Within the second quarter of fiscal 2025, GSI Know-how, Inc. GSIT incurred a web loss per share of 21 cents, wider than the lack of 16 cents per share within the prior-year quarter.
Revenues for the quarter had been $4.6 million, a lower from $5.7 million within the second quarter of fiscal 2024. The corporate attributed its outcomes to modifications in product combine and workforce reductions that influenced gross margins.
GSI Know-how’s quarterly efficiency was outlined by declining revenues, narrowing gross margins, and ongoing cost-reduction measures. Notably, the corporate executed strategic cost-cutting measures within the fiscal second quarter, anticipating annual financial savings of $3.5 million to enhance money circulation.
Administration anticipates a possible demand restoration within the SRAM section as buyer inventories normalize, bolstering gross sales in future quarters.
GSI Know-how, Inc. Worth, Consensus and EPS Shock
GSI Technology, Inc. price-consensus-eps-surprise-chart | GSI Know-how, Inc. Quote
Enterprise Metrics Efficiency
Income Breakdown
The year-over-year dip in income was pushed largely by decreased demand throughout key product traces. Gross sales to Nokia, amounted to $0.8 million, or 17.8% of complete revenues, decrease than the $1.2 million or 20.3% share within the prior-year quarter. Navy and protection gross sales, nonetheless, confirmed resilience, accounting for 40.2% of complete shipments, up from 34.8% a 12 months in the past.
Working Bills
Working bills elevated to $7.3 million, barely above the $7.2 million reported within the prior-year quarter. This rise was primarily on account of analysis and improvement (R&D), and promoting, normal and administrative (SG&A) expenditures. R&D bills stood at $4.8 million, up from $4.7 million within the year-ago quarter, whereas SG&A bills had been $2.6 million. The corporate’s working loss widened to $5.6 million from $4.1 million a 12 months in the past, reflecting larger expenditures amid a income decline.
Gross Margins
Gross margin compressed considerably from 54.7% within the second quarter of fiscal 2024 to 38.6% within the second quarter of fiscal 2025. This discount was attributed to shifts within the product combine and extra prices from workforce restructuring. The shift away from the higher-margin SigmaQuad merchandise impacted margin high quality, compounded by severance bills that elevated manufacturing prices.
Internet Revenue
GSI Know-how incurred a web lack of $5.5 million within the second quarter of fiscal 2025, wider than a web lack of $4.1 million within the year-ago quarter. Curiosity and different revenue contributed $0.1 million to the outcomes, which was an enchancment from the prior-year interval.
Monetary Place (As of Sept. 30, 2024)
GSI Know-how’s money and money equivalents stood at $18.4 million, reflecting a rise from $14.4 million as of March 31, 2024.
Complete belongings rose to $47.4 million, up from $42.5 million on the finish of the earlier fiscal 12 months.
Present liabilities elevated barely to $5.5 million from $5.4 million as of March 31, 2024.
Stockholders’ fairness, nonetheless, declined to $33.3 million from $36 million.
Administration Steering
For the third quarter of fiscal 2025, GSI Know-how forecasts revenues between $4.7 million and $5.5 million, together with an anticipated gross margin of roughly 50-52%.
Different Developments
Through the quarter, GSI Know-how superior its Gemini-II benchmarking challenge, on observe to fulfill its Dec. 31, 2024, deadline. Moreover, the corporate stays dedicated to fulfilling its Small Enterprise Innovation Analysis contract with the U.S. Air Power Labs, aiming to ship the required software program algorithms by the primary quarter of calendar 12 months 2025. These initiatives mirror GSI Know-how’s efforts to innovate and diversify its choices past conventional reminiscence merchandise.
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