GSI Technology Inc.: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 30 July 2026: press release. The quarter’s numbers.

Key takeaways

Revenue flat year over year and sequentially: Net revenues were $6.3 million, flat against the first quarter of fiscal 2026 and the fourth quarter of fiscal 2026, and in line with guidance mid-point. Source
Net loss per diluted share $0.13: Net loss was $4.8 million, or $(0.13) per diluted share, against $2.2 million, or $(0.08) per diluted share, a year earlier. Source
Military and defense share rose: Military and defense sales were 31.3% of first-quarter shipments, up from 19.1% a year earlier and down from 45.7% in the prior quarter. Source
Gross margin fell on product mix: Gross margin was 53.4%, against 58.1% a year earlier and 52.4% in the fourth quarter. Management attributed the year-over-year decline mainly to product mix. Source
R&D rose on Plato design services: Research and development was $5.9 million, against $3.1 million a year earlier, driven mainly by external design services for the next-generation Plato processor. Source
Plato tape-out on schedule: Management said Plato remains on schedule for tape-out in March 2027. Source
Cash rose to $77.0 million: Cash and cash equivalents were $77.0 million at June 30, 2026, up from $67.2 million at March 31, 2026. Source

“During the first quarter, we continued executing the next phase of our Edge AI strategy.”
Lee-Lean Shu, Chairman and Chief Executive Officer

Guidance

Area	Period	Figure
Net revenues Source	second quarter of fiscal 2027	$5.7 million to $6.5 million
Gross margin Source	second quarter of fiscal 2027	approximately 53% to 55%
Plato power consumption Source	not stated	below 10 watts

What changed from last quarter

New: The company said its focus has moved from validating Gemini-II to commercializing the technology. Source
New: Work began under a U.S. Army Phase II SBIR program during the quarter. Source
New: Radiation testing was completed on a standard commercial Gemini-II device. Source

Results and revenue

Revenue flat year over year and sequentially: Net revenues were $6.3 million, flat against the first quarter of fiscal 2026 and the fourth quarter of fiscal 2026, and in line with guidance mid-point. Source
Operating loss widened on higher R&D: Operating loss was $5.4 million, compared with $2.2 million a year earlier and $5.2 million in the prior quarter. Source
Net loss per diluted share $0.13: Net loss was $4.8 million, or $(0.13) per diluted share, against $2.2 million, or $(0.08) per diluted share, a year earlier. Source
Interest income and tax benefit noted: Interest and other income was $517,000, against $13,000 a year earlier, and the quarter recorded a tax benefit of $76,000. Source

Products, customers and military mix

Military and defense share rose: Military and defense sales were 31.3% of first-quarter shipments, up from 19.1% a year earlier and down from 45.7% in the prior quarter. Source
KYEC share rose to 16.1%: KYEC represented $1.0 million, or 16.1% of net revenues, up from $267,000 (4.3%) a year earlier and down from $1.4 million (22.3%) in the prior quarter. Source
Cadence revenue fell, none last quarter: Cadence represented $465,000, or 7.4% of net revenues, down from $1.5 million (23.9%) a year earlier, with no shipments in the prior quarter. Source
Nokia share declined: Nokia represented $307,000, or 4.9% of net revenues, down from $536,000 (8.5%) a year earlier, and up from $113,000 (1.8%) in the prior quarter. Source

“Having validated Gemini-II’s exceptional performance-per watt, our focus has shifted to commercializing the technology.”
Lee-Lean Shu, Chairman and Chief Executive Officer

Costs and gross margin

Gross margin fell on product mix: Gross margin was 53.4%, against 58.1% a year earlier and 52.4% in the fourth quarter. Management attributed the year-over-year decline mainly to product mix. Source
R&D rose on Plato design services: Research and development was $5.9 million, against $3.1 million a year earlier, driven mainly by external design services for the next-generation Plato processor. Source
Lower SBIR funding offset R&D: Government funding offset under SBIR programs was $336,000, compared with $543,000 in the prior-year period, which raised net research and development expense. Source
Operating expenses rose to $8.8 million: Total operating expenses were $8.8 million, against $5.8 million a year earlier and $8.5 million in the prior quarter. Source
Stock compensation expense increased: Pre-tax stock-based compensation was $887,000, against $341,000 a year earlier and $823,000 in the prior quarter. Source

Development milestones

Sentinel laboratory phase completed: Sentinel laboratory testing was completed, with favorable feedback from all parties and all planned technical milestones delivered. Source
Smart City Phase I on schedule: Management said the Smart City Phase I deployment remains on schedule for completion in November 2026. Source
Plato tape-out on schedule: Management said Plato remains on schedule for tape-out in March 2027. Source
AI-assisted SDK on track: Management said the AI-assisted SDK remains on track for release in September and is expected to speed software development. Source

“Supported by the continued strength of our SRAM business, we believe we are well positioned to execute our strategy and build long-term value for our shareholders.”
Lee-Lean Shu, Chairman and Chief Executive Officer

Cash and capital

Cash rose to $77.0 million: Cash and cash equivalents were $77.0 million at June 30, 2026, up from $67.2 million at March 31, 2026. Source
ATM and option proceeds drove financing: Net proceeds were $9.3 million from at-the-market stock sales and $4.8 million from employee stock option exercises. Source
Operating cash used $3.9 million: Net cash used in operating activities was $3.9 million, which includes spending on Plato development and Gemini-II commercialization. Source
Working capital and equity increased: Working capital was $80.0 million, against $70.0 million at March 31, 2026. Stockholders' equity was $91.9 million, against $81.8 million. Source

Management priorities and commentary

Initiatives aimed at broader adoption: Management said the quarter's initiatives expand the Gemini-II applications it can address and support wider customer adoption. Source
Plato seen widening addressable market: Management said Plato is expected to significantly expand the addressable market by enabling larger language models at the edge. Source
Near-term priorities set out: Management listed completing current proof-of-concept projects and expanding Gemini-II into adjacent applications as its priorities. Source

Coming up, as management said on 30 July 2026

Smart City Phase I completion: Management expects the Smart City Phase I deployment to be completed in November 2026. Source
Plato tape-out: Management expects Plato tape-out in March 2027. Source
AI-assisted SDK release: Management expects release of the AI-assisted SDK this September, which is 2026. Source

Figures management reported

Figure	Reported
Gross margin Source	53.4% in the first quarter of fiscal 2027
End-market revenue: military/defense share of shipments Source	31.3% of first-quarter shipments

Risks management discussed

Demand: Customer revenue shares changed sharply between periods, with Cadence shipping nothing in the prior quarter and KYEC's share ranging from 4.3% to 22.3%. Source
External: Government funding that offsets research and development expense was lower than in the prior-year period. Source
Operational: Gross margin declined year over year, which management attributed mainly to product mix. Source
Financial: Operating cash use includes spending on Plato development and Gemini-II commercialization. Source

Earlier plans management reported on

Met: Management said the company delivered all planned technical milestones for the Sentinel laboratory phase. Source
On track: Management said the Smart City Phase I deployment remains on schedule for completion in November 2026. Source
On track: Management said Plato remains on schedule for tape-out in March 2027. Source
On track: Management said the AI-assisted SDK remains on track for release this September. Source

Other quarters

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.

As filed with the SEC

Open the filing on EDGAR

GSI Technology, Inc. Announces First Quarter of Fiscal Year 2027 Results

SUNNYVALE, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its first fiscal quarter ended June 30, 2026.

Summary Comments for First Quarter of Fiscal Year 2027 (all financial comparisons are to First Quarter of Fiscal Year 2026)

Sentinel laboratory testing completed receiving favorable feedback from all parties, with GSI successfully delivering all planned technical milestones
Smart City Phase I deployment remains on schedule for completion in November 2026
Plato development remains on schedule for March 2027 tape-out
Revenue of $6.3 million in-line with mid-point of guidance, flat with prior quarter and previous year, reflecting continued stability in SRAM revenue
Increase in operating expense year-over-year is related to ongoing Plato chip design, with R&D offset from SBIR helping to reduce cash burn
Quarter-end cash balance of $77.0 million strengthened through ATM proceeds and employee option exercises during the quarter

Lee-Lean Shu, Chairman and Chief Executive Officer, stated, "During the first quarter, we continued executing the next phase of our Edge AI strategy. Having validated Gemini-II’s exceptional performance-per watt, our focus has shifted to commercializing the technology. Throughout the quarter, we advanced our key proof-of-concept programs, including successfully completing the Sentinel laboratory phase, keeping our Smart City Phase I deployment on schedule, and initiating work under our U.S. Army Phase II SBIR program. We also successfully completed radiation testing on a standard commercial Gemini-II device, demonstrating that it continued to operate normally under radiation levels representative of harsh aerospace environments. Together, these initiatives advance our commercialization strategy by expanding the range of applications Gemini-II can address while positioning us for broader customer adoption."

Mr. Shu continued, "Looking ahead, our priorities remain clear: successfully completing our current proof-of-concept projects, expanding Gemini-II into adjacent applications, and delivering our AI-assisted SDK, which remains on track for release this September. The AI-assisted SDK is expected to significantly accelerate software development, simplify application deployment, and provide the foundation for working with a broader network of partners and system integrators. At the same time, Plato remains on schedule for tape-out in March 2027 and is expected to significantly expand our addressable market by enabling larger language models at the edge with power consumption below 10 watts. Supported by the continued strength of our SRAM business, we believe we are well positioned to execute our strategy and build long-term value for our shareholders."

Commenting on the outlook for GSI's second quarter of fiscal 2027, Mr. Shu stated, "Our current expectation for the second quarter of fiscal 2027 is for net revenues in the range of $5.7 million to $6.5 million, with gross margin of approximately 53% to 55%.”

First Quarter Fiscal Year 2027 Summary Financials

The Company reported net revenues of $6.3 million for the first quarter of fiscal 2027, compared to $6.3 million for the first quarter of fiscal 2026 and $6.3 million for the fourth quarter of fiscal 2026. Gross margin was 53.4% in the first quarter of fiscal 2027 compared to 58.1% in the first quarter of fiscal 2026 and 52.4% in the preceding fourth quarter of fiscal 2026. The year-over-year decrease in gross margin in the first quarter of fiscal 2027 was primarily due to product mix.

Below is a breakdown of the first quarter of fiscal 2027 sales compared to the first quarter of fiscal 2026 and the fourth quarter of fiscal 2026:

KYEC represented $1.0 million, or 16.1% of net revenues, compared to $267,000, or 4.3% of net revenues, in the same period a year ago and $1.4 million, or 22.3% of net revenues, in the prior quarter.
Cadence Designs Systems represented $465,000, or 7.4% of net revenues, compared to $1.5 million, or 23.9% of net revenues, in the same period a year ago, and no shipments in the prior quarter.
Nokia represented $307,000, or 4.9% of net revenues, compared to $536,000, or 8.5% of net revenues, in the same period a year ago and $113,000, or 1.8% of net revenues, in the prior quarter.
Military/defense sales were 31.3% of first-quarter shipments, compared with 19.1% in the comparable period a year ago and 45.7% in the prior quarter.

Total operating expenses in the first quarter of fiscal 2027 were $8.8 million, compared to $5.8 million in the first quarter of fiscal 2026 and $8.5 million in the prior quarter. Research and development expenses were $5.9 million, compared to $3.1 million in the prior-year period and $5.6 million in the prior quarter. The year-over-year increase in research and development expenses during the first quarter of fiscal 2027 was driven primarily by external design services related to the development of our next-generation Plato processor. The increase also reflects a lower offset from government funding under our SBIR programs, which totaled $336,000 this quarter compared with $543,000 in the prior-year period. Selling, general and administrative expenses were $2.9 million in the quarter ended June 30, 2026, compared to $2.7 million in the prior year quarter and $2.9 million in the previous quarter.

First quarter fiscal 2027 operating loss was $5.4 million compared to an operating loss of $2.2 million in the prior-year period and $5.2 million in the prior quarter. First quarter fiscal 2027 results included interest and other income of $517,000 and a tax benefit of ($76,000), compared to interest and other income of $13,000 and a tax provision of $54,000 for the same period a year ago and interest and other income of $408,000 and a tax provision of $24,000 in the prior quarter.

Net loss in the first quarter of fiscal 2027 was $4.8 million, or $(0.13) per diluted share, compared to a net loss of $2.2 million, or $(0.08) per diluted share, for the first quarter of fiscal 2026 and a net loss of $4.8 million, or $(0.13) per diluted share, for the fourth quarter of fiscal 2026.

Total first quarter pre-tax stock-based compensation expense was $887,000 compared to $341,000 in the comparable quarter a year ago and $823,000 in the prior quarter.

Cash flows for the quarter ended June 30, 2026 (in thousands of dollars):

Cash and cash equivalents as of March 31, 2026	$67,212
Net cash used in operating activities	(3,858)
Net cash used by investing activities	(358)
Net cash provided by financing activities	14,049
Cash and cash equivalents as of June 30, 2026	$77,045

The increase in cash and cash equivalents as of June 30, 2026, primarily reflects net proceeds of $9.3 million from the sales of stock through the ATM, and $4.8 million in proceeds from employee stock option exercises. Cash used in operating activities includes spending for the development of Plato and commercialization of Gemini-II.

On June 30, 2026, the Company had $77.0 million in cash and cash equivalents, compared to $67.2 million at March 31, 2026. Working capital was $80.0 million as of June 30, 2026, versus $70.0 million at March 31, 2026. Stockholders’ equity as of June 30, 2026, was $91.9 million, compared to $81.8 million as of the fiscal year ended March 31, 2026.

Conference Call

Management will conduct a conference call to review the Company's financial results for the first quarter of fiscal year 2027, and its current outlook for the second quarter of fiscal 2027 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) today.

To participate in the call, please dial 1-877-407-3982 in the U.S. or 1-201-493-6780 for international approximately 10 minutes prior to the above start time and provide Conference ID 13761498. The call will also be streamed live via the internet at www.gsitechnology.com.

A replay will be available from July 30, 2026, at 7:30 p.m. Eastern Time through August 6, 2026, at 11:59 p.m. Eastern Time by dialing 1-844-512-2921 in the U.S. or 1-412-317-6671 for international and providing Access ID 13761498. A webcast of the call will be archived on the Company’s investor relations website under the Events and Presentations tab.

About GSI Technology

GSI Technology is at the forefront of the AI revolution with our groundbreaking APU technology, designed for unparalleled efficiency in billion-item database searches and high-performance computing. GSI’s innovations, Gemini-I® and Gemini-II®, offer scalable, low-power, high-capacity computing solutions that redefine edge computing capabilities.

GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. For more information, please visit www.gsitechnology.com.

Forward-Looking Statements

Forward-looking statements notice

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. These forward-looking statements include, among others, statements regarding our product roadmap and commercialization milestones for Gemini-II and Plato; the timely development and release of our AI-assisted SDK and market adoption of related tools; our pursuit of initial design wins in defense and select commercial edge deployments; the timing and successful completion of proof-of-concept programs, including our Smart City Phase I deployment; anticipated benefits from government proof-of-concept engagements and related funding, including under our SBIR programs; our expectations regarding future revenue and gross margin, including the guidance provided for our second quarter of fiscal 2027, demand for our SRAM solutions, and customer mix; and the interpretation and applicability of third-party benchmark results and energy/performance characteristics of our products. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; the need to develop and introduce new products to offset the historical decline in the average unit selling price of GSI Technology’s products; the risk that proof-of-concepts, pilot programs, or benchmark validations do not translate into design wins, purchase orders, or revenue, including with respect to our defense and aerospace-related programs such as our Sentinel and radiation testing initiatives; the comparability and generalizability of third-party benchmark results and energy/performance metrics across different configurations and use cases; intensive competition; the availability, timing and continuity of government funding opportunities; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology (including Gemini-II and Plato) and the establishment of new markets and customer and partner relationships for the sale of such products; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as changing interest rates, worldwide inflationary pressures, policy unpredictability, the imposition of tariffs and other trade barriers, military conflicts, particularly in relation to Taiwan, and challenges in the global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.

Source: GSI Technology, Inc.

Company:

GSI Technology, Inc. Douglas M. Schirle Chief Financial Officer 408-331-9802

	Three Months Ended
	June 30,	March 31,	June 30,
	2026	2026	2025
GSI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Net revenues	$6,312	$6,319	$6,283
Cost of goods sold	2,943	3,008	2,632
Gross profit	3,369	3,311	3,651
Operating expenses:
Research & development	5,899	5,625	3,097
Selling, general and administrative	2,855	2,894	2,730
Total operating expenses	8,754	8,519	5,827
Operating income (loss)	(5,385)	(5,208)	(2,176)
Interest and other income, net	517	408	13
Income (loss) before income taxes	(4,868)	(4,800)	(2,163)
Provision for income taxes	(76)	24	54
Net income (loss)	($4,792)	($4,824)	($2,217)
Net income (loss) per share, basic	($0.13)	($0.13)	($0.08)
Net income (loss) per share, diluted	($0.13)	($0.13)	($0.08)
Weighted-average shares used in
computing per share amounts:
Basic	37,346	36,294	26,967
Diluted	37,346	36,294	26,967
Stock-based compensation included in the Condensed Consolidated Statements of Operations:
	June 30,	March 31,	June 30,
	2026	2026	2025
Cost of goods sold	$70	$68	$44
Research & development	260	346	(62)
Selling, general and administrative	557	409	359
	$887	$823	$341

	June 30, 2026	March 31, 2026
GSI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
Cash and cash equivalents	$77,045	$67,212
Accounts receivable	2,507	4,237
Inventory	4,542	4,079
Other current assets	5,698	3,659
Net property and equipment	1,126	883
Operating lease right-of-use assets	7,933	8,264
Other assets	9,679	9,619
Total assets	$108,530	$97,953
Current liabilities	$9,801	$9,196
Long-term liabilities	6,824	6,996
Stockholders' equity	91,905	81,761
Total liabilities and stockholders' equity	$108,530	$97,953

Contacts
Hayden IR Kim Rogers 385-831-7337 kim@haydenir.com
Finn Partners for GSI Technology Ricca Silverio 415-348-2724 gsi@finnpartners.com