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GSI Technology, Inc. (Nasdaq: GSIT) reported net income of $1.1 million, or $0.04 per diluted share, on net revenues of $16.0 million for its second fiscal quarter ended September 30, 2012, compared to net income of $1.7 million, or $0.06 per diluted share, on net revenues of $20.8 million in the comparable period a year ago. In the prior quarter ended June 30, 2012, the Company earned $920,000, or $0.03 per diluted share, on net revenues of $16.8 million.
For the six months ended September 30, 2012, net income was $2.1 million, or $0.07 per diluted share, on net revenues of $32.8 million, compared to net income of $4.9 million, or $0.16 per diluted share, on net revenues of $43.8 million in the first six months of fiscal 2012. Gross margin was 42.6% compared to 43.9% in the comparable period of fiscal 2012.
“Second-quarter net revenues, which came in at the low end of our July forecast, again reflected softness in orders from our top three customers, each of which does business in Europe, where ongoing economic turmoil has adversely affected capital spending for network equipment manufactured by our customers. Although difficult to quantify, we believe that second quarter revenues, like net revenues in previous quarters, also were adversely affected by uncertainty surrounding our pending patent litigation with Cypress Semiconductor Corp.,” said Lee-Lean Shu, Chairman and Chief Executive Officer. “On the other hand, gross margin of 45.0% — compared to 43.6% a year ago and 40.3% in the prior quarter — was at the top end of our target range and considerably better than what we had forecasted three months ago, primarily due to an unexpected shift in product mix to a greater percentage of higher-ASP, higher-margin products. This improvement should not be viewed as a trend for, as we've noted in the past, product mix fluctuates significantly and is difficult to predict on a quarter-to-quarter basis.”