Riley urges GSI Technology to repurchase shares

By Lisa Kerner

Charlotte, N.C., Sept. 26 - Riley Investment Management and its affiliates asked GSI Technology Inc. to consider a large share repurchase to enhance long-term shareholder value.

The investors, owning over 5% of GSI, made their request in a Sept. 26 letter included as part of a schedule 13D filed with the Securities and Exchange Commission.

"With a compelling product roadmap, significant earnings leverage and robust cash resources now is the time to take advantage of GSI's depressed share price by retiring outstanding shares and benefiting all shareholders," the letter to the GSI board said.

According to Riley, Wall Street has ignored GSI's success.

"We believe that GSI is being inappropriately grouped with commodity memory manufacturers despite its mid 40% gross margins, insignificant inventory write-offs, and consistent profitability," managing member Bryant Riley said.

GSI Technology designs, develops and markets static random access memory (SRAM) products for the networking and telecommunications markets. The company is located in Santa Clara, Calif.

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