GSI Technology Completes Sentinel Lab Phase as Plato Advances

The Tip Desk · July 30, 2026 · 3 min read

The chipmaker booked $6.3 million of first-quarter fiscal 2027 revenue, in line with the midpoint of its $5.9 million to $6.7 million outlook, and pointed to a September AI-assisted SDK.

GSI Technology, Inc. (GSIT) said Sentinel laboratory testing finished with favorable feedback from all parties and that the company delivered all planned technical milestones, as it kept Smart City Phase I on schedule for November 2026 and Plato on schedule for a March 2027 tape-out.

Net revenues were $6.3 million for the quarter ended June 30, 2026, matching both the prior quarter and the year-ago quarter. The company said the result reflected continued stability in SRAM revenue. Gross margin was 53.4%, down from 58.1% a year earlier on product mix and up from 52.4% in the preceding quarter.

Chairman and Chief Executive Officer Lee-Lean Shu said the company had validated Gemini-II’s performance-per-watt and shifted focus to commercializing the technology. He said the quarter included completing the Sentinel laboratory phase, keeping Smart City Phase I on schedule, and initiating work under a U.S. Army Phase II SBIR program. He also said the company completed radiation testing on a standard commercial Gemini-II device, which continued to operate normally under radiation levels representative of harsh aerospace environments.

The mix of customers shifted even as the top line held. KYEC accounted for $1.0 million, or 16.1% of net revenues, versus $267,000, or 4.3%, a year earlier and $1.4 million, or 22.3%, in the prior quarter. Cadence Design Systems contributed $465,000, or 7.4%, versus $1.5 million, or 23.9%, a year earlier and no shipments in the prior quarter. Nokia sales were $307,000, or 4.9%. Military and defense sales were 31.3% of first-quarter shipments, versus 19.1% a year earlier and 45.7% in the prior quarter.

Total operating expenses were $8.8 million, versus $5.8 million a year earlier. Research and development expenses were $5.9 million. The company said the year-over-year increase was driven primarily by external design services related to the next-generation Plato processor and a lower offset from government funding under SBIR programs, which totaled $336,000 versus $543,000 a year earlier. Selling, general and administrative expenses were $2.9 million.

The operating loss was $5.4 million, versus an operating loss of $2.2 million a year earlier. Net loss was $4.8 million, or $(0.13) a share, versus a net loss of $2.2 million, or $(0.08) a share, a year earlier. Interest and other income was $517,000, and the company recorded a tax benefit of $76,000. Pre-tax stock-based compensation expense was $887,000.

Cash and cash equivalents were $77.0 million at June 30, 2026, versus $67.2 million at March 31, 2026. The company said the increase primarily reflected $9.3 million of net proceeds from stock sales through an at-the-market program and $4.8 million from employee option exercises. Working capital was $80.0 million. Cash used in operating activities included spending for Plato development and Gemini-II commercialization.

Shu said priorities remain completing current proof-of-concept projects, expanding Gemini-II into adjacent applications, and delivering an AI-assisted SDK that remains on track for release this September. He said the SDK is expected to accelerate software development, simplify application deployment, and provide a foundation for a broader network of partners and system integrators. Plato, he said, is expected to enable larger language models at the edge with power consumption below 10 watts.

For the second quarter of fiscal 2027, the company expects net revenues of $5.7 million to $6.5 million and gross margin of approximately 53% to 55%.