GSI Technology, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to GSI Technologies' second 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 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 may include forward-looking statements regarding future events and the 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 is being recorded today, October 30th, 2025, as the request of GSI Technology. Hosting the call today is Lee Leon Hsu, the company's chairman, president, and chief executive officer. With him are Douglas Shuro, chief financial officer, and DDA Lasser, vice president of sales. I would now like to turn the call over to Mr. Hsu. Please go ahead, sir.

Good afternoon, everyone, and thank you for joining us today. Let me start by highlighting two recent and important events for GSI. First, we announced the research paper published by Cornell University in mid-October. The paper verified that all Gemini 1 chips performed on par with NVIDIA's A6000 on certain AI tasks. while consuming roughly 98% less energy. This paper validates the disruptive potential of our compute-in-memory design, particularly for the real-time commercialization of Gemini 2. With 8 times the memory and 10 times the performance of Gemini 1, Gemini 2 is positioned to deliver superior processing at a fraction of the power when compared to existing solutions. This brings me to my second point. The market quickly recognized the significance of our compute-in-memory validation with the Cornell paper. Building on the momentum from the paper's funding, we closed the $50 million equity financing We are now deploying the capital to accelerate execution across our hardware and software build-offs, making this a pivotal period for GSS growth. Post-funding, we are working on the initiative in parallel. First, we have begun the work to acquire the necessary IP for Plato, which will allow us to start hardware development. This IP provides a crucial connection to support broader system interface and the prototyping for future customer applications. To accelerate Plato's time to market and capture market opportunities sooner, we are building additional software teams to support Plato. Second, to exercise the build-out of our Gemini 2 software solutions and applications We are investing in all the layers that make the platform more accessible and accessible for developers. These software tools are essential for customers integrating Gemini 2 hardware into AI and signal processing workflows, particularly in edge and the defense applications where efficiency and the low power provide a competitive advantage. Looking ahead, our initiative for calendar year 2026 are centered on converting proof-of-concept projects into commercial customers and changing those relationships into large production programs. EDA will provide an update on where those efforts stand today. To sum up, our post-funding The initiative was targeted and disciplined, will be targeted and disciplined. We are rapidly moving forward with the private hardware design and the software development, ramping up our Gemini software ecosystem, and strengthening ties with key defense and government partners in our POG and small business innovation research or SBIR programs. These actions position GSI to turn technical progress into commercial success in the high-value edge and the defense applications, such as the drone, military vehicles, satellites, and other use cases, and right away for AI compute innovation. Now I hand the call over to Didi, who will provide more details on this topic and discuss our business development and the sales activities. Please go ahead, Didi.

Thank you, Lilien. Let me expand on the topics that Lilien just highlighted. We continue to advance our ongoing projects, including our SBIR and POC engagements with potential customers. Recently, Gemini 2 has been approved for prototyping by the offshore defense contractor to whom we shipped a board and software to a few months back. This POC focuses on synthetic aperture radar or SAR, applications for drones and other edge systems. What's exciting here is that our solution delivers the required performance while maintaining an extremely low power profile, around 15 watts, making it ideal for compact, energy-constrained environments. For added context on just how competitive the solution is, an incandescent light bulb uses about four times more wattage than our solution. We are also involved in a joint POC involving two defense organizations and a drone integration partner. This Gemini 2 project combines YOLO model we developed with multimodal large language model processing at the edge, specifically targeting time to first token, a key performance metric for drones. Along with our partner, we successfully demonstrated the end-to-end application to one of the potential end customers. Gemini 2 outperformed the competing solution, particularly in how quickly the model produces its first response. We are now optimizing the algorithm and expect to publish initial benchmark results before year end with a fully optimized version available in the first half of calendar 2026. This algorithm would be for defense applications such as drones, satellites, and other military vehicles. Gemini 2 is a central part of the near-term commercialization roadmap, and we are encouraged by the customer engagement and technical validation that is being received. Turning to our PLATO program, we are embarking on the journey towards a major milestone, the tape-out of PLATO chip in early calendar 2027. Over the next year or so, we plan to actively engage several strategic partners for PLATO who could provide funding and collaborate on testing and prototyping early versions of the chip. Their involvement would also support the development of software libraries and APIs, ensuring that PLATO becomes a versatile, scalable solution across multiple markets, starting with defense. In military and defense applications, the APU's high performance and low power capabilities provide unique advantages. and PLATO will further enhance critical functions such as SAR imaging, object recognition, GPS-denied navigation, and data fusion for drones and military vehicles, delivering real-time tactical capabilities in compact mobile systems. PLATO's design builds directly on the foundation of Gemini 2. To accelerate time to market, we are acquiring building block IP that allows us to focus on differentiation rather than reinventing core components. Strategic partners would play a critical role not just in meeting our ambitious timeline, but in shaping the chip's capabilities, validating its performance in real-world applications, and guiding future enhancements. Their technical collaboration and early adoption would position us to deliver a highly optimized, field-tested solution, strengthening our long-term leadership in specialized AI compute architectures well beyond the immediate financial support. And lastly, a comment on our SBIR work. We recently received a $751,000 extension of one of our space development agency contracts, which includes additional funding for radiation-hardened beam testing of Gemini 2. The goal of this testing is to evaluate the robustness of the current Gemini 2 commercial chip for possible use in satellite and other aerospace applications. While it's too early to confirm, confirm specific designations, we see this as a significant opportunity. Let me now switch to the second quarter's commercial, I'm sorry, customer and product breakdown. By revenue, I am referring to net revenue in the following comments. In the second quarter of fiscal 2026, sales to KYEC were 802,000 or 12.5% of revenues compared to 650,000 or 14.3% of revenues in the same period a year ago and 267,000 or 4.3 percent of revenues in the prior quarter. Sales to Nokia were 200,000 or 3.1 percent of revenues compared to 812,000 or 17.8 percent in the same period a year ago and 536,000 or 8.5 percent of revenues in the prior quarter. Sales to Cadence Design Systems were 1.4 million or 21.6 percent of net revenues compared to zero in the same period last year and 1.5 million or 23.9 percent of revenues in the prior quarter. Military defense sales were 28.9 percent of second quarter shipments compared to 40.2 percent of shipments in the comparable period a year ago and 19.1 percent of shipments in the prior quarter. Single-quad sales were 50.1 percent of second quarter shipments in fiscal 2026 compared to 38.6% in second quarter fiscal 2025 and 62.5% in the prior quarter. And now I'd like to hand the call over to Doug. Please go ahead, Doug.