GSI Expertise, Inc. Reviews Revised Fourth Quarter and
SUNNYVALE, Calif., June 29, 2022 (GLOBE NEWSWIRE) — GSI Expertise, Inc. (NASDAQ: GSIT) is issuing this press launch to revise the reporting of its monetary outcomes for its fourth fiscal quarter and financial 12 months ended March 31, 2022. After issuing the unique incomes launch, GSI Expertise re-evaluated the methodologies and procedures concerned in growing forecasts used to calculate its contingent consideration legal responsibility and used within the recoverability take a look at over intangible belongings. This re-evaluation of forecasting methodologies and procedures resulted in a discount of roughly $1.3 million in promoting, normal and administrative expense with a corresponding lower within the contingent consideration legal responsibility, which impacted different quantities on the consolidated assertion of operation and consolidated stability sheet.
The revised launch reads as follows:
Fourth Quarter and Fiscal Yr 2022 Abstract Monetary Outcomes Desk
(in hundreds, besides per share quantities)
Three Months Ended | Twelve Months Ended | |||||||||
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
||||||
Internet revenues | $8,731 | $8,065 | $7,686 | $33,384 | $27,729 | |||||
Gross margin ({039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07}) | 58.6{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} | 55.3{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} | 50.2{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} | 55.5{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} | 47.7{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} | |||||
Working bills | $8,059 | $8,994 | $9,123 | $34,890 | $34,481 | |||||
Working loss | $(2,943) | $(4,532) | $(5,265) | $(16,353) | $(21,264) | |||||
Internet loss | $(3,011) | $(4,581) | $(4,982) | $(16,368) | $(21,505) | |||||
Internet loss per share, diluted | $(0.12) | $(0.19) | $(0.21) | $(0.67) | $(0.91) |
Lee-Lean Shu, Chairman and Chief Govt Officer, commented, “We completed fiscal 12 months 2022 on a powerful word, rising year-over-year income by greater than 20{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} to $33.4 million because of new initiatives and expanded enterprise in all our classes, significantly, army and protection. Our gross margin improved by 780 foundation factors and working bills rose by only one{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07}, which helped to slim our web loss for the 12 months. For the fourth quarter, we delivered an 8{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} rise in income and gross margin enchancment of 330 foundation factors in comparison with the prior quarter, which, mixed with modest development in working bills, narrowed our web loss for the quarter.
Mr. Shu continued, “Nearly all of our R&D is devoted to the tape-out of Gemini-II, which we anticipate finishing by the top of calendar 2022, and ongoing software program improvement, together with the upcoming launch of model 2 of the Gemini-I compiler stack that’s anticipated to be launched in July. This model will probably be solely Python enabled for coding algorithms, purposes and libraries. We anticipate the provision of the improved model to be a catalyst for Gemini-I buyer engagement. The GSI software program staff has efficiently competed in a number of high-profile contests, usually profitable first place. These contests have raised GSI’s profile in key market sectors, reminiscent of U.S. and Israeli army and protection companies, in addition to different governmental companies and organizations associated to protection and safety.”
Commenting on the outlook for GSI’s first quarter of fiscal 2023, Mr. Shu said, “Our present expectations for the upcoming quarter are web revenues in a spread of $8.5 million to $9.5 million, with gross margin of roughly 60{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} to 62{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07}, reflecting a Rad Arduous order anticipated to be booked and shipped within the quarter. We preserve a sexy stability sheet with a surplus of money and no debt.”
Fiscal Yr 2022 Abstract Financials
For the fiscal 12 months ended March 31, 2022, the Firm reported a web lack of $(16.4 million), or $(0.67) per diluted share, on web revenues of $33.4 million, in comparison with a web lack of $(21.5 million), or $(0.91) per diluted share, on web revenues of $27.7 million within the fiscal 12 months ended March 31, 2021. Gross margin for fiscal 2022 was 55.5{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07}, in comparison with 47.7{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} within the prior 12 months.
Complete working bills had been $34.9 million in fiscal 2022, a rise of 1.2{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} from $34.5 million in fiscal 2021. Analysis and improvement bills had been $24.7 million, in comparison with $23.3 million within the prior fiscal 12 months. Promoting, normal and administrative bills had been $10.2 million, in comparison with $11.1 million in fiscal 2021. The rise in analysis and improvement bills was primarily associated to the event of Gemini-II.
The working loss for fiscal 2022 was $(16.4 million) in comparison with an working lack of $(21.3 million) within the prior 12 months. The development within the working loss was primarily because of the enhance in income and gross revenue. The fiscal 2022 web loss included curiosity and different expense of $(60,000) and a tax good thing about $45,000, in comparison with $94,000 in curiosity and different earnings and a tax provision of $335,000 a 12 months in the past.
Fourth Quarter Fiscal Yr 2022 Abstract Financials
The Firm reported a web lack of $(3.0 million), or $(0.12) per diluted share, on web revenues of $8.7 million for the fourth quarter of fiscal 2022, in comparison with a web lack of $(5.0 million), or $(0.21) per diluted share, on web revenues of $7.7 million for the fourth quarter of fiscal 2021 and a web lack of $(4.6 million), or $(0.19) per diluted share, on web revenues of $8.1 million for the third quarter of fiscal 2022. Gross margin was 58.6{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} within the fourth quarter of fiscal 2022 in comparison with 50.2{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} within the prior-year interval and 55.3{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} within the previous third quarter. The development in gross margin was primarily on account of adjustments within the mixture of merchandise bought and value will increase efficient in December 2021.
Within the fourth quarter of fiscal 2022, gross sales to Nokia had been $2.0 million, or 23.1{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} of web revenues, in comparison with $2.8 million, or 36.5{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} of web revenues, in the identical interval a 12 months in the past and $1.9 million, or 24.0{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} of web revenues, within the prior quarter. Army/protection gross sales had been 22.3{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} of fourth quarter shipments in comparison with 22.5{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} of shipments within the comparable interval a 12 months in the past and 27.1{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} of shipments within the prior quarter. SigmaQuad gross sales had been 47.6{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} of fourth quarter shipments in comparison with 52.9{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} within the fourth quarter of fiscal 2021 and 40.5{039cb3d497d13c0517cca4e380353306ecb88d60826931115685fbb7eed37c07} within the prior quarter.
Complete working bills within the fourth quarter of fiscal 2022 had been $8.1 million, in comparison with $9.1 million within the fourth quarter of fiscal 2021 and $9.0 million within the prior quarter. Analysis and improvement bills had been $6.5 million, in comparison with $6.1 million within the prior-year interval and $6.2 million within the prior quarter. Promoting, normal and administrative bills had been $1.5 million within the quarter ended March 31, 2022, in comparison with $3.0 million within the prior-year quarter and $2.8 million within the earlier quarter.
Fourth quarter fiscal 2022 working loss was $(2.9 million) in comparison with an working lack of $(5.3 million) within the prior-year interval and an working lack of $(4.5 million) within the prior quarter. Fourth quarter fiscal 2022 web loss included curiosity and different expense of $(47,000) and a tax provision of $21,000, in comparison with $(21,000) in curiosity and different expense and a tax good thing about $304,000 for a similar interval a 12 months in the past. Within the previous third quarter, web loss included curiosity and different earnings of $15,000 and a tax provision of $64,000.
Complete fourth quarter pre-tax stock-based compensation expense was $714,000 in comparison with $753,000 within the comparable quarter a 12 months in the past and $740,000 within the prior quarter.
At March 31, 2022, the Firm had $44.0 million in money, money equivalents, and short-term investments and $3.3 million in long-term investments, in comparison with $54.0 million in money, money equivalents, and short-term investments and $5.8 million in long-term investments at March 31, 2021. Working capital was $45.8 million as of March 31, 2022, versus $56.0 million at March 31, 2021, with no debt. Stockholders’ fairness as of March 31, 2022, was $64.5 million in comparison with $75.6 million as of the fiscal 12 months ended March 31, 2021.
About GSI Expertise
Based in 1995, GSI Expertise, Inc. is a number one supplier of semiconductor reminiscence options. The Firm not too long ago launched radiation-hardened reminiscence merchandise for excessive environments in area and the Gemini ® Associative Processing Unit (APU), a memory-centric design that delivers important efficiency benefits for various AI purposes. The Gemini APU structure removes the I/O bottleneck between the processors and reminiscence arrays by performing huge parallel search straight within the reminiscence array the place knowledge is saved. The novel structure delivers performance-over-power ratio enhancements in comparison with CPU, GPU, and DRAM for purposes like picture detection, speech recognition, e-commerce advice techniques, and extra. Gemini is a perfect resolution for edge purposes with a scalable format, small footprint, and low energy consumption the place fast, correct responses are essential. For extra info, please go to www.gsitechnology.com.
Ahead-Trying Statements
The statements contained on this press launch that aren’t purely historic are forward-looking statements throughout the which means of Part 21E of the Securities Change Act of 1934, as amended, together with statements relating to GSI Expertise’s expectations, beliefs, intentions, or methods relating to the longer term. All forward-looking statements included on this press launch are primarily based upon info accessible to GSI Expertise as of the date hereof, and GSI Expertise assumes no obligation to replace any such forward-looking statements. Ahead-looking statements contain a wide range of dangers and uncertainties, which may trigger precise outcomes to vary materially from these projected. These dangers embrace these related to the conventional quarterly and financial year-end closing course of. Examples of dangers that might have an effect on our present expectations relating to future revenues and gross margins embrace these related to fluctuations in GSI Expertise’s working outcomes; GSI Expertise’s historic dependence on gross sales to a restricted variety of clients and fluctuations within the combine of consumers and merchandise in any interval; world public well being crises that scale back financial exercise (together with the continued COVID-19 world pandemic and the governmental and regulatory actions relating thereto); the quickly evolving markets for GSI Expertise’s merchandise and uncertainty relating to the event of those markets; the necessity to develop and introduce new merchandise to offset the historic decline within the common unit promoting value of GSI Expertise’s merchandise; the challenges of fast development adopted by durations of contraction; intensive competitors; and delays or unanticipated prices that could be encountered within the improvement of recent merchandise primarily based on our in-place associative computing expertise and the institution of recent markets and buyer relationships for the sale of such merchandise. Many of those dangers are presently amplified by and can proceed to be amplified by, or sooner or later could also be amplified by, the COVID-19 world pandemic. Additional info relating to these and different dangers referring to GSI Expertise’s enterprise is contained within the Firm’s filings with the Securities and Change Fee, together with these elements mentioned underneath the caption “Danger Elements” in such filings.
Supply: GSI Expertise, Inc. |
Investor Relations
Hayden IR
Kim Rogers
Managing Director
385-831-7337
Kim@HaydenIR.com
Media Relations
Finn Companions for GSI Expertise
Ricca Silverio
(415) 348-2724
gsi@finnpartners.com
Firm
GSI Expertise, Inc.
Douglas M. Schirle
Chief Monetary Officer
408-331-9802
GSI TECHNOLOGY, INC. | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(in hundreds, besides per share knowledge) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
March 31, | Dec. 31, | March 31, | March 31, | March 31, | ||||||||||||||||
2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||
Internet revenues | $ | 8,731 | $ | 8,065 | $ | 7,686 | $ | 33,384 | $ | 27,729 | ||||||||||
Price of products bought | 3,615 | 3,603 | 3,828 | 14,847 | 14,512 | |||||||||||||||
Gross revenue | 5,116 | 4,462 | 3,858 | 18,537 | 13,217 | |||||||||||||||
Working bills: | ||||||||||||||||||||
Analysis & improvement | 6,510 | 6,152 | 6,124 | 24,672 | 23,344 | |||||||||||||||
Promoting, normal and administrative | 1,549 | 2,842 | 2,999 | 10,218 | 11,137 | |||||||||||||||
Complete working bills | 8,059 | 8,994 | 9,123 | 34,890 | 34,481 | |||||||||||||||
Working loss | (2,943 | ) | (4,532 | ) | (5,265 | ) | (16,353 | ) | (21,264 | ) | ||||||||||
Curiosity and different earnings (expense), web | (47 | ) | 15 | (21 | ) | (60 | ) | 94 | ||||||||||||
Loss earlier than earnings taxes | (2,990 | ) | (4,517 | ) | (5,286 | ) | (16,413 | ) | (21,170 | ) | ||||||||||
Provision (profit) for earnings taxes | 21 | 64 | (304 | ) | (45 | ) | 335 | |||||||||||||
Internet loss | $ | (3,011 | ) | $ | (4,581 | ) | $ | (4,982 | ) | $ | (16,368 | ) | $ | (21,505 | ) | |||||
Internet loss per share, primary | $ | (0.12 | ) | $ | (0.19 | ) | $ | (0.21 | ) | $ | (0.67 | ) | $ | (0.91 | ) | |||||
Internet loss per share, diluted | $ | (0.12 | ) | $ | (0.19 | ) | $ | (0.21 | ) | $ | (0.67 | ) | $ | (0.91 | ) | |||||
Weighted-average shares utilized in | ||||||||||||||||||||
computing per share quantities: | ||||||||||||||||||||
Fundamental | 24,484 | 24,406 | 23,912 | 24,303 | 23,671 | |||||||||||||||
Diluted | 24,484 | 24,406 | 23,912 | 24,303 | 23,671 | |||||||||||||||
Inventory-based compensation included within the Condensed Consolidated Statements of Operations: | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
March 31, | Dec. 31, | March 31, | March 31, | March 31, | ||||||||||||||||
2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||
Price of products bought | $ | 56 | $ | 58 | $ | 86 | $ | 248 | $ | 346 | ||||||||||
Analysis & improvement | 372 | 416 | 400 | 1,676 | 1,509 | |||||||||||||||
Promoting, normal and administrative | 286 | 266 | 267 | 1,069 | 999 | |||||||||||||||
$ | 714 | $ | 740 | $ | 753 | $ | 2,993 | $ | 2,854 | |||||||||||
GSI TECHNOLOGY, INC. | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(in hundreds) | |||||||||||
(Unaudited) | |||||||||||
March 31, 2022 | March 31, 2021 | ||||||||||
Money and money equivalents | $ | 36,971 | $ | 44,234 | |||||||
Quick-term investments | 6,992 | 9,717 | |||||||||
Accounts receivable | 4,518 | 3,665 | |||||||||
Stock | 4,655 | 4,343 | |||||||||
Different present belongings | 1,555 | 1,487 | |||||||||
Internet property and gear | 7,359 | 7,328 | |||||||||
Lengthy-term investments | 3,345 | 5,792 | |||||||||
Different belongings | 11,027 | 11,046 | |||||||||
Complete belongings | $ | 76,422 | $ | 87,612 | |||||||
Present liabilities | $ | 8,861 | $ | 7,462 | |||||||
Lengthy-term liabilities | 3,110 | 4,558 | |||||||||
Stockholders’ fairness | 64,451 | 75,592 | |||||||||
Complete liabilities and stockholders’ fairness | $ | 76,422 | $ | 87,612 | |||||||