GSI Technology Earnings: Here’s Why Investors Like These Results

GSI Technology Inc. (NASDAQ:GSIT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.02%.

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GSI Technology Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.03 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Decreased 16.12% to $15.71 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: GSI Technology Inc. reported adjusted EPS income of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.04. It missed the average revenue estimate of $16.1 million.

Quoting Management: Lee-Lean Shu, Chairman and Chief Executive Officer, noted, “Our net revenues were on the lower end of the range of $15.6 million to $16.6 million we had projected early in the fourth quarter, due primarily to lower than expected sales to Cisco Systems, our largest customer. However, fourth quarter gross margin of 46.3% was better than expected and well above our guidance of approximately 43% due to a shift in product mix toward higher margin products.”

Key Stats (on next page)…

Revenue decreased 10.28% from $17.51 million in the previous quarter. EPS increased 0% from $0.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.05 to a profit $0.06. For the current year, the average estimate has moved up from a profit of $0.11 to a profit of $0.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]