Shares of GSI Know-how, Inc. GSIT have declined 0.4% for the reason that firm reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 0.2% development over the identical time-frame. Over the previous month, the inventory has declined 19.6% in contrast with the S&P 500’s 1.3% development.
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GSI Know-how incurred a internet lack of 16 cents per share within the third quarter of fiscal 2025, narrower than the prior-year quarter’s lack of 26 cents per share.
The corporate reported internet revenues of $5.4 million, reflecting a 2% enhance from the prior-year interval’s $5.3 million. Gross margin got here in at 54%, down from 55.9% within the prior-year quarter.
Working bills declined to $7 million from $9.7 million a yr in the past. Analysis and improvement (R&D) spending dropped to $4 million from $7 million within the prior-year interval. Promoting, basic, and administrative (SG&A) bills rose to $3 million from $2.7 million a yr in the past.
The corporate’s working loss narrowed to $4.1 million from $6.7 million within the prior-year quarter. Web loss narrowed to $4 million from a internet lack of $6.6 million.
GSI Know-how, Inc. Value, Consensus and EPS Shock
GSI Technology, Inc. price-consensus-eps-surprise-chart | GSI Know-how, Inc. Quote
Different Key Enterprise Metrics of GSIT
Navy and protection gross sales accounted for 30% of complete shipments, in comparison with 28.2% within the prior-year interval. Gross sales to Nokia declined to $0.2 million, representing 4.4% of complete revenues, from $0.8 million (15.2%) a yr in the past. SigmaQuad gross sales accounted for 39.1% of complete shipments, down from 46.9% within the year-ago interval.
As of Dec. 31, 2024, GSI Know-how had money and money equivalents of $15.1 million, up from $14.4 million on the finish of fiscal 2024. Working capital stood at $17.9 million, in comparison with $19.1 million as of March 31, 2024. Stockholders’ fairness decreased to $29.9 million from $36 million at fiscal year-end.
GSIT’s Administration Commentary
Chairman and CEO Lee-Lean Shu highlighted the corporate’s progress in income development and price discount initiatives. He famous {that a} key buyer within the AI semiconductor trade is ramping up orders, probably making it GSIT’s largest income contributor in fiscal 2025.
GSI’s APU (Associative Processing Unit) initiative continues to advance, with the Gemini-II chip on monitor for a February tape-out and availability in Could. This aligns with the corporate’s milestone dedication underneath the House Growth Company’s Small Enterprise Innovation Analysis (SBIR) program. Administration additionally launched a brand new chip, Plato, which is able to leverage Gemini-II’s structure to focus on edge AI and huge language mannequin purposes.
Elements Influencing GSIT’s Efficiency
The sequential enchancment in gross margin was attributed to increased revenues, a positive product combine and the absence of severance prices incurred within the prior quarter. Administration acknowledged ongoing cost-control efforts which have contributed to a discount in internet losses.
The corporate’s declining gross sales to Nokia and a shift in protection phase contributions may very well be key components affecting income composition in future quarters. Nonetheless, strengthening SRAM demand and a pipeline of presidency contracts could present stability.
Steering
For the fourth quarter of fiscal 2025, GSI Know-how expects internet revenues to vary between $5.4 million and $6.2 million, with gross margin projected between 55% and 57%.
Different Developments
GSI Know-how continues its strategic evaluation course of with Needham & Firm, evaluating options to boost shareholder worth.
The corporate secured a $0.3 million Section 1 SBIR contract with the U.S. Military to discover AI-driven edge computing purposes. Moreover, present SBIR tasks with the House Growth Company and Air Pressure Analysis Labs stay on monitor, with key deliverables anticipated within the coming quarters.
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