e Company reported net revenues of $6.4 million for the second quarter of fiscal 2026, compared to $4.6 million for the second quarter of fiscal 2025 and $6.3 million for the first quarter of fiscal 2026. Gross margin was 54.8% in the second quarter of fiscal 2026 compared to 38.6% in the second quarter of fiscal 2025 and 58.1% in the preceding first quarter of fiscal 2026. The decrease in gross margin in the second quarter of 2026 was primarily due to product mix.
In the second quarter of fiscal 2026, sales to KYEC were $802,000, or 12.5% of net revenues, compared to $650,000, or 14.3% of net revenues, in the same period a year ago and $267,000, or 4.3% of net revenues, in the prior quarter. In the second quarter of fiscal 2026, sales to Nokia were $200,000, or 3.1% of net revenues, compared to $812,000, or 17.8% of net revenues, in the same period a year ago and $536,000, or 8.5% of net revenues, in the prior quarter. In the second quarter of fiscal 2026, sales to Cadence Design Systems were $1.4 million, or 21.6% of net revenues, compared to $0, or 0% of net revenues, in the same period a year ago and $1.5 million, or 23.9% of net revenues, in the prior quarter. Military/defense sales were 28.9% of second quarter shipments compared to 40.2% of shipments in the comparable period a year ago and 19.1% of shipments in the prior quarter. SigmaQuad sales were 50.1% of second quarter shipments in fiscal 2026 compared to 38.6% in the second quarter of fiscal 2025 and 62.5% in the prior quarter.
Total operating expenses in the second quarter of fiscal 2026 were $6.7 million, compared to $7.3 million in the second quarter of fiscal 2025 and $5.8 million in the prior quarter. Research and development expenses were $3.8 million, compared to $4.8 million in the prior-year period and $3.1 million in the prior quarter. The increase in research and development spending compared to the prior quarter is primarily due to changes in the levels of stock-based compensation expense and amounts of government funding received under SBIRs in each quarter recorded as an offset to research and development expense. Selling, general and administrative expenses were $3.0 million in the quarter ended September 30, 2025, compared to $2.6 million in the prior-year quarter and $2.7 million in the previous quarter.
Second quarter fiscal 2026 operating loss was $(3.2) million compared to an operating loss of $(5.6) million in the prior-year period and an operating loss of $(2.2) million in the prior quarter. Second quarter fiscal 2026 net loss included interest and other income of $43,000 and a tax provision of $41,000, compared to $149,000 in interest and other income and a tax provision of $23,000 for the same period a year ago. In the preceding first quarter, net loss included interest and other income of $13,000 and a tax provision of $54,000.
Net loss in the second quarter of fiscal 2026 was $(3.2) million, or $(0.11) per diluted share, compared to net loss of $(2.2) million, or $(0.08) per diluted share, for the first quarter of fiscal 2026. For the prior year second fiscal quarter of 2025, net loss was $(5.5) million, or $(0.21) per diluted share.
Total second quarter pre-tax stock-based compensation expense was $856,000 compared to $663,000 in the comparable quarter a year ago and $341,000 in the prior quarter.
At September 30, 2025, the Company had $25.3 million in cash and cash equivalents, compared to $13.4 million at March 31, 2025. Working capital was $26.8 million as of September 30, 2025 versus $16.4 million at March 31, 2025. Stockholders’ equity as of September 30, 2025 was $38.6 million, compared to $28.2 million as of the fiscal year ended March 31, 2025.
Conference Call
GSI Technology will review its financial results for the quarter ended September 30, 2025, and discuss its current business outlook during a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern) today, October 30, 2025. To participate in the conference call, please dial 1-877-407-3982 in the U.S., or 1-201-493-6780 for international, approximately 10 minutes prior to the above start time, and provide Conference ID 13756741. The call will also be streamed live via the internet at globenewswire.com.
About GSI Technology
GSI Technology is at the forefront of the AI revolution with our groundbreaking APU technology, designed for unparalleled efficiency in billion-item database searches and high-performance computing. GSI’s innovations, Gemini-I® and Gemini-II®, offer scalable, low-power, high-capacity computing solutions that redefine edge computing capabilities. GSI Technology is not just advancing technology; we're shaping a smarter, faster, and more efficient future.
Founded in 1995 and headquartered in Sunnyvale, California, GSI Technology has 127 employees and over 125 granted patents.
For more information, please visit www.gsitechnology.com. |
