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GAL TECHNOLOGY GSI Technology , Inc. Reports Second Quarter Fiscal 2022 Results October 28 , 2021 SUNNYVALE , Calif . , Oct. 28 , 2021 ( GLOBE NEWSWIRE ) -- GSI Technology , Inc. ( NASDAQ : GSIT ) today reported financial results for its second fiscal quarter ended September 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 Sept. 30 , 2021 $ 7,797 53.6 % $ 8,694 $ ( 4,517 ) $ ( 4,567 ) ( $ 0.19 ) June 30 , 2021 $ 8,791 54.4 % $ 9,143 $ ( 4,361 ) $ ( 4,209 ) $ ( 0.17 ) Sept. 30 , 2020 Six Months Ended Sept. 30 , 2021 $ 6,659 46.7 % $ 8,265 $ ( 5,153 ) $ ( 5,231 ) $ ( 0.22 ) $ 16,588 54.0 % $ 17,837 $ ( 8,878 ) $ ( 8,776 ) ( $ 0.36 ) Sept. 30 , 2020 $ 13,280 46.4 % $ 17,010 $ ( 10,848 ) $ ( 11,307 ) $ ( 0.48 ) Lee - Lean Shu , Chairman , and Chief Executive Officer , commented , " Sales to Nokia , our largest SRAM customer , have stabilized year - to - date and , despite ongoing supply chain constraints , we achieved second quarter revenue of $ 7.8 million , at the high end of our guidance range provided earlier in the quarter . Higher revenue and gross profit combined with a modest increase in operating expenses reduced our net loss year - over - year . We continue to advance our key initiatives with ongoing APU and radiation tolerant opportunities . For both categories , we are progressing in the current customer engagements and have added a few new beta customer engagements for the APU . " " To best allocate our resources and prioritize our focus , we defined the total addressable market ( TAM ) for the APU , " continued Mr. Shu . " We believe that the TAM for APU search applications is approximately $ 137 billion in 2021 , growing at a compound annual growth rate ( CAGR ) of 20 % to $ 287 billion by 2025 , and that the Serviceable Available Market ( SAM ) is $ 4.5 billion in 2021 , anticipated to grow at a CAGR of 21 % to $ 10 billion by 2025 . The search market segments reflected in this analysis include computer vision , synthetic aperture radar , drug discovery , cybersecurity , and service markets such as NoSQL , elasticsearch , and OpenSearch , which we plan to support with a SaaS solution . These are market segments where we currently have ongoing customer engagements . " Commenting on the outlook for GSI's third quarter of fiscal 2022 , Mr. Shu stated , " the impact of the supply chain constraints is having a modest impact on our ability to fulfill all our orders . While there has been some improvement , the situation remains fluid , and we do not expect significant relief from these constraints before next year . Given the supply chain challenges , current expectations for the upcoming third quarter are net revenues in a range of $ 7.2 million to $ 8.2 million , with gross margin of approximately 52 % to 54 % . " Second Quarter Fiscal Year 2022 Summary Financials The Company reported a net loss of $ ( 4.6 million ) , or $ ( 0.19 ) per diluted share , on net revenues of $ 7.8 million for the second quarter of fiscal 2022 , compared to a net loss of $ ( 5.2 million ) , or $ ( 0.22 ) per diluted share , on net revenues of $ 6.7 million for the second quarter of fiscal 2021 and a net loss of 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. Gross margin was 53.6 % compared to 46.7 % in the prior year period and 54.4 % in the preceding first quarter . The changes in gross margin were primarily due to changes in product mix sold in the three periods . In the second quarter of fiscal 2022 , sales to Nokia were $ 1.9 million , or 23.8 % of net revenues compared to $ 3.4 million , or 51.7 % of net revenues , in the same period a year ago and $ 3.8 million , or 42.7 % of net revenues in the prior quarter . Military / defense sales were 27.4 % of second quarter shipments compared to 26.9 % of shipments in the comparable period a year ago and 20.0 % of shipments in the prior quarter . Sigma Quad sales were 52.4 % of second quarter shipments compared to 65.4 % in the second quarter of fiscal 2021 and 63.6 % in the prior quarter . Total operating expenses in the second quarter of fiscal 2022 were $ 8.7 million , compared to $ 8.3 million in the second quarter of fiscal 2021 and $ 9.1 million in the prior quarter . Research and development expenses were $ 5.9 million , compared to $ 5.7 million in the prior year period and $ 6.1 million in the prior quarter . Selling , general and administrative expenses were $ 2.8 million in the quarter ended September 30 , 2021 , compared to $ 2.6 million in the prior year quarter , and $ 3.0 million in the previous quarter . Second quarter fiscal 2022 operating loss was $ ( 4.5 million ) compared to $ ( 5.2 million ) in the prior year period and $ ( 4.4 million ) in the prior quarter . Second quarter fiscal 2022 net loss included interest income and other expense , net of $ ( 8,000 ) and a tax provision of $ 42,000 , compared to interest income and other expense , net of $ ( 16,000 ) and a tax provision of $ 62,000 , for the same period a year ago . In the preceding first quarter , net loss included interest and other expense of $ ( 20,000 ) and a tax benefit of $ 172,000 . Total second quarter pre - tax stock - based compensation expense was $ 716,000 compared to $ 653,000 in the comparable quarter a year ago and $ 823,000 in the prior quarter . At September 30 , 2021 , the Company had $ 50.7 million in cash , cash equivalents and short - term investments and $ 2.8 million in long - term