GSIT

Interested in GSI Technology, Inc.? Here are five stocks we like better. Revenue was $6.3 million in fiscal Q1 2027, roughly flat sequentially, while gross margin reached 53.4%. Higher Gemini-II software and Plato development costs increased operating expenses to $8.8 million and widened the operating loss to $5.4 million. GSI is advancing commercialization of its Gemini-II edge AI processor through defense, smart-city and space-related proof-of-concept projects. It completed initial Sentinel work, is preparing a 20-camera Smart City deployment and reported promising radiation-testing results for space applications. The company ended the quarter with $77 million in cash and no debt and expects quarterly cash use of about $4 million. Fiscal Q2 revenue is forecast at $5.7 million to $6.5 million, while an AI-assisted software development kit is expected to launch in alpha this fall and the next-generation Plato chip remains on track for March 2027 tape-out. 4 Golden Crosses With Double-Digit Upside Ahead GSI Technology (NASDAQ:GSIT) reported first-quarter fiscal 2027 revenue of $6.3 million, at the midpoint of its guidance range and roughly flat sequentially, as the company continued to invest in commercialization of its Gemini-II artificial intelligence processor and development of its next-generation Plato chip. Chairman, President and Chief Executive Officer Lee-Lean Shu said the company has been working to transition from an SoC chip company to an edge AI platform provider. He said GSI’s associative processing unit, or APU, is intended to address edge workloads that require more performance than mobile processors can provide while using less power than conventional GPUs. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “Today, we have a Gemini-II production chip ready for customers,” Shu said. “We are now in the next phase of GSI, turning the APU technology into a business.” Management said its priorities for the next 18 months include completing current proof-of-concept projects, expanding Gemini-II into adjacent applications, releasing AI-assisted software development kits this fall and keeping Plato on schedule for tape-out in March 2027. → Microsoft Just Flipped the AI Spending Narrative Overnight Vice President of Sales Didier Lasserre said GSI is focusing on a limited number of customers and system integrators in applications suited to the APU’s performance-per-watt characteristics. The company aims to turn proof-of-concept projects into design wins that can lead to commercial deployments and APU revenue. Lasserre said software and development tools created for one application can be adapted for related applications, reducing the need to develop a fully unique solution for each customer. He cited the company’s use of capabilities developed for its Sentinel proof of concept in its Smart City project. → Carrier Earnings Could Send the Stock to a New All-Time High For Sentinel, GSI completed its deliverables for the first phase, including the chip and software. A laboratory test was recently conducted with G2 Tech and participating defense agencies. The platform recorded a time-to-first-token measurement of 2.4 seconds, according to Lasserre. GSI has also completed its work for the next stage of the proof of concept, while the timing of the field demonstration depends on G2 Tech. In Hsinchu County, Taiwan, GSI said it is meeting phase-one milestones for its Smart City project and expects to ship Gemini-II chips, servers and software for a 20-camera deployment soon. The company remains on track to complete the first phase in November. If selected for phase two, the project would expand to about 80 cameras and add audio capabilities, potentially generating additional hardware and software licensing revenue. The Smart City platform now includes natural-language search capabilities for surveillance footage, allowing operators to query recorded video without manually reviewing extended periods of footage. GSI also launched the second phase of its U.S. Army Small Business Innovation Research, or SBIR, program with a formal kickoff meeting. The company has begun preliminary work on a ruggedized Gemini-II system for Army applications. Under a separate SBIR program for the Space Development Agency, GSI completed radiation testing on a standard commercial Gemini-II device. Lasserre said the off-the-shelf chip remained operational under radiation levels associated with harsh space environments, achieved a radiation-tolerant threshold typically required for radiation-hardened applications and showed no single-event latch-ups. Lasserre said the test results could broaden opportunities in space and high-altitude applications, where both radiation tolerance and power consumption are important. He added that Plato is expected to operate at 10 watts or less per device. GSI expects to release an alpha version of its AI-assisted SDK in the fall. The company said early testing indicates the software can substantially reduce model adaptation time. In one representative case, work that previously required one engineer about a year was completed in less than a month using the AI-assisted SDK, according to Lasserre. Management expects the SDK to help system integrators customize applications for customers and to accelerate software development and model porting for Plato. Chief Financial Officer Douglas Schirle said SRAM revenue remained stable during the quarter, though customer demand and order patterns can vary by period. Combined sales to KYEC and Cadence represented about 23% of net revenue, compared with 22.3% of revenue from KYEC in the prior quarter, when there were no shipments to Cadence. First-quarter revenue was $6.3 million, modestly above the year-earlier quarter and in line with the preceding quarter. Gross margin was 53.4%, up 100 basis points sequentially but below the company’s 54% to 56% guided range. Operating expenses rose to $8.8 million from $5.8 million a year earlier, primarily reflecting Gemini-II software work and Plato development. Research and development expense totaled $5.9 million, including investment in Plato, lower SBIR funding recognized compared with the prior-year period and higher costs from the company’s Israeli software team. Operating loss was $5.4 million, compared with an operating loss of $2.2 million a year earlier. The first-quarter net loss included $517,000 in interest and other income, primarily from interest on the company’s cash balance. GSI ended June 30 with $77 million in cash and cash equivalents and no debt, up from $67.2 million at March 31. During the quarter, the company used $3.9 million in operating activities and generated $14 million from financing activities, including $9.3 million from its at-the-market program and $4.8 million from employee stock option exercises. Schirle said the unusually high option-exercise activity was related largely to options granted as much as 10 years ago that were nearing expiration. The company expects cash use to remain near current levels, estimating approximately $4 million per quarter, or about $16 million annually, as it completes Gemini-II software development and advances Plato toward tape-out. For the fiscal 2027 second quarter, GSI forecast net revenue of $5.7 million to $6.5 million and gross margin of approximately 53% to 55%. The company also expects to file a replacement universal shelf registration in coming months that would restore capacity to $100 million. Schirle said GSI has no current plans to raise additional capital and described the shelf as a means of preserving financial and strategic flexibility. GSI Technology, Inc is a fabless semiconductor company specializing in the design and development of high-performance memory products. Headquartered in Sunnyvale, California, the company was founded in 1995 and has focused its efforts on content addressable memory (CAM) and high-speed SRAM (static random-access memory) solutions. As a publicly traded company listed on NASDAQ under the ticker GSIT, GSI Technology leverages advanced architectures to meet demanding data-processing requirements. The company's core product portfolio includes ternary CAM (TCAM) devices, binary CAM (BCAM) devices and high-speed synchronous SRAM. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "GSI Technology Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GSI Technology Inc (NASDAQ:GSIT) successfully completed all deliverables for the first phase of the Sentinel POC, with lab tests confirming a strong time-to-first-token (TTFT) of 2.4 seconds, showcasing the Gemini 2's performance-per-watt advantage. The company's Smart City project in Taiwan is on track to complete phase 1 deployment in November, with a potential phase 2 expansion to 80 cameras that would add both hardware and software licensing revenue. GSI Technology Inc (NASDAQ:GSIT) achieved a significant milestone in radiation testing for the Space Development Agency, as its standard commercial Gemini 2 chip remained operational under harsh space radiation levels without any single event latchups, opening up potential aerospace and defense market opportunities. The upcoming AI-assisted SDK is expected to dramatically reduce application development time, with one case showing a reduction from one year to less than a month, which will enable faster expansion into adjacent applications and support more system integrators. GSI Technology Inc (NASDAQ:GSIT) ended the quarter with a strong cash position of $77 million and no debt, providing sufficient runway to complete Gemini 2 software development and fund the tape-out of the next-generation Plato processor. The company successfully leveraged software and development tools from the Sentinel POC for its Smart City project, demonstrating the transferability of its technology and the efficiency of its expansion strategy. GSI Technology Inc (NASDAQ:GSIT) reported a net loss of $5.4 million for the first quarter of fiscal 2027, a significant increase from the $2.2 million operating loss in the prior year quarter, driven by higher operating expenses. Operating expenses rose to $8.8 million, up from $5.8 million year-over-year, primarily due to increased R&D costs for Gemini 2 software and Plato chip development, as well as lower SBIR funding and a stronger Israeli shekel. Gross margin for the quarter was 53.4%, slightly below the guided range of 54% to 56%, and lower than the year-ago quarter due to product mix fluctuations. The company's revenue guidance for the second quarter of fiscal 2027 is $5.7 million to $6.5 million, which is potentially lower than the first quarter's $6.3 million, indicating continued revenue variability and uncertainty. The timing of the Sentinel field demonstration is dependent on G2 Tech, creating external dependencies that could delay progress and potential revenue generation. GSI Technology Inc (NASDAQ:GSIT) expects to continue using approximately $4 million of cash per quarter, or about $16 million annually, which could pressure its balance sheet if revenue growth does not materialize as planned. Warning! GuruFocus has detected 3 Warning Signs with GSIT. Is GSIT fairly valued? Test your thesis with our free DCF calculator. Q: How transferable is the technical work completed for the POC programs across new applications, and what does that imply for expanding the POC pipeline without increasing engineering headcount? A: Didier Lasserre, VP of Sales, stated that the work is highly transferable. Key elements like the time-to-first-token parameter from the Sentinel POC are also critical for the Smart City project and other potential POCs. The company leveraged much of the prior work when moving from the Sentinel drone POC to Smart City, and this will apply to future engagements. The upcoming AI-based SDK will further accelerate the deployment of algorithms for new applications, allowing GSI to leverage other markets more quickly. Q: How mature do the SDK applications and framework need to be before system integrators can employ Gemini 2 in their environments, and what is the timeline for formalizing those relationships? A: Didier Lasserre explained that the timeline depends on the market and the integrator. GSI's strategy is to enter new markets and prove the technology themselves first, as they are doing with the Sentinel and Smart City POCs. Once proven, it becomes easier to attract integrators, as GSI lacks the internal manpower to address all customers with slightly customized solutions. The AI SDK, expected in the fall of this year, will be critical for enabling integrators to handle these customizations. Q: What does the successful radiation testing of the standard Gemini 2 device mean for the aerospace and defense sector, and does it open up a new revenue stream? A: Didier Lasserre confirmed that it will absolutely increase revenue opportunities. There is a growing need to put AI into space, where GPUs have historically not fared well under radiation. The Gemini 2's low power advantage, which will be further enhanced with Plato at 10 watts or less per device, combined with its radiation tolerance, opens up a significant market. GSI has already had discussions with SBIR partners, which led to the extension for this testing, as they see a clear need for such a device. Q: Can you provide more detail on the progress of the Sentinel POC and the Smart City project in Taiwan? A: Didier Lasserre reported that GSI has completed all deliverables for the first phase of the Sentinel POC, including chip and software. A lab test conducted with G2 Tech and defense agencies confirmed the platform's performance-per-watt advantage, achieving a time-to-first-token (TTFT) of 2.4 seconds. The field demonstration timing is now dependent on G2 Tech. For the Smart City project, GSI continues to meet phase 1 deliverables and will soon ship Gemini 2 chips, servers, and software, with deployment on track for November. If selected for phase 2, the project would expand to approximately 80 cameras and add audio, providing additional hardware and software licensing revenue. Q: What is the significance of the AI-assisted SDK, and how will it impact development timelines? A: Didier Lasserre highlighted that the AI-assisted SDK, with an alpha release targeted for this fall, significantly reduces application development time. In one representative case, adapting an AI model to run on Gemini 2 previously took one engineer about a year, but with the SDK, the work was completed in less than a month. This will enable GSI to support a broader range of customer applications, work with more partners and system integrators, and accelerate software development for Plato, bringing final applications to market sooner. Q: What were the key financial drivers behind the first quarter fiscal 2027 results, and what is the outlook for the second quarter? A: CFO Douglas Shirley reported revenue of $6.3 million, at the midpoint of guidance, flat sequentially and up modestly year-over-year. Gross margin was 53.4%, slightly below the guided range but improved 100 basis points sequentially. Operating expenses rose to $8.8 million due to Gemini 2 software and Plato development costs. The net loss was $5.4 million. For Q2 fiscal 2027, the company expects net revenues between $5.7 million and $6.5 million with gross margin of approximately 53% to 55%. Q: Can you elaborate on the company's cash position and runway to fund operations and the Plato tape-out? A: CFO Douglas Shirley stated that GSI ended the quarter with $77 million in cash and no debt, a notable improvement from $22.7 million a year ago. This reflects $46.9 million net proceeds from the October 2025 registered direct offering. The company expects to use approximately $4 million of cash per quarter, or about $16 million annually. With the current operating plan, existing cash resources provide sufficient runway to complete Gemini 2 software development, support customer evaluations, and fund the tape-out of the next-generation Plato processor. Q: What is the status of the Plato processor development, and when is the tape-out expected? A: CEO Lee-Huu stated that the company remains on track to tape out Plato in early calendar 2027. The AI-assisted SDK will also accelerate software development for Plato by allowing algorithms and models to be ported more quickly, enabling GSI to bring final applications to market sooner. The company is "heads down" on the Plato design. Q: What progress has been made on the government-funded SBIR programs? A: Didier Lasserre provided updates on two SBIRs. The US Army Phase 2 program has launched with a formal kickoff meeting, and preliminary work has begun on developing a ruggedized Gemini 2 system for army applications. For the Space Development Agency SBIR, GSI successfully completed radiation testing on a standard commercial Gemini 2 device. The off-the-shelf chip remained operational under harsh space radiation levels, achieved the radiation-tolerant threshold typically required, and showed no single event latchups (SELs), reducing technical risk for companies evaluating the device. Q: Can you discuss the company's plans for a new universal shelf registration and its capital strategy? A: CFO Douglas Shirley mentioned that GSI expects to file a replacement universal shelf registration in the next few months, restoring its capacity to $100 million. He emphasized that there are no current plans to raise additional capital. Maintaining an effective shelf is prudent corporate practice that preserves financial and strategic flexibility, as demonstrated last year when the company opportunistically strengthened its balance sheet during a period of strong share price performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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): 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 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. Contacts: Investor Relations: Hayden IRKim [email protected] Media Relations: Finn Partners for GSI TechnologyRicca [email protected] Company: GSI Technology, Inc.Douglas M. SchirleChief Financial Officer408-331-9802

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The SRAM business serves as the company's revenue foundation, growing 22% year-over-year and providing essential cash flow for APU development. Management attributed SRAM growth to increased demand from customers supporting high-performance AI chip development and manufacturing simulation. Strategic focus has shifted toward high-value, low-latency edge AI applications where the Gemini II architecture offers a power-efficiency advantage over conventional architectures. The company is utilizing a repeatable deployment model, applying software and development work from drone surveillance projects directly to new smart city applications. Technical validation was achieved in a drone surveillance bake-off, where Gemini II reached a three-second time to first token at 30 watts on multimodal workloads. Management concluded a strategic review and determined that a standalone strategy is the best path for delivering long-term shareholder value. Management expects the SRAM business to remain relatively stable in fiscal 2027, assuming no significant changes in underlying AI chip demand. The company targets a June demonstration of the Gemini II-powered drone for the Department of Defense and an international defense agency. Cash usage is projected to remain elevated at approximately $4 million per quarter to support the development phase of Gemini II and PLATO. Initial commercialization of Gemini II and the completion of the PLATO tape-out are both expected by late fiscal 2027. First quarter fiscal 2027 revenue is projected to be between $5.9 million and $6.7 million with gross margins around 54% to 56%. Operating expenses increased significantly to $31.2 million, primarily driven by higher R&D spending on the PLATO chip design. The company maintains a strengthened balance sheet with $67.2 million in cash and no debt following a capital raise in October 2025. Defense-related sales have grown to represent approximately 46% of total shipments, reflecting a strategic pivot toward government programs. Management is leveraging non-dilutive funding, including SBIR contract funds, to offset a portion of R&D expenses. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified the initial target markets as government and military-based drone programs and smart city infrastructure. Both segments are characterized as multibillion-dollar markets, though specific internal revenue targets were not disclosed. Management clarified that the PLATO tape-out remains on schedule for the first quarter of calendar 2027 (late fiscal 2027). First silicon wafers are expected to be in hand by the summer of calendar 2027 following the mask set manufacturing at TSMC. Management plans to avoid the software lag experienced with Gemini II by aligning software development more closely with the PLATO hardware timeline. The company is leveraging existing Gemini II software architecture to give the PLATO platform a head start in development.

Image source: The Motley Fool. Thursday, May 7, 2026 at 4:30 p.m. ET Chairman, President, and Chief Executive Officer — Lee-Lean Shu Vice President of Sales and Marketing — Didier Lasserre Chief Financial Officer — Douglas M. Schirle Need a quote from a Motley Fool analyst? Email [email protected] Lee-Lean Shu: Good afternoon, and thank you for joining us. To review our fourth quarter and fiscal year 2026 financial results. Fiscal 2026 was a year of meaningful progress for GSI Technology, Inc., marked by strong performance in our SRAM business, continued advancement of Gemini II to commercialization, and the initiation of the PLATO design. While I am pleased with the progress we have made on several fronts, significant work remains. Our team is executing our key milestones and advancing business development for the APU, and I have had several encouraging conversations on numerous fronts in these amounts. We end fiscal 2027 with continuous momentum, promoting the APU and building our customer traction. With that, I will now hand the call over to Didier. Didier Lasserre: Thank you, Didier. Let me start by stepping back and framing where we are today. Because I think the context is important. Our SRAM business performed well in fiscal 2026 and remains the revenue foundation of the company, providing cash for APU development. For the full year, the SRAM business grew 22% year-over-year and gross margins rose to 55% from 49%. The SRAM business has benefited from increased demand from our customers that support high-performance AI chip development and manufacturing. We recently announced that we concluded our strategic review and determined that continuing to execute our standalone strategy is the best path forward for delivering long-term shareholder value. The stronger SRAM business and a strengthened balance sheet, along with non-dilutive R&D funding, are providing the resources to support our go-forward plan. With this financial foundation in place, we are now seeing real progress with Gemini II and PLATO. Over the past several months, we have reached a point where we are seeing both technical validation and early program-level engagement of Gemini II, including the Sentinel drone surveillance POC, the U.S. Army SBIR award, and a new Phase One smart city project I will discuss in a minute. On the technical side, in a bake-off for the Sentinel POC, Gemini II’s performance contributed to winning the contract award by achieving a time to first token of roughly three seconds at 30 watts of system power on Gemma 312B multimodal workloads at the edge. In this use case, time to first token is a critical metric for drone surveillance systems because it reflects how quickly the system can respond in real-world applications where response time directly affects critical decision making. We are working closely with the G2 Tech team on the Sentinel program. We have completed the software deliverables and continue to target a June demonstration of the Gemini II powered drone. This demonstration is planned for the Department of Defense and an international defense agency. In mid-April, we were notified that we had been awarded Phase One of a smart city project. The project leverages our work done for the drone-based surveillance POC and marks an important step forward towards commercial deployment. In this application, Gemini II will process inputs from distributed camera systems to provide near real-time detection of events such as fires and other public safety risks. This project demonstrates how our platform can scale across real-world infrastructure. We expect to share additional details on the smart city program around the time of a planned media event in late May hosted by the municipality. Currently, we are working on several projects in tandem. What matters most for GSI Technology, Inc. at this time is not just the number of early-stage trials and demonstrations we have, but also how these early-stage engagements are helping us identify where our APU architecture provides a clear advantage, particularly in delivering low-latency performance within a constrained power envelope. We are also leveraging our deployment work in two ways. First, we are applying what we have developed for the drone security application to a smart city application. While the end markets are different, the underlying development carries over, giving us a meaningful head start in a new use case rather than starting from scratch. Secondly, as we complete the Sentinel POC and Phase One of the smart city program, we can build on those results to pursue additional opportunities with new customers in those markets. We view this as a repeatable model where each engagement helps accelerate the next. What is exciting for us is that we see the end markets for low-latency, low-power AI at the edge expanding as AI workloads continue to move closer to where the data is generated. These applications favor the APU architecture that can deliver higher compute per watt. Gemini II is ideal for these power- and latency-constrained edge deployments, where real-time response and energy efficiency are critical. Where we are winning is where Gemini II is tested against conventional architectures requiring significantly higher system power for similar or slower responsiveness. We believe Gemini II best addresses this gap and positions us well to win as more AI loads shift towards distributed, power-constrained environments. Consistent with this, we are encouraged by our progress within defense agency programs, as evidenced by our recent U.S. Army SBIR progressing from Phase One into Phase Two. This project is about enabling real-time in-field AI deployment on small, low-power systems typically operating in challenging conditions. As part of this program, we will build and test a ruggedized node containing the Gemini II for real-world mission-critical environments. This SBIR positions us within a broader shift in defense spending, with approximately $13 billion proposed in fiscal 2026 budgeted for AI and autonomous systems, and creates a potential pathway to follow-on programs and future opportunities to supply Gemini II-based systems. So how do we move from where we are today to design wins and ultimately revenue? From a commercial standpoint, we are still in the early stages. Our focus is on advancing our current engagements and working closely with partners to integrate Gemini II into their systems, with the goal of moving into design-level discussions. Given the complexity of these deployments, we are focusing our resources on a small number of high-value opportunities where we believe we have a clear advantage. Although the number of engagements remains limited, we are seeing a meaningful increase in the depth of these engagements and our ability to leverage our prior Gemini II deployment work for new related applications. Looking ahead, our priorities are to advance current POCs and awarded programs and to leverage what we have learned from each of these engagements to drive additional design opportunities. At the edge, performance matters most when it can be delivered within real-world power and latency constraints. That is where we believe Gemini II’s advantage lies. With that, I would like to hand the call over to Doug. Go ahead, Doug. In the earnings release issued today after the close of the market, you will find a detailed summary of our financial results for the fourth quarter and full fiscal year 2026. Douglas M. Schirle: Rather than walking through the numbers again, I will focus my comments on the key drivers behind the results and provide more context and explanation to help you better understand the business. Let me start with the results for fiscal year 2026, ended 03/31/2026. As Didier mentioned, fiscal 2026 revenue increased 22.4% to $25.1 million, reflecting continued strength in our SRAM business, particularly with customers supporting chip design and simulation for AI applications. We experienced solid growth in this customer segment throughout fiscal year 2026. We do see variability in customer orders, and sales can fluctuate from quarter to quarter. However, barring any significant change in underlying AI chip demand that would affect SRAM orders from these customers, we expect this business to remain relatively stable in fiscal year 2027. The higher level of revenue and product mix helped to lift fiscal year 2026 gross margin to 54.5%, a notable gain from the prior year gross margin of 49.4%. Operating expenses in fiscal 2026 rose to $31.2 million compared to $21 million in fiscal 2025. Operating expenses increased year-over-year primarily driven by higher R&D spending on the PLATO chip design. It is also important to note that the prior year included a $5.8 million gain from the sale of assets, which makes year-over-year comparisons appear more pronounced. We also continue to offset a portion of our R&D expenses through non-dilutive funding, SBIR contract funds, and POC-related funding. The majority of our R&D is dedicated to APU. The R&D offset in fiscal 2026 and fiscal 2025 was $1 million and $1.2 million, respectively. Higher operating expenses increased the total operating loss for fiscal 2026 to $17.5 million compared to an operating loss of $10.8 million in the prior year. The fiscal 2026 net loss included interest and other income of $4.1 million, primarily from interest payments on the increased cash balance from the capital raise completed in October 2025, and $3.4 million of other income consisting of a $6.2 million non-cash gain from the change in the fair value of prefunded warrants, partially offset by $2.8 million in issuance costs associated with the registered direct offering in October 2025. Switching now to the fourth quarter. Revenue was $6.3 million with a gross margin of 52.4%. As we have seen in prior periods, quarterly gross margin can fluctuate with the product mix and revenue levels. The fourth quarter gross margin reflects slightly lower semiconductor sales sequentially compared with the prior-year quarter. From a customer perspective, we did see some variability across accounts during the quarter, including lower shipments to certain customers and higher shipments to others. At the same time, defense-related sales increased to approximately 46% of total shipments, reflecting continued demand in that segment. Again, you will find a full breakdown of sales in today’s earnings release. Operating expenses increased from the prior year primarily due to continued investment in our Gemini II and PLATO development programs. These investments align with our strategy to advance our APU roadmap while maintaining discipline in cost management. Last quarter, we expanded quarterly earnings disclosures to help investors better understand the company’s cash consumption and cash generation. This information will complement the condensed consolidated statement of cash flows included in our Forms 10-K and 10-Q. Cash flows for the quarter ended 03/31/2026 were as follows: cash and cash equivalents as of December 31 were $70.7 million; net cash used in operating activities in the quarter was $5.5 million; net cash used in investing activities was approximately $100,000; and net cash provided by financing activities was $2.1 million. Cash and cash equivalents as of 03/31/2026 were $6.2672 billion. From a cash flow standpoint, spending in the quarter continued to reflect our investment in Gemini II and PLATO development. We expect cash usage to remain elevated as we progress through this development phase. As a general reference point, we expect the cash usage to be approximately $4 million per quarter, or about $16 million annually, although this may vary depending on development timing and program activity. We ended the quarter with $67.2 million in cash and no debt. This is a notable improvement from the prior-year cash balance of $13.4 million and is associated with $46.9 million, net of fees, registered direct offering proceeds that closed in October 2025. The absence of debt and the improved cash balance provide us with the flexibility to continue investing in APU while maintaining a disciplined approach to capital allocation. We believe our current cash position provides sufficient runway to support the initial commercialization of Gemini II and the completion of the PLATO tape-out, both expected late fiscal 2027. Before I hand the call over to the operator for Q&A, I would like to provide the first quarter fiscal 2027 outlook. For the upcoming quarter, we expect net revenues in the range of $5.9 million to $6.7 million with gross margin of approximately 54% to 56%. Overall, our strong cash position and continued support from non-dilutive funding give us a runway to advance Gemini II into early commercialization and the PLATO chip design. Operator, at this point, we will open the call for questions. Operator: Thank you. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Once again, it is star 1 to ask a question. The first question is from Tony Brainard, retail investor. Analyst: Hello, gentlemen. How are you? Lee-Lean Shu: Good. Thank you. Analyst: Yes. Can you share some color on the size—like, if you do get the design wins—the size of the market we are looking at? Lee-Lean Shu: On which market? Analyst: On the Gemini II. Didier Lasserre: Okay. That is a pretty broad question. So the markets we are going after initially, you know, some of them are government, military-based, specifically these drone programs. And as we talked about, we are limited in detail now. We will give you more detail on the smart city at the end of May. But both of those markets are multibillion-dollar markets. Lee-Lean Shu: Okay. Analyst: Yep. Analyst: That is fair enough. And that is my only question for today. Thank you very much. Douglas M. Schirle: Alright. Thanks, Tony. Analyst: Thank you. Operator: The next question comes from Robert Christian, Private Investor. Robert Christian: Yes. I would like to know why the PLATO project has moved up from 2027 to late fiscal 2027. Didier Lasserre: Actually, it has not been pushed out. It might have been a mixture of calendars and fiscal quarters. When we had first talked about it, we were targeting the beginning of calendar 2027 to have the part taped out, and we are still on schedule for that. Tape-out means that the design will be done in the first quarter, and that would give us silicon because we have to make the mask sets that are used for the wafer fabs at TSMC. So we will see our first wafers in hand in summertime of calendar 2027, and I believe that has always been our schedule. Lee-Lean Shu: Yeah. I think we mentioned fiscal year 2027. That is the beginning of the 2027 calendar year. Didier Lasserre: That is a good point. So the end of fiscal 2027 is March of calendar 2027. Okay. That would be great. And the second question I have is, Gemini II taped out over two and a half years ago. Is it going to take that long to see expected sales, say, of PLATO? Didier Lasserre: So that is a great question. You have two components to sales. You have the hardware component, which is the chip and any kind of board, and you have the software side. The software side actually lagged the hardware on Gemini II. With PLATO, we are trying to align the two more closely. The good news is some of the software work that is being done for Gemini II can be used for PLATO, while with Gemini I it was a completely new effort. In that respect, we can leverage some of the work from Gemini II for PLATO, and then we are also lining up the resources to be able to bring in the software with PLATO. Robert Christian: Well, the chip is genius, and I wish you guys godspeed. Lee-Lean Shu: Thank you. Didier Lasserre: Thank you. Operator: At this time, we show no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to Lee-Lean Shu for closing statements. Lee-Lean Shu: Thank you again for joining today’s call. As a reminder, Didier will be at the LD Micro Conference on May 19. Contact LD Micro if you would like to attend this presentation or take a one-on-one meeting. We are encouraged by the progress we are making with Gemini II, and we remain focused on successfully executing against the opportunities in front of us. We look forward to speaking with you again on our fiscal 2027 first quarter earnings call. Thank you. Operator: This concludes today’s conference. Thank you for attending. You may now disconnect. Before you buy stock in Gsi Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gsi Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!* Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. GSI Tech (GSIT) Q4 2026 Earnings Transcript was originally published by The Motley Fool

Subsequent to Fourth Quarter End, GSI Awarded Phase One of a Smart City Project SUNNYVALE, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its fourth fiscal quarter and fiscal year ended March 31, 2026. Summary Comments for Fiscal Year 2026 (all financial comparisons are to fiscal year 2025) Revenue increased 22% to $25.1 million, driven by strong SRAM sales to chip design and simulation customers Gross margin expanded to 54.5% from 49.4%, reflecting a favorable product mix weighted toward higher-margin SRAM products Completed software deliverables for a defense agency-funded POC, supporting a planned June 2026 demonstration of the G2 Tech Sentinel drone powered by Gemini-II Summary Comments for Fourth Quarter Fiscal Year 2026 (all financial comparisons are to Fourth Quarter Fiscal Year 2025) Revenue rose 7.4% on continued demand from top SRAM customers Increase in operating expense year-over-year is related to ongoing Plato chip design, with R&D expense partially offset by SBIR awards, reducing cash burn Quarter-end cash balance of $67.2 million in cash and no debt, providing a strong balance sheet to support ongoing initiatives through Gemini-II commercialization Subsequent to quarter end, announced a ~$2 million U.S. Army SBIR contract for non-dilutive R&D funding and secured a Phase I smart city project. “Fiscal 2026 marked a year of meaningful progress for GSI, highlighted by improved SRAM revenue, third-party validation of our APU’s performance-per-watt advantage, and initial customer engagements for Gemini-II,” stated Lee-Lean Shu, Chairman and Chief Executive Officer. “During the fourth quarter, we completed the software platform for the G2 Tech proof of concept and entered Fiscal 2027 with continued momentum. Subsequent to year-end, we were awarded a Phase I smart city deployment and announced a U.S. Army SBIR Phase II contract valued at approximately $2 million to develop a ruggedized Gemini-II edge AI platform for defense applications.” Mr. Shu continued, “We remain disciplined in managing our resources as we advance Gemini-II toward commercialization. Our SRAM business continues to provide a stable financial foundation, and we have been awarded, to date, over $5.0 million of non-dilutive funding aligned with targeted edge AI applications. In parallel, we are leveraging a repeatable development platform to reuse core software, models, and system architecture across applications, reducing incremental development time and cost. We are encouraged by early-stage opportunities for Gemini-II and interest in our next-generation Plato architecture, and expect Fiscal 2027 to be a year of continued execution, focused on converting engagements into design wins and progressing toward initial revenue.” Commenting on the outlook for GSI's first quarter of fiscal 2027, Mr. Shu stated, "Our current expectation for the upcoming first quarter of fiscal 2027 is for net revenues in the range of $5.9 million to $6.7 million, with gross margin of approximately 54% to 56%.” Fiscal Year 2026 Summary Financials The Company reported net revenues of $25.1 million for the fiscal year ended March 31, 2026, compared to $20.5 million for fiscal 2025. Gross margin was 54.5% for fiscal 2026 compared to 49.4% in fiscal 2025. The increase in gross margin was primarily due to product mix and the effect of higher revenue on fixed costs in the cost of revenue. Total operating expenses were $31.2 million in fiscal 2026, compared to $21.0 million in fiscal 2025. Research and development expenses were $19.9 million, compared to $16.0 million in the prior fiscal year. Selling, general and administrative expenses were $11.2 million, compared to $10.8 million in fiscal 2025. The increase in research and development expenses was primarily due to costs related to the launch of the Plato chip design. Research and development expenses offset in fiscal 2026 and fiscal 2025 were $1.0 million and $1.2 million, respectively, reflecting government funding received under the various SBIR programs GSI has been awarded. Operating expenses in fiscal 2025 include a gain on the sale of assets of $5.8 million from the sale of the Company’s headquarters building in Sunnyvale, CA, in a sales and leaseback transaction. The operating loss for fiscal 2026 was $17.5 million compared to an operating loss of $10.8 million in the prior year. The fiscal 2026 net loss included interest and other income of $4.1 million and a tax benefit of $132,000, compared to $326,000 in interest and other income and a tax provision of $130,000 in the prior fiscal year. The fiscal 2026 net loss included $3.4 million of other income, including a non-cash accounting adjustment of $6.2 million for the change in the fair value of pre-funded warrants and issuance costs of $2.8 million from the Registered Direct Offering in October 2025. Net loss for fiscal 2026 was $13.2 million, or $(0.42) per diluted share, compared to a net loss of $10.6 million, or $(0.42) per diluted share, for fiscal 2025. Fourth Quarter Fiscal Year 2026 Summary Financials The Company reported net revenues of $6.3 million for the fourth quarter of fiscal 2026, compared to $5.9 million for the fourth quarter of fiscal 2025 and $6.1 million for the third quarter of fiscal 2026. Gross margin was 52.4% in the fourth quarter of fiscal 2026 compared to 56.1% in the fourth quarter of fiscal 2025 and 52.7% in the preceding third quarter of fiscal 2026. The year-over-year decrease in gross margin in the fourth quarter of fiscal 2026 was primarily due to product mix. Below is a breakdown of the fourth quarter of fiscal 2026 sales compared to the fourth quarter of fiscal 2025 and the third quarter of fiscal 2026: KYEC represented $1.4 million, or 22.3% of net revenues, compared to $1.7 million, or 29.5% of net revenues, in the same period a year ago and $1.1 million, or 17.9% of net revenues, in the prior quarter. There were no shipments to Cadence Design Systems in the fourth quarter of fiscal 2026, compared to $642,000, or 10.9% of net revenues, in the same period a year ago and $233,000, or 3.8% of net revenues, in the prior quarter. Nokia represented $113,000, or 1.8% of net revenues, compared to $444,000, or 7.5% of net revenues, in the same period a year ago and $675,000, or 11.1% of net revenues, in the prior quarter. The following is the breakdown of shipments in the fourth quarter of fiscal 2026 compared to the fourth quarter fiscal 2025 and the third quarter of fiscal 2026: Military/defense sales were 45.7% of fourth-quarter shipments, compared with 30.7% in the comparable period a year ago and 28.5% in the prior quarter. SigmaQuad sales were 32.6% of fourth quarter shipments compared to 39.3% in the fourth quarter of fiscal 2025 and 41.7% in the prior quarter. Total operating expenses in the fourth quarter of fiscal 2026 were $8.5 million, compared to $5.6 million in the fourth quarter of fiscal 2025 and $10.1 million in the prior quarter. Research and development expenses were $5.6 million, compared to $3.0 million in the prior-year period and $7.5 million in the prior quarter. Research and development expenses in the fourth quarter of fiscal 2026 were offset by $48,000 from government funding under the SBIR programs. The prior quarter’s research and development reflects expenses of $3.6 million for the purchase of IP for the development of Plato and associated consulting expenses. Selling, general and administrative expenses were $2.9 million in the quarter ended March 31, 2026, compared to $2.6 million in the prior year quarter and $2.6 million in the previous quarter. Fourth quarter fiscal 2026 operating loss was $5.2 million compared to an operating loss of $2.3 million in the prior-year period and $6.9 million in the prior quarter. Fourth quarter fiscal 2026 net loss included interest and other income of $408,000 and a tax provision of $24,000, compared to interest and other income of $52,000 and a tax provision of $6,000 for the same period a year ago. In the preceding third quarter, net loss included $3.4 million of other income, including a non-cash accounting adjustment of $6.2 million for the change in the fair value of the pre-funded warrants and issuance costs of $2.8 million from the Registered Direct Offering in the third quarter, and a tax benefit of $(251,000). Net loss in the fourth quarter of fiscal 2026 was $4.8 million, or $(0.13) per diluted share, compared to a net loss of $2.2 million, or $(0.09) per diluted share, for the fourth quarter of fiscal 2025 and a net loss of $3.0 million, or $(0.09) per diluted share, for the third quarter of fiscal 2026. Total fourth quarter pre-tax stock-based compensation expense was $823,000 compared to $512,000 in the comparable quarter a year ago and $783,000 in the prior quarter. The table below has been provided to complement the condensed consolidated statement of cash flows included in our Forms 10-Q and 10-K. Cash flows for the quarter ended March 31, 2026 (in thousands of dollars): Cash and cash equivalents as of December 31, 2025, primarily reflects $46.9 million in net proceeds from the Company’s October 2025 Registered Direct Offering. Cash used in operating activities during the fourth quarter includes spending for the development and commercialization of Gemini-II and Plato. Fourth quarter cash flows from financing activities were primarily from employee stock option exercises. At March 31, 2026, the Company had $67.2 million in cash and cash equivalents, compared to $13.4 million at March 31, 2025. Working capital was $70.0 million as of March 31, 2026, versus $16.4 million at March 31, 2025. Stockholders’ equity as of March 31, 2026, was $81.8 million, compared to $28.2 million as of the fiscal year ended March 31, 2025. Conference Call Management will conduct a conference call to review the Company's financial results for the fourth quarter and fiscal year 2026 and its current outlook for the first 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 1-844-826-3035 in the U.S. or 1-412-317-5195 for international approximately 10 minutes prior to the above start time and provide Conference ID 10208819. The call will also be streamed live via the internet at www.gsitechnology.com. A replay will be available from May 7, 2026, at 7:30 p.m. Eastern Time through May 14, 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 Conference ID 10208819. 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 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; our pursuit of initial design wins in defense and select commercial edge deployments, including smart city projects; the planned June 2026 demonstration of the G2 Tech Sentinel drone powered by Gemini-II; anticipated benefits from government proof-of-concept engagements, SBIR awards and related non-dilutive funding; our ability to leverage a repeatable development platform to reduce incremental development time and cost across applications; our expectations regarding revenue, gross margin, demand for our SRAM solutions, and customer mix, including our guidance for the first quarter of fiscal 2027; our expectations for fiscal 2027, including converting engagements into design wins and progressing towards initial Gemini-II revenue; 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, smart city deployments, or benchmark validations do not translate into design wins, purchase orders, or revenue; 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, including SBIR awards and other non-dilutive funding programs; 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; risks associated with municipal and government procurement cycles, funding availability, and project execution for smart city and defense-related engagements; the sufficiency of our cash resources to fund operations, product development, and commercialization activities; 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. Contacts: Investor Relations: Hayden IR Kim Rogers 385-831-7337 [email protected] Media Relations: Finn Partners for GSI Technology Ricca Silverio 415-348-2724 [email protected] Company: GSI Technology, Inc. Douglas M. Schirle Chief Financial Officer 408-331-9802

Interested in GSI Technology, Inc.? Here are five stocks we like better. SRAM-driven revenue and cash position: Fiscal 2026 revenue rose 22.4% to $25.1 million with gross margin improving to ~54.5%, and GSI ended the quarter with $67.2 million in cash and no debt while projecting roughly $4 million of cash burn per quarter to fund development. Gemini‑II gaining program traction: Management reported technical validation and early wins for Gemini‑II—including a Sentinel drone POC (3s time to first token at 30W), a Phase 1 smart‑city award, and an Army SBIR advancing to Phase II—supporting commercialization momentum. R&D lift (Plato) driving losses but roadmap intact: Operating expenses rose to $31.2 million (operating loss $17.5M) largely due to R&D on the Plato APU; management still targets a Plato tape‑out in early 2027 with first wafers in summer 2027 and guided Q1 fiscal 2027 revenue of $5.9M–$6.7M with ~54–56% gross margin. 4 Golden Crosses With Double-Digit Upside Ahead GSI Technology (NASDAQ:GSIT) reported fourth-quarter and full fiscal year 2026 results on a May 7 conference call, highlighting year-over-year growth in its core SRAM business and continued investment in its AI-focused APU initiatives, including Gemini-II and the newer Plato chip design effort. Chairman, President, and CEO Lee-Lean Shu said fiscal 2026 marked “meaningful progress” driven by “strong performance in our SRAM business, continued advancement of Gemini-II toward commercialization, and the initiation of the Plato design.” Shu added that the company is “executing our key milestones and advancing business development for the APU,” citing “encouraging conversations” in recent months and what he described as “continuous momentum” in promoting the APU and building customer traction. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Vice President of Sales Didier Lasserre emphasized that SRAM remains the company’s revenue foundation and a source of cash to support APU development. Lasserre said the SRAM business grew 22% year-over-year in fiscal 2026 and that gross margins improved to 55% from 49%, benefiting from demand tied to high-performance AI chip development and manufacturing. Lasserre also noted the company recently concluded a strategic review and determined that continuing with a standalone strategy was “the best path forward for delivering long-term shareholder value.” He said the combination of a stronger SRAM business, a strengthened balance sheet, and non-dilutive R&D funding is supporting the company’s plan. → Years in the Making, AMD’s Upside Movement Has Just Begun Lasserre outlined several early Gemini-II engagements and said the company is seeing “both technical validation and early program-level engagement,” referencing the Sentinel Drone Surveillance proof of concept, a U.S. Army SBIR award, and a newly awarded Phase 1 smart city project. Discussing the Sentinel effort, Lasserre said that in a “bake-off” for the POC, Gemini-II helped the team win a contract award by achieving a “time to first token of roughly 3 seconds at 30 watts of system power” on “Gemma 3.12B multimodal workloads at the edge.” He called time to first token a critical metric for drone surveillance because it reflects how quickly a system can respond in real-world scenarios. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Lasserre said GSI has completed software deliverables for the Sentinel program and is targeting a June demonstration of a “Gemini-II-powered drone,” planned for the Department of Defense and an international defense agency. On the smart city initiative, Lasserre said the company was notified in mid-April that it had been awarded Phase 1 of a project leveraging work completed for the drone surveillance POC. He said the application involves processing inputs from distributed camera systems for near real-time detection of events such as fires and other public safety risks. GSI expects to share additional details “around the time of a planned media event in late May hosted by the municipality,” according to Lasserre. He characterized the company’s approach as a “repeatable model” where each engagement accelerates the next, and said GSI is focusing less on the number of trials and more on identifying where its architecture provides clear advantages in low-latency performance under constrained power envelopes. Lasserre also discussed progress in defense programs, saying the company’s U.S. Army SBIR moved from Phase I into Phase II and will involve building and testing a “ruggedized node containing the Gemini-II” for mission-critical environments. He added that the SBIR program could offer a pathway to follow-on programs and future opportunities for Gemini-II-based systems. CFO Douglas Schirle said fiscal 2026 revenue increased 22.4% to $25.1 million, reflecting strength in SRAM products used in AI-related chip design and simulation. Schirle said the company sees variability in customer orders quarter to quarter, but “barring any significant change in underlying AI chip demand,” expects the SRAM business to remain “relatively stable” in fiscal 2027. Schirle said fiscal 2026 gross margin rose to 54.5% from 49.4% in the prior year, driven by higher revenue and product mix. Operating expenses increased to $31.2 million from $21.0 million in fiscal 2025, primarily due to higher R&D spending on Plato. He also noted that the prior year included a $5.8 million gain from the sale of assets, affecting year-over-year comparisons. The company continued to offset some R&D costs with non-dilutive funding, including SBIR and POC-related funding. Schirle said the R&D offset was $1.0 million in fiscal 2026 and $1.2 million in fiscal 2025, and that the majority of R&D is dedicated to the APU. Higher operating expenses contributed to an operating loss of $17.5 million in fiscal 2026, compared with an operating loss of $10.8 million in fiscal 2025. Schirle added that fiscal 2026 net loss included interest and other income of $4.1 million, which he attributed primarily to interest on an increased cash balance following a capital raise completed in October 2025. He also cited $3.4 million of other income, including a $6.2 million non-cash gain from changes in the fair value of pre-funded warrants, partially offset by $2.8 million in issuance costs tied to the October 2025 registered direct offering. For the fourth quarter, Schirle reported revenue of $6.3 million and gross margin of 52.4%, noting that quarterly gross margin can fluctuate with product mix and revenue levels. He said the quarter’s gross margin reflected slightly lower SigmaQuad sales sequentially compared with the prior-year quarter. Schirle said customer shipments varied across accounts during the quarter, including lower shipments to certain customers and no shipments to others, while defense-related sales rose to approximately 46% of total shipments. On liquidity, Schirle said cash and cash equivalents were $67.2 million at March 31, 2026, down from $70.7 million at December 31, 2025. He reported net cash used in operating activities of $5.5 million during the quarter, net cash used in investing activities of about $100,000, and net cash provided by financing activities of $2.1 million. Schirle said GSI ended the quarter with no debt and a significantly improved cash balance compared with the prior year-end cash balance of $13.4 million, which he associated with $46.9 million of net proceeds from the registered direct offering that closed in October 2025. He said the company expects cash usage to remain elevated during development, estimating approximately $4 million per quarter (about $16 million annually), though it may vary with development timing and program activity. Schirle said the company believes its current cash position provides sufficient runway to support the initial commercialization of Gemini-II and completion of the Plato tape-out, both expected in late fiscal 2027. For the first quarter of fiscal 2027, Schirle provided guidance for net revenue of $5.9 million to $6.7 million and gross margin of approximately 54% to 56%. During Q&A, a shareholder asked about market size for Gemini-II design wins. Management responded that initial markets include government and military-based programs such as drone efforts, as well as the smart city project, and said “both of those markets are multi-billion-dollar markets,” while noting limited detail at present and indicating more information on the smart city program would be provided in late May. Another shareholder asked whether Plato had been pushed out. Management responded that it had not, explaining that earlier comments may have reflected differences between calendar and fiscal-year references. Management said it was still targeting a tape-out at the beginning of calendar 2027, with first wafers expected in hand in the summer of calendar 2027, after mask sets are produced. Asked whether Plato sales could take as long as Gemini-II has, management pointed to the importance of aligning hardware and software readiness, noting that software development lagged hardware for Gemini-II. Management said some software work done for Gemini-II can be leveraged for Plato, and that the company is working to align resources so software comes in more closely with Plato’s timeline. In closing remarks, Shu said the company would present at the LD Micro conference on May 19 and reiterated that management is encouraged by progress on Gemini-II and remains focused on executing opportunities ahead. GSI Technology, Inc is a fabless semiconductor company specializing in the design and development of high-performance memory products. Headquartered in Sunnyvale, California, the company was founded in 1995 and has focused its efforts on content addressable memory (CAM) and high-speed SRAM (static random-access memory) solutions. As a publicly traded company listed on NASDAQ under the ticker GSIT, GSI Technology leverages advanced architectures to meet demanding data-processing requirements. The company's core product portfolio includes ternary CAM (TCAM) devices, binary CAM (BCAM) devices and high-speed synchronous SRAM. The article "GSI Technology Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.