GSI Technology Inc. Reports Consolidated Unaudited Earnings Results for the Third Quarter and Nine Months Ended December 31, 2011; Provides Earnings Guidance for the Fourth Quarter of Fiscal 2012
January 26, 2012 at 09:05 pm
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GSI Technology Inc. reported consolidated unaudited earnings results for the third quarter and nine months ended December 31, 2011. For the period, the company reported net revenues of $19,975,000 compared with $26,244,000 for the same period last year. Operating income of $687,000 compared with $6,700,000 for the same period last year. Income before income taxes of $844,000 compared with $6,652,000 for the same period last year. Net income of $991,000 or $0.03 diluted per share compared with $5,838,000 or $0.20 diluted per share for the same period last year. Third-quarter revenues were higher than had been anticipated when the company first provided guidance for the third quarter last October, due in large part to higher-than-expected sales to Cisco Systems, the company's largest customer, largely as a result of production problems experienced by another supplier.
For the nine months, the company reported net revenues of $63,806,000 compared with $75,909,000 for the same period last year. Operating income of $6,739,000 compared with $18,835,000 for the same period last year. Income before income taxes of $7,141,000 compared with $19,051,000 for the same period last year. Net income of $5,927,000 or $0.20 diluted per share compared with $15,464,000 or $0.53 diluted per share for the same period last year.
The company currently expects revenues in the fourth quarter of fiscal 2012 to be in the range of $15 to $18 million, with gross margin of approximately 43.5%. Like others in its industry, the company expects that continued market weakness will negatively impact by sales during the quarter. In addition, the benefit that it experienced due to the production problems at one of Cisco Systems' other suppliers was temporary and appears to have been resolved. Finally, although third-quarter revenues exceeded its earlier forecast, it believes that they were negatively affected by uncertainty regarding pending patent litigation with Cypress. The company believes that uncertainty will continue to affect its revenues, and will likely have an increased impact in the fourth quarter. It also expects that ongoing legal expenses related to the patent litigation will continue to affect its operating income and its bottom line. These expenses are estimated to be approximately $3 million during the fourth quarter, as it prepare for trial in March 2012. Effective tax rate to be approximately 19.5%.
GSI Technology, Inc. is a provider of semiconductor memory solutions. The Company provides in-place associative computing solutions for applications in high growth markets such as artificial intelligence (AI) and high-performance computing (HPC), including natural language processing and computer vision. The Company's associative processing unit (APU) products are focused on applications using similarity search. Its similarity search is used in visual search queries for ecommerce, computer vision, drug discovery, cyber security and service markets such as NoSQL, Elasticsearch, and OpenSearch. The Company operates through one segment: the design, development and sale of integrated circuits. It designs, develops and markets static random-access memory (SRAM). Its SRAM offerings include SyncBurst, NBT, SigmaQuad, and SigmaDDR. It is also engaged in marketing radiation-hardened (RadHard) and radiation-tolerant (RadTolerant) SRAMs for military/defense and aerospace applications.
GSI Technology Inc. Reports Consolidated Unaudited Earnings Results for the Third Quarter and Nine Months Ended December 31, 2011; Provides Earnings Guidance for the Fourth Quarter of Fiscal 2012