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SUNNYVALE, Calif. - GSI Technology , Inc. (NASDAQ:GSIT), a $70 million market cap semiconductor company with annual revenues of approximately $20 million, announced today its selection by the U.S. Army for a potential contract award through the Department of Defense Small Business Innovation Research (SBIR) program. The contract, valued at up to $250,000, aims to develop advanced artificial intelligence (AI) solutions for Army-specific edge computing needs, leveraging GSI's Gemini-II technology. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 4.85, though revenues have declined about 15% over the last twelve months.
The project will focus on two primary objectives. The first is to assess the feasibility of integrating Gemini-II with AI models tailored for the Army's edge computing requirements. This involves evaluating operational challenges, optimizing the Gemini-II architecture, and establishing performance metrics for edge AI development. The second objective is to identify and validate suitable AI algorithms for the Gemini-II platform, selecting efficient edge AI models, developing an integration plan, and evaluating performance for low-latency and high-throughput military applications.
Lee-Lean Shu, CEO of GSI Technology, stated that this contract represents a significant opportunity for the company to showcase the transformative potential of its compute-in-memory architecture in military applications. InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, it's currently experiencing rapid cash burn, making new contract wins particularly important for future growth prospects. The Gemini-II platform, which processes data directly in memory structures, is designed to reduce power consumption and bottleneck transfer latency while increasing processing capacity. It features two million-bit processors per chip, enabling parallel processing and real-time data handling in demanding scenarios.
A notable aspect of the project is the development of 1-bit Large Language Models (LLMs) for the U.S. Army, which are expected to maintain high accuracy with exceptionally low power consumption and minimal latency. This innovation has potential applications across multiple dual-use markets, including computer vision recognition, autonomous vehicle navigation, and mobile data computation.
GSI Technology, founded in 1995, is a semiconductor memory solutions provider focused on new products that leverage its core strengths, such as radiation-hardened memory products for extreme environments and its associative processing unit for AI applications. Based in Sunnyvale, California, with sales offices globally, GSI is committed to advancing edge computing and AI technologies.
This contract underscores GSI's dedication to addressing the Army's need for robust AI capabilities that enhance situational awareness and decision-making, positioning the company at the forefront of technological innovation in both defense and commercial computing sectors.
The information in this article is based on a press release statement from GSI Technology, Inc. Investors should note that GSI Technology is scheduled to report its next earnings in 6 days, on January 23, 2025. For comprehensive analysis including 6 key ProTips and detailed financial metrics, visit InvestingPro, where you'll find an in-depth research report on GSIT among 1,400+ top stocks covered.
In other recent news, GSI Technology has undergone significant changes. The company announced the retirement of Robert Yau from its Board of Directors, an event that did not stem from any disagreement with the company's operations, policies, or practices. In conjunction with Mr. Yau's departure, the Board of Directors approved an amendment to the company's bylaws, reducing the number of board members from six to five.
In the financial realm, GSI Technology reported mixed results for its second quarter fiscal 2025. The company reported revenues of $4.6 million, a decrease from the $5.7 million reported in the same quarter the previous year. Despite the revenue decline, the company's SRAM business is showing signs of recovery, and progress has been reported on product developments including the Gemini-II L and Plato for AI and large language model applications.
However, GSI Technology faced a net loss of $5.4 million, or $0.21 per diluted share, and a decrease in gross margin due to a changing product mix and severance costs. As part of the company's ongoing efforts to improve its financial position, it is currently undergoing a strategic review with Needham & Company. These are some of the recent developments in GSI Technology's business and financial landscape.
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