GSI Technology (NASDAQ: GSIT) reported Q1 EPS of ($0.04), $0.01 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $14 million versus the consensus estimate of $13.5 million.

GSI Technology sees Q2 2016 revenue of $13.5-14.5 million.

Lee-Lean Shu, Chairman and Chief Executive Officer, noted, "Our net revenues came in at the high end of the range of guidance that we had provided earlier in the first quarter, and -- as in the prior quarter -- our gross margin came in well above our guidance and well above our operating model at 52.0%, fueled by a continuing very favorable mix of higher margin products. However, as in prior quarters, we continued to see slowness in the telecommunications and networking markets and continued weak sales in Asia. Also, we again incurred substantial litigation-related expenses during the quarter, as our patent infringement litigation and antitrust lawsuit against Cypress continued throughout most of the quarter, and discovery ramped up in an unrelated commercial and trade secret case in which we are the plaintiff. Excluding the impact of litigation-related expenses, our bottom line for the first quarter would have been net income of $1.6 million rather than a $900,000 net loss. Looking forward to the remainder of fiscal 2016, we expect to maintain our leadership position in the high speed SRAM segment, and we look forward to expanding into the low-latency DRAM space as shipments of our LLDRAMs increase throughout the year. Our protracted litigation with Cypress was settled in May, so we will no longer be incurring expenses related to those cases. However, we expect that legal expenses related to the pending commercial and trade secret litigation will be substantial over the next two quarters as activity ramps up in anticipation of trial, currently scheduled for October 2015."

For earnings history and earnings-related data on GSI Technology (GSIT) click here.