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GAL TECHNOLOGY GSI Technology , Inc. Reports First Quarter Fiscal 2022 Results July 29 , 2021 SUNNYVALE , Calif . , July 29 , 2021 ( GLOBE NEWSWIRE ) -- GSI Technology , Inc. ( NASDAQ : GSIT ) today reported financial results for its first fiscal quarter ended June 30 , 2021 . Summary Financial Results Table ( in thousands , except per share amounts ) Net revenues Gross margin ( % ) Operating expenses Operating loss Net loss Net loss per share , diluted Three Months Ended March 31 , 2021 $ 7,686 June 30 , 2021 $ 8,791 54.4 % 50.2 % $ 9,143 $ 9,123 $ ( 4,361 ) $ ( 5,265 ) $ ( 4,209 ) $ ( 4,982 ) $ ( 0.17 ) $ ( 0.21 ) June 30 , 2020 $ 6,621 46.1 % $ 8,745 $ ( 5,695 ) $ ( 6,076 ) $ ( 0.26 ) Lee - Lean Shu , Chairman , and Chief Executive Officer , commented , " First quarter net revenue improved year - over - year and sequentially due to higher sales to Nokia , our largest customer . Increased demand for our SigmaQuad products improved gross margin and narrowed our operating loss in the quarter . The net revenues from our legacy SRAM business continue to support our newer product categories , primarily radiation tolerant devices and Gemini APU solutions . Our efforts to build market recognition of these new product categories yielded several promising results in the first quarter . " " We shipped our first radiation - tolerant devices for a prototype satellite and increased beta customer engagement for Gemini - l systems . Winning first place in the MAFAT Challenge has opened the door to an Israeli prime contractor with whom we successfully demonstrated Gemini's overall value proposition for Synthetic Aperture Radar ( SAR ) applications , leading to a proof - of - concept engagement for SAR systems . We have successfully demonstrated that the APU significantly accelerates , at low power , vector search performance in such applications . " " GSI has now expanded the market reach of the APU into applications by becoming an Amazon OpenSearch Service partner . Amazon Web Services ( AWS ) recently released their version 1.0 of OpenSearch for users of Elasticsearch and developers building products and services based on Elasticsearch . AWS has selected partners that offer software and extensions that support OpenSearch . GSI's K - NN plug - in extends OpenSearch capability to K and Approximate Nearest Neighbor ( KNN and ANN ) implementations . " " Our plug - in allows OpenSearch to accelerate searches , add dense vector support , and multimodal queries to very large , and billion scale databases . The acceleration of searches increases performance and lowers power consumption , providing lower cost per query to the OpenSearch community compared to CPU's and GPU's and enables the usage of much larger and complex databases . These product features widen our market reach and create more customer opportunities . We anticipate increasing the number of Gemini system beta users in the second half of calendar 2021 and opening up to general customers in calendar 2022. " Commenting on first quarter results and the outlook for GSI's second quarter of fiscal 2022 , Mr. Shu stated , " Supply chain shortages and the impact of rising COVID infections in Taiwan that have recently impacted the operations of our manufacturing partners are expected to impact our fulfillment of sales in the near term , and possibly for the remainder of the calendar year . Our current expectations for the upcoming second quarter are net revenues in a range of $ 6.9 million to $ 7.9 million , with a gross margin of approximately 51 % to 53 % . " First Quarter Fiscal Year 2022 Summary Financials The Company reported a net loss of $ ( 4.2 million ) , or $ ( 0.17 ) per diluted share , on net revenues of $ 8.8 million for the first quarter of fiscal 2022 , compared to a net loss of $ ( 6.1 million ) , or $ ( 0.26 ) per diluted share , on net revenues of $ 6.6 million for the first quarter of fiscal 2021 and a net loss of $ ( 5.0 million ) , or $ ( 0.21 ) per diluted share , on net revenues of $ 7.7 million for the fourth quarter of fiscal 2021. Gross margin was 54.4 % compared to 46.1 % in the prior year quarter and 50.2 % in the preceding fourth quarter . The improvement in gross margin was primarily due to changes in product mix sold in the quarter , which reflects an increase in higher margin SigmaQuad sales compared to the prior periods . In the first quarter of fiscal 2022 , sales to Nokia were $ 3.8 million , or 42.7 % of net revenues compared to $ 1.8 million , or 26.9 % of net revenues , in the same period a year ago and $ 2.8 million , or 36.5 % of net revenues in the prior quarter . First quarter fiscal 2022 net revenues include orders for buffer stock shipped to Nokia amounting to approximately $ 1.1 million that were made in anticipation of continued market tightness . Military / defense sales were 20.0 % of first quarter shipments compared to 30.1 % of shipments in the comparable period a year ago and 22.5 % of shipments in the prior quarter . SigmaQuad sales were 63.6 % of first quarter shipments compared to 46.3 % in the first quarter of fiscal 2021 and 52.9 % for the previous quarter . Total operating expenses in the first quarter of fiscal 2022 were $ 9.1 million , compared to $ 8.7 million in the first quarter of fiscal 2021 and $ 9.1 million in the prior quarter . Research and development expenses were $ 6.1 million , compared to $ 5.8 million in the prior year period and $ 6.1 million in the prior quarter . Selling , general and administrative expenses were $ 3.0 million in the quarter ended June 30 , 2021 , compared to $ 2.9 million for the previous year quarter and $ 3.0 million in the previous quarter .