GSI Technology reported second quarter fiscal 2027 revenue of $6.0 million, missing the $6.25 million consensus estimate. The company's net loss widened to $(0.18) per share, significantly missing the $(0.12) estimate, driven by a sharp contraction in gross margins and elevated operating expenses related to next-generation chip development and non-routine legal matters.
Key Highlights
- Gross margin fell to 48.5%, missing management's own guidance range of 53% to 55% due to supply chain constraints and higher manufacturing costs for wafers and assembly.
- Operating expenses surged 54% year-over-year to $10.4 million, primarily due to external design services for the Plato processor and $1.4 million in net costs from an internal assessment of foreign vendor operations.
- Management issued weak third quarter 2027 guidance with gross margins expected to drop further to 38%–40% while revenue is projected to remain stagnant at $5.0 million to $6.0 million.