GSI Technology reports Q2 EPS (21c) vs. (16c) last year

Reports Q2 revenue $4.6M v. $5.7M last year…Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “We are seeing early indications of a turnaround in our SRAM business. Existing customers are depleting their channel inventory, and we anticipate they will resume ordering in the upcoming quarters. Furthermore, we expect a significant increase in orders from an existing customer over the next 12 months. This opportunity for additional orders involves collaborating on a cutting-edge product for a leading AI chip developer, which is expected to drive consistent demand for this customer’s equipment and our SRAM chips going forward.” Mr. Shu continued, “Looking at our financial results for the second quarter of fiscal 2025, we reported revenue of $4.6 million, which aligns with the midpoint of our guidance. Our gross margin was affected by product mix and severance costs associated with workforce reductions. In the second quarter, we implemented strategic cost-cutting measures expected to yield annual savings of $3.5 million. These initiatives include workforce reductions across all departments and enhanced operational efficiencies. As a result, we anticipate a significant decrease in cash burn, which, when combined with an improved revenue outlook, is expected to extend