GSI Technology’s stock falls after company sees losses swell

GSI Technology Inc. shares 
GSIT,
-18.26%
fell 3.7% Friday after the memory specialist reported a fiscal second-quarter net loss of $4.06 million, or 16 cents a share, compared with a net loss of $3.23 million, or 13 cents a share, in the prior year’s quarter. The company has reported a net loss for more than a dozen straight quarters. GSI Technology’s revenue was $5.71 million, at the high end of the company’s guidance, compared with revenue of $8.95 million in the same period last year. “It is worth noting that our second-quarter fiscal year 2023 revenue was boosted by inventory builds with several key customers, which presents a challenging year-over-year comparison,” said GSI Technology CEO Lee-Lean Shu, in a statement. GSI Technology’s gross margin was 54.7%, compared with 62.6% in the prior year’s quarter. For the fiscal third quarter, GSI Technology expects revenue of $5.4 million to $6.2 million, and a gross margin of approximately 55% to 57%. The Sunnyvale, Calif.-based small-cap company sparked meme-like buzz earlier this year, attracting attention from users posting on Reddit about GSI Technology’s efforts around AI-processor technology. Last week, GSI Technology announced design completion of its Gemini-II processor, which it is aiming at the artificial-intelligence market. The company is eyeing opportunities for the Gemini-II processor in AI applications and the aerospace market, touting the technology as a good fit for drones, satellites and aircraft. GSI Technology’s stock has risen 34.1% in 2023, outpacing the S&P 500 index’s
SPX,
-0.48%
gain of 7.8%.