Earnings Releases·Nov 5, 2026, 4:06 PM ET

GSI Technology — Second Quarter Fiscal Year 2027 Earnings Summary

Net revenue declined to $6.0 million from $6.4 million year-over-year and $6.3 million in the prior quarter, while gross margin contracted to 48.5% from 54.8% and 53.4% respectively due to unfavorable product mix and supply chain-driven manufacturing costs.
Operating loss widened to $7.4 million from $3.2 million year-over-year and $5.4 million in the prior quarter, driven by a 55% increase in operating expenses to $10.4 million, which included $2.0 million in non-routine legal fees from an internal assessment of foreign operations.
Management issued Q3 FY2027 revenue guidance of $5.0–$6.0 million and gross margin guidance of 38–40%, anticipating a recovery in revenue and margins beginning in Q4 2027 alongside planned price increases effective January 1, 2027.
Strategic milestones include the live AI video monitoring launch of the Smart Guardian Eye project in Taiwan, the expected completion of the Plato tape-out in March 2027, and the commercial release of the AI-assisted SDK in the first half of calendar year 2027.