Q4 2022 GSI Technology Inc Earnings Call
Yeah.
Ladies and gentlemen, thank you for standing by and welcome to the G. Soi technologies fourth quarter and fiscal 2022 results conference call.
At this time all participants are in a listen only mode. Later, we will conduct a question and answer session at that time, we will provide instructions for those interested in entering the queue for the Q&A before we begin today's call. The company has requested that I read the following safe Harbor statement.
The matters discussed in the conference call May include forward looking statements regarding future events and the future performance of GSI technology that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These.
These risks and uncertainties are described in the company's Form 10-K filed with the Securities and Exchange Commission. Additionally, I have also been asked to advise you that this call is being recorded today may five 2022 at the request of GSI technology.
Hosting the call today is Lee lean shoe, the company's chairman President and Chief Executive Officer with him are Douglas Shirley Chief Financial Officer, and did you say a vice president of sales I would now like to turn the conference over to Mr. Hu. Please go ahead Sir.
Good afternoon, and thank you for joining us to review all physical fourth quarter.
Full year 2022 financial results.
All fourth quarter revenue grew.
But year by 14% and for the full fiscal year 2022.
Revenue increased by 20%.
Growth in the quarter was due to new projects.
It can be present in all categories.
And the price increase effective.
2021.
Gross margin improved in the fourth quarter.
840 basis points year over year.
Taking a more attractive at least over higher margin product sales.
Ill.
And then just supply chain challenges.
The increase of calls.
As a result.
We narrow our operating loss year over year, but 19%.
We ended the year with $44 million cash cash equivalents and the short term investments.
Our biggest use of cash remains R&D.
The R&D budget and ongoing software development.
<unk> largest columbian projects.
It's a software project.
Upcoming launch of <unk> of the Jimmy that one competitor spec.
Second use a major highway projects.
<unk> is the most significant portion of the R&D budget.
Jim in the tube that we intended to.
To complete by credit in the U S.
We will incur a onetime loss charge, where we table.
Other than that on the budget would remain as a color laundry for the foreseeable future due to the ongoing need for software development.
Our commitment to continuous duty.
Into how we are plentiful.
We are on track to release version two of the competitive stack in July which will be entirely passion enabled book called the algorithm.
There'll be cushion in the library.
This exciting because all team will be armed with the tool.
To increase our tier one customer engagements across the various market we are pursuing.
CSI has a highly head and software that has achieved impressive outcome you several competition.
This is a valuable resource as the software is.
As a crucial component to produce success in this market.
And one of the reasons, we come with a significant portion of our R&D budget too.
The TSS software team has been especially effective and efficient in their work on several high profile contest could.
Could you do it all in the first place in two challenges.
We took one of the toughest abbas beating scale approximately USD search challenge.
<unk> improved our technology.
<unk> performed on par with category leaders.
Okay.
Turning to the great PR the biggest benefit of this contest.
Holiday boost GSS profile in key market sectors, such as with the U S.
And the Israeli military and defense agencies, and other government agencies and the organization related.
To defense and security.
Recently, we announced our first course of wheat in the most challenging for the human and obviously attacking category.
GSL load the software and algorithms that can more successfully.
Judge by speed and accuracy Automd.
Automatically detect cost effect in humans.
And defeat differentiate between meals and the female cloth identify objects of interest such as the women's bag.
The rifle Crystal or life.
The person may be created.
Also we will work with us.
<unk> and the most of the acreage in pro forming a fabulous distance.
And under diverse lighting conditions.
The image real time HD video so both from the Morgan.
This capability has many application.
<unk> global security market.
But most of the challenge.
<unk> is a high profile exposure through the leading agency in the Israeli and American immediately and the deepened organizations.
Including the U S Department of defense.
And the new agency the irregular warfare.
Technical support Delek.
Using our content for the military and defense business, we are working aggressively to pursue the additional opportunities that are more challenging.
Great.
In physical year 2022.
We also had other challenges.
<unk> was among the <unk> search challenge Indeed, we've proved that <unk> technology and software.
<unk> performed on par with the plumbing of industry leaders.
In addition to the industrial exposure.
<unk> in this context.
Also teach us a lot of Baja we need local and how we can improve our performance.
All first close to winning in the market challenge.
We saw that in several valuable benefit to GSI.
First of all <unk> with Alta.
Please use the funding of star image processing less evolution system, if you would take a longer view.
Secondly, the exclusive perpetual license of the fast evolution.
The auto where large GSI to sale or the sources of products containing this augurs.
We plan to go after that.
Soft market with this product.
The third benefit is.
Got it.
To deploy this system volume assuming that the pure she is successful.
In fiscal year 2022.
We increased our customer engagement for the Apu context into new market segments.
We are in the early stage of working with the numerous apio shoes.
To further our engagement with the Silicon version of all competitive.
The physical year 2023, we plan to launch all open search platform.
Ws marketplaces.
Mr Software talking to Assail Rubicon fixes search.
I'll open search software product is particularly good.
<unk> marketing model.
We have multiple inputs like image text voice exercise tolerance.
We are working with our partners to build a software platform that perform.
Multi model and our marketing group Victoza.
With a sale of issues based on the Apu in AWS to open source.
This software platform called <unk>.
We will be present at the bus awards conflicts in June being held in Berlin, Germany.
We are a service increase and upgrading the website with the goal of having the open search platform available.
For use by the third quarter located in the 2000 <unk>.
Ideally we are targeting a fully functioning platform, where clients can download a parking independently of our support through the process.
Another important goal will be the new version of the comparator.
And then using the sudden the QUADRA data centers to allow customers to work with if you will more easily.
This will enable us to build a funnel of prospects.
We're building the future revenue stream.
For the AGM.
Yes.
The U S team has been working on that these analogs jimena too and finalized the layout for taking all the chip we are fairly excited about Jim <unk> could deliver given I couldnt all addressable market.
Just incredible.
Medically enhanced performance and much lower cost.
We have agreed.
I appreciate their dedication and hard work, we are aligned or Marco for this year and have a lot of motivation to achieve them.
As <unk> shareholders for the support.
And that value their contribution from that menu over you make the feedback.
Both the CEO and the shareholder.
I mean to make that successful.
Now I will hand, the call over to <unk>, who will discuss our business performance.
<unk>. Thank.
Thank you Leen, let me start with an update on our radiation hardened our Rad hard business. We have seen increased traction in this area and in the fiscal year 2020, we shipped four prototypes to three separate Rad hard customers. While the customers are currently testing these systems that require chips to withstand harsh conditions.
In the first quarter of fiscal year 2023, we have another program with a major prime contractor for Rad hard prototype, which is anticipated to ship in the first half of this fiscal year. This prototype order could potentially be the same revenue magnitude as all of our radiation hardened orders from last fiscal year.
As a reminder, rad hard as a high gross profit products and a few of these prototypes moved to production it could add incrementally to fiscal year 2023, and 2020 for revenue.
In terms of building a pipeline for Apu right now we are creating awareness of our technology and getting the brand known in the right places. We are encouraged by the response and the incoming interest that we've received from these efforts. The company is evolving from the engineering to the production stage, meaning we are getting the tools and systems in place.
And modifying how we work to build a sales culture for the Apu.
Im optimistic we can progress on these fronts in the upcoming fiscal year.
Let me switch now to customer and product breakdowns for the fourth quarter.
In the fourth quarter of fiscal 2022 sales to Nokia were 2.0 million or 23, 1% of net revenues compared to $2 8 million or <unk> 36, 5% of net revenues in the same period a year ago.
And $1 9 million or 24% of net revenues in the prior quarter.
Military defense sales were 22, 3% of fourth quarter shipments compared to 22, 5% of shipments in the comparable period, a year ago, and 27, 1% of shipments in the prior quarter.
Sigma quite shells were 47, 6% of fourth quarter shipments compared to $52 nine in the fourth quarter of fiscal 2021.
45% in the prior quarter.
Lastly, I want to comment on the supply or the current supply chain situation. We currently move the majority of our chip substrate suppliers out of China last year to limit the potential damage by any COVID-19 related lockdowns in China.
In China could cause we are actively addressing supply chain variances that could potentially impact our order fulfillment, but the situation remains fluid overall most of the cost increases from our suppliers were successfully pass onto our customers in December of 2021.
We are closely watching costs and evaluating if we need to change prices in the future.
GSI in the industry as a whole are constrained by the ability excuse me the availability of <unk>.
Since we use FPGA is on our leader board, we could potentially be constrained if we receive a large order for an API platform.
For our SRAM sales, we have implemented some changes to our supply chain management to ensure that we can fulfill orders that we have in hand for the upcoming quarters for our SRAM customers. We our estimate we are optimistic that we have sufficient capacity to meet this demand.
I'd now like to turn the call over to Doug.
Go ahead, Doug <unk>.
<unk> reported a net loss of $4 $3 million or <unk> 18 per diluted share on net revenues of $8 7 million for the fourth quarter of fiscal 2022.
Compared to a net loss of $5 million or 21 per diluted share on net revenues of $7 7 million for the fourth quarter of fiscal 2021.
And a net loss of $4 $6 $8 19 per diluted share on net revenues of $8 1 million for the third quarter of fiscal 2022.
Gross margin was 58, 6% in the fourth quarter fiscal 2022 compared.
Compared to 52% from the prior year period, and 55, 3% in the preceding third quarter.
The improvement in gross margin was primarily due to changes in the mix of products sold at price increases effective in December 2021.
Total operating expenses in the fourth quarter of fiscal 2022 were $9 4 million compared to $9 1 million from the fourth quarter of fiscal 2021 and $9 million from the prior quarter.
Research and development expenses were $6 5 million.
Compared to $6 $1 billion from the prior year period.
$6 $2 million from the prior quarter.
Selling general and administrative expenses were $2 9 million.
In the quarter ended March 31, 2022, compared to $3 million in the prior year quarter, and $2 8 million from the previous quarter.
Fourth quarter fiscal 2022 operating loss was $4 $3 million.
Compared to an operating loss of $5 $3 million in the prior year period.
And an operating loss of $4 5 million in the prior quarter.
Fourth quarter fiscal 2022 net loss included interest and other expense of $47000.
And a tax provision of $21000.
Compared to $21000 in interest and other expense and a tax benefit of $304000 for the same period a year ago.
In the preceding third quarter net loss included interest and other income of $15000 and a tax provision of $64000.
Total fourth quarter pretax stock based compensation expense was $714000.
$753000 in the comparable quarter, a year ago or $740000 for the prior quarter.
At March 31, 2022, the company had $44 million in cash cash equivalents and short term investments of $3 $3 million and long term investments.
Compared to $54 million in cash cash equivalents and short term investments of $5 $8 million.
At March 31st 2022 or 2021.
Working capital was $45 8 million as of March 31, 2022.
Versus $56 million at March 31, 2021 with no debt.
Stockholders' equity as of March 31, 2022 was $63 1 million compared to $75 6 million as of the fiscal year ended March 31 2021.
For the fiscal year ended March 31 2022.
We reported a net loss of $17 7 million or 73 per diluted share.
On net revenues of $33 $4 million.
Compared to a net loss of $21 5 billion.
<unk> per diluted share on net revenues of $27 7 million in the fiscal year ended March 31 2021.
Gross margin for fiscal 2022 was 55, 5% compared to 47, 7% in the prior year.
Total operating expenses were $36 2 million in fiscal 2022.
An increase of five 1% from $34 5 billion for fiscal 2021.
Research and development expenses were 24 7 million compared to $23 3 million for the prior year prior fiscal year.
Selling general and administrative expenses were $11 6 million compared.
Compared to $11 1 million in fiscal 2021.
The increase in research and development expense was primarily related to the development of Gemini two.
The operating loss for fiscal 2022 was $17 7 million compared to an operating loss of $21 3 billion for the prior year.
The improvement in the operating loss was primarily due to the increase in revenue and gross profit.
For fiscal 2022 net loss included interest and other expense of $60000.
And a tax credit of $445000.
Third to $94000 in interest and other income and a tax provision of $335000 a year ago.
Operator at this point, we will open the call to Q&A.
Thank you.
If you would like to register a question. Please press the one followed by the four on your telephone.
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Your question has been answered and you would like to withdraw your registration.
Please press the one industry.
Our first question is from Jeff Bernstein with Cowen. Please go ahead.
Hi, guys I just wanted to get an update I think you were supposed to get.
Arrived for Rad hard part or parts.
Satellite here at some point, so you could get that space legacy.
Whats the schedule on that now.
Great question. This is DDA, Jeff so that was shipped out last year or yes. It was sometime last year.
And so it was as you said it was going to be very end of calendar 2021, or beginning of calendar 2022. They were supposed to go up.
We've been in constant contact with this prime contractor and they are still waiting for some other components for that satellite.
No I am sure you know the semiconductor lead times are way out right now for everything and so there are still some components. They have not received and so the satellite has not been launched yet.
Any visibility on when that might happen.
No.
They are not telling us too much about that they are not telling us what's led components are missing.
Win, but they certainly feel that there is going to be some time.
In the summertime they should have all the components.
Okay.
And then.
Just curious what's the cost of the masks yet for the Gemini two.
Process note is that on is that a 14 nanometer part or what is it.
Kevin to Paypal.
Yes.
Talking about deposits over picking up both yes.
Yes, the process 16.
Yes, so Jeff the process of 16 nanometer or the process the process node 16 nanometer and as far as what would that mass set cost.
About two and a half million dollars.
Gotcha, Okay and.
I was curious about what kind of visibility ability you have with Nokia.
In fiscal 'twenty, three I think you had better visibility this last year, partly because of all the supply constraints et cetera, what kind of visibility do you have now.
So we have a 12 month, sorry, we have a 12 month rolling forecast right now and so thats remained the same so that the.
The visibility is constant so we still have pretty good pretty good visibility.
Got you and so that's indicating what.
Flat year of lower year, what kind of a year with Nokia.
Good question it looks right now it will be flat to maybe a touch down but it's pretty constant.
Gotcha, Okay and.
I'm curious, we had talked about the potential in the mosaic.
When.
Suggested that there might be application in the very large driver monitoring and cockpit monitoring applications that are going.
Can it be legislated here in Europe , and then potentially in the U S. What have you guys figured out there.
It's still it's still an ongoing process. So there are some areas, we think there could be a fit other areas.
Closer to the edge and we think it's going to have to be more of a gemini to play as you know with the Gemini one it goes on a board that has an FPGA.
Mr. Chairman I have to we don't we don't have those constraints. So we're still looking into it. We think there is certainly some opportunity with Gemini one, but I think.
A lot of it because it's more of an edge application will require the Gemini two.
Gotcha, Okay, and then and then you mentioned that you think the brand is getting known in the right places what are the right places.
Certainly in the markets, we're going after right. So.
We've made some announcements recently with the Saar.
Initiatives that we have I mean, certainly that came out of the original Mossad challenge, we won and as.
Lee Lean mentioned, we had the POC with Alta and so what we're doing now is with that relationship.
We got access to a very fast back projection SAR algorithm.
Which we're going to be able to use without any license or anything for any other customers and so we're putting together our marketing sales package to be able to address that to all the other players.
We also with this latest win at mosaic, it's giving us inroads into some of the Dod programs.
Programs and so certainly what were the areas that we're going after.
The markets, where there is a.
Certainly a need for our type of fast search.
Got you Okay, and then you talked about this this new open search multiple inputs search, which sounds very interesting that it can take.
Natural language and symbolic language and pictures.
For searching is that correct.
Talk about what's the what's your angle here, what do you think the.
Objective is with that.
Yes, just as I mentioned.
Welcome to the multi model multi model, which means you can.
You can have liquidity come in.
The tax the image and the voice everything coming together.
For liquidity.
In the east basically good news, though.
We are a software parking to open search.
The open surgery.
<unk> has a lot of installed customer basis.
The software package and the customer doesn't require two Logan.
Other software to to the Soc.
I know youll see some.
Some website can do the search service, but.
That would require the pulse.
Hi, Tory software to do it okay.
No.
<unk> with open surgical or.
So I mean.
<unk> software is a GDP heightened customer customers don't even have.
The ability for it so.
Javier exciting novel and we sold.
The installed customer base in the industry.
So there is a big marketplace, where you could go after.
So let me just so I understand so.
If the retailer has a search button on it.
<unk> website.
You could plug in the backend put your software in between.
And allows somebody to say take a picture of a bicycle and say I want a disposable in the different color.
And the search algorithm would be able to search and take those two inputs the picture and the person's voice and come out with search and they would be able to essentially plugged that functionality into their search.
Without doing a lot of heavy lifting.
Exactly and the Lincoln Park in the price range of Tula.
Can I have a picture of it.
Agnico and then you said Yolanda color I know you want.
$400 $1000.
Give it.
In fact, a merchant that youre looking for.
Gotcha, Okay and then so this could be won by you as a business where those queries would go.
Apu boards that you owned and it would be a cloud accessible.
Kind of.
Or is it caught on you would just sell the Apu boards to the retailer whoever their cloud provider was.
Yes.
Yes, we can provide either call service we can provide.
On premise.
Applications.
Got you Okay. That's great. Thank you very much.
Thanks, Jeff.
Our next question is from James <unk> with private Investor. Please go ahead.
Hi.
Couple of questions regarding the development of Gemini and the one and two and the Apu.
What is the budgeted.
Cap cap cash burn.
For fiscal year 2023, what's the expectations.
Right now going into the year I would expect something similar.
To fiscal 'twenty, three 2022 and once that probably something less.
Approximately.
I don't know 10 $12 million.
Okay.
Yeah and also.
Regarding development of the Gemini one.
According to past company statements.
The compiler stack was supposed to have been available in 2021.
And then face repeated delays now we're looking at July if.
If we even get it done then could you tell me why that is taking so long.
While our competitor has okay.
So Jim and I are software, we have a two <unk> of the.
The software.
Why is that.
Sure.
The the library.
The live with functional library content.
All processing already that's the one portion of the software.
My apologies, but we have a embed deposits are all critical processes in the chip, which is the control of the you talked you through.
Data flow.
Right now we have a complete the Tyson comparator.
On the instructions on the microcode functional library in the.
We can we can use our ashish for the entire deposit book for the coprocessor. So we do have a comparator available ebook customer one view of the high level of Enbridge.
To Portland, the Apu like I'll use a comparator for the Copartners.
<unk> use the Tyson for the.
For the functional level, okay. So a lot of Virgin pool, we are talking about.
They can do the Python for avs in for.
For further coprocessor in Florida.
For the for the label.
Okay. So.
Not really.
It's just the XR spent where we need to go through to have before.
For comparative step forward.
Yes.
How many people are testing the Gemini.
One eight.
Apu.
How many customers are taking our customers keep yes, how many potential around how many right now are using it.
So people right. So it's a multi level. So we have some people who have purchased some boards.
For pro typing, we have a couple of boards.
That are out as loners, and then a fair amount of folks are doing their testing with us not with physical hardware, but over the cloud and so we have a data center setup.
Israeli facility tiered our Sunnyvale, California facility and then we also have as we've talked about in the past.
The setup that we have of course site for the yield to search elastic search and so we have folks doing their testing there.
And so how many right now we're talking about dozens.
We also have but just like I mentioned in my.
The earnings adjustments I just mentioned.
We have a partner developed in the answer.
The multi year.
Multi lingual I'll take the first.
So thats a set of development.
That's going to be.
So thats going to be presented in the Congress.
So lets the customer also behind us enough. So he can promote chicken Formosa I believe with the Apu. However.
Alright, and just to take a little bit more color. We're also.
We have begun working with some integrators and the integrators would be a single entity itself, but they're working with multiple customers on there and so it's hard to determine how many more customers we touch via these integrators.
And.
The share price sits at.
Multiple year low.
What is management's position there too to try to improve on that because thats.
Sitting at quite a low level I'm not sure when it closed today, but.
If you look at a chart that's.
That's kind of rock bottom.
Why do you think.
The company shares don't gain any respect for what they're doing with the Apu and then Jim and I wanted to.
Well I think the biggest thing is theres not a lot of visibility in terms of what the revenue stream is going to be I don't think people understand that well yet.
We put out some tam or Sam data.
$4 5 billion on a salmon.
You've got some pretty large numbers there we're a small company we have an enterprise value of about $50 million right now.
A couple of hundred million dollars in sales, we would make a huge impact.
Yes.
And as you're looking at.
As DDA said Theres a lot of activity going on.
We don't have a lot of input from customers in terms of volumes and quantities and so on so we haven't put any any revenue forecast, but we believe that theres a large opportunity. There's a lot of traction as DDA and Leland have talked about here today.
We believe will lead to that revenue growth.
I hope, so and regarding AWS wasn't there or another.
2.0 coming up or.
What's happening there.
Correct.
So it's.
As you say as to Plano and AWS has not released it yet.
Wednesday expectations for that.
It was supposed to be March.
What was supposed to be last year than it was supposed to be March of this year and it hasn't come out yet.
And we're still working on the current version just to get everything up and running but.
We don't control the release of two point and so I don't know what the latest.
Projection is on the release of that.
Okay.
Okay.
Anything else you can add to.
To help shareholders understand like what's.
What the potential is for Apu because.
Shares are sitting at $50 million of enterprise value.
It's.
Pretty disappointing.
Yeah.
Well.
Yeah.
Hopefully, we'll have a lot more to say in terms of.
Commitments from customers design wins, and so on and I think that's where we're going to see the benefit of stock stock price.
That's when you get the compiler stack done in July is that correct.
So the compiler stack will only make the process easier.
The first release in February of the initial compiler Seattle Lee Lean mentioned that had the combination of Python NFC plus depending on the so that's certainly started the process. This is the next step to make it even simpler so everything's in Python. So that helps that helps build the ecosystem, but we're certainly working.
Even outside of that we're working with customers as I mentioned.
The SAR applications that we're going after and some of these other issues some of these other areas.
Art.
Strictly tied to the compiler shack compiler shack is really to get us to a much broader larger level, where we're not involved in the <unk> or the algorithm rating.
Well, we need to get that done and I'm holding them accountable for that July date that you guys mentioned.
Yep.
Alright very good. Thank you for your time and I. Appreciate you taking all my call and all my questions. Thanks, James Thank.
Thank you.
Thank you.
As a reminder to register you May press, the one followed by the four.
Our next question is from Luke.
Private Investor. Please go ahead.
Hi can you hear me.
Yes.
Yes.
I'm going to possibly reiterate.
These things are components of other questions from path.
Quarters in this quarter, but you're also trying to.
Really yes, some resolution of this bigger picture and also zoom in to some of the esoteric.
Be difficult for carbon investors arent in the field to understand like the.
Big and nearest neighbor.
Competition that had a great deal complexity. It seemed like there were maybe sub competition within that main competition category.
Participated in very curious about the landscape there with Facebook.
Yes.
I cant remember the other participants but could call. It up now, but just curious if you all could unpack that a little bit about.
Yes.
Yes, so thats the networking involved there as well as the.
Actual operation intestine.
Specific to that competition.
Yes.
Trying to get myself into that competition, a little bit and there's very little information available publicly online. So curious what the share of different sub competitions are like and when you say, yes ranked.
Yes, Hi, Lee.
Somewhat like the first place for one of the components and competed well with yellow resources against these large players who are kind of in this yes. So curious all of that correct.
Alright, and how that looks for you all.
Yes.
Sure. So I have to think back a little bit on this has been a little while so we were introduced to the competition.
Microsoft So they had read one of our blogs.
That we had written on the subject.
So they had asked if we wanted to participate and we said sure and we were they had.
Few tracks and again this is at the top of my head. So I may be a little off on this but I want to say, we werent track III, which was the custom silicon category.
And as you said there were.
<unk>, there was Microsoft and Facebook and that I can't remember, who else had some databases in there, but there were six database as total.
And they were all supplied by those folks and we none of US none of us had access to it beforehand.
And what was used.
As a baseline was the the SaaS.
The Facebook.
AI ancillary search so that was kind of the baseline which was the state of the art for quite some time.
And so it was now.
Test your.
Your solution, which is both a hardware and a software solution to try and better that that baseline of face.
And so there are many many participants that entered the challenge in many could not improve upon the baseline.
And then of course, there were a few there were a few entries by Intel and a few entries by Nvidia and then we had our single entry and so we were the only ones that were able to to better the baseline which is why they.
<unk> our data the other folks dropped out.
What are the one of the.
Highlights was that we were we actually.
<unk> ran and beat the baseline on all six of the databases and we were the only one to do that the other entries focused on two or three or four of the databases and didn't go with the others, we were able to improve on all six of them.
And as you said, we had we had a very limited team compared to the other folks.
When you looked at.
The quote unquote winters.
They when it came down to who do you recognize that the company. There were several groups and there are also external folks like universities and researchers that were had a hand in helping them right. The algorithm for this competition and with US It was just.
A handful.
Software engineers out of our Israeli team and it was all done again. This is before we had our.
The first release of the compiler stack and so this was all done in a micro code level, which.
If you folks out there are familiar with coding and high level versus macro code is a much larger effort to do it in Mexico. So so again we.
We're proud of the results with the team we had and the resources. We had we were able to improve upon the baseline in all six of the the databases and we certainly feel like going forward with the introduction of <unk>.
The compiler stack will be able to develop algorithms much faster.
For these kind of competition and for real life use cases.
Excellent.
Phenomenal phenomenal versatility level performance.
David and Goliath.
You all versus the other.
Other competitor so it would seem like that would reward you operate in.
Would be getting knocked on the door to help you to maximize RMB to expedite as well as build out. So just curious are you getting pitches or partnerships that you're turning down.
Or anything to that extent, where you are kind of choosing an independent path rather than taking on either yes investment money from a large corporation like Microsoft too.
But yes the theory.
Okay interested in say buy at a 20% stake in the company and blending resources or something like that so just curious.
Yes, what the chatter is.
Edgar outdoor.
Yes.
Yes.
Well there is nothing.
Alright.
There is nothing to talk about at this time, but.
Obviously, if something were to come along that makes sense to do and benefited the company and the shareholders. We would certainly consider it.
Okay, Yes, because I know that you could have been an incredible.
Yes ceiling.
Yes, well independent.
Curious yes.
Yes, if there was anything you were able to get us there, but whether you have gotten there of not just in general.
Yes, I think in another quick question about the Rad hard and the Gemini combination.
Gathered some industry research showing that there are great.
Great eagerness and the satellite in aerospace industry to get better processing.
Up there. So wondering if that is motivated enough for you all to open a channel for that development in the state within this fiscal year.
Absolutely.
You hit it on the head. So there is certainly if you look at some of the air technologies out there they don't lend themselves well to the radiation harshness.
Phase and so we actually.
I want to say it was about a year and a half ago could have been longer.
We actually put the Gemini one under the beam.
And the beam was just coming back online when we did it and so we were only able to take it up to a certain level, which was something above rad tolerant, but below rad hard as far as the intensity of the beam.
And the part did great and so we are right now.
We're getting a board together because we wanted to go back to Tammy I'm, sorry, Texas, A&M, where the bemis.
There are only advisory right yeah right.
He said that the only only a technical adviser Paul.
Okay, Yeah, no. He's a very accomplished very forward thinking and they're curious if yeah. You all are seeking or have gotten any interest for further or other advisors joined have yeah. We yeah, if we somehow technical.
Technical advisor come along.
We still have and they will look into it.
Okay.
Excellent.
Yeah.
A great like competition coming into play it seems like neck and neck with you all with Photonics I'm just curious how intimidate you are there or have you already.
Yes that was the proper differentiation is for cats are kind of final application and.
You see healthy coexistence basically for the next the next 510 years.
So so you're you're cutting in and out but it sounds like you're talking about competition anything we're seeing is that is that correct.
Yeah, specifically in photonics and sort of this this.
This gateway into quantum computing, so I'm wondering how you see yourselves coexisting with that and differentiating and yeah and you're a specific application.
[noise], yeah, I'm not yet so.
Cloud computing, it's yeah, I mean, we don't I I don't I don't think we have anything to say at this point on that what we're doing is we're looking at the competition of what's out there was coming out and what we're seeing is there are certainly had been some announcements recently, but it does they are not addressing the issue, which is Yvonne Newman bottled.
And that's what we've addressed I mean, they certainly are having access to.
Faster external memory, but at the end of the day, they are still fetching data and bringing it back and that's where our our advantage is is that we're doing the processing in place and the data is there and after we've used it remains there in place so we're not.
Going back and forth fetching and writing data. So that's certainly we're not seeing anybody in that area and that's where we've done extensive work on building our patent portfolio to make sure we protect.
That unique technology.
Excellent yeah, and you'll have a very impressive patent portfolio.
No. That's that's all my questions I appreciate it yeah.
Yeah, very very excited for it all future and.
I'll be all of that.
Thanks.
And there are no further questions. At this time you may continue with your presentation or closing remarks.
Thank you all for joining US we look forward to speaking with you again, when we do call all fourth quarter physical <unk>. Thank you.
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