Sunnyvale-based memory specialist GSI Technology (NASDAQ:GSIT) Inc. reported a fiscal second quarter net loss of $4.06 million on Friday, marking a continuation of over 12 consecutive quarters of net losses. The company's revenue for the quarter stood at $5.71 million, a decrease from the previous year's $8.95 million, attributed to inventory builds with key customers.
GSI's gross margin also saw a decline, dropping to 54.7% from 62.6% in the same quarter of the previous fiscal year. Moving forward, the company projects revenues between $5.4 million and $6.2 million for the third fiscal quarter, with an anticipated gross margin of around 55% to 57%.
Despite its consistent losses, GSI Technology has managed to create significant buzz among Reddit users, particularly after the completion of its design for the Gemini-II processor. The new processor targets AI applications and the aerospace market, including drones, satellites, and aircraft.
In an unexpected turn of events, GSI Technology’s stock has significantly outperformed the S&P 500 index in 2023, registering a gain of 34.1%. This remarkable performance comes despite the company's ongoing streak of net losses.
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