GSI Technology Inc (GSIT) 2025 Q3 法說會逐字稿

Welcome to GSI Technology's third-quarter fiscal 2025 results conference call. (Operator Instructions)

歡迎參加GSI Technology 2025財年第三季業績電話會議。（操作說明）

Before we begin today's call, the company has requested that I read the following Safe Harbor Statement. 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. These risks and uncertainties are described in the company's form 10-K filed with the Securities and Exchange Commission.

在今天的電話會議開始之前，公司要求我閱讀以下安全港聲明。本次電話會議討論的事項可能包括有關未來事件和 GSI 技術未來表現的前瞻性陳述，這些陳述涉及風險和不確定性，可能導致實際結果與預期結果有重大差異。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 表格中有所描述。

Additionally, I have also been asked to advise you that this conference call is being recorded today, January 30, 2025, at the request of GSI Technology Inc.

此外，我還被要求告知各位，本次電話會議（2025 年 1 月 30 日）正在錄音，這是 GSI Technology Inc. 的要求。

Lee-Lean Shu, the company's Chairman, President, and Chief Executive Officer will be hosting the call today. With him are Douglas Schirle, Chief Financial Officer; and Didier Lasserre, Vice President of Sale.

公司董事長、總裁兼執行長李連舒將於今日主持電話會議。與他同行的還有財務長道格拉斯·希爾勒和銷售副總裁迪迪埃·拉塞爾。

I would now like to turn the conference over to Mr. Shu. Please go ahead, sir.

現在我將把會議交給舒先生。請繼續，先生。

Good afternoon and thank you for joining us to review our third-quarter fiscal 2025 financial results. I am pleased to report that also quarters demonstrate this meaningful progress in our financial performance and the ongoing initiative with the APU. Let me start with our financial highlights before diving into our product development.

下午好，感謝各位參加本次會議，共同回顧我們2025財年第三季的財務表現。我很高興地報告，季度業績也證明了我們在財務表現和與APU的持續合作方面取得了顯著進展。在深入探討產品開發之前，先讓我介紹一下我們的財務亮點。

In the third quarter, we generated revenue of $5.4 million representing a 2% increase year over year and a 19% sequential growth from the previous quarter. More importantly, our cost reduction initiative has begun to bear fruit, resulting in a reduction in operating and net losses compared to the third quarter of fiscal 2024.

第三季度，我們實現了 540 萬美元的收入，年增 2%，季增 19%。更重要的是，我們的成本削減計畫已開始取得成效，與 2024 財年第三季相比，營運虧損和淨虧損均有所減少。

Looking at our [SRAM] business, I am encouraged by the continued momentum in our core SRAM segment. Revenue growth this quarter in SRAM came from existing customers resuming over at their inventory level [Romonnet] and the growing SRAM demand from a customer for our 144 meg SRAM. Both systems are integral to manufacturing leading AI chip. We anticipate this customer becoming our largest excellent customer in fiscal year 2025.

從我們的[SRAM]業務來看，我對我們核心SRAM業務板塊的持續成長勢頭感到鼓舞。本季 SRAM 的營收成長來自現有客戶恢復了庫存水準 [Romonnet] 以及客戶對我們 144 兆 SRAM 的需求不斷增長。這兩個系統對於製造領先的人工智慧晶片都至關重要。我們預計該客戶將在 2025 財年成為我們最大的優秀客戶。

Let me share a few key developments on the APU front. So far, our APU technology is progressing [stability]. We make good progress using the Gemini-II's [first silicone], which has a manual part. Fortunately, software walkaround made the chip sufficiently functional to put on the board for testing and the software and the library development. We will be able to deliver.

讓我來分享一下APU領域的一些關鍵進展。目前，我們的APU技術正在取得進展。[穩定]。我們使用 Gemini-II 的[第一個矽膠]取得了良好的進展，它有一個手動部分。幸運的是，透過軟體調試，晶片的功能已經足夠完善，可以安裝到電路板上進行測試以及軟體和庫的開發。我們能夠做到。

Do you know now what models for our Gemini-II SBIR program with the Air Force in the March quarter? Based on this first silicone, we are now preparing for a second spin of Gemini-II for mass production. Didier will provide additional details on Gemini-II in his [prepare], prepare the comment. In parallel, we have begun work on YouTube. Plato will be designed to address the growing market for large language models in the application and a solution with its low-power features.

現在您知道我們與空軍合作的 Gemini-II SBIR 專案在三月季度將採用哪些模型嗎？基於這第一批矽材料，我們現在正準備進行第二批 Gemini-II 矽材料的量產。Didier 將在他的評論中提供有關 Gemini-II 的更多細節。同時，我們已經開始著手開發 YouTube 平台。Plato 的設計旨在滿足應用領域對大型語言模型日益增長的市場需求，並憑藉其低功耗特性提供解決方案。

The chief architecture will be built on Gemini-II's architecture. We are pursuing money for funding pathway to support this $50 million development program, including discussion with strategic and the financial partner. Our government business continues to [sprint] multiple SBIR programs.

主架構將以雙子星二號的架構為基礎。我們正在尋求資金來源，以支持這項 5000 萬美元的發展計劃，包括與戰略合作夥伴和財務合作夥伴進行討論。我們的政府業務持續推進多個小型企業創新研究 (SBIR) 專案。

We recently announced a Phase 1 contract with the US army, securing 250,000. In this phase, we will explore and identify best-fit applications to develop specialized-edge-computing AI solutions with Gemini-II. This will strengthen our relationship with agency within the Department of Defense. Didier will share more details on this new win and the status of our overall sub-projects.

我們最近宣布與美國陸軍簽訂第一階段合同，獲得 25 萬美元的訂單。在這個階段，我們將探索並確定最適合使用 Gemini-II 開發專用邊緣運算 AI 解決方案的應用。這將加強我們與國防部下屬機構的關係。迪迪埃將分享更多關於此次新中標以及我們整體子項目進度的細節。

In summary, while we are encouraged by our progress, we remain dedicated to this current execution across all areas, all improved operating efficiency, growing SRAM sales, and strategic initiative in commercial and government markets position us well for sustainable growth as we continue to be various strategic alternatives.

總而言之，儘管我們對取得的進展感到鼓舞，但我們仍致力於在所有領域持續推進當前的執行，提高營運效率，增加 SRAM 的銷售額，並在商業和政府市場採取戰略舉措，這些都使我們處於可持續增長的有利地位，同時我們將繼續提供各種戰略選擇。

With that, I hand it over to Didier to provide more details on our APU business opportunities and cover the third-quarter sales breakdown.

接下來，我將麥克風交給迪迪埃，讓他詳細介紹我們的 APU 業務機會，並介紹第三季的銷售明細。

Thank you, Lee-Lean. As Lee-Lean mentioned, Gemini-II is on track for a February tape-out and availability in May and we have a new leader Board in June. This aligns with the milestone for the Air Forces, SBIR. Gemini-II enhances AI capabilities with new network models together with SAR imaging capability to target high-value applications in the defense and aerospace markets.

謝謝你，李琳。正如 Lee-Lean 所提到的，Gemini-II 計劃在 2 月完成錄製，5 月上市，6 月我們將推出新的排行榜。這與空軍的 SBIR 里程碑相吻合。Gemini-II 透過新的網路模型增強了人工智慧能力，並結合 SAR 成像能力，瞄準國防和航空航太市場的高價值應用。

Meeting these milestones should put us in a good shape to complete algorithm development and library building for delivery by third quarter of calendar 2025. Leveraging Gemini-II's architecture, we can accelerate the development of our next generation chip, Plato, with a cost-effective facet of market strategy. Plato's ultra-low-power design will target rapidly growing markets for the edge and large language model solutions.

實現這些里程碑將使我們有良好的基礎，能夠在 2025 年第三季完成演算法開發和函式庫建置並交付。利用 Gemini-II 的架構，我們可以加速開發下一代晶片 Plato，從而實現具有成本效益的市場策略。Plato 的超低功耗設計將瞄準快速成長的邊緣運算和大型語言模型解決方案市場。

Plato is a strategic pivot from our previous plan for development -- excuse me -- for developing a new next generation version of Gemini, with a more economical and faster development path than the previously proposed 3D Gemini-III.

Plato 是我們先前開發計畫的策略性轉變——抱歉——是為了開發新一代 Gemini 版本，其開發路徑比之前提出的 3D Gemini-III 更經濟、更快捷。

The distinguishing feature Plato targeted for LLM market is that it can deliver data-center performance levels using very low power, making it suitable for use of the edge. As Lee-Lean mentioned, we are in discussion with potential customers who could be initial users and may also be funding sources with an expected development timeline of 12 to 18 months.

Plato 針對 LLM 市場的獨特之處在於，它能夠以極低的功耗提供資料中心層級的效能，使其適用於邊緣運算。正如 Lee-Lean 所提到的，我們正在與潛在客戶進行洽談，他們可能是初始用戶，也可能是資金來源，預計開發時間為 12 至 18 個月。

I am pleased to say that our ongoing SBIR projects are on track in meeting our milestones. As a reminder, we are currently working on Phase 2 contracts with Space Development Agency and Air Force Research labs and most recently announced a Phase 1 contract with the US army.

我很高興地告訴大家，我們正在進行的 SBIR 專案進展順利，並有望實現既定里程碑。再次提醒大家，我們目前正在與太空發展局和空軍研究實驗室進行第二階段合約的談判，最近也宣布與美國陸軍簽訂了第一階段合約。

We are preparing to deliver a YOLO algorithm for the air force research labs in the current quarter, including the benchmarks for a real-time object detection application. As a reminder, YOLO, which stands where You Only Look Once are algorithms that immediately determine the exact placement of objects in an image by drawing boxes around them and identifying the types of object.

我們正準備在本季向空軍研究實驗室交付 YOLO 演算法，其中包括即時目標偵測應用的基準測試。提醒一下，YOLO（You Only Look Once，你只看一次）是一種演算法，它透過在圖像中繪製方框並識別物體類型來立即確定物體的確切位置。

Our second SBIR, with the Space Development Agency, is waiting for the delivery of a Gemini-II board. As I mentioned earlier, we are on track to deliver this within the required timeframe. See, we have received 45% of the $1.25 million contract and will receive the balance upon the board's delivery.

我們與太空發展局合作的第二個 SBIR 專案正在等待 Gemini-II 電路板的交付。正如我之前提到的，我們正按計劃推進，確保在規定的時間內完成這項任務。你看，我們已經收到了125萬美元合約的45%，剩餘部分將在董事會交付後收到。

We are now executing the Phase 1 for our latest win, the US army contract, to determine which of the their ongoing projects would benefit from Gemini-II's capabilities. After Phase 1, we will have the opportunity to compete for Phase 2, which could be worth up to $2 million. The focus will be on edge computing AI solutions using Gemini-II.

我們現在正在執行最新贏得的合約——美國陸軍合約的第一階段，以確定他們正在進行的哪些項目將受益於 Gemini-II 的能力。第一階段結束後，我們將有機會競爭第二階段，其價值可能高達 200 萬美元。本次研討會將重點放在使用 Gemini-II 的邊緣運算人工智慧解決方案。

Our key objectives are integration, feasibility assessment, and AI algorithm validation for military applications. The army is the largest of the five branches of the Department of Defense. And with this SBIR, we are gaining exposure to this branch.

我們的主要目標是整合、可行性評估和人工智慧演算法在軍事應用中的驗證。陸軍是國防部五大軍種中規模最大的。透過這項 SBIR 項目，我們得以接觸到這個領域。

Lastly, regarding our SAR projects, there has been ongoing progress in fiscal Q3. The Asian Defense and R&D organization that we have mentioned in the past is a valuing Gemini-II for low inflight, I'm sorry, low-power-inflight applications. We are advancing with a few more deliverables to prepare them to purchase a Gemini-II board. This organization is also a potential funding partner for Plato. Also, two other aerospace companies are evaluating our technology for image creation and onboard satellite applications for SAR.

最後，關於我們的 SAR 項目，第三財季取得了持續進展。我們之前提到的亞洲國防和研發組織非常重視 Gemini-II 在低飛行功率（抱歉，是低功耗飛行功率）應用方面的價值。我們正在推進一些後續工作，以便他們可以做好購買 Gemini-II 主機板的準備。該組織也是Plato的潛在資助夥伴。此外，還有兩家航空航太公司正在評估我們的技術在影像創建和 SAR 的機載衛星應用方面的性能。

Now, I'll move to the customer and product breakdowns for the third quarter. In the third quarter of fiscal 2025, sales to Nokia were $239,000 or 4.4% of net revenues compared to $807,000 or 15.2% of net revenues in the same period a year ago and $812,000 or 17.8% of net revenues in the prior quarter. Military/defense sales were 25% of our third-quarter shipments compared to 28.2% of shipments in the comparable period a year ago and 40.2% of shipments in the prior quarter. SigmaQuad sales were 39.1% of third-quarter shipments compared to 46.9% in the third quarter of fiscal 2024 and 38.6% in the prior quarter.

接下來，我將介紹第三季的客戶和產品細分。2025 財年第三季度，對諾基亞的銷售額為 239,000 美元，佔淨收入的 4.4%，而去年同期為 807,000 美元，佔淨收入的 15.2%，上一季為 812,000 美元，佔淨收入的 17.8%。第三季軍工/國防銷售額占我們出貨量的 25%，去年同期為 28.2%，上一季為 40.2%。SigmaQuad 的銷售額佔第三季出貨量的 39.1%，而 2024 財年第三季為 46.9%，上一季為 38.6%。

Now, I'd like to hand the call over to Doug. Go ahead, Doug.

現在，我想把電話交給道格。請便，道格。

We reported net revenues of $5.4 million for the third quarter of fiscal 2025 compared to $5.3 million for the third quarter of fiscal 2024 and $4.6 million for the second quarter of fiscal 2025. Gross margin was 54% in the third quarter of fiscal 2025 compared to 55.9% in the third quarter of fiscal 2024 and 38.6% in the preceding second quarter of fiscal 2025. The sequential increase in gross margin in third-quarter fiscal 2025 was primarily due to higher revenue products mix and severance costs associated with manufacturing workforce reductions in the prior quarter.

我們公佈 2025 財年第三季淨收入為 540 萬美元，而 2024 財年第三季為 530 萬美元，2025 財年第二季為 460 萬美元。2025 財年第三季毛利率為 54%，而 2024 財年第三季為 55.9%，2025 財年第二季為 38.6%。2025 財年第三季毛利率較上季成長，主要原因是營收產品組合增加以及上一季製造業裁員相關的遣散費支出。

Total operating expenses in the third quarter of fiscal 2025 were $7 million compared to $9.7 million in the third quarter of fiscal 2024 and $7.3 million in the prior quarter. Research and development expenses were $4 million compared to $7 million in the prior year period and $4.8 million in the prior quarter. Selling general and administrative expenses were $3 million in the quarter ended December 31, 2024, compared to $2.7 million in the prior year quarter and $2.6 million in the previous quarter.

2025 財年第三季的總營運支出為 700 萬美元，而 2024 財年第三季為 970 萬美元，上一季為 730 萬美元。研發費用為 400 萬美元，而去年同期為 700 萬美元，上一季為 480 萬美元。截至 2024 年 12 月 31 日的季度，銷售一般及行政費用為 300 萬美元，而去年同期為 270 萬美元，上一季為 260 萬美元。

Third-quarter fiscal 2025 operating loss was $4.1 million compared to an operating loss of $6.7 million in the prior year period and $5.6 million in the prior quarter. Third-quarter fiscal 2025 net loss included interest and other income of $70,000 and a tax provision of $44,000 compared to $155,000 in interest and other income and a tax provision of $71,000 for the same period a year ago.

2025 財年第三季營業虧損為 410 萬美元，而上年同期營業虧損為 670 萬美元，上一季營業虧損為 560 萬美元。2025 財年第三季淨虧損包括 70,000 美元的利息和其他收入以及 44,000 美元的稅收準備，而去年同期利息和其他收入為 155,000 美元，稅收準備為 71,000 美元。

In the preceding second quarter, net loss included interest and other income of $149,000 and a tax provision of $23,000. Net loss in the third quarter of fiscal 2025 was $4 million or $0.16 per diluted share compared to a net loss of $6.6 million or $0.26 per diluted share for the third quarter of fiscal 2024 and a net loss of $5.5 million or $0.21 per diluted share for the second quarter of fiscal 2025.

上一季淨虧損包括利息和其他收入 149,000 美元和稅收準備金 23,000 美元。2025 財年第三季淨虧損 400 萬美元，即每股攤薄虧損 0.16 美元，而 2024 財年第三季淨虧損 660 萬美元，即每股攤薄虧損 0.26 美元，2025 財年第二季淨虧損 550 萬美元，即每股攤薄虧損。

Total third-quarter pre-tax stock-based compensation expense was $429,000 compared to $649,000 in the comparable quarter a year ago and $663,000 in the prior quarter.

第三季稅前股票選擇權費用總額為 429,000 美元，而去年同期為 649,000 美元，上一季為 663,000 美元。

December 31, 2024. the company had $15.1 million in cash and cash equivalents compared to $14.4 million at March 31, 2024. Working capital was $17.9 million at December 31, 2024 versus $19.1 million at March 31, 2024. Stockholders' equity as of December 31, 2024 was $29.9 million compared to $36 million as of the fiscal year ended March 31, 2024.

截至 2024 年 12 月 31 日，該公司擁有現金及現金等價物 1,510 萬美元，截至 2024 年 3 月 31 日為 1,440 萬美元。截至 2024 年 12 月 31 日，營運資金為 1,790 萬美元，而截至 2024 年 3 月 31 日為 1,910 萬美元。截至 2024 年 12 月 31 日，股東權益為 2,990 萬美元，而截至 2024 年 3 月 31 日的財政年度，股東權益為 3,600 萬美元。

Previously, we announced that the company had initiated a comprehensive strategic review and established a special Committee of the Board to evaluate various strategic alternatives.

先前，我們宣佈公司已啟動全面策略審查，並成立了董事會特別委員會來評估各種策略方案。

We continue to work with Needham & Company as our strategic and financial adviser to assist in this process.

我們將繼續與 Needham & Company 合作，由他們擔任我們的策略和財務顧問，以協助我們完成這一過程。

Operator, at this point, we will open the call to Q&A.

操作員，現在我們將開啟問答環節。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。接下來我們將進行問答環節。（操作說明）

Our first question comes from the line of Robert Christian, a Private Investor. Please proceed with your question.

我們的第一個問題來自私人投資者羅伯特·克里斯蒂安。請繼續提問。

Yes, I'd like to know. Is the company utilizing AI to do its algorithms and software? And are we going to get a white paper on the benchmarks for the Gemini-II?

是的，我想知道。該公司是否利用人工智慧技術開發演算法和軟體？我們能否獲得一份關於 Gemini-II 基準測試的白皮書？

So the algorithms we're actually writing ourselves with the folks that we have in our Israeli division. As far as a white paper that, yes. So as we mentioned, the first algorithm on Gemini-II will be the YOLO model, specifically YOLO 3. We will also be following that up with the YOLO 5, but we will be publishing benchmarks when that's when that's done correct.

所以，這些演算法其實是我們和以色列分部的同事們自己寫的。至於白皮書，是的。正如我們之前提到的，Gemini-II 上的第一個演算法將是 YOLO 模型，具體來說是 YOLO 3。我們之後也會推出 YOLO 5，但只有在測試完成後才會發布基準測試結果。

Okay. And the second question I had was, when Needham was brought on or it was announced back last year in May, it was to enhance the company valuation. We're actually lower now than we were. Are they the right partner?

好的。我的第二個問題是，去年五月宣布引進 Needham 是為了提高公司估值。我們現在的實際水準比之前還要低。他們是合適的合作夥伴嗎？

Well, we've been working with them and they have brought us opportunities that we've been looking at and we continue to look at opportunities. I don't know that it's fair to say that that they're brought up to increase the company's valuation. The intent was to find a strategic alternatives to further grow the company and provide investment into the company.

我們一直在與他們合作，他們為我們帶來了我們一直在關注的機會，我們也將繼續關注這些機會。我不認為說他們被提拔出來是為了提高公司估值是公平的。此舉旨在尋找策略替代方案，以進一步發展公司並為公司提供投資。

I was almost positive. That's what was stated in May. I could be wrong. But anyway, thank you very much.

我幾乎可以肯定。這是五月的說法。我可能錯了。總之，非常感謝。

Thanks, Christian.

謝謝你，克里斯蒂安。

Thank you. (Operator Instructions)

謝謝。（操作說明）

And it looks like there are no further questions. Therefore, I will turn the call back over to Lee-Lean Shu for closing remarks.

看來沒有其他問題了。因此，我將把電話交還給李琳舒，請她作總結發言。

Thank you all for joining us. We look forward to speaking with you again when we report our fourth quarter and the full-year fiscal 2025. Thank you.

感謝各位的參與。我們期待在公佈 2025 財年第四季和全年業績時再次與您交流。謝謝。

Thank you, ladies and gentlemen, this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

女士們、先生們，謝謝，今天的會議到此結束，你們可以掛斷電話了。感謝您的參與。