Release Date: July 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GSI Technology Inc (GSIT, Financial) reported first-quarter revenue of $4.7 million, which was within their guidance range.
- The company is focused on launching the GXL platform for fast vector search, which promises significant improvements in processing speed for GenAI and e-commerce applications.
- GSI Technology Inc (GSIT) is expanding its Department of Defense SBIR proposals pipeline, with contracts ranging from $75,000 to over $2 million.
- The company successfully mounted the Gemini-II chip onto a board, allowing for continued firmware and software development.
- GSI Technology Inc (GSIT) has increased its cash and cash equivalents to $21.8 million as of June 30, 2024, up from $14.4 million at the end of the previous quarter.
Negative Points
- First-quarter revenue declined from $5.6 million in the same period last year, primarily due to lower SigmaQuad sales and reduced sales to military prime contractors.
- Gross margin decreased to 46.3% from 54.9% in the year-ago quarter, affected by product mix and lower revenue impacting fixed costs.
- The company reported an operating loss of $4.7 million for the first quarter of fiscal 2025.
- Sales to Nokia decreased significantly, contributing to a decline in net revenues.
- The company is still in discussions for strategic partnerships and has not finalized any major funding or development routes for Gemini-III.
Q & A Highlights
Q: Can you provide an update on the strategic direction for the Gemini APU project, including potential funding and development routes?
A: We are in discussions with hyperscalers and HBM vendors for Gemini-III. The focus is on demonstrating our APU's 1-bit and 2-bit processing capabilities by the end of the calendar year to attract interest and funding.
Q: Have you validated the benchmarks for Gemini-II, and what is the status of these benchmarks?
A: We have calculated benchmarks, but we are currently working on running them on the actual device. The first silicon is solid, with no major bugs, and we are completing the necessary software libraries to run these benchmarks.
Q: What is the market potential for Gemini-II, and how do you plan to sell it?
A: Gemini-II targets the Edge AI processing market, which is a fast-growing $20 billion market. We plan to sell chips, boards, and systems, and also explore cloud-based revenue models.
Q: Can you update us on the radiation-hardened programs and their progress?
A: We shipped a prototype order to a European customer for further testing. We aim for a $10 million annual run rate with over 90% gross margin. We are also exploring ways to achieve space heritage for our parts.
Q: Are there any companies interested in licensing your technology or acquiring GSI Technology?
A: We are in discussions with a major networking telecom customer about incorporating our IP into their ASIC. Additionally, we are having encouraging discussions with Needham regarding potential strategic opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
