We would like to highlight GSI Technology, Inc. (NASDAQ: GSIT). The company designs, develops and markets a range of Very Fast static random access memories (SRAMs) primarily for the networking and telecommunications markets. The Company offer more than 30 basic product configurations of its SRAMs based on their basic product type and their storage densities. These basic product configurations are the basis for over 8,500 individual products that incorporate a variety of performance specifications and optional features
In the company’s news yesterday,
GSI Technology, Inc. (GSIT) released Q1 2009 financial results after the close. Revenues were $17.3 million, an increase of 53% year over year. Net income increased 173% to $3.0 million, or 11 cents per share, compared to $1.1 million or 4 cents per share last year. Analysts expected earnings of 7 cents per share on revenues of $15.3 million.
“In both sales and profitability, we continue to build on the momentum established in prior quarters,” said Lee-Lean Shu, the company’s Chairman and Chief Executive Officer. “The growth in revenue — which was accompanied by stronger margins as the sales mix shifted toward a higher percentage of high-density products — was driven primarily by an increase in direct and indirect sales to Cisco Systems, which were $5.7 million in the first quarter of fiscal 2009 compared to $4.2 million in each of the preceding two quarters. The other significant contributor was a $400,000 shipment of a high-density device to a customer in the military/defense sector; this, in conjunction with a strong increase in sales of SigmaQuad products, further contributed to the improvement in margins.”
GSI issued revenue guidance for the second quarter. The company expects to recognize sales in a range of $16.5 million to $17.3 million. Analysts surveyed currently anticipate $15.8 million in revenues for Q2. Shares of GSIT closed at $3.90 today and have traded within a range of $2.20 - $4.96 during the past year. With 28 million shares outstanding, GSIT has a market cap of $109 million. Shareholder’s equity is $80.9 million, or approximately $2.90 per share.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
