TOP CONTRIBUTORS

Kyle Klinkens

GSIT AT A GLANCE

P/E ► 13.1 VERY LOW EV/EBITDA ► 9.31 LOW ROA ► 7.3% HIGH ROE ► 8.3% AVG Debt to Equity ► 0.143 LOW Current Ratio ► 5.16 AVG

 

 

 

 

 

 

GSI Technology designs and manufactures high-speed, low-power Static Random Access Memory (SRAM). The majority of the company's sales come from the telecommunications and networking industries (70%-80% of annual sales come from Cisco). It was founded in San Jose, California in 1995 and went public on March 29, 2007 at $5.50 per share.

SRAM is an integral component in modern data devices such as cell phones and other consumer electronics, networking equipment such as routers and switches, as well as other telecommunications hardware.

Q2 2007 (APR-JUN 07) saw GSI's earnings cut in half due to lower than expected sales. Cicso's lean manufacturing initiative caused a decline in demand as it and its manufacturers continued to burn off inventory. The networking and telecommunications industries are also highly cyclical, leading to large swings in demand and sector growth.

Being so tightly coupled to Cisco, watch for an upswing in GSIT if Google's bid for the 700Mhz wireless spectrum pans out. Nationwide development of Google's wireless ISP business would require a vast amount of networking hardware and create strong demand for GSIT's products.

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