Gsi Technology (GSIT) saw its loss widen to $1.35 million in the quarter ended compared with $0.09 million a year ago.
Revenue during the quarter dropped 14.91 percent to $10.39 million from $12.21 million in the previous year period. Gross margin for the quarter expanded 608 basis points over the previous year period to 56.35 percent. Operating margin for the quarter stood at negative 14.72 percent as compared to a negative 1.28 percent for the previous year period.
Operating loss for the quarter was $1.53 million, compared with an operating loss of $0.16 million in the previous year period.
Lee-Lean Shu, chairman and chief executive officer, noted, "Our net revenues came in within the range of guidance that we had provided earlier in the fourth quarter. As anticipated, fourth quarter revenues were down sequentially due, in part, to an inventory correction at our largest customer that began in the third quarter and continued to affect fourth quarter sales. In addition, during the fourth quarter, we continued to see slowness in our primary telecommunications and networking markets and continued weak sales in Asia. However, fourth quarter gross margin came in well above our guidance at 54.8%, driven by a continuing favorable mix of higher margin products. We remain focused on expanding our market position in the high speed SRAM and low-latency DRAM segments, including the development of our extremely high performance SigmaQuad radiation-hardened SRAM products targeted at aerospace and defense applications, which we expect to introduce in the second half of calendar 2017. Meanwhile, we are continuing to devote substantial development resources toward the creation of a new category of products based on our patented in-place associative computing technology and intellectual property. These products will utilize massive parallel data processing capability to greatly improve computation, search and response time for use in a variety of 'big data' applications including machine learning and deep convolutional neural networks "CNNs", computer vision and cyber security."
For the first-quarter, Gsi Technology expects revenue to be in the range of $11 million to $12 million.
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