GSI TECHNOLOGY INC Q3 FY2026 earnings call

• Revenue in the third quarter increased by 12% year over year and 28.5% on a fiscal year - to - date basis. - In 2026, after completing financials in fall 2025, GSI will defend its APU roadmap, begin PLATO hardware development after purchasing required IP, and added contract engineers. - Finalized agreement with G2 Tech for a proof of concept on Sentinel, a program for autonomous perimeter security using drones and cameras, with government funding to offset costs. - Gemini II achieved a three - second time to first token (TTFT) performance for HLON with text and video input, consuming ~30 watts, and outperformed competitive platforms in TTFT and power. - Making progress on Benzene pretzel, improving Gemini II performance, and pursuing proof of concept and prototyping opportunities for Gemini II in various systems. - Pursuing long - diluted R&D funding through government defense programs and strategic partners. - For the Sentinel POC, expect over $1 million in government funding to offset R&D expenses and complete software milestones. - Gemini II TTFT benchmarks show fast response for edge use cases needing low power and low latency. - Expanding cash disclosures in quarterly earnings releases to help investors understand cash consumption and generation.

In the third quarter, sales to KYEC were $1.1 million, representing 17.9% of net revenues. Sales to Nokia were $675,000, accounting for 11.1% of net revenues. Sales to Cadence Design Systems were $233,000, making up 3.8% of net revenues. Military defense sales were 28.5% of third - quarter shipments, and SigmaQuad sales were 41.7% of third - quarter shipments fiscal 2026.

• The fourth quarter fiscal 2026 outlook: net revenues in the range of $5.7 million to $6.5 million with a gross margin of approximately 54% to 56%.

Q: About the importance of defense applications for Gemini II and potential commercial uses beyond drones and defense.

A: Didier Lasserre said the military and defense area has been an early success area. With G2 Tech partnership, the POC work for Sentinel can be leveraged for other applications like smart cities and robotics.

Q: About timelines of government funding.

A: Didier Lasserre mentioned ongoing SBIR submittals, with a continuous pipeline of submittals, and also active in other programs like BAA, and that the funding is non - dilutive and helps with future business exposure.