The chart below shows how GSIT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GSIT sees a -1.02% change in stock price 10 days leading up to the earnings, and a -11.59% change 10 days following the report. On the earnings day itself, the stock moves by -3.49%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q3 Revenue Growth: Revenue of $5,400,000 in Q3 fiscal 2025, a 2% increase year over year and a 19% sequential growth from the previous quarter.
Gross Margin Improvement: Gross margin improved to 54% in Q3 fiscal 2025, up from 38.6% in the preceding quarter, driven by higher revenue and product mix.
Operating Loss Improvement: Operating loss reduced to $4,100,000 in Q3 fiscal 2025, compared to $6,700,000 in the prior year period and $5,600,000 in the prior quarter.
R&D Expense Reduction: Research and development expenses decreased to $4,000,000 in Q3 fiscal 2025, down from $7,000,000 in the prior year period, indicating improved cost management.
AI Solutions Contract Award: Secured a Phase 1 contract with the U.S. Army worth $250,000 to explore AI solutions, enhancing relationships within the Department of Defense.
Negative
Nokia Sales Decline: Sales to Nokia decreased to $239,000, representing a decline from $807,000 in the same period last year and $812,000 in the prior quarter, indicating a significant loss of revenue from a key customer.
Decline in Defense Sales: Military defense sales dropped to 25% of total shipments in Q3, down from 28.2% year-over-year and 40.2% sequentially, reflecting a concerning trend in defense-related revenue.
Sales Decline Analysis: SigmaQuad sales fell to 39.1% of shipments in Q3, compared to 46.9% in the same quarter last year and 38.6% in the previous quarter, suggesting a decline in demand for this product line.
Net Loss Improvement: The net loss for Q3 was $4,000,000, or $0.16 per diluted share, which, while improved from a net loss of $6,600,000 a year ago, still indicates ongoing financial challenges.
Decline in Stockholders' Equity: Stockholders' equity decreased to $29,900,000 as of December 31, 2024, down from $36,000,000 at the end of the previous fiscal year, highlighting a deterioration in the company's financial position.
Earnings call transcript: GSI Technology Q3 2025 reports revenue growth
GSIT.O
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