GSI Technology, Inc. Announces Second Quarter of Fiscal Year 2027 Results
Key Highlights
- ➤Net revenue $6.0 million, within guidance but down from $6.4 million year-over-year
- ➤Gross margin 48.5%, below 53%-55% guidance amid higher manufacturing costs
- ➤Net loss $7.0 million, or $0.18 per diluted share, versus $3.2 million loss
- ➤Q3 revenue guided to $5.0 million-$6.0 million, with 38%-40% gross margin
- ➤Plato tape-out remains scheduled for March 2027, with sampling targeted late summer 2027
Expert Statements
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“In the second quarter of fiscal 2027, we made significant progress on several fronts, including the successful completion and acceptance of the initial stage of Phase I of our Smart Guardian Eye project, which is now providing live video monitoring and interpretive incident reporting.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“Our software development team is conducting an internal trial and validation of the alpha version of our AI-assisted software development kit (SDK), designed to simplify the process of porting existing AI models to our APU platform.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“We anticipate releasing a beta version to our initial customers before the end of December 2026.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“This will enable a broader range of prospective customers and partners to evaluate our technology using their own AI models, support multiple simultaneous evaluations, and expand our market reach through system integrators, helping to accelerate commercialization across a wider range of applications.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“Looking ahead to the remainder of fiscal 2027, we are focused on achieving the following milestones: submitting our proposal for Phase II of the Smart Guardian Eye project, advancing the AI-assisted SDK toward commercial release in the first half of calendar year 2027, completing the tape-out of Plato in March 2027, with first-spin chips targeted for initial sampling by late summer of calendar year 2027, and securing a strategic partner who could expand our capabilities to enter new markets where we lack resources to pursue on our own.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“Achieving these milestones would enable us to expand the commercialization of Gemini-II in calendar year 2027, and position Plato for adoption across a broader range of AI applications.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“Our current expectation for the third quarter of fiscal 2027 is for net revenues in the range of $5.0 million to $6.0 million, with gross margin of approximately 38% to 40%.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“To address higher manufacturing costs, the Company plans to implement price increases immediately for new orders and effective January 1, 2027, for existing customer backlog.”
Lee-Lean Shu, Chairman and Chief Executive Officer of GSI Technology
“Management anticipates that these adjustments, together with improved product availability, will support a recovery in revenue and gross margin beginning in the fourth quarter of fiscal 2027.”
SUNNYVALE, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its second fiscal quarter ended September 30, 2026.
Summary Comments for Second Quarter of Fiscal Year 2027 (all financial comparisons are to Second Quarter of Fiscal Year 2026) * Smart Guardian Eye project begins live AI video monitoring on the acceptance of the initial stage of Phase I by the Hsinchu County government in Taiwan * Plato development remains on schedule for March 2027 tape-out and we continue to receive outside interest based on the disclosed preliminary performance and power savings findings * Net revenue of $6.0 million, within Company’s guidance range of $5.7 to $6.5 million * Increase in operating expense year-over-year is primarily related to ongoing Plato chip design consultants, commercialization of Gemini-II and non-recurring legal and other professional fees associated with an internal assessment completed in the quarter * Quarter-end cash balance of $69.2 million reflecting spending on Plato development and a non-routine SG&A expense relating to our Taiwan manufacturing operations Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “In the second quarter of fiscal 2027, we made significant progress on several fronts, including the successful completion and acceptance of the initial stage of Phase I of our Smart Guardian Eye project, which is now providing live video monitoring and interpretive incident reporting. Our software development team is conducting an internal trial and validation of the alpha version of our AI-assisted software development kit (SDK), designed to simplify the process of porting existing AI models to our APU platform. We anticipate releasing a beta version to our initial customers before the end of December 2026. This will enable a broader range of prospective customers and partners to evaluate our technology using their own AI models, support multiple simultaneous evaluations, and expand our market reach through system integrators, helping to accelerate commercialization across a wider range of applications.”
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