Earnings call transcript: GSI Technology Q2 2026 shows revenue growth, stock dips

GSI Technology Inc. reported its fiscal second-quarter 2026 earnings, revealing a net revenue increase to $6.4 million, up from $4.6 million in the same quarter last year. Despite this growth, the company posted a net loss of $0.11 per share. Following the earnings release, GSI Technology’s stock fell 4.74% in regular trading and an additional 1.72% in aftermarket trading. The company’s forward guidance suggests a revenue range of $6.0 million to $6.8 million for the next quarter.

Key Takeaways

• GSI Technology’s Q2 FY2026 revenue increased by nearly 39% year-over-year.
• The company’s gross margin improved significantly to 54.8%.
• Stock fell by 4.74% post-earnings and 1.72% in aftermarket trading.
• Forward revenue guidance for Q3 FY2026 is set between $6.0 million and $6.8 million.
• The company is focusing on edge computing and energy-efficient solutions.

Company Performance

GSI Technology demonstrated robust revenue growth in Q2 FY2026, marking a significant improvement from the previous year. This growth was accompanied by an increase in gross margin to 54.8% from 38.6% the prior year, reflecting better cost management and operational efficiencies. Despite these positive indicators, the company continues to operate at a loss, albeit a reduced one compared to the previous year.

Financial Highlights

• Revenue: $6.4 million, up from $4.6 million in Q2 FY2025
• Earnings per share: -$0.11, improved from a larger loss in the previous year
• Gross Margin: 54.8%, up from 38.6%
• Operating Loss: $3.2 million, improved from $5.6 million
• Cash and Cash Equivalents: $25.3 million, up from $13.4 million

Earnings vs. Forecast

GSI Technology’s earnings per share of -$0.11 matched analyst expectations. The revenue of $6.4 million was in line with the company’s guidance and represented a significant year-over-year improvement, although the market reacted negatively, possibly due to the continued net loss and cautious forward guidance.

Market Reaction

Following the earnings announcement, GSI Technology’s stock price declined by 4.74% during the regular trading session and an additional 1.72% in the aftermarket. This movement reflects investor concerns over the company’s continued losses despite revenue growth. The stock is currently trading at $11.4, down from its last close of $11.6, and remains well below its 52-week high of $18.15.

Outlook & Guidance

For the upcoming quarter, GSI Technology projects revenues between $6.0 million and $6.8 million, with gross margins expected to remain stable at 54-56%. The company plans to initiate pilot shipments in calendar 2026, with the potential for substantial revenue gains in the latter half of the year.

Executive Commentary

CEO Li Lianxu emphasized the strategic deployment of capital to accelerate both hardware and software development. VP of Sales Didier Lasser highlighted the performance of the Gemini II, noting its superior energy efficiency and speed compared to competing solutions. The focus remains on edge computing applications, distancing from traditional data centers.

Risks and Challenges

• Continued net losses could strain financial resources.
• Market volatility and investor sentiment may affect stock performance.
• Competition in the edge computing market remains intense.
• Execution risks related to new product launches and technology development.
• Potential macroeconomic factors could impact demand in targeted sectors.

Q&A

During the earnings call, analysts inquired about the company’s strategic focus, particularly its emphasis on edge computing over data centers. Management confirmed their commitment to developing energy-efficient, low-power solutions and indicated openness to potential licensing and partnership opportunities. Concerns about the lack of engagement in the automotive sector were also addressed, with management indicating it is not a current focus.

Full transcript - GSI Technology Inc (GSIT) Q2 2026:

Conference Operator: Ladies and gentlemen, thank you for standing by. Welcome to GSI Technologies Second Quarter Fiscal twenty twenty six Results Conference Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. At that time, we will provide instructions for those interested in entering the queue for Q and A.

Before we begin today’s call, the company has requested that I read the following safe harbor statement. The matters discussed in this conference 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 ks filed with the Securities and Exchange Commission. Additionally, I have also been asked to advise you that this conference is being recorded today, 10/30/2025, as the request of GISI Technology. Hosting the call today is Li Lianxu, the company’s Chairman, President and Chief Executive Officer.

With him are Douglas Shurrow, Chief Financial Officer and Didier Lasser, Vice President of Sales. I would now like to turn the call over to Mr. Xu. Please go ahead, sir.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: Good afternoon, everyone, and thank you for joining us today. Let me start by highlighting two recent and important events for GSI. First, we announced a research paper published by Cornell University in mid October. The paper verified that our GEMINAR-one trip performed on par with NVDAS A6000 on certain AI tasks, while consuming roughly 98% less energy. This paper validate the disruptive potential of our compute in memory design, particularly for the near term commercialization of Gemini II.

With eight times the memory and 10 times the performance of Gemini I, Gemini II is positioned to deliver superior processing at a fraction of the power when compared to existing solutions. This brings me to my second point. The market quickly recognized the significance of our compute in memory validation with the Cornell paper. Building on the momentum from the paper’s funding, we closed a $50,000,000 equity financing. We are now deploying the capital to accelerate execution across our hardware and software build off, making this a pivotal period for GSS growth.

Post funding, we are working on the initiative in parallel. First, we have begun the work to acquire the necessary IP for Plato, which will allow us to start hardware development. This IP provides crucial connection to support broader system interface and the prototyping for future customer applications to accelerate Plateau’s time to market and capture market opportunity sooner, we are building additional software team to support Plateau. Second, to expedite the build out of our Gemini II software solutions and applications, we are investing in all the layers that make the platform more accessible and addressable for developers. These software tools are essential for customer integrating Gemini II hardware into AI and signal processing workflows, particularly in edge and the defense applications where efficiency and the low power provide a competitive advantage.

Looking ahead, our initiative for calendar year 2026 are centered on converting proof of concept projects into commercial customers and extending those relationships into large production programs. DG will provide an update on where those efforts stand today. To sum up, our post funding initiative will target and discipline will be targeted and disciplined. We are rapidly moving forward with the prior hardware design and the software development, ramping up our Gemini software ecosystem and strengthening ties with key defense and government partner in our POC and the small business innovation research or SBIR programs. These actions position GSI to turn technical progress into commercial success in the high value edge and the defense applications such as a drone, military vehicle, satellites and other use cases and right away for AI compute innovation.

Now I hand the call over to Didier, who will provide more details on this topic discuss our business development and the sales activities. Please go ahead, Didi.

Didier Lasser, Vice President of Sales, GSI Technologies: Thank you, Lillian. Let me expand on the topics that Lillian just highlighted. We continue to advance our ongoing projects, including our SBIR and POC engagements with potential customers. Recently, Gemini II has been approved for prototyping by the offshore defense contractor to whom we shipped a board and software to a few months back. This POC focuses on synthetic aperture radar or SAR applications for drones and other edge systems.

What’s exciting here is that our solution delivers the required performance while maintaining an extremely low power profile around 15 watts, making it ideal for compact energy constrained environments. For added context on just how competitive this solution is, an incandescent light bulb uses about four times more wattage than our solution. We are also involved in a joint POC involving two defense organizations and a drone integration partner. This Gemini II project combines YOLO model we developed with multimodal large language model processing at the edge, specifically targeting time to first token, a key performance metric for drones. Along with our partner, we successfully demonstrated the end to end application to one of the potential end customers.

Gemini two outperformed the competing solution, particularly in how quickly the model produces its first response. We are now optimizing the algorithm and expect to publish initial benchmark results before year end with a fully optimized version available in the 2026. This algorithm would be for defense applications such as drones, satellites and other military vehicles. GEMINI-two is a central part of the near term commercialization road map, and we are encouraged by the customer engagement and technical validation that is being received. Turning to our PLATO program.

We are embarking on the journey towards a major milestone, the tape out of PLATO chip in early calendar twenty twenty seven. Seven. Over the next year or so, we plan to actively engage several strategic partners for PLATO who could provide funding and collaborate on testing and prototyping early versions of the chip. Their involvement would also support the development software libraries and APIs, ensuring that PLATO becomes a versatile, scalable solution across multiple markets, starting with defense. In military and defense applications, the APU’s high performance and low power capabilities provide unique advantages.

And Plata will further enhance critical functions such as SAR imaging, object recognition, GPS denied navigation and data fusion for drones and military vehicles, delivering real time tactical capabilities in compact mobile systems. Plato’s design builds directly on the foundation of Gemini II. To accelerate time to market, we are acquiring building block IP that allows us to focus on differentiation rather than reinventing core components. Strategic partners would play a critical role just in meeting our ambitious timeline, but in shaping the chip’s capabilities, validating its performance in real world applications and guiding future enhancements. Their technical collaboration and early adoption would position us to deliver a highly optimized field tested solution, strengthening our long term leadership in specialized AI compute architectures well beyond the immediate financial support.

And lastly, a comment on our SBIR work. We recently received a 751,000 extension of one of our space development agency contracts, which includes additional funding for radiation hardened beam testing of GEMINI-two. The goal of this testing is to evaluate the robustness of the current GEMINI-two commercial chip for possible use in satellite and other aerospace applications. While it’s too early to confirm specific designations, we see this as a significant opportunity. Let me now switch to the second quarter’s commercial I’m sorry customer and product breakdown.

By revenue, I am referring to net revenue in the following comments. In the 2026, sales to KYEC were $802,000 or 12.5% of revenues compared to $650,000 or 14.3% of revenues in the same period a year ago and $267,000 or 4.3 percent of revenues in the prior quarter. Sales to Nokia were $200,000 or 3.1% of revenues compared to $812,000 or 17.8% in the same period a year ago and $536,000 or 8.5% of revenues in the prior quarter. Sales to Cadence Design Systems were $1,400,000 or 21.6% of net revenues compared to zero in the same period last year and $1,500,000 or 23.9 percent of revenues in the prior quarter. Military defense sales were 28.9% of second quarter shipments compared to 40.2% of shipments in the comparable period a year ago and 19.1% of shipments in the prior quarter.

SigmaQuad sales were 50.1% of second quarter shipments in fiscal twenty twenty six compared to 38.6% in second quarter fiscal twenty twenty five and sixty two point five percent in the prior quarter. I’d now like to hand the call

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: over to Doug. Please go ahead Doug.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Thank you, DDA. The company reported net revenues of $6,400,000 for the 2026 compared to $4,600,000 for the 2025 and $6,300,000 for the 2026. Revenue growth in the quarter was driven by strong market momentum for leading SRAM solutions. Gross margin was 54.8% in the 2026 compared to 38.6% in the year ago quarter and 58.1% in the preceding 2026. The decrease in gross margin for the 2026 was primarily due to a change in the product mix.

Total operating expenses in the 2026 were $6,700,000 compared to $7,300,000 in the 2025 and $5,800,000 in the prior quarter. Research and development expenses were $3,800,000 compared to $4,800,000 in the prior year period and $3,100,000 in the prior quarter. The increase research and development spending compared to the prior quarter is primarily due to changes in the level of stock based compensation expense and amounts of government funding received under SBIRs in each quarter recorded as an offset to research expense. Selling, general and administrative expenses were $3,000,000 in the quarter ended 09/30/2025 compared to $2,600,000 in the prior year quarter and $2,700,000 in the previous quarter. 2026 operating loss was $3,200,000 compared to an operating loss of $5,600,000 in the prior year period and an operating loss of $2,200,000 in the prior quarter.

Second quarter fiscal twenty twenty six net loss included interest and other income of $43,000 and a tax provision of $41,000 compared to $149,000 in interest and other income and a tax provision of $23,000 for the same period a year ago. In the preceding first quarter, net loss included interest and other income of $13,000 tax provision of $54,000 Net loss for the 2026 was $3,200,000 or $0.11 per diluted share compared to a net loss of $2,200,000 or $08 per diluted share for the 2026. For the prior year 2025, net loss was $5,500,000 or $0.21 per diluted share. Total second quarter pretax stock based compensation expense was $856,000 compared to $663,000 in the comparable quarter a year ago and $341,000 in the prior quarter. At 09/30/2025, the company had $25,300,000 in cash and cash equivalents compared to $13,400,000 at 03/31/2025.

Working capital was $26,800,000 as of 09/30/2025 versus $16,400,000 at 03/31/2025. Stockholders’ equity as of 09/30/2025 was $38,600,000 compared to $28,200,000 as of the fiscal year ended 03/31/2025. Lastly, for the 2026, we expect net revenues in the range of $6,000,000 to $6,800,000 with gross margin of approximately 54% to 56%. We remain focused on disciplined execution to bring GEMINI two to market, advance our roadmap for PLAY DOH and drive long term shareholder value. Operator, at this point, we’ll open the call to Q and A.

Conference Operator: Thank you. We will now be conducting a question and answer Our first question comes from Robert Christian, Private Investor. May proceed with your question.

Robert Christian, Private Investor: So I’d like to congratulate you on the Cornell verification. But I’d also like to know have you done any work with the auto industry on autonomous vehicles?

Didier Lasser, Vice President of Sales, GSI Technologies: We have not yet. So as we’ve talked about in past calls, we certainly have limited resources and that takes tremendous effort for that market space. So we’re currently starting in the military defense arena. But we certainly believe our technology will adapt well in those areas. And so that’s certainly a focus for us in the future, but not yet.

Robert Christian, Private Investor: Okay, thank you.

Conference Operator: Our next question comes from Mark Badner, Private Investor. You may proceed with your question.

Mark Badner, Private Investor: Hey, guys. Good afternoon. I had a question on the 50,000,000 placement you recently did. Was that with a strategic investor? What sort of investor?

And was there a holding period to that to that stock?

Douglas Shurrow, Chief Financial Officer, GSI Technologies: No. It was just someone that was interested in the company. Wasn’t wasn’t strategic in any way. And there is there is no required holding period for the shares.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: Got

Mark Badner, Private Investor: it. Okay. And then just a follow-up to that. Were there have there been any strategic circling at all now post the Cornell report?

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Can you repeat the question, please?

Mark Badner, Private Investor: Have there been any increase from more strategic investors since the report came out from Cornell?

Douglas Shurrow, Chief Financial Officer, GSI Technologies: There are things that we’re looking at and parties that we’re talking to. But I wouldn’t say that there’s anything that anyone that we haven’t already considered working with at this time. As Didier said, we have limited resources and I think we have some very significant opportunities that he’s already mentioned.

Mark Badner, Private Investor: Got you. Okay. Thank you.

Conference Operator: Our next question comes from David Zalkowitz with ISQ. You may proceed with your question.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Yes. Is there any plan to have Cornell or another third party validate the Gemini two, information, you know, different technology? I know the Cornell report was Gemini one. So is there a plan to to do the similar type of analysis for GEMINI two?

Didier Lasser, Vice President of Sales, GSI Technologies: Yeah. So you’re absolutely correct. So Cornell actually received this GEMINI one board many years ago. And they’ve actually written a few other papers. And so this was a continuation of that original board.

And we are, talking to them about getting a Gemini II board to them and also other researchers as well.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Okay. And then I guess you’re talking you’re working with the the military. I guess, I didn’t see anybody on the board, or senior management team that has real military defense experience. Is there any plans to beef up that area of the management or the board of directors in order to target those applications? Yeah.

No, that hasn’t come up as a discussion or topic on the board. At this point, there are no plans to revise the board. It doesn’t mean that we won’t in the future if it makes sense, though. Okay. And then I saw you’re developing your own large language model, which you’re gonna release some information on at the end of the year.

Just curious of why you wouldn’t just use the plethora of large language models that are already out in the market and, you know, why spend resources developing your own?

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: No. We are not developing our own logic language model. We are working on the open source logic language model, like, you know, Gamma Gamma three.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: I’m just reading your press release. Your press release says currently developing a multi model LLM that targets edge applications.

Didier Lasser, Vice President of Sales, GSI Technologies: Correct. Yeah. For GEMA so 12B, so GEMA 312B, that’s the model. And we’re developing our algorithms to work with that model.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Okay. And why would you do that as opposed to utilizing other LMs already developed?

Didier Lasser, Vice President of Sales, GSI Technologies: In this case, it was the definition from the POC that we’re working on. So as we talked about, there are two government entities that have approached us and a partner to do a POC and that is the model that they requested.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: Yeah. Also, there are certain aspects of the model which is support multi model well. Okay. So, you know, they can support the image very well and and in addition to the text.

Conference Operator: Okay.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: So that that that that that’s why they pick pick on this one.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Okay. Thank you. Appreciate it.

Conference Operator: Our next question comes from Christian Rugg from CER Holdings. You may proceed with your question.

Mark Badner, Private Investor: Hey, Chuck.

Christian Rugg, Investor, CER Holdings: Hi. I was wondering, how are you differentiating your APU versus GPU competitors in terms of power, latency and cost efficiency?

Didier Lasser, Vice President of Sales, GSI Technologies: That’s a pretty broad question. And so if you look at the Cornell paper, that certainly hits on the power. The comparison was to an NVIDIA GPU and the use case they used, the performances were on par, but we were 98% less power. So that certainly shows that. With the SAR algorithm that we’ve been talking about, certainly our image creation time is faster at a lower power footprint as well.

So what we’ve done is we’ve done benchmarking on certain use cases based off of input from customers on what they’d like to see. So there are times where we beat them strictly on power. There’s times we beat them strictly on performance. Well, I shouldn’t say that. We’ve never lost to them on power.

But there certainly are times that we have the advantage on both performance and lower power.

Christian Rugg, Investor, CER Holdings: Okay. And then my second question is given the performance claims and potential of Gemini II APU, have you had any engagement or partnership discussions with larger semiconductor or AI focused companies?

Didier Lasser, Vice President of Sales, GSI Technologies: So right now, we’re focused on the customers at this point. We haven’t had any discussions, at least recently, with other semiconductor companies.

Christian Rugg, Investor, CER Holdings: Okay. And then my last question is, how does the power factor play into building AI data centers at a large scale?

Didier Lasser, Vice President of Sales, GSI Technologies: So we’re focused on the edge right now. Yeah. And so everything we’ve talked about right now is the edge. And so certainly, the data centers have a real power issue as well. There’s no secret there.

But what we’ve been focused on right now with Gemini II and certainly with the next generation chip PLATO will be at the edge. And so if you look at as we discussed with Gemini II, this project we did with this offshore defense contractor, we limited three we limited our chip to one of the four cores that are there to get it down to 15 watts. If you look at PLATO, depending on how it’s used can be as little as four watts and maximum 12 to 15 watts. So we’re really focused at the edge, not in the data center.

Mark Badner, Private Investor: Okay. All right. Thank you.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: Our

Conference Operator: next question comes from Michael Roberts from Roberts Capital. Okay. It seems Michael has gone silent. We will move on to the next questioner. Michael Cooper, private investor.

You may proceed with your question.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Good afternoon. Can you talk about

Michael Roberts, Investor, Roberts Capital: the total addressable market that you’re looking at over the next five years? And then how you expect that to ramp? I’m guessing you have a number of different scenarios, maybe a range of scenarios. You could give us a sense for how large this market is or these markets. I’m sure you’re looking at various markets.

And then what kind of price points your boards or chips go into products currently?

Didier Lasser, Vice President of Sales, GSI Technologies: It’s a good question. So Michael, I don’t have the numbers in front of me. But certainly there was a report very recently that was issued by one of the researcher analysts at Needham and Company that discussed the drug market specifically. And I don’t have it in front of me, but I want to say it was either it was tens of billions at least market size. Want to say it might be larger than that.

And so certainly it’s a very, very large market. And as we’ve discussed, we certainly feel with the power profile of our chips along with some of the algorithm work that we’re doing for, like Leleen mentioned, the multimodal inputs, whether we take an image or text or voice in the future, along with the time to first token advantage that we have. We certainly think that we’re well positioned to address that market. That was question one. The second question was think it was a two part question you had.

That’s what it was. Yeah. So pricing, I mean, we’ll give you generalities. But certainly it’s going to be priced differently by market. But it could be a few thousand dollars a board to $10,000 a board that contains the chip.

And then the chip will sell, again, on the market. But the chip could be $1,000 or more depending on the market and the volume.

Michael Roberts, Investor, Roberts Capital: And you’re working in gross margins in the 80 ish percent range? It’s certainly going to be

Didier Lasser, Vice President of Sales, GSI Technologies: yes, it’ll be above where we are corporately today. And again, it really depends on the market and how it’s sold. It could be 60% to 80%. It really depends on how it’s sold, whether it’s in a board, in a server, whether it comes with software or not. I mean there’s a lot of different aspects that would move that margin needle.

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Great. Thank you.

Conference Operator: Our next question comes from Michael Roberts with Roberts Capital who is rejoining us. You may proceed with your question.

Michael Roberts, Investor, Roberts Capital: Thank you. On capital deployment on the $50,000,000 raise, can you give an idea of how that plans to be allocated, whether it’s percentage or dollar amount amongst the Gemini II completion software development and the new PLATO chip that you referenced?

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: Yeah. On on the PLATO because there’s some fixed cost that we have to spend like IP cost and the mass cable cost. So those are, fixed 15,000,015 million to $17,000,000 kind of range. Okay. And the rest of the nothing, that’s probably pretty evenly between the Gemini II and the Pareto.

That’s mostly engineering costs, the internal costs. And it will be distributed evenly inside the company.

Michael Roberts, Investor, Roberts Capital: Evenly across. Okay, thank you. And in terms of then based on your cash runway now, what revenue or gross margin level do you expect to reach operating breakeven then?

Douglas Shurrow, Chief Financial Officer, GSI Technologies: If you can assume I don’t know, 65% or 70% gross margin once we get into this, it’s something that I need to take a look at. We’re still putting our plans together in terms of hiring levels and so on. You know, SOC teams or whoever we need for for the chip development, the additional software teams that we need for the software development. I don’t have all those numbers

Michael Roberts, Investor, Roberts Capital: Understood. But are there concrete milestones and dates then for the GEMINI two in terms of expectation of pilot shipments or expected initial production orders?

Didier Lasser, Vice President of Sales, GSI Technologies: Yes. So we will be doing some pilot shipments. We’ve done a couple already. We plan doing more in the 2026 calendar. This POC that hopefully we’ll be able to discuss a lot more in the upcoming months, depending on the schedules on that could give more substantial revenues in the back half of calendar 2026.

Michael Roberts, Investor, Roberts Capital: Noted. And from the current evaluation customers now, has any purchase orders or letters of intent been provided yet?

Didier Lasser, Vice President of Sales, GSI Technologies: I’m sorry, could you repeat the question?

Michael Roberts, Investor, Roberts Capital: Yeah, from have any of the evaluation customers provided any purchase orders or letters of intent yet against that production?

Didier Lasser, Vice President of Sales, GSI Technologies: They’re still in their evaluation at this point. So as we talked about, the board that we sent along with the software to this offshore defense contractor, they have done a review and they’ve put us as what’s called good acceptance in their system, which means it’s passed and been accepted. And so now we’re going through the possible use cases. They have a couple different divisions. Two of them

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: we think will be a

Didier Lasser, Vice President of Sales, GSI Technologies: good fit. One obviously is a SAR division. The other one is what they call their AI division. And so we’re looking for practical applications that can then, like you say, turn into design win and revenue. So we’re doing that with the customer today.

Michael Roberts, Investor, Roberts Capital: All right, very helpful. And one last question and then I’ll let others proceed. Can you elaborate on that software stack maturity then, the compiler SDK model porting tools, and when developers outside of GSI will have access? Kind of going towards any ecosystem adoption of what we have.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: No. For the Gemini tool, we are right now, we are developing the the library and then the and algorithm. Now after that, we we will move on to the tool and the competitor work, okay. And we are developing this with customer, the partner and the customer we have.

Michael Roberts, Investor, Roberts Capital: All right. Understood. Thank you very much.

Didier Lasser, Vice President of Sales, GSI Technologies: Thanks, Michael.

Conference Operator: Our next question comes from Robert Christian, Private Investor. You may proceed with your question.

Robert Christian, Private Investor: Yes. Can you help me understand why the company is not going after data centers in view of the environment impact with energy consumption and cooling? It seems like we’re leaving a lot of money on the table even if it was just licensed so others could use the technology?

Didier Lasser, Vice President of Sales, GSI Technologies: So I’m not sure how long you’ve been following the company, but we had talked about another potential roadmap product. At the time we were calling it Gemini three. And that was gonna be geared towards the data center. And that one needed a different kind of partner and it needed a lot more funding. It would have required a very aggressive process node and would have been much more expensive.

And so we were going down that road. And again, it was targeted for the data center. In the meantime, we were getting way too much positive feedback and interest on the Edge. And we were getting SBIR dollars. And there are other dollars, research dollars, that we’ve submitted for to try and get.

And it’s all for the Edge. And so the decision was made. We couldn’t do both. It was one or the other at this point. And so we remained focused on the edge.

Not to say with more influx of cash we can’t beef up the team and go after the data center. But it strategically made sense for us to remain at the edge for now.

Robert Christian, Private Investor: Okay. But there’s not a possibility, say, of Nvidia or a Micron to come in and develop the chip and we get a percentage of it?

Didier Lasser, Vice President of Sales, GSI Technologies: Yeah, I mean that’s certainly very possible. I can’t say those discussions are happening. But we had some discussions in the past where that was kind of the model we were looking at. So the answer is yes, we could do that. It’s just there’s nothing in the hopper right now.

Robert Christian, Private Investor: Okay, thank you very much.

Conference Operator: Our next question comes from Marco Petrone with MG Capital. You may proceed with your question.

Marco Petrone, Investor, MG Capital: Yes. You guys just recently raised $47,000,000 net, and you had $13,000,000 last quarter. And the balance sheet shows only $25,000,000 now. So I was wondering where that money went, number one. And number two, going forward, what type of capital allocations do you need for to build out the software team to do all this other stuff that we’ve been talking about?

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Well, the first answer is that that that transaction closed after the balance sheet date. It was an October transaction and the $27,000,000 that you see is as of September 30. And then in terms of the capital allocation, think we answered a previous question where we’re looking at some IP and other stuff that we need to purchase for PLATO. And then we expect to split funding between software development and the PLATO development.

Marco Petrone, Investor, MG Capital: So how much cash do you have on hand currently?

Douglas Shurrow, Chief Financial Officer, GSI Technologies: Well, take 27,000,000 or or 23,000,000 I’m sorry. 25,000,000 balance sheet date, plus we got another 47,000,000 in. So that that should give you a reasonable estimate.

Conference Operator: Alright. Thank you. Our next question comes from Mohammed Alsouci from Scale. You can proceed with your question.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: Hello?

Didier Lasser, Vice President of Sales, GSI Technologies: Hello? Yes.

Conference Operator: Hello? We can hear you.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: I wanna know if

Conference Operator: I can hear Yes.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: I just want to know if you have attracted any interest from any potential new customers after the CARNOVA study on APU performance?

Didier Lasser, Vice President of Sales, GSI Technologies: I’m sorry. Just to be clear, you’re asking if we’ve gotten any more customer traction because of the Cornell paper? Is that the question?

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: No. I want to know if you if you attract more interest or potential new customers after the new kernel study on APU performance.

Didier Lasser, Vice President of Sales, GSI Technologies: Okay. I think that’s what I just said. Okay. So the answer is the customers we’ve been talking to, we’ve been talking about this low power advantage for some time. And we’ve done benchmarks on several applications with some of our customers.

And so they’re aware of that. And so in that respect, it’s not a surprise to our customers we’ve been talking to that we have this low power advantage. This just illustrated it for the rest of the public as a third party validation of what we’ve been saying.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: Okay.

Conference Operator: This now concludes our question and answer session. I would like to turn the floor back over to Mr. Li Lin Xu for closing comments.

Li Lianxu, Chairman, President and Chief Executive Officer, GSI Technologies: We look forward to seeing you at this event and and you are participating in the third quarter fiscal twenty twenty six earnings call. Thank you.

Conference Operator: Ladies and gentlemen, this concludes our conference for today. Thank you for your participation. You may disconnect your lines and have a wonderful

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.