounts: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Basic |
|
25,297 |
|
|
|
25,256 |
|
|
|
24,685 |
|
|
|
25,144 |
|
|
|
24,595 |
|
|
Diluted |
|
25,297 |
|
|
|
25,256 |
|
|
|
24,685 |
|
|
|
25,144 |
|
|
|
24,595 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Stock-based
compensation included in the Condensed Consolidated Statements of
Operations: |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
|
|
March 31, |
|
Dec. 31, |
|
March 31, |
|
March 31, |
|
March 31, |
| |
|
|
|
2024 |
|
2023 |
|
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
$ |
53 |
|
|
$ |
51 |
|
|
$ |
39 |
|
|
$ |
228 |
|
|
$ |
202 |
|
|
Research & development |
|
331 |
|
|
|
325 |
|
|
|
246 |
|
|
|
1,411 |
|
|
|
1,316 |
|
|
Selling, general and administrative |
|
309 |
|
|
|
273 |
|
|
|
230 |
|
|
|
1,199 |
|
|
|
951 |
|
| |
|
|
|
$ |
693 |
|
|
$ |
649 |
|
|
$ |
515 |
|
|
$ |
2,838 |
|
|
$ |
2,469 |
|
| |
|
|
|
|
|
|
|
|
|
| |
| GSI
TECHNOLOGY, INC. |
| CONDENSED
CONSOLIDATED BALANCE SHEETS |
| (in
thousands) |
|
(Unaudited) |
| |
|
|
|
| |
March 31, 2024 |
|
March 31, 2023 |
|
Cash and cash equivalents |
$ |
14,429 |
|
|
$ |
27,212 |
|
| Short-term
investments |
|
0 |
|
|
|
3,363 |
|
| Accounts
receivable |
|
3,118 |
|
|
|
3,471 |
|
|
Inventory |
|
4,977 |
|
|
|
6,415 |
|
| Other
current assets |
|
1,954 |
|
|
|
1,414 |
|
| Assets held
for sale |
|
5,629 |
|
|
|
0 |
|
| Net property
and equipment |
|
1,148 |
|
|
|
7,423 |
|
| Other
assets |
|
11,209 |
|
|
|
10,578 |
|
| Total
assets |
$ |
42,464 |
|
|
$ |
59,876 |
|
| |
|
|
|
| Current
liabilities |
$ |
5,365 |
|
|
$ |
7,202 |
|
| Long-term
liabilities |
|
1,129 |
|
|
|
1,302 |
|
|
Stockholders' equity |
|
35,970 |
|
|
|
51,372 |
|
| Total
liabilities and stockholders' equity |
$ |
42,464 |
|
|
$ |
59,876 |
|
| |
|
|
|
GSI Technology (NASDAQ:GSIT)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
GSI Technology (NASDAQ:GSIT)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
