August 31, 2009 (FinancialWire) — GSI Technology, Inc. (NASDAQ: GSIT) (Current Market Cap: $103.70 Mil.) a provider of static random access memory, or SRAM, products used in networking and telecommunications equipment, said it has purchased Sony Electronics Inc.’s SRAM product line for around $5.2 million in cash.

The company said it will make a further cash payment to Sony of around $1.7 million following a post-closing adjustment to reflect actual product inventory on hand at closing.

GSI will also make future cash payments based on the sale of certain acquired SRAM products over an eight quarter period. The company said that the acquisition will not have a significant impact on its total revenues or, except for adjustments required by purchase accounting rules, on its operating results for the second fiscal quarter ending September 30.

The company said it believes that the new product line will generate additional revenues of around $1 million in the third quarter ending December 31, 2009 and expects that the new product line should generate quarterly revenues of around $2 million by the quarter ending September 30, 2010.

Santa Clara, California-based GSI also said it expects that, after a transition period of one to two quarters, gross profit margins comparable to GSI’s overall gross margins will be achieved.

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