GSI Technology Reports $20.5 Million Revenue Decline and $10.6 Million Net Loss for Fiscal Year Ending March 31, 2025

GSI Technology, Inc. reported a net revenue of $20.5 million for the fiscal year ending March 31, 2025, reflecting a decrease of 5.7% from $21.8 million in the previous fiscal year. The decline in revenue was attributed to reduced demand for the company's SRAM products, influenced by global inflationary pressures, higher interest rates, and geopolitical tensions. The company's gross profit also fell to $10.1 million, down 14.2% from $11.8 million in fiscal 2024, resulting in a gross margin decrease from 54.3% to 49.4%. The net loss for the year was $10.6 million, a significant improvement compared to the $20.1 million loss reported in the prior year.

In terms of operational changes, GSI Technology implemented a cost reduction initiative in August 2024, which resulted in a 16% reduction in its workforce and is expected to save approximately $3.5 million annually. This strategic move was aimed at reallocating resources towards the development of its associative processing unit (APU) technology, which is central to the company's future growth strategy. The company also completed a sale and leaseback transaction for its headquarters in Sunnyvale, California, generating $11.2 million in cash, which bolstered its liquidity position.

The company has made strides in its product development, particularly with its APU technology, which is designed for applications in artificial intelligence and high-performance computing. GSI Technology received government contracts totaling approximately $1.25 million for the development of its next-generation APU, aimed at enhancing space-based capabilities. Additionally, the company is focusing on expanding its market presence in the military and aerospace sectors, where it has seen increased interest in its radiation-hardened SRAM products.

As of March 31, 2025, GSI Technology had cash and cash equivalents of $13.4 million, with no debt, positioning the company to navigate ongoing economic challenges. The company anticipates that continued inflationary pressures and geopolitical tensions will impact its operations and market demand in the near future. However, it remains committed to advancing its APU technology and expanding its customer base, particularly in high-growth markets. The company is also exploring strategic alternatives to maximize shareholder value, which may include equity or debt financing, divestitures, or other strategic arrangements.