GSIT earnings analysis
What we found in GSIT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
GSI Technology generated $6.312 million of revenue and diluted EPS of negative $0.13 in the quarter; gross margin was 58.1%, but operating margin remained negative at 34.6%. Liquidity was supported by $77.0 million of cash and cash equivalents and approximately $9.6 million of May 2026 ATM proceeds, but the company continues to incur losses and may require additional funding. The filing emphasizes material concentration in Avnet Logistics and key customers, dependence on TSMC and Taiwan manufacturing, and execution risks surrounding Gemini-II and Plato commercialization.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Stable; Gross Margin Improved
- Revenue was $6.312 million, approximately $0.3 million above the prior-period $6.0 million, while gross margin improved to 58.1% from 56.1%.
- Cash Balance Remains Strong
- Cash and cash equivalents totaled $77.0 million at June 30, 2026, primarily invested in money market funds for working capital.
- Controls Evaluated as Effective
- Management stated that disclosure controls and procedures were effective as of June 30, 2026, and reported no material changes in internal control over financial reporting during the quarter.
- Additional Capital Raised
- The company raised approximately $9.6 million in gross proceeds through its May 2026 at-the-market offering, following approximately $50 million raised in October 2025.
- No Goodwill Impairment Indicators
- There were no goodwill impairment indicators at June 30, 2026 or March 31, 2026; goodwill was $8.0 million at both dates.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Persistent Losses and Negative Margins
- The company reported a diluted EPS loss of $0.13 and an operating margin of negative 34.6%, while it disclosed net losses of $13.2 million in fiscal 2026 versus $10.6 million in fiscal 2025.
- High Customer and Distributor Concentration
- Avnet Logistics accounted for 63.7% of fiscal 2026 net revenue, while KYEC, Nokia and Cadence Design Systems represented 14%, 6% and 12%, respectively; one customer represented 62% of accounts receivable at June 30, 2026.
- Single-Source Manufacturing Exposure
- The company depends on TSMC for most wafers and ASE for most packaging, has no supply agreements with either supplier, and stated that it may increase inventory levels and place orders further in advance, increasing working-capital needs and obsolescence risk.
- APU Commercialization and Talent Risk
- Commercialization of Gemini-II and development of Plato require continuing substantial effort during fiscal 2027; management identified a risk of missing Plato’s anticipated tape-out date in early calendar 2027 if engineering staffing is inadequate.
- Elevated Product Development Costs
- The company disclosed that it incurred $3.2 million of intellectual-property charges for the Plato project in the third quarter of fiscal 2026, with similar expenses expected as it transitions products to smaller-geometry processes.
- Geopolitical and Export-Control Risk
- The company reported that 51.1% of fiscal 2026 revenue was shipped outside the United States, with substantial manufacturing and testing in Taiwan and software development in Israel, exposing operations to geopolitical, trade and export-control disruption.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.13
- Gross margin
- 58.1%
- Operating margin
- -34.6%
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-Q; outlook was deferred to the earnings press release/call.
The filing reads worse than the one before it.
What came before.
- 10-K · June 5, 2026
- GSI Technology reported a challenging fiscal period with a net loss of $13.2 million in FY2026, a 24% increase from the previous year's loss of $10.6 million, as revenues grew to $25.1 million driven primarily by their…
- 10-Q · February 6, 2026
- GSI Technology reported Q3 revenue of $6,076,000, up $662,000 (+12.2%) year-over-year, with gross profit of $3,200,000 (52.7% gross margin). GAAP diluted EPS improved to a loss of $0.09 per share from a loss of $0.16 a…
- 10-Q · February 10, 2025
- GSI reported quarterly revenue of $5,414,000, up modestly from $5,318,000 a year earlier, with gross margin roughly flat at 54.0% versus ~56.0% prior-year. The company narrowed its quarterly net loss to $4,029,000 (EPS…
- 10-K · June 13, 2024
- GSI Technology (GSIT) is transitioning from a legacy high-speed synchronous SRAM vendor toward commercializing its Gemini APU compute-in-memory product family for AI/HPC and edge applications. Fiscal 2024 showed…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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