Ladies and gentlemen, thank you for standing by. Welcome to GSI Technology's Third Quarter 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 this 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. It's to differ materially from those anticipated. 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 conference call is being recorded today, January 27th, 2022, at the request of GSI Technology. Hosting the call today is Lee-Lean Shu, the company's Chairman, President, and Chief Executive Officer. With him are Douglas Schirle, Chief Financial Officer, and Didier Lasserre, Vice President of Sales. I would now like to turn the conference over to Mr. Shu. Please go ahead, sir.

Good afternoon and thank you for joining us to review our Fiscal Third Quarter 2022 Financial Results. Our third quarter revenue grew year-over-year by 19% due to increased order from SRAM customer base, including network and telecom, military and the defense, as well as automotive, medical and test and measurement sectors. The increase in orders from other customers offset a lower order from Nokia in the quarter. Gross margin improved by 800 basis points year-over-year reflecting our ability to manage our near-term supply chain challenges, and increased of cost. Our lead loss narrowed year-over-year by 12% and we ended the quarter with $48.1 million cash, cash equivalent, and a shorter investment. We continue to prioritize the allocation of our capital on R&D for the APU, which includes the software and the API development for Gemini-I in the table for Gemini-2. The software development team continue to extend our library of algorithms and the API for all target applications in search. In February, we plan to release our Compilers stack, and Didier will provide an overview of this in his section. At the end of calendar 2021, we announced that GSI was among the leaders in the Billion-Scale Approximate Nearest Neighbor Search (ANNS) Challenge. We were encouraged by this outcome. The results showed that the APU technology and the software performed on-par with prominent industry leaders in AI, all with a much broader resource than GSI. Contests such -- contests teach us a lot of our 3D to further develop APU and how we can improve our performance. Contest like beginning and end market challenge are also effective ways to launch GSI profile in our industry and with potential customers. This contest parlor, all these capabilities, increase awareness of our APU unique value propositions. Last year, our first place week in…

Thank you. Lee-Lean. As lean stated, we have new customer engagements in multiple applications ranging from e-commerce to military and defense for various use cases. In our approach to the search market, we are pursuing opportunities that align with the applications we feel the APU is best suited. Right now, our team is seeding the field and we fully expect that some of this will bear fruit. Our approach to supporting these customer engagements depends on the end - users' needs. For some, we loan them a board to demo. Others have access to our Sunnyvale data center to run their models, and then some have purchased some boards. Each of these engagements target unique market applications and the ultimate size of each opportunity may vary. Since many are in the early stages of development, it is challenging to measure. But that said, they are all of sufficient size to merit allocating our resources. Today, we are working with universities with unique applications, with broad market opportunities, and we also have prime contractors that could eventually turn into large orders and a government agency evaluating for the APU for border security. There's also an e-commerce company looking at the APU for natural language processing. You can see why we're excited about these engagements, as they could potentially develop into customers and growth markets. Our objectives are to make the POC s as successful as possible for each entity, expecting a portion to move to design wins and eventually to production. As part of the GSI developing a strategy for the AI and HPC or High Performance Computing acceleration market, we will soon be releasing an APU Compiler Stack. This release will deliver the environment for software and AI developers to write full applications using C for our Leda-E and Leda-S…

Thank you, Didier. We reported a net loss of $4.6 million or $0.19 per diluted share on net revenues of $8.1 million for the third quarter of Fiscal 2022, compared to a net loss of $5.2 million or $0.22 per diluted share on net revenues of $6.8 million for the third quarter of Fiscal 2021, and a net loss of $4.6 million or $0.19 per diluted share on net revenues of $7.8 million for the second quarter of Fiscal 2022. Gross margin was 55.3% compared to 47.3% In the prior-year period, and 53.6% in the preceding second quarter. The changes in gross margin were primarily due to changes in product mix sold for the three periods. Total operating expenses in the third quarter of fiscal 2022, were $9 million compared to $8.3 million in the third quarter of Fiscal 2021 and $8.7 million in the prior quarter. Research and Development expenses were $6.2 million compared to $5.7 million in the prior-year period, and $5.9 million in the prior quarter. Selling general and administrative expenses were $2.8 million in the second -- quarter end of December 31, 2021, compared to $2.6 million in the prior-year quarter, and $2.8 million in the previous quarter. Third Quarter, fiscal 2022, operating loss was $4.5 million compared to $5.2 million in the prior-year period, and $4.5 million in the prior quarter. Third quarter, fiscal 2022 net loss included net interest and other expense of $15 thousand and a tax provision of $64 thousand compared to $25 thousand net interest and other income, and a tax provision of $90,000 for the same period a year ago. In the preceding second quarter, net loss included interest and other expense of $8,000 and a tax provision of $42,000. Total third quarter pre-tax stock based compensation expense was $740,000 compared to $693 in the comparable quarter a year ago and $716,000 in the prior quarter. At December 31st, 2021, we had $48.1 million in cash, cash equivalents, and short-term investments, and $3.4 million in long-term investments compared to $54 million in cash, cash equivalents, and short-term investments, and $5.8 million in long-term investments at March 31st, 2021. With no debt, working capital was $49.9 million as of December 31, 2021 versus $56 million at March 31st, 2021. As of December 31st, 2021, stockholder’s equity was $66.8 million compared to $75.6 million, as of the end of fiscal year March 31, 2021. Supply chain constraints have impacted our ability to fill all of our orders. Where there has been some improvement, the situation remains fluid. And we do not expect significant relief from these constraints before the end of calendar year 2022. Given these constraints, current expectations for the upcoming fiscal fourth quarter, our net revenues in the range of $7.5 million to $8.5 million with gross margin of approximately 54% to 56%. Operator, at this point, we'll open the call to Q&A.

Thank you. At this time, we will be conducting a question-and-answer session. [Operator Instructions]. One moment, please, while we poll for questions. Our first question comes from the line of Jeffrey Bernstein with Cowen. You may proceed with your questions.

Hi guys. In terms of the orders that you have not been able to fulfill, are those gone, do those go to someone else, or is that backlog that's building up?

The majority of it is backlogged -- is built up. I mean, certainly some of them where we have multiple sources may have gone. With that said it's not -- it's a very small percentage of our business, and majority of it is sitting there and will be fulfilled later.

Got you. Okay. And then can you just give us a quick update on the Rad-Tolerant efforts?

Sure. So the Rad-Tolerant, we spoke in the past, we've had some shipments out. In fact, on some Rad-Hard as well. And so some of those we are in the prototype stages. We're waiting for them to do their testing. It takes some amount of time. What we didn't discuss, is in this quarter, we actually booked another prototype for actually a Rad-Hard device. So we have a Rad-Hard on the books now that will ship hopefully this quarter. And again, it's for prototyping, for a satellite that will go into production in a couple of years. So we're starting to still see some prototyping. As we mentioned, the past -- the Rad-Hard still is a bit of a challenge because some of the meetings we still can't have. But the Rad-Tolerant we're still seeing, certainly, traction. there.

Okay. And then there was the issue of actually getting some of these parts into space before some people would look at using them. Where are we on getting a ride? A – Didier Lasserre: Right. Exactly. So that's called heritage. So once you get heritage, which is proving that your parts work in space, it certainly makes our job with most customers very easy. In fact, we've had several customers have said that they're going to wait for heritage before they move forward. Some of the parts that we shipped in, I want to say summer of last year, it was late summer, maybe calendar third quarter. Those were going to be our first parts that can get into space. Those are being put on the satellites being assembled now so we're hoping it's launched sometime this year, and we certainly don't have control when that happens. We are following up with that customer often and right now it's sometime in calendar 2022 that will be in space. If you recall, that was a demo system for possible constellation in the future, but that would give us our first heritage and we're hoping that's this year.

All right, thanks.

[Operator Instruction] Okay, at this time, I'm not seeing any more questions. I'd like to pass it back over to Mr. Shu for closing remarks.

Thank you all for joining us. We look forward to speaking with you again. When we're waiting for our fourth quarter and full-year fiscal 2022 results. Thank you.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation and have a great day.