GSI Technology Inc (GSIT) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the GSI Technology's fourth quarter fiscal 2024 financial results conference call.

女士們、先生們，感謝大家的支持，並歡迎參加廣船科技 2024 財年第四季財務業績電話會議。

(Operator Instructions)

（操作員說明）

Before we begin today's call, the company has requested that I read the following Safe Harbor statement.

在我們開始今天的電話會議之前，該公司要求我閱讀以下安全港聲明。

The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of GSI Technology that involve risks and uncertainties that could cause actual results to differ materially from those anticipated.

本次電話會議討論的事項可能包括有關 GSI Technology 未來事件和未來績效的前瞻性陳述，這些陳述涉及可能導致實際結果與預期存在重大差異的風險和不確定性。

These risks and uncertainties are described in the Company's Form 10-K filed with the Securities and Exchange Commission.

這些風險和不確定性在公司向美國證券交易委員會提交的 10-K 表格中進行了描述。

Additionally, I have been advised to advise you that this conference call is being recorded today, May second, 2024 at the request of GSI Technology Hosting the call today is Lee-Lean Shu, the Company's Chairman, President and Chief Executive Officer.

此外，我謹通知您，應GSI Technology 的要求，本次電話會議於今天（2024 年5 月2 日）進行錄製。 今天主持電話會議的是該公司董事長、總裁兼執行長Lee- Lean Shu。

With him are Douglas Schirle, Chief Financial Officer, ended the year with their Vice President of Sales.

與他一起的還有財務長 Douglas Schirle 和銷售副總裁。

I would like to turn the conference over to Mr. Shu.

我想把會議交給舒先生。

Please go ahead, sir.

請繼續，先生。

Good afternoon, and thank you for joining us today.

下午好，感謝您今天加入我們。

Let's start with some highlights from our first quarter activities during the quarter.

讓我們從本季第一季活動的一些亮點開始。

And subsequently, we achieved significant milestones across our key initiatives.

隨後，我們在關鍵措施中實現了重要的里程碑。

First, we launched two high-capacity, low-power 1U and 2U servers, integrated with the powerful Gemini one APU designs, specifically foresaw in the fast vector search applications.

首先，我們推出了兩款大容量、低功耗的1U和2U伺服器，整合了強大的Gemini one APU設計，專門針對快速向量搜尋應用。

These servers can enable mobile applications such as print and the satellite and will offer enterprise they were processing at age.

這些伺服器可以啟用列印和衛星等行動應用程序，並將為它們所處理的業務提供服務。

In addition, we now have a benchmark on pay in assessing the doubles foresaw, providing crucial tools for our follow-up efforts with our customers staff targets over the past year, we are finalizing marketing materials and plan to begin sales ForMotion.

此外，我們現在有了一個評估雙打預期的薪酬基準，為我們去年客戶員工目標的後續工作提供了重要工具，我們正在敲定行銷材料併計劃開始銷售 ForMotion。

We target the customers by the end of second quarter, second calendar year to year quarter.

我們的目標是在第二季末、每年第二季末之前鎖定客戶。

Second, we made considerable progress which shifts from the first string of Gemini two presently undergoing rigorous testing and the parking retail showcased during the testing was significant for the integration of the chip onto evolve evidence chip Monday, ownable has enabled comprehensive performance assessments, the chip can perform the basic functions in the processing coal base, able to move data between the processing array and the AO. and NAO. two, local memory.

其次，我們取得了相當大的進展，從目前正在接受嚴格測試的第一串Gemini 2 開始，測試期間展示的停車零售對於將晶片整合到演進證據晶片週一具有重要意義，Owable 已啟用全面的性能評估，該晶片可以執行處理煤炭基地的基本功能，能夠在處理陣列和AO之間移動數據。和NAO。二、本地記憶體。

This phased by that Sachin can be successfully executed to the embedded processor and data Telepass is also working so far.

在此階段，Sachin 可以成功地在嵌入式處理器上執行，並且資料 Telepass 到目前為止也正在運作。

We are pleased with the chipset resolve.

我們對晶片組的解決方案感到滿意。

Krish has it been better than we anticipated.

克里什的情況比我們預期的要好。

We we end to conclude the phase by the end of calendar Q2 and then pause closely with second spin.

我們最終在日曆第二季末結束該階段，然後在第二輪旋轉中緊密暫停。

We anticipate receiving the next chip by for a initiated benchmarking shortly after this could allow us to begin preliminary customer sampling with the expectation of starting off our testing with target customers before year end, along with furthered further software development and the writing over diversity due to the huge model science requirements introduced by larger than which models they are many efforts in the in the in the air industry to reduce model size?

我們預計在此之後不久就會收到下一個晶片並進行啟動基準測試，這可能使我們能夠開始初步的客戶採樣，並期望在年底前開始對目標客戶進行測試，同時進一步進一步的軟體開發和由於多樣性而編寫的內容比哪些模型更大的模型提出了巨大的科學要求，他們在航空工業中付出了多少努力來減少模型尺寸？

No, the body panel in Europe, you know, they will end a bit.

不，歐洲的車身面板，你知道，他們會結束一點。

That knows our reasons reduced the model ways to one pit or 1.58 bit.

這知道我們的原因將模型方法減少到一個坑或 1.58 位元。

Instead of assessing that and a bit in the present model to reduce the waste side, we believe the memory storage requirements and simplify the computation first and provide the competition is especially beneficial to APU architecture over the traditional GPU architecture GPU architecture.

我們認為，記憶體儲存需求和首先簡化運算並提供競爭對於 APU 架構比傳統 GPU 架構 GPU 架構特別有利，而不是在目前模型中進行評估以減少浪費。

Our pace of hybrid solution made some modification 400 patient days ago for hybrid solution model size, however, feedlot and the BLM, you have pooling operations and individual edition for computation, you still were made to modification.

我們的混合解決方案的速度在 400 患者天前對混合解決方案模型大小進行了一些修改，但是，飼養場和 BLM，您有池化操作和單獨的計算版本，您仍然需要進行修改。

Apu architecture has supporting operation and the individual edition of us the basic building blocks then means that APU is well-suited for this candle is kind of our present and offers are the venues for higher performance and lower power.

APU 架構具有支援作業和我們的基本構建塊的個人版本，這意味著 APU 非常適合這支蠟燭，這是我們的禮物，提供的是更高效能和更低功耗的場所。

Our plan was similar to is to target this algorithm and demonstrate to users of payment and a bit less than a few can fit a small models entirely into the chip for ag applications.

我們的計劃與此類似，就是針對該演算法並向支付用戶演示，並且至少可以將一個小型模型完全裝入用於農業應用的晶片中。

We expect to begin this demonstration mode index during the year once the mixing of the chip becomes available.

一旦晶片混合可用，我們預計將在年內開始該演示模式索引。

Another important developments since the close of Q4 due to sale and leaseback of our headquarters in San Mateo, California sale expected to close in early June will provide additional funding to support the finalization of Gemini two and other R&D projects, plus our ongoing engagement.

自第四季結束以來的另一個重要進展是我們位於加州聖馬刁的總部的出售和回租，預計將於6 月初完成出售，這將提供額外的資金來支持雙子座二號和其他研發專案的完成，以及我們正在進行的參與。

We see the hyperscales continue to show promise.

我們看到超大規模繼續展現前景。

We have received great feedback on how we use or we need to focus on.

我們收到了大量有關如何使用或需要關注的回饋。

So we start to discuss the design and application for forgiveness sorry, we are seeking a technical panel, 40 immunoassay.

所以我們開始討論寬恕的設計和應用，抱歉，我們正在尋找一個技術小組，40免疫分析。

We are pleased with the progress we have made in our conversations with some potential partners who could provide technology to support the functionality of the MSC with high-bandwidth memory.

我們對與一些潛在合作夥伴的對話中取得的進展感到高興，這些合作夥伴可以提供技術來支援具有高頻寬記憶體的 MSC 的功能。

Now I will hand the call over to Tom to Dee Dee, who will discuss our business performance.

現在我將把電話轉交給 Tom 和 Dee Dee，他將討論我們的業務績效。

Further critical HDD, particularly starting with fiscal year 2025, I would like to highlight several strategic goals and initiatives still work on with each of the a few generations.

進一步的關鍵 HDD，特別是從 2025 財年開始，我想強調幾個戰略目標和舉措仍在幾代人的每一代中努力。

First, we aim to sustain our legacy sales at the current run rate and now with two AP servers available, we're primed to pursue Gemini one sales, particularly focused on our SaaS solution.

首先，我們的目標是在當前的運行速度下維持我們的傳統銷售，現在有了兩台可用的 AP 伺服器，我們準備好追求 Gemini one 的銷售，特別是專注於我們的 SaaS 解決方案。

It's our intention to achieve the first sales of Gemini one in the second half of fiscal 2025 with Gemini two, we are actively writing libraries to develop new applications on the edge or near edge.

我們打算在 2025 財年下半年與 Gemini 2 一起實現 Gemini 1 的首次銷售，我們正在積極編寫庫來開發邊緣或近邊緣的新應用程式。

The second generation of our APU brings significant performance enhancements with more than 10 times the processing power with 8 times the memory density compared to Gemini one Gemini to offer substantial processing capabilities being suitable for both low-power data center expansion and enabling data center functions at the edge.

與Gemini 1 Gemini 相比，我們的第二代APU 帶來了顯著的效能增強，處理能力提高了10 倍以上，記憶體密度提高了8 倍，可提供強大的處理能力，適用於低功耗數據中心擴展，並可在以下位置啟用資料中心功能：邊緣。

This empowers local execution of computational intensive tasks, increasing the edge application capabilities like advanced driver assistance systems for automobiles and HPC. and delivery drones, autonomous robots, unmanned aerial vehicles and satellites.

這使得計算密集型任務的本地執行成為可能，從而增強了邊緣應用程式的功能，例如汽車和 HPC 的高級駕駛輔助系統。以及送貨無人機、自主機器人、無人機和衛星。

Additionally, Gemini two's memory can hold a small database of potential door-opener for enhanced performance in several applications.

此外，Gemini 2 的記憶體還可以保存一個小型資料庫，其中包含潛在的開門因素，以增強多種應用程式的效能。

One example could be an off-the-shelf facial recognition solution, potentially in hardware with on-prem software or SaaS this fiscal year.

一個例子是現成的臉部辨識解決方案，可能在本財政年度採用具有本地軟體或 SaaS 的硬體形式。

We are highly committed to further engaging with potential Gemini three partners, including customers for the chip and technology partners for HBM integration, getting partner funding for Gemini three development is also a key priority in addition, I am pleased to share that we ship parts for a new prototype for a European Space Agency robotics space mission to intercept a comment before I conclude, I'd like to emphasize the key objectives, the GSA that the GSI team and I are actively pursuing first securing sales for Gemini two.

我們高度致力於與潛在的雙子座三號合作夥伴進一步接觸，包括晶片客戶和HBM 整合的技術合作夥伴，為雙子座三號開發獲得合作夥伴資金也是一個關鍵優先事項，此外，我很高興與大家分享，我們為歐洲太空總署機器人太空任務的新原型 在我結束評論之前，我想強調 GSI 團隊和我正在積極追求的 GSA 的關鍵目標，首先確保雙子座二號的銷售。

Secondly, advancing Chairman, I am sorry, and securing sales for Gemini one invest in Gemini two for its second iteration, which will enable us to commence customer sampling later this year.

其次，推進主席，我很抱歉，並確保 Gemini one 的銷售投資 Gemini 2 的第二次迭代，這將使我們能夠在今年晚些時候開始客戶採樣。

And then lastly, actively seeking strategic partnerships for Gemini three, achieving these objectives will build awareness of the APU brand, improve our financial standing and position us to enter large high-growth markets related to AI.

最後，積極為 Gemini 3 尋求策略夥伴關係，實現這些目標將提高 APU 品牌的知名度，改善我們的財務狀況，並使我們能夠進入與人工智慧相關的大型高成長市場。

Let me close with the customer and product breakdown for the fourth quarter fiscal 2024, sales to Nokia were $694,000 or 13.5% of revenues compared to $1.2 million or 21.8% of revenues in the same period a year ago and $807,000 or 15.2% of net revenues in the prior quarter.

讓我以2024 財年第四季的客戶和產品細分作為結束語，對諾基亞的銷售額為694,000 美元，佔收入的13.5%，而去年同期為120 萬美元，佔收入的21.8%，對諾基亞的銷售額為807,000 美元，佔淨收入的15.2%上一季。

Military defense sales were 35.5% of fourth-quarter shipments compared to 44.2% of shipments in the comparable period a year ago and 28.2% of shipments in the prior quarter.

軍事國防銷售額佔第四季出貨量的 35.5%，去年同期為 44.2%，上一季為 28.2%。

Second quarter sales were 42.4% of fourth quarter shipments compared to 46.3% in the fourth quarter of fiscal 2023 and 46.9% in the prior quarter.

第二季銷售額佔第四季出貨量的 42.4%，而 2023 財年第四季為 46.3%，上一季為 46.9%。

I'd like to hand the call over to Doug, go ahead, please.

我想把電話轉給道格，請繼續。

Take a period before I cover the fourth quarter and full year fiscal 2024 results.

在介紹 2024 財年第四季和全年業績之前，我先花一段時間。

I want to reference the business update that was an earnings release issued today after the market closed in the press release, we announced that we have initiated a broad strategic review to maximize stockholder value.

我想參考今天在新聞稿中收市後發布的收益報告中的業務更新，我們宣布我們已啟動廣泛的策略審查，以最大限度地提高股東價值。

The review will be administered by a special committee of the Board of Directors to bring focus on strategic alternatives.

審查將由董事會的特別委員會進行，以重點關注策略替代方案。

While the company's management focuses on the development of its family of compute and memory solutions for high-performance computing and artificial intelligence.

公司管理層專注於開發用於高效能運算和人工智慧的運算和記憶體解決方案系列。

The Company plans to consider a wide range of options, including equity or debt financing, divestiture of assets, technology, licensing or other strategic arrangements, including the sale of the Company.

公司計劃考慮多種選擇，包括股權或債務融資、資產剝離、技術、許可或其他策略安排，包括出售公司。

Over the course of the last eight years, the company has invested approximately $150 million of internally generated capital to develop its novel associative processing process architecture and built a team of approximately approximately 80 engineers and hardware and software development.

在過去的八年裡，該公司投入了約 1.5 億美元的內部資金來開發其新穎的關聯處理流程架構，並建立了一支由約 80 名工程師組成的硬體和軟體開發團隊。

The Company's Board of Directors is of the opinion that the market has yet to recognize the progress and promise the Company's position and the actions taken as a result of the strategic review we have directed at driving shareholder value.

公司董事會認為，市場尚未認可公司的進展和承諾，以及我們為推動股東價值而進行的策略審查所採取的行動。

The Company has retained Needham & Company LLC as our strategic and financial advisory in addressing these alternatives, there can be no assurance that the strategic review process will result in the completion of any transaction.

本公司已聘請 Needham & Company LLC 作為我們解決這些替代方案的策略和財務顧問，但不能保證策略審查流程將導致任何交易的完成。

The company has not set a timetable for completion of the strategic review process at this time.

該公司目前尚未設定完成策略審查流程的時間表。

Turning to the fourth quarter results, we reported net loss of $4.3 million or $0.17 per diluted share on net revenues of $5.2 million for the fourth quarter of fiscal 2024 compared to a net loss of $4 million or $0.16 per diluted share on net revenues of $5.4 million for the fourth quarter of fiscal 2023 and a net loss of $6.6 million or $0.26 per diluted share on net revenues of $5.3 million for the third quarter of fiscal 2024.

談到第四季度業績，我們報告稱，2024 財年第四季度淨收入為520 萬美元，淨虧損為430 萬美元，即稀釋後每股0.17 美元，而淨收入為5.4 美元，淨虧損為400萬美元，即稀釋後每股虧損0.16 美元。

Gross margin was 51.6% in the fourth quarter fiscal 2024 compared to 55.9% in both prior year end and the preceding third quarter.

2024 財年第四季的毛利率為 51.6%，而去年底和前第三季的毛利率均為 55.9%。

The decrease in gross margin in the fourth quarter of 2024 was primarily related to due to product mix and the effect of lower revenue and the fixed costs of our cost of revenues.

2024 年第四季毛利率下降主要與產品組合以及收入下降和收入成本固定成本的影響有關。

Total operating expenses in the fourth quarter of fiscal 2024 for $7.2 million, $36.9 million in the fourth quarter fiscal 2023 and $9.7 million in the prior quarter.

2024 財年第四季的總營運支出為 720 萬美元，2023 財年第四季為 3,690 萬美元，上一季為 970 萬美元。

Research and development expenses were $4.8 million compared to $5 million in the prior year period and $7 million in the prior quarter.

研發費用為 480 萬美元，去年同期為 500 萬美元，上一季為 700 萬美元。

Selling, general and administrative expenses were $2.4 million in the quarter ended March 31, 2024, compared to $1.9 million from the prior quarter and $2.7 million in the previous quarter.

截至 2024 年 3 月 31 日的季度，銷售、一般及管理費用為 240 萬美元，而上一季為 190 萬美元，上一季為 270 萬美元。

Q4 fiscal 2024 operating loss was $4.5 million compared to an operating loss of $3.9 million in the prior year period and an operating loss of $6.7 million in the prior quarter.

2024 財年第四季營運虧損為 450 萬美元，而上年同期營運虧損為 390 萬美元，上一季營運虧損為 670 萬美元。

Q4 fiscal 2024 net loss included interest and other income of $100,000 and a tax benefit of $85,000 compared to $101,000 in interest and other income and a tax provision of $191,000 for the same period a year ago.

2024 財年第四季淨虧損包括 100,000 美元的利息和其他收入以及 85,000 美元的稅收優惠，而去年同期的利息和其他收入為 101,000 美元，稅收撥備為 191,000 美元。

From the preceding third quarter, net loss included interest and other income of $155,000 and a tax provision of $71,000.

與上一第三季相比，淨虧損包括 155,000 美元的利息和其他收入以及 71,000 美元的稅項準備金。

Total fourth quarter pretax stock-based compensation expense was $693,000 compared to $515,000 in the comparable quarter a year ago and $649,000 in the prior quarter.

第四季稅前股票薪資支出總額為 693,000 美元，而去年同期為 515,000 美元，上一季為 649,000 美元。

For the fiscal year ended March 31, 2024, we reported net loss of $20.1 million, or $0.80 per diluted share.

截至 2024 年 3 月 31 日的財年，我們報告的淨虧損為 2,010 萬美元，即稀釋後每股虧損 0.80 美元。

Net revenues were $21.8 million compared to net loss of $16 million or $0.65 per diluted share on net revenues of $29.7 million in the fiscal year ended March 31, 2023.

淨收入為 2,180 萬美元，而截至 2023 年 3 月 31 日的財年淨收入為 2,970 萬美元，淨虧損為 1,600 萬美元，或每股攤薄虧損 0.65 美元。

Gross margin for fiscal 2024 was 54.3% compared to 59.6% in the prior year.

2024 財年的毛利率為 54.3%，而前一年為 59.6%。

The increase and the decrease in gross margin, it was primarily due to product mix and the effect of lower revenue on the fixed costs in our cost of revenues.

毛利率的增加和減少，主要是由於產品組合以及收入下降對我們收入成本中固定成本的影響。

Total operating expenses were $32.3 million in fiscal 2024 compared to $33.5 million in fiscal 2023.

2024 財年的總營運支出為 3,230 萬美元，而 2023 財年為 3,350 萬美元。

Research and development expenses were $21.7 million compared to $23.6 million in the prior fiscal year.

研發費用為 2,170 萬美元，上一財年為 2,360 萬美元。

Selling, general and administrative expenses were $10.6 million compared to $9.9 million in fiscal 2023.

銷售、一般及管理費用為 1,060 萬美元，而 2023 財年為 990 萬美元。

The decline in research and development expenses was primarily due to cost reduction measures announced by the company in November 2022.

研發費用下降主要是因為該公司2022年11月宣布的成本削減措施。

Total operating loss for fiscal 2024 was $20.4 million compared to an operating loss of $15.8 million in the prior year.

2024 財年的總營運虧損為 2,040 萬美元，而上一年的營運虧損為 1,580 萬美元。

Fiscal 2024 net loss included interest and other income of $414,000 and a tax provision of $70,000 compared to $202,000 in interest and other income.

2024 財年淨虧損包括 414,000 美元的利息和其他收入以及 70,000 美元的稅收撥備，而利息和其他收入為 202,000 美元。

The tax provision of $372,000 in the prior year.

上一年的稅金準備金為 372,000 美元。

At March, we had $14.4 million in cash and cash equivalents compared to $30.6 million in cash, cash equivalents and short-term investments at March 31, 2023, working capital was %19.1 million as of March 31, 2024 versus $34.7 million at March 31, 2023, with no debt and stockholders' equity as of March 31, 2024 was $36 million compared to $51.4 million as of the end of the fiscal year ended March ended March 31, 2023.

截至3 月份，我們擁有1,440 萬美元的現金和現金等價物，而截至2023 年3 月31 日，我們的現金、現金等價物和短期投資為3,060 萬美元；截至2024 年3 月31 日，我們的營運資金為1,910 萬美元，而截至3 月31 日，我們的營運資金為3,470 萬美元。為5,140 萬美元。

Concluding with the outlook for the first quarter of fiscal 2025, we anticipate net revenues in the range of $4.6 million to $5.2 million, with gross margin of approximately 52% to 54% operator.

展望 2025 財年第一季度，我們預期淨收入在 460 萬美元至 520 萬美元之間，毛利率約為 52% 至 54%。

At this call, we'd like to open the call to Q&A.

在本次電話會議上，我們想開始問答環節。

(Operator Instructions)

（操作員說明）

I don't see any questions at this time.

目前我沒有看到任何問題。

I would now like to turn the call to reveal the shu for closing.

我現在想把電話轉過來，透露關閉的目的。

Thank you all for joining us.

感謝大家加入我們。

Please check out my recent published article in Forbes, the untold story of a huge carbon footprint.

請查看我最近在《富比士》上發表的文章，講述巨大碳足跡的不為人知的故事。

You can find it on the website at ford.com. We look forward to speaking with you again when we report our first quarter fiscal 2024 results.

您可以在 ford.com 網站上找到它。我們期待在報告 2024 財年第一季業績時再次與您交談。

Thank you.

謝謝。

Yes, thank you so much.

是的，非常感謝。

Ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for listening, and you may now disconnect and have a great day.

感謝您的聆聽，您現在可以斷開連接並度過美好的一天。