GSI Technology Reports First-Quarter Fiscal 2018 Results

GSI Technology (NASDAQ:GSIT) has reported financial results for its fiscal quarter ended June 30, 2017.
As quoted in the press release:

The Company reported a net loss of $(1.5 million), or $(0.07) per diluted share, on net revenues of $10.7 million for the first quarter of fiscal 2018, compared to net income of $260,000, or $0.01 per diluted share, on net revenues of $12.9 million in the first quarter of fiscal 2017 and a net loss of $(1.3 million), or $(0.07) per diluted share, on net revenues of $10.4 million in the fourth quarter of fiscal 2017, ended March 31, 2017. Gross margin was 52.4% compared to 51.9% in the prior year period and 56.4% in the preceding fourth quarter.
Total operating expenses in the first quarter of fiscal 2018 were $7.1 million, compared to $6.3 million in the first quarter of fiscal 2017 and $7.4 million in the preceding fourth quarter. Research and development expenses were $4.3 million, compared to $3.5 million in the prior year period and $4.2 million in the preceding quarter. Selling, general and administrative expenses were unchanged at $2.8 million in both the quarter ended June 30, 2017 and in the prior year quarter ended June 30, 2016, and down sequentially from $3.2 million in the preceding quarter.
Lee-Lean Shu, Chairman and Chief Executive Officer, noted, “Our net revenues and gross margin came in below the range of guidance that we had provided earlier in the first quarter in part due to a mix of lower margin product deliveries to one of our largest customers and additional inventory reserves for excess and obsolete products that were greater than our normal quarterly average. We expect a return to a higher margin mix of sales to this customer in our second fiscal quarter. Overall, during the first quarter, we continued to see slowness in our primary telecommunications and networking markets along with continued weak sales in Asia. However, beyond our traditional markets of high speed SRAM and low-latency DRAM, we are seeing high interest in our newest market segment, our extremely high performance SigmaQuad radiation-hardened SRAM products targeted at aerospace and defense applications. We are also receiving inquiries about our patented in-place associative computing technology and intellectual property that is under development, which focuses on large emerging markets such as big data applications, computer vision and cyber security.

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