GSI Technology Q2 loss widens on Plato development, legal costs
GSIT•GSI Technology’s Q2 revenue fell year over year to $6.02 million, while its net loss widened as operating expenses rose on Plato development and legal fees. The company expects Q3 revenue of $5.0 million to $6.0 million and gross margin of approximately 38% to 40%.
1. Quarterly results
GSI Technology reported Q2 revenue of $6.02 million, down year over year and below the $6.20 million consensus estimate. Its net loss widened as operating expenses increased to $10.35 million; operating loss was $7.44 million.
2. Costs and margins
Research and development expenses rose $2.3 million year over year, primarily due to external design services for the next-generation Plato processor. The company also cited non-routine legal and professional fees related to an internal assessment of vendor matters in foreign operations. Gross margin fell because of unfavorable product mix and higher manufacturing costs.
3. Q3 outlook
GSI Technology expects Q3 net revenue of $5.0 million to $6.0 million and gross margin of approximately 38% to 40%. It plans price increases to address higher manufacturing costs, effective immediately for new orders and on Jan. 1, 2027, for backlog.
