GSI Technology, Inc.

Thank you for standing by. Welcome to the GSI Technologies third quarter fiscal 2020 results conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. At that time, we will provide instructions for those interested in entering the queue for the Q&A. Before we begin today's call, the company has requested that I read the following safe harbor statement. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of GSI technologies that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-K filed with the Securities and Exchange Commission. Additionally, I have also been asked to advise you that this conference call is being recorded today, January 30, 2020. at the request of GSI Technologies. Hosting the call today is Lee-Lean Shu, the company's chairman, president, and chief executive officer. With him are Douglas Schirle, chief financial officer, and Didier Lasserre, vice president of sales. I would now like to turn the conference over to Mr. Shu. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining us to review our third quarter 2020 fund. In 2019, we made significant progress from our In-Place Associated Processing Unit, Gemini One. The momentum has continued into 2020. In March, we anticipate completing the benchmarking of our Gemini One chip against industry standard benchmark for terminology search using FACE and the ANN industry standards with database up to a feeding item. We expect to publish our results in summer of 2020, followed by the qualifications for Gemini One, which we anticipate to be completed in the second half of 2020. Our AI team is analyzing the software library and algorithms for Gemini One in preparation for customer workshop. Architecture is based on the memory-centric design that removes the limitations of serial processing. Gemini combines core capabilities in memory chip design with our AI software expertise. As a result, mass-reparer data processing, compute, and search all take place directly in the memory array. This architecture increases data processing speed and lowers operating costs by orders of magnitude. with the scalable architecture. The last feature, scalability, distinguished architecture of our Gemini product. Another distinctive feature is the product programming interface that allow multiple levels of custom programming from assembly code up to TensorFlow Python. We anticipate 2020 to be the year of design win for Gemini 1 for similarity search applications The applications we are targeting include signal and object identification and classification, facial recognition, and thought discovery for new thought development. Once we have completed the Gemini One qualification, we will also target e-commerce customers for future search. I appreciate our AI team's hard work to bring Gemini One to market and I am pleased with the consistent performance from our legacy business team that has allowed us to fund Gemini's research and development. ESI is bringing a new and novel approach to AI with our in-memory processing technology, which is patent-protected, and what we anticipate will ultimately be a game-changer for speed, power, and skill in AI. Now I hand the call over to Didier. who will discuss our business performance in further detail. Please go ahead, Didier.

Thank you, Lee-Lean. In addition to all the progress we've made on Gemini One, we have completed our internal fault qualification on our radiation-hardened SRAM to Class Q and Class C level to meet the requirements of aerospace and defense customers. GSI's radiation We have identified several prospective opportunities for both our radiation-hardened and radiation-tolerant chips. As a result, we may see some sales in calendar 2020 in those product categories. We still see the market TAM of $15 to $20 million for these products. Last quarter, we also had the opportunity to radiation test the Gemini 1 product, and the results were very promising. Gemini 1 will allow data processing on a much greater level on satellites, expanding the markets for Gemini products to include space and Aerospace. Looking at our sales breakdown in the third quarter of fiscal 2020, sales to Nokia were 2.6 million or 26.3% of revenue compared to 6.6 million or 45.2% of revenue a year ago and 5.3 million or 45.2% of revenue in the prior quarter. Nokia sales have been slower in the most recent quarter and we expect a similar level in the fourth quarter of fiscal 2020. Looking out to the remainder of calendar 2020, the forecast is expected to improve and return to levels we saw earlier in this fiscal year. Military and defense sales were 18.9% of third quarter shipments compared to 16.7% a year ago and 23.4% in the prior quarter. Sigma-Quad continues to be our best performing product category with sales of 62% of third quarter shipments compared to 69.7% last year and 63.5% in the preceding quarter. I'd like to hand the call over to Doug now. Please, Doug, go ahead.