How did GSIT's Q3 2025 EPS surprise investors?

GSI Technology Inc.'s (GSIT) Q3 2025 EPS did not surprise investors as the company reported a net loss improvement to $0.16 per diluted share, which is a positive indicator despite being in the red. Here are the details:

1. **Revenue Growth**: The company showcased a 2% year-over-year increase in revenue, reaching $5.4 million for Q3 fiscal 2025. This growth is particularly notable as it marks a 19% sequential increase from the previous quarter.
2. **Gross Margin Improvement**: GSI Technology reported a gross margin of 54% for Q3 fiscal 2025, which is a significant improvement compared to the 38.6% gross margin in the preceding quarter. However, it is slightly lower than the 55.9% gross margin recorded in Q3 fiscal 2024.
3. **Operating Expenses Reduction**: The company's operating expenses decreased to $7 million in Q3 fiscal 2025, down from $9 million in the previous corresponding period. This reduction in expenses could have contributed to the net loss improvement.
4. **Strategic Developments**: GSI Technology has been actively pursuing strategic developments, particularly in the defense and AI sectors. These advancements are likely playing a role in the company's revenue growth and improved financial metrics.

Overall, while GSIT's Q3 2025 EPS did not indicate a surprise in the traditional sense, the company's revenue growth, improved gross margin, reduced operating expenses, and strategic developments suggest a positive outlook for the company.