GSI Technology (NASDAQ:GSIT) Posts Earnings Results, Beats Expectations By $0.06 EPS

GSI Technology (NASDAQ:GSIT) released its earnings results on Thursday. The semiconductor company reported ($0.13) EPS for the quarter, beating the consensus estimate of ($0.19) by $0.06, FiscalAI reports. GSI Technology had a negative net margin of 52.73% and a negative return on equity of 21.96%. The company had revenue of $6.31 million for the quarter, compared to analyst estimates of $7.30 million.

Here are the key takeaways from GSI Technology’s conference call:

• Gemini-II commercialization is advancing, with the company completing key deliverables for the Sentinel proof of concept and remaining on track to deploy its Smart City Phase 1 project across 20 cameras by November.
• GSI reported successful Gemini-II radiation testing with no single-event latch-ups, potentially expanding the platform into low-power AI applications for satellites, aerospace, defense, and other harsh environments.
• The AI-assisted SDK is targeted for alpha release this fall; management said early testing reduced one representative model-porting effort from roughly a year to less than a month, which could accelerate customer adoption and system-integrator engagement.
• GSI remains on schedule to tape out its next-generation Plato processor in March 2027 and ended the quarter with $77 million in cash and no debt, providing funding for development and customer evaluations.
• First-quarter revenue was $6.3 million, while operating expenses rose to $8.8 million and the operating loss widened to $5.4 million as the company invested in Gemini-II software and Plato; second-quarter revenue is expected to decline to $5.7 million–$6.5 million.

GSI Technology Stock Performance

Shares of NASDAQ GSIT traded down $0.20 during midday trading on Friday, hitting $5.64. 538,082 shares of the company traded hands, compared to its average volume of 1,371,847. GSI Technology has a 12-month low of $2.82 and a 12-month high of $18.15. The stock has a 50-day moving average price of $7.42 and a 200 day moving average price of $7.37. The firm has a market cap of $216.42 million, a P/E ratio of -13.77 and a beta of 2.06.

Analysts Set New Price Targets

Several analysts have weighed in on GSIT shares. Weiss Ratings reissued a “sell (d-)” rating on shares of GSI Technology in a research note on Friday, July 17th. Wall Street Zen cut GSI Technology from a “hold” rating to a “sell” rating in a research note on Saturday, June 13th. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of “Sell”.

Insiders Place Their Bets

In other news, VP Didier Lasserre sold 30,000 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $9.31, for a total value of $279,300.00. Following the completion of the transaction, the vice president owned 310,907 shares of the company’s stock, valued at approximately $2,894,544.17. This represents a 8.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Douglas Schirle sold 40,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $11.32, for a total value of $452,800.00. Following the completion of the transaction, the chief financial officer owned 69,046 shares of the company’s stock, valued at approximately $781,600.72. The trade was a 36.68% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 385,138 shares of company stock valued at $4,273,363 over the last ninety days. 16.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On GSI Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Marshall Wace LLP lifted its position in GSI Technology by 112.7% during the fourth quarter. Marshall Wace LLP now owns 727,077 shares of the semiconductor company’s stock valued at $4,515,000 after buying an additional 385,185 shares during the period. Concentric Capital Strategies LP purchased a new stake in shares of GSI Technology in the 4th quarter worth about $2,116,000. Two Sigma Investments LP grew its position in shares of GSI Technology by 46.6% in the 3rd quarter. Two Sigma Investments LP now owns 391,258 shares of the semiconductor company’s stock worth $1,440,000 after buying an additional 124,360 shares during the period. Arrowstreet Capital Limited Partnership grew its position in shares of GSI Technology by 47.9% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 235,517 shares of the semiconductor company’s stock worth $867,000 after buying an additional 76,268 shares during the period. Finally, 683 Capital Management LLC bought a new position in shares of GSI Technology in the 4th quarter worth about $738,000. 33.15% of the stock is owned by hedge funds and other institutional investors.

About GSI Technology

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.