GSI Technology, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technologies' first quarter fiscal 2026 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 future performance of GSI technology 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, July 31, 2025, at the request of GSI Technology. Hosting the call today is Li-Lin Xu, the company's chairman, president, and chief executive officer. With him are Douglas Shirley, chief financial officer, and Didier Lacerre, vice president of sales. I would now like to turn the conference over to Mr. Xu. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining us today. Let me begin with a few key highlights from this quarter's financial results. Fiscal 2026 is off to a strong start. In the first quarter, we achieved net revenue of $6.3 million, up 7% sequentially, and 35% year-over-year. This growth was fueled by rising demand for our S-RAN chips. driven by strong market momentum for leading AI processors. Our profitability nature also improved this quarter with a 200 basis points sequential increase in growth margin and over 1100 basis points compared to the prior year. We have also made meaningful progress on cost control over the last year with operating expenses declining by 15% year-over-year, including the gain from the sale of our recorder in Q1 2025. Now I would like to provide an update on our product roadmap and customer milestones. We have completed the evaluation of the second spring of our Gemini 2 chip. I am pleased to report that all loan bugs have been resolved, the silicon is fully functional, and ready for production. This week, the LiDAR 2 board and associated algorithms were delivered to a key offshore defense contractor for proof of contract work with Gemini 2 for satellites and drones. This delivery keeps us firmly on track with our roadmap and customer commitment. And while this is a major milestone, we also believe it represents an opportunity to play in both markets with Gemini 2. Didier will provide more details on this subject in a few minutes. CSI is at a pivotal point in its development. We plan to target high growth opportunities for Gemini 2 in the satellite, zone, and edge computing sectors. These are markets that are increasingly defined by AI-driven capabilities. We are evaluating options to access funds to expand our software and application teams to then develop the platform necessary for future customer fulfillment and support. Management is actively working with the board and our advisor to evaluate strategic options that will enable us to scale efficiently. Our real-time priorities include include funding the extension of our software and application teams, and advancing the development of the platform required to support future customer development deployment of Gemini 2. Accelerating the launch of Gemini 2 is key to laying the groundwork for our next generation APU, platform, and advancing companies' long-term product romance. In the meantime, the ATN has provided variable flexibility, allowing us to raise $11 million today, let alone fee. As a result, we ended the first quarter with a spending cash partition of $22.7 million. Now I hand the call over to Didier, who will discuss our business development and sales activities. Please go ahead, Didier.

Thank you, Lillian. Starting with our SRAM business, we had another strong quarter of sales to KYEC and Canis Design Systems, a leading provider of AI chip emulation systems. We have experienced our third consecutive quarter of rising SRAM sales, driven by the growth with the enterprise adoption of AI and also in the generative AI by hyperscalers who are training ever larger models. Despite continued strong demand for high-performance SRAM chips, Extended lead times are impacting our second quarter of fiscal 26 sales. While customers have maintained typical ordering patterns, a portion of our backlog is not shippable this quarter due to these supply constraints. We've proactively informed all of our distributors and sales representatives of the situation. It may take some time for customers to adjust to the increased lead time accordingly. In the interim, we anticipate instances where orders cannot be fulfilled within the request timeframe. Although forecasts from our largest customers remain solid, we expect SRAM revenue for the remainder of the fiscal 2026 to be stable compared to first quarter as we navigate these supply chain challenges. Switching to deliverables for our SBIRs, as Leland mentioned, we also have completed the development of our SAR and YOLO3 and YOLO5 algorithms optimized for Edge AI applications. In parallel, we also shipped a LIDA2 board with a low power version of our Gemini 2 chip to an offshore defense contractor with whom we have been working with for over a year. Both of these are now available for POC opportunities with other partners. Our defense work with the low power version of Gemini 2 has highlighted the chip's capability to address large models at the edge in varying capacity versions, depending on the latency and power sensitivity of the application. This makes Gemini 2, in conjunction with the SAR and YOLO 3 and YOLO 5 algorithms, very well positioned for the broader market potential of applications moving to the edge, and particularly for high demand, high volume, and high mixed processing needs of drones operating in GPS-denied environments, as well as next-generation satellite applications. Gemini 2 is also well-suited for large language models, or LLMs for short, for edge applications. LLMs require a high density, high performance memory path from external DRAM to the internal SRAM next to the processor. Gemini 2's compute and memory architecture provides high density, high performance internal SRAM to allow a high efficiency memory path for high speed and lower power, I'm sorry, low power operations required by LLMs. Gemini 2 is also a bit processor that is flexible to do one bit to 32 bit or larger operations in the same circuit efficiently, which further enhances the capability for LLM processing. We are developing a multimodal LLM charting edge applications and will have benchmark results available next quarter. To ease the adoption of the technology, we will continue to improve the AI compiler for Gemini 2, which is currently in its initial release phase. In parallel, we continue to develop ready-to-use vision, multimodal, and recognition apps and libraries. Our software team is also developing dynamic, low-precision software libraries that support larger models, enabling high accuracy at low powers in edge devices. This is a major enabler for efficient edge AI. As a bit engine, we are uniquely capable of addressing these edge needs where compute, memory, and power resources are far limited. As Leline mentioned, we are eager to advance our software development team to pursue drone and satellite AI chip applications with Gemini 2. Let me switch now to our first quarter customer and product breakdown. In the first quarter of fiscal 2026, sales to KYEC were $267,000 or 4.3% of net revenues compared to $1 million or 21.9% of net revenues in the same period a year ago and $1.7 million or 29.5% of net revenues in its prior quarter. Sales to Nokia were $536,000 or 8.5% of revenues compared to $998,000 or 21.4% of net revenues in the same period a year ago and $444,000 or 7.5% of net revenues in the prior quarter. Sales to cadence design systems were 1.5 million or 23.9% of net revenues compared to zero in the same period a year ago and 642,000 or 10.9% of net revenues in the prior quarter. Defense and military sales were 19.1% of first quarter shipments compared to 31.9% of shipments in the comparable quarter a year ago and 30.7% of shipments in the prior quarter. SigmaQuad sales were 62.5% of first quarter shipments compared to 36.3% in the first quarter of fiscal 2025 and 39.3% in the prior quarter. Regarding our SRAM business outlook, our largest customer is currently navigating supply chain constraints. However, we expect their order volume to remain stable for the rest of this fiscal year. Meanwhile, other SRAM customers have largely normalized their inventory levels, and we anticipate continued order activity from them as well. I'd like to hand the call over to Doug. Go ahead, Doug.