GSI Technology, Inc. · NASDAQ:GSIT
GSI Technology — 31st Annual ROTH Conference (February 2019)
24 slides from GSI Technology's conference presentation, February 2019
Slide 1: GSI Technology: High Performance Memory for Leading-Edge Technology
GSI Technology High Performance Memory for Leading-Edge Technology Didier Lasserre, Vice President Sales and Investor Relations Doug Schirle, CFO | February, 2019
Slide 2: Safe Harbor
SAFE HARBOR The statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology's expectations, beliefs, intentions, or strategi
Slide 3: GSI Technology Overview
GSI Technology Overview • Leadership team with +20 years of experience in memory chip sector • Based in Sunnyvale, CA • Largest portfolio of high performance memory products with core competency in hardware design, manufacturing and marketing • Acquired Israeli-based AI developer MikaMonu in 2015 •
Slide 4: Advancing Our Business to New Fields
Advancing Our Business to new Fields Launching two new product categories in high margin, growth markets: • Leveraging SRAM platform with Rad-Hard and Rad-Tolerant chips for aerospace and defense in 2019 – high ASP, high margin products • Merging AI innovation with core memory capabilities to develo
Slide 5: Solid Platform for Growth
Solid Platform for growth • Recent uses of capital: Revenue & Gross Margin Performance* • $5 million AI acquisition in CY 2015 $60 62% $52.7 $50.9 • $61 million of common stock $50 $48.2 60% $42.6 58% repurchased to date $40 61% 56% • Increasing ASPs and gross margin in core $30 54% business $20 55%
Slide 6: Highly Capital Efficient
Highly Capital Efficient Funding New products and R & D Investment • Efficient business model – fabless manufacturer with TSMC and master die production process • Strong cash generation historically; currently cash flow neutral • Primary uses of capital for new product development – 100% of R&D budg
Slide 7: Building on Strong Core Competencies
Building on Strong Core Competencies leveraging core capabilities for new market opportunities Revenue Growth Drivers: SigmaQuad™ SigmaDDR™ • Applications in switches, routers, avionics, and military-aerospace • Broadest product offering across all product categories • Best industry performance Next
Slide 8: Radiation Hardened (Rad-Hard) SRAM
Radiation Hardened (Rad-Hard) SRAM Product Highlights • SigmaQuad Radiation Hardened SRAM • Capabilities and technology unique to GSI’s Sigma Quad expertise • 85%+ gross margin, with $30K ASP • One project funded – anticipate shipment first half of CY 2019 • Introducing Rad Tolerant in 2019 Primary
Slide 9: Multiple AI Market Opportunities
Multiple AI Market Opportunities new category of AI chips broaden market opportunities GSI is developing a new category of computing products for multiple Artificial Intelligence (AI) markets Big Data • Data analytics, machine learning, recommender systems, data mining, search engines and natural la
Slide 10: A New Model Is Needed for AI
A new model is needed FOR AI New Model to fully developing AI’s potential The laws that have governed computing need to be rewritten to achieve the performance required to fully develop AI’s potential. Traditional computing based on “von Neumann architecture” has limitation for advanced AI applicati
Slide 11: Processor-Memory Bottleneck
Processor-Memory Bottleneck Massive IO Bottleneck BETWEEN GPU AND MEMORY • Current AI configurations based on von Neumann architecture • Use graphic processing units (GPU) for parallel processing • Computation rates slowed due to bottleneck from throughput limitations • Results in long processing ti
Slide 12: APU: In-place Associative Processing
APU: In-place Associative Processing Removing the Io bottleneck to increase computation speed GSI’s APU GSI Mimics the CPU APU Brain’s Efficiency Advantages of GSI’s In-place Associative Processing • Computation and search occur inside the Associative Processor (APU) • Direct response from APU to CP
Slide 13: APU's Unique Advantages in Search
APU’s unique advantages in search APU (version 1) best suited to search With Improved Accuracy of results Visual search searches with images: • Online retail and home design where style is difficult to describe using text • Big-pharma cheminformatics for drug discovery, drug screening and genomics N
Slide 14: Visual Search: Fastest Growth Segment in Retail AI
VISUAL SEARCH Fastest Growth segment in retail AI APU improves consumer experience with faster, Accurate searches Visual search simplifies search, replacing text-based descriptions with images or pictures Submit a picture of a vase and visual search finds the vase on a retailer’s website AI adoption
Slide 15: Weizmann Institute-APU Collaboration
Weizmann Institute-Apu Collaboration APU’s higher speeds in visual search lower drug discovery costs • Weizmann collaborating with GSI to improve outcomes in molecular structural similarity search, a powerful research method used in drug discovery • Visual screening’s role in drug discovery is searc
Slide 16: APU Software and Hardware Design
APU software and hardware design Multiple strengths deliver big advantages in AI computing • APU’s unique design combines AI software with GSI’s high-performance custom chips • Unique in APU software design is the programming interface that allow multiple levels of programing from assemble code up t
Slide 17: Self-Funding AI Start Up
self-funding AI start up ($ IN MILLIONS) AS OF 12/31/2018 Liquidity: cash, cash equivalents, short-term $67.3 investments and long-term investments Total assets $104.1 Debt $0.0 Shareholder Equity $91.2 BALANCE SHEET METRICS: Working capital $65.5 Current ratio 9.0 17
Slide 18: Path to Future Growth
Path to Future Growth • Leveraging leadership in performance memory chips to enter new product categories • New products will drive future top line growth and further gross margin improvement • Developing APU1 for large, high growth AI markets in similarity search segment, tracking to CY 2019 milest
Slide 19: GSI Technology
EMAIL: [email protected] GSI Technology High Performance Components for Leading-Edge Technology GSITechnology.com / IR Contact: [email protected]
Slide 20: Appendix Slides
APPENDIX SLIDES MSlrccunoincy 20
Slide 21: AI Chip Landscape Overview
AI Chip Landscape overview APU1 excels where current Traditional processors Underperform • Visual search requires high processing speeds and accuracy • APU1 speed and accuracy is ideal for visual search • APU1 is not optimal for training, inference Chip Nvidia GPU Google TPU ASIC FPGA APU1 Intel NER
Slide 22: Income Statement
Income Statement CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, 2018 2018 2017 2018 2017 Net revenues $ 14,702 $ 12,832 $ 11,118 $ 38,800 $ 31,452 Cost of goods sold
Slide 23: Balance Sheet
Balance sheet CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) March 31, Dec. 31, 2018 2018 Cash and cash equivalents $40,529 $ 40,241 Short-term investments 16,557 18,124 Accounts receivable 8,160 5,279 Inventory 5,949 5,547 Other current assets 2,558 2,080 Net property and equipmen
Slide 24: Experienced Management Team
Experienced Management Team Years of Years with Name Title Prior Companies Experience GSI Lee-Lean Shu President and CEO, Sony, AMD 38 23 Executive Officer Doug Schirle Chief Financial Officer 38 19 Cypress, Pericom Didier Lasserre VP Sales and IR 30 21 Cypress, Selectron Avidan Akerib VP of Associa
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