GSI Technology (GSIT, Financial) filed Quarterly Report for the period ended 2010-06-30.
Gsi Technology has a market cap of $189.1 million; its shares were traded at around $6.82 with a P/E ratio of 15.2 and P/S ratio of 2.8. GSIT is in the portfolios of Chuck Royce of Royce& Associates.
Cost of Revenues. Cost of revenues increased by 48.2% from $8.2 million in the three months ended June 30, 2009 to $12.1 million in the three months ended June 30, 2010. This increase was due to the corresponding increase in net revenues. First-quarter 2011 cost of revenues included approximately $150,000 related to masks valued at approximately $600,000 that were acquired in the Sony acquisition and are being amortized over four quarters. Cost of revenues included stock-based compensation expense of $88,000 and $67,000, respectively, for the three months ended June 30, 2010 and 2009.
Research and Development Expenses. Research and development expenses increased 58.8% from $1.6 million in the three months ended June 30, 2009 to $2.5 million in the three months ended June 30, 2010. This increase was primarily due to increases in payroll related expenses of $518,000 and lesser increases in facility related expenses, stock-based compensation expense, software maintenance expenses, and depreciation expense. The increase in payroll expenses was related to the hiring of engineers for our low latency DRAM project and various high speed SRAM projects. Research and development expenses included stock-based compensation expense of $214,000 and $113,000 for the three months ended June 30, 2010 and 2009, respectively.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased 37.3% from $2.1 million in the three months ended June 30, 2009 to $2.8 million in the three months ended June 30, 2010. This increase was primarily due to increases in independent sales representative commissions of $263,000, payroll related expenses of $147,000 and to lesser increases in legal and outside accounting fees. Selling, general and administrative expenses included stock-based compensation expense of $144,000 and $111,000 for the three months ended June 30, 2010 and 2009, respectively.
Net cash provided by operating activities was $1.7 million for the three months ended June 30, 2010 compared to $847,000 million for the three months ended June 30, 2009. The primary sources of cash in the current three month period were net income of $4.4 million, an increase in deferred revenue of $3.7 million and an increase in accrued expenses and other liabilities of $1.3 million, partially offset by an increase in accounts receivable of $4.2 million, an increase in inventory of $4.1 million and an increase in prepaid expenses and other current assets of $1.2 million. Deferred revenue and accounts receivable both increased as a result of the high level of shipments during the June 2010 quarter to our distributors who have recently begun increasing the levels of inventory in their possession to better enable them to respond to their customers requirements. Inventory increased as a result of actions taken to increase inventory levels to enable us to better respond to current and forecasted customer requirements.
Net cash used in investing activities was $9.8 million in the three month period ended June 30, 2010. Investment activities consisted primarily of the purchase of state and municipal obligations and corporate notes and purchases of property and equipment. These uses were offset by sales and maturities of investments of $4.6 million. Net cash provided by investing activities was $3.6 million in the three month period ended June 30, 2009. Investment activities consisted primarily of the purchase of state and municipal obligations and corporate notes in the amount $6.2 which was offset by sales and maturities of investments of $10.0 million.
Read the The complete Report
Gsi Technology has a market cap of $189.1 million; its shares were traded at around $6.82 with a P/E ratio of 15.2 and P/S ratio of 2.8. GSIT is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Net Revenues. Net revenues increased by 61.3% from $14.2 million in the three months ended June 30, 2009 to $22.9 million in the three months ended June 30, 2010. Direct and indirect sales to Cisco Systems, our largest customer, increased by $5.8 million from $3.3 million, or 23.1% of net revenues, in the three months ended June 30, 2009 to $9.1 million, or 39.8% of net revenues, in the three months ended June 30, 2010. Net revenues in the three months ended June 30, 2010 included $3.1 million from the sale to Cisco Systems of products acquired in our August 28, 2009 acquisition of the Sony SRAM memory device product line. In addition to the increase in net Sales to Cisco Systems, net revenues benefited from the continued acceptance of our SigmaQuad product line which resulted in a 264.9% increase in SigmaQuad shipments in the three months ended June 30, 2010 compared to the three months ended June 30, 2009, accounting for 32.6% of total shipments in the quarter ended June 30, 2010.Cost of Revenues. Cost of revenues increased by 48.2% from $8.2 million in the three months ended June 30, 2009 to $12.1 million in the three months ended June 30, 2010. This increase was due to the corresponding increase in net revenues. First-quarter 2011 cost of revenues included approximately $150,000 related to masks valued at approximately $600,000 that were acquired in the Sony acquisition and are being amortized over four quarters. Cost of revenues included stock-based compensation expense of $88,000 and $67,000, respectively, for the three months ended June 30, 2010 and 2009.
Research and Development Expenses. Research and development expenses increased 58.8% from $1.6 million in the three months ended June 30, 2009 to $2.5 million in the three months ended June 30, 2010. This increase was primarily due to increases in payroll related expenses of $518,000 and lesser increases in facility related expenses, stock-based compensation expense, software maintenance expenses, and depreciation expense. The increase in payroll expenses was related to the hiring of engineers for our low latency DRAM project and various high speed SRAM projects. Research and development expenses included stock-based compensation expense of $214,000 and $113,000 for the three months ended June 30, 2010 and 2009, respectively.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased 37.3% from $2.1 million in the three months ended June 30, 2009 to $2.8 million in the three months ended June 30, 2010. This increase was primarily due to increases in independent sales representative commissions of $263,000, payroll related expenses of $147,000 and to lesser increases in legal and outside accounting fees. Selling, general and administrative expenses included stock-based compensation expense of $144,000 and $111,000 for the three months ended June 30, 2010 and 2009, respectively.
Net cash provided by operating activities was $1.7 million for the three months ended June 30, 2010 compared to $847,000 million for the three months ended June 30, 2009. The primary sources of cash in the current three month period were net income of $4.4 million, an increase in deferred revenue of $3.7 million and an increase in accrued expenses and other liabilities of $1.3 million, partially offset by an increase in accounts receivable of $4.2 million, an increase in inventory of $4.1 million and an increase in prepaid expenses and other current assets of $1.2 million. Deferred revenue and accounts receivable both increased as a result of the high level of shipments during the June 2010 quarter to our distributors who have recently begun increasing the levels of inventory in their possession to better enable them to respond to their customers requirements. Inventory increased as a result of actions taken to increase inventory levels to enable us to better respond to current and forecasted customer requirements.
Net cash used in investing activities was $9.8 million in the three month period ended June 30, 2010. Investment activities consisted primarily of the purchase of state and municipal obligations and corporate notes and purchases of property and equipment. These uses were offset by sales and maturities of investments of $4.6 million. Net cash provided by investing activities was $3.6 million in the three month period ended June 30, 2009. Investment activities consisted primarily of the purchase of state and municipal obligations and corporate notes in the amount $6.2 which was offset by sales and maturities of investments of $10.0 million.
Read the The complete Report
