GSI Technology Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 29 January 2026: press release. Guidance figures: 2 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 12% year-over-year: Net revenues were $6.1 million, against $5.4 million a year earlier and $6.4 million in the prior quarter. Management tied the growth to demand for its SRAM solutions. Source
• Gross margin fell on product mix: Gross margin was 52.7%, against 54.0% a year earlier and 54.8% in the prior quarter. Management said the decrease was primarily due to product mix. Source
• R&D rose on Plato IP purchase: R&D expense was $7.5 million, against $4.0 million a year earlier and $3.8 million in the prior quarter. Management attributed the rise to IP purchased for Plato and consulting. Source
• Operating loss widened: Operating loss was $(6.9) million, against $(4.1) million a year earlier and $(3.2) million in the prior quarter. Source
• Cash rose on offering proceeds: Cash was $70.7 million, up from $13.4 million at March 31, 2025, including $46.9 million in net proceeds from the October 2025 Registered Direct Offering. Source
• Benchmark showed low power and latency: A published third-party benchmark for a multimodal edge inference workload was reported. Management said the result highlights Gemini-II's low-latency, energy-efficient profile. Source
• Fiscal fourth-quarter range provided: Management gave fiscal fourth-quarter net revenues of $5.7 million to $6.5 million and gross margin of approximately 54% to 56%. Source

“During the quarter, we advanced our development roadmap, raised equity financing and achieved key commercialization and validation milestones for Gemini-II.”

Lee-Lean Shu, Chairman and Chief Executive Officer

Guidance

What changed from last quarter

• New guidance: Fiscal fourth-quarter revenue and gross margin ranges were given. The prior release gave fiscal third-quarter ranges instead. Source
• New: The company finalized an agreement with G2 Tech for a previously announced proof-of-concept on an autonomous perimeter security system. Source
• New: The release adds cash disclosure lines: beginning cash, and operating, investing and financing cash flows. Source

Results and growth drivers

• Revenue rose 12% year-over-year: Net revenues were $6.1 million, against $5.4 million a year earlier and $6.4 million in the prior quarter. Management tied the growth to demand for its SRAM solutions. Source
• Net loss narrowed from a year earlier: Net loss was $(3.0) million, or $(0.09) per diluted share, against $(4.0) million, or $(0.16), a year earlier and $(3.2) million in the prior quarter. Source
• Other income reflected warrant fair-value change: Interest and other income was $3.6 million. The company said it reflected a $6.2 million non-cash fair-value adjustment on pre-funded warrants and $2.8 million of offering issuance costs. Source

Products and customers

• SigmaQuad share below prior quarter: SigmaQuad was 41.7% of third-quarter shipments, up from 39.1% a year earlier and down from 50.1% in the prior quarter. Source
• Military and defense share steady: Military/defense was 28.5% of shipments, against 30.0% a year earlier and 28.9% in the prior quarter. Source
• KYEC share of revenue: Sales to KYEC were $1.1 million, or 17.9% of net revenues, against 22.7% a year earlier and 12.5% in the prior quarter. Source
• Cadence sales were lower: Sales to Cadence Design Systems were $233,000, or 3.8% of net revenues, against $971,000 (17.9%) a year earlier and 21.6% in the prior quarter. Source
• Nokia sales higher year-over-year: Sales to Nokia were $675,000, or 11.1% of net revenues, against $239,000 (4.4%) a year earlier and $200,000 (3.1%) in the prior quarter. Source

“Building on these milestones, we are moving into the next phase of our APU roadmap.”

Lee-Lean Shu, Chairman and Chief Executive Officer

Costs and margins

• Gross margin fell on product mix: Gross margin was 52.7%, against 54.0% a year earlier and 54.8% in the prior quarter. Management said the decrease was primarily due to product mix. Source
• R&D rose on Plato IP purchase: R&D expense was $7.5 million, against $4.0 million a year earlier and $3.8 million in the prior quarter. Management attributed the rise to IP purchased for Plato and consulting. Source
• Operating loss widened: Operating loss was $(6.9) million, against $(4.1) million a year earlier and $(3.2) million in the prior quarter. Source
• SG&A little changed: SG&A was $2.6 million, against $3.0 million a year earlier and $3.0 million in the prior quarter. Source
• Stock-based compensation rose: Pre-tax stock-based compensation was $783,000, against $429,000 a year earlier and $856,000 in the prior quarter. Source

Cash, capital and equity

• Cash rose on offering proceeds: Cash was $70.7 million, up from $13.4 million at March 31, 2025, including $46.9 million in net proceeds from the October 2025 Registered Direct Offering. Source
• Operating cash outflow continued: Net cash used in operating activities was $7.9 million, investing used $0.3 million and financing provided $53.5 million. Management said operating outflow included Gemini-II and Plato spending. Source
• Working capital and equity increased: Working capital was $71.7 million, against $16.4 million at March 31, 2025. Stockholders' equity was $83.6 million, against $28.2 million at March 31, 2025. Source

Strategy and investment

• Benchmark showed low power and latency: A published third-party benchmark for a multimodal edge inference workload was reported. Management said the result highlights Gemini-II's low-latency, energy-efficient profile. Source
• Plato hardware development kicked off: The company said the capital raise supported the kickoff of Plato hardware development and the continued buildout of the Gemini-II software stack. Source
• Defense and edge design wins sought: Management said it is pursuing initial Gemini-II design wins in defense-oriented programs such as drones and unmanned systems, plus select commercial edge deployments. Source

Demand and the order book

• Chip design customer sales expected: Management said demand for its SRAM solutions is sustained and expects strong sales to chip design and simulation systems customers in the first half of calendar 2026. Source
• Fiscal fourth-quarter range provided: Management gave fiscal fourth-quarter net revenues of $5.7 million to $6.5 million and gross margin of approximately 54% to 56%. Source
• Government funding from proofs of concept: After quarter-end the company announced proofs of concept with G2 Tech and two government agencies, with roughly $1 million in government funding expected. Source

Coming up, as management said on 29 January 2026

• Government funding expected: Management expects roughly $1 million of government funding from the proofs of concept to be received. Source
• Defense and edge design wins pursued: Management said it is pursuing initial Gemini-II design wins in drones and unmanned systems and select commercial edge deployments. Source

Figures management reported

Risks management discussed

• Operational: Management named product mix as the driver of the gross margin decline in the quarter. Source
• Financial: Operating loss widened as research and development and operating expenses rose, including IP purchased for Plato development. Source

Earlier plans management reported on

• Not stated: The prior release targeted benchmark results by December 31, 2025. This release reports published third-party benchmark results without a stated date.
• Met: The prior release said the offering would support initiation of Plato chip design. This release says the capital raise supported the kickoff of Plato hardware development.
• Not stated: The prior release gave a fiscal third-quarter revenue range of $6.0 million to $6.8 million. This release reports revenue of $6.1 million.

Other quarters

• Q2 FY2027 earnings call
• Q1 FY2027 earnings call
• Q4 FY2026 earnings call
• Q2 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.