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Gsi Technology (GSIT)
NASDAQ:GSIT
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GSI Technology
(NASDAQ:GSIT)
41Neutral
GSI Technology (GSIT) vs. S&P 500 (SPY)
Market Cap
$66.56M
Dividend YieldN/A
Average Volume (3M)155.35K
Price to Earnings (P/E)―
Beta (1Y)2.54
Revenue Growth-10.03%
EPS Growth36.54%
CountryUS
Employees148
SectorTechnology
Sector Strength51
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.50
Shares Outstanding25,601,772
10 Day Avg. Volume196,699
30 Day Avg. Volume155,354
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.20
Price to Cash Flow (P/CF)-4.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
GSI Technology Business Overview & Revenue Model
Company DescriptionGSI Technology, Inc. is a semiconductor company based in the United States that designs, develops, and markets high-performance memory products primarily for the networking and telecommunications markets. The company specializes in offering static random-access memory (SRAM) products and is known for its advanced memory solutions that are used in a variety of applications, including networking, telecommunications, and military sectors.
How the Company Makes MoneyGSI Technology generates revenue primarily through the sale of its SRAM products to original equipment manufacturers (OEMs) and other customers in the networking and telecommunications industries. The company's products are designed to meet the performance and reliability demands of applications such as routers, switches, military and aerospace systems. Revenue is driven by the demand for high-speed, low-latency memory solutions in these sectors. Additionally, GSI Technology may engage in strategic partnerships and collaborations to enhance its market presence and product offerings, which can contribute to its revenue streams.
GSI Technology Financial Statement Overview
Summary
GSI Technology faces significant financial challenges, with declining revenues and persistent losses impacting profitability. The balance sheet reveals moderate leverage but declining equity strength. Cash flow issues persist, with negative operating and free cash flow signaling liquidity concerns. The company needs strategic changes to improve financial health and operational efficiency.Income Statement
GSI Technology has faced declining revenues over recent years, with a notable decrease from $43.34M in 2020 to $19.79M in TTM 2024. The company has consistently reported negative net income, indicating persistent losses. Gross profit margin has decreased over time, which points to challenges in maintaining profitability. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.40
Negative
Balance Sheet
The company's debt-to-equity ratio remains relatively low, suggesting manageable leverage. However, the declining equity ratio from 87.4% in 2020 to 67.8% in TTM 2024 reflects a reduction in equity relative to assets. Return on Equity is negative, consistent with ongoing losses, which signals inefficiencies in generating shareholder value.55
Neutral
Cash Flow
Operating cash flow has been consistently negative, highlighting difficulties in generating cash from core operations. The free cash flow has also deteriorated, and its growth rate is negative, indicating worsening liquidity. The operating cash flow to net income ratio is unfavorable, further emphasizing cash generation issues.35
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 19.79M | 21.77M | 29.69M | 33.38M | 27.73M | 43.34M | Gross Profit |
| 9.50M | 11.82M | 17.68M | 18.54M | 13.22M | 25.34M | EBIT |
| -18.90M | -20.43M | -15.81M | -17.69M | -21.26M | -10.80M | EBITDA |
| -18.12M | -19.50M | -14.01M | -15.04M | -20.05M | -9.37M | Net Income Common Stockholders |
| -12.73M | -20.09M | -15.98M | -17.71M | -21.50M | -10.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 46.78M | 14.43M | 30.57M | 43.96M | 53.95M | 66.57M | Total Assets |
| 113.13M | 42.46M | 59.88M | 76.42M | 87.61M | 102.56M | Total Debt |
| 0.00 | 1.52M | 238.00K | 898.00K | 699.00K | 640.00K | Net Debt |
| -24.66M | -12.91M | -26.97M | -36.07M | -43.53M | -50.87M | Total Liabilities |
| 14.41M | 6.49M | 8.50M | 13.31M | 12.02M | 12.92M | Stockholders Equity |
| 98.72M | 35.97M | 51.37M | 63.11M | 75.59M | 89.64M |
| Cash Flow | Free Cash Flow | ||||
| -18.52M | -18.00M | -17.16M | -14.60M | -15.46M | -5.01M | Operating Cash Flow |
| -18.47M | -17.35M | -16.84M | -13.83M | -15.25M | -4.68M | Investing Cash Flow |
| 11.34M | 2.76M | 6.68M | 4.20M | 3.29M | 9.97M | Financing Cash Flow |
| 636.00K | 1.81M | 402.00K | 2.37M | 4.69M | 3.72M |
GSI Technology Technical Analysis
Positive
2.60
Price Trends
2.69
Negative
2.85
Negative
2.89
Negative
Market Momentum
-0.21
Positive
32.11
Neutral
19.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSIT, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.30, below the 50-day MA of 2.69, and below the 200-day MA of 2.89, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 32.11 is Neutral, neither overbought nor oversold. The STOCH value of 19.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSIT.
GSI Technology Risk Analysis
GSI Technology disclosed 45 risk factors in its most recent earnings report. GSI Technology reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GSI Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $54.25M | 21.30 | 4.63% | 1.24% | -2.42% | -30.64% | |
63 Neutral | $23.30M | 41.67 | 1.86% | ― | -6.15% | -36.60% | |
57 Neutral | $19.95B | 9.66 | -12.05% | 2.76% | 5.40% | -24.89% | |
56 Neutral | $56.31M | 51.13 | 6.59% | ― | 8.40% | -18.22% | |
44 Neutral | $39.42M | ― | -27.85% | ― | 8.14% | 33.76% | |
41 Neutral | $66.56M | ― | -36.62% | ― | -10.03% | 36.54% | |
38 Underperform | $43.99M | ― | -127.22% | ― | 28.37% | 95.91% |
* Technology Sector Average
Performance Comparison
GSIT
GSI Technology
2.60
-1.11
-29.92%
TRT
Trio-Tech International
5.48
-0.87
-13.70%
AIRG
Airgain
3.41
-1.85
-35.17%
DVLT
Datavault AI
0.68
-1.07
-61.14%
SOTK
Sono-Tek
3.57
-0.71
-16.59%
SYT
SYLA Technologies Co., Ltd. ADR
2.19
-0.47
-17.67%
GSI Technology Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -10.96% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive developments and challenges. Revenue growth and successful cost reduction efforts were notable highlights, alongside progress in product development and government contracts. However, declines in sales to key customers and the defense segment, along with continued operating losses and decreased stockholders' equity, indicate areas of concern.Highlights
Revenue Growth
The company reported revenue of $5.4 million for Q3 FY2025, representing a 2% increase year-over-year and a 19% sequential growth from the previous quarter.
Cost Reduction Success
Cost reduction initiatives resulted in a reduction in operating and net losses compared to Q3 FY2024.
SRAM Segment Momentum
Continued momentum in the SRAM segment, with growing demand for 144-meg SRAM integral to manufacturing leading AI chips.
Government Contracts and Funding
Secured a Phase 1 contract with the U.S. Army for $250,000 and progressing in multiple SBIR programs with the Department of Defense.
New Product Development
Progressing on Gemini-II and developing a new chip, Plato, targeting AI applications at the edge with low power features.
Lowlights
Decline in Key Customer Sales
Sales to Nokia decreased significantly from $807,000 in Q3 FY2024 to $239,000 in Q3 FY2025.
Decreased Defense Segment Sales
Military defense sales dropped to 25% of third quarter shipments, down from 28.2% a year ago and 40.2% in the prior quarter.
Overall Operating Loss
Reported an operating loss of $4.1 million for Q3 FY2025, although reduced from $6.7 million in the prior year period.
Decrease in Stockholders' Equity
Stockholders' equity decreased from $36 million on March 31, 2024, to $29.9 million on December 31, 2024.
Company Guidance
During GSI Technology's third-quarter fiscal 2025 conference call, key metrics highlighted their financial and operational progress. The company reported revenues of $5.4 million, marking a 2% year-over-year increase and a 19% growth from the previous quarter. The gross margin stood at 54%, up from 38.6% in the prior quarter, attributed to higher revenue, product mix, and cost-cutting measures. Total operating expenses decreased to $7 million from $9.7 million the previous year, leading to a reduced operating loss of $4.1 million compared to $6.7 million a year ago. Net loss narrowed to $4 million or $0.16 per diluted share from $6.6 million or $0.26 per share in the prior year. The company's cash and cash equivalents were $15.1 million as of December 31, 2024, with working capital at $17.9 million and stockholders' equity at $29.9 million. Progress was also noted in their APU technology, with the Gemini-II's development on track for significant milestones, alongside the initiation of new chip development, Plato, aimed at AI edge solutions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.