Business Context and Reporting Period
Company: GSI Technology, Inc.
Filing Type: Form 8-K (Current Report)
Reporting Date: August 31, 2011
Event: Entry into a Material Definitive Agreement.
Key Financial Metrics
This filing does not contain financial statements, revenue figures, profit data, cash flow, margins, debt levels, or liquidity metrics. The document focuses exclusively on a contractual agreement.
Material Changes
Agreement with Cisco Systems: On August 31, 2011, GSI Technology entered into substantially identical Master Purchase Agreements with Cisco Systems, Inc. and Cisco Systems International B.V. (collectively "Cisco").
- Customer Relationship: Cisco is identified as the Company's largest end customer, though most sales are made indirectly through consignment warehouses and contract manufacturers.
- Operational Shift: Historically, sales were conducted via individual purchase orders. The new Agreements establish standardized terms for orders, delivery, acceptance, payment, rescheduling, warranties, and indemnification.
- Commitment Level: The Agreements do not include firm commitments for the purchase or sale of products.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, future outlook, or specific risk factors beyond the standard terms of the new agreements. No unusual items or contingencies are disclosed in this report.
Investor Verification Checklist
- Verify the specific payment terms and warranty provisions detailed in the Master Purchase Agreements.
- Confirm the proportion of total revenue derived from Cisco to assess concentration risk.
- Monitor future 10-Q or 10-K filings for the impact of these standardized terms on gross margins and working capital cycles.
- Check for any subsequent amendments to the agreement that might introduce volume commitments.