GSI Technology, Inc.

Welcome to GSI Technologies' fourth quarter and fiscal year 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 joining the Q&A queue. 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, May 7, 2026, at the request of GSI Technology. Leline Hsu, the company's chairman, president, and chief executive officer, will be hosting the call today. With him are Douglas Shirley, chief financial officer, and Didier Lassere, vice president of sales. I would now like to turn the conference over to Mr. Hsu. Please go ahead, sir.

Good afternoon, and thank you for joining us to review our fourth quarter and fiscal year 2026 financial results. Physical 2026 was a year of meaningful progress for GSI, marked by strong performance in our SM business, continued advancement of Gemini tool, tool commercialization, and the initiation of the Pareto design. While I am pleased with the progress we have made on several fronts, significant work remains. Our team is executing our key milestones and advancing business development for the APU, and I have had several encouraging conversations on numerous fronts in recent months. We end the physical 2027 with continuous momentum, promoting the APU and building up on our customer traction. With that, I will now hand the call over to Didier.

Thank you, Leline. Let me start by stepping back and framing where we are today, because I think the context is important. Our SRAM business performed well in fiscal 2026 and remains the revenue foundation of the company, providing cash for APU development. For the full year, the SRAM business grew 22% year-over-year, and gross margins rose to 55% from 49%. The SRAM business has benefited from increased demand from our customers that support high-performance AI chip development and manufacturing. We recently announced that we concluded our strategic review and determined that continuing to execute our standalone strategy is the best path forward for delivering long-term shareholder value. The stronger EdSRAM business and a strengthened balance sheet, along with non-dilutive R&D funding, are providing the resources to support our go-forward plan. With this financial foundation in place, we are now seeing real progress with Gemini 2 and Plato. Over the past several months, we've reached a point where we are seeing both technical validation and early program-level engagement of Gemini 2, including the Sentinel Drone Surveillance POC, the U.S. Army SBIR Award, and a new Phase I Smart City Project, which I'll discuss in a minute. On the technical side, in a bake-off for the Sentinel POC, Gemini 2's performance contributed to winning the contract award by achieving a time-to-first token of roughly three seconds at 30 watts of system power on Gemma 3-12B multimodal workloads at the edge. In this use case, time to first token is a critical metric for drone surveillance system because it reflects how quickly a system can respond in real world applications where response time directly affects critical decision making. We are working closely with the G2 tech team on the Sentinel program. We have completed the software deliverables and continue to target a June demonstration of the Gemini 2 powered drone. This demonstration is planned for the Department of Defense and an international defense agency. In mid-April, we were notified that we had been awarded phase one of a smart city project. The project leverages our work done for the drone-based surveillance POC and marks an important step forward towards commercial deployment. In this application, Gemini 2 will process inputs from distributed camera systems to provide near real-time detection of events such as fires and other public safety risks. This project demonstrates how our platform can scale across real-world infrastructure. We expect to share additional details on the Smart City program around the time of a planned media event in late May hosted by the municipality. Currently, we are working on several projects in tandem. What matters most for GSI at this time is not just the number of early stage trials and demonstrations we have, but also how these early stage engagements are helping us identify where our APU architecture provides a clear advantage, particularly in delivering low latency performance with a constrained power envelope. We are also leveraging our deployment work in two ways. First, we are applying what we have developed for a drone security application to a smart city application. While the end markets are different, the underlying development carries over, giving us meaningful head start, each in a new case rather than starting from scratch. Secondly, as we complete the Sentinel POC and Phase 1 of the Smart City program, we can build on those results to pursue additional opportunities with new customers in those markets. We view this as a repeatable model where each engagement helps accelerate the next. What's exciting for us is that we see the end markets for low latency, low power AI edge and expanding as AI workloads continue to move closer to where the data is generated. These applications favor the APU architecture that can deliver higher compute per watt. Gemini 2 is ideal for these power latency constrained edge deployments where real-time response and energy efficiency are critical. Where we are winning is where Gemini 2 is tested against conventional architectures requiring significantly higher system power for similar or slower responsiveness. We believe Gemini 2 best addresses this gap and positions us well to win as more AI loads shift towards distributed power-constrained environments. Consistent with this, we are encouraged by our progress within defense agency programs as evidenced by our recent U.S. Army SBIR, progressing from phase one into phase two. This project is about enabling real-time infield AI deployment on small, low-powered systems typically operating in challenging conditions. As part of this program, we will build and test a ruggedized node containing the Gemini 2 for real-world mission-critical environments. This SBIR positions us within a broader shift in defense spending with approximately $13 billion proposed in fiscal 2026 budgeted for AI and autonomous systems and creates a potential pathway to follow on programs and future opportunities to supply Gemini 2-based systems. So how do we move from where we are today to design wins and ultimately revenue? From a commercial standpoint, we are still in the early stages. Our focus is on advancing our current engagements and working closely with partners to integrate Gemini 2 into their systems with the goal of moving into design level discussions. Given the complexity of these deployments, we are focusing our resources on a small number of high value opportunities where we believe we have a clear advantage. Although the number of engagements remains limited, we are seeing a meaningful increase in the depth of these engagements and our ability to leverage our prior Gemini 2 deployment work for new related applications. Looking ahead, our priorities are to advance current POCs and awarded programs and to leverage what we've learned from each of these engagements to drive additional design opportunities. At the edge, performance matters most when it can be delivered within real-world power and latency constraints. That is where we believe Gemini's 2 advantages lies. With that, I'd like to hand the call over to Doug. Go ahead, Doug.