Revenue of $86M; 31% of total SGH revenue − Excludes Brazil, which is reflected in discontinued operations Specialty Memory − Pricing stabilizing; customer inventories remain elevated; lead-times low − Increasing activity with customers on new product offerings: • Compute Express Link • Enterprise SSDs with Storage Endurance Tiering • ZefrTM ZDIMM Ultra-high reliability memory modules for Cloud Service Providers − Despite market headwinds, our value-add business model achieved 8% operating margin LED Soluti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 25, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38102 SMART GLOBAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) Cayman Islands 98-1013909 (State or other juri ...

Financial Data and Key Metrics Changes - Total sales for fiscal 2023 reached $1.44 billion, a 3% increase from $1.4 billion in fiscal 2022, driven by strong growth in the IPS segment despite headwinds in memory and LED segments [107] - Non-GAAP gross margins improved to 31.7% in fiscal 2023, up from 29.2% in fiscal 2022, marking a record for the company [77][109] - Non-GAAP diluted earnings per share for fiscal 2023 were $2.52, down from $2.65 in fiscal 2022 [109] Business Line Data and Key Metrics Changes - IPS sales totaled $145 million in Q4, representing 46% of total sales, with services revenue contributing 19% of total revenue [85] - Specialty Memory revenue was $105 million in Q4, accounting for 33% of total sales, remaining flat compared to the previous quarter [90] - LED Solutions generated $66 million in Q4, up 3% sequentially, representing 21% of overall sales [97] Market Data and Key Metrics Changes - The consumer memory market has seen a dramatic decline in demand, impacting sales forecasts for Brazil, which were lower than anticipated [8][10] - Elevated inventory levels among key customers have affected buying patterns in the memory segment, leading to challenges in forecasting [91] Company Strategy and Development Direction - The company is transitioning from a memory module provider to an enterprise solutions company, focusing on high-performance and high-availability solutions [72][74] - The acquisition of Stratus Technologies has expanded the IPS offerings and added significant high-margin recurring services revenue [73] - The divestiture of SMART Brazil is aimed at aligning resources towards developing high-performance enterprise solutions [74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential in AI and advanced computing, indicating a focus on customer engagement and deployment of AI solutions [3][19] - The company anticipates that IPS revenue will be weighted towards the second half of fiscal 2024 due to current visibility challenges [89][66] - Management noted that while memory pricing is stabilizing, demand remains lower than expected, with inventory burn-off expected in the coming quarters [11][39] Other Important Information - The company reported a strong balance sheet with cash and short-term investments totaling $391 million at the end of Q4 [124] - The anticipated completion of the sale of 81% of SMART Brazil operations is expected by the end of calendar 2023 or early 2024 [65][100] Q&A Session Summary Question: What would the top and bottom line results and guidance have looked like if Brazil was included? - Brazil represented $30 million in actual sales for Q4, but sales were lower than anticipated, impacting overall guidance [7][8] Question: What is the outlook for memory and IPS in the upcoming quarters? - Management indicated that memory revenues are expected to be down sequentially due to market softness and inventory levels, while IPS may also see a decline [126][127] Question: Can you provide new targets for long-term gross margin excluding SMART Brazil? - Long-term margin expectations have not been outlined yet, but the company has been running above 30% margin levels recently [42][44] Question: What is the expected impact of CXL on future revenue? - CXL revenue is expected to ramp up more significantly in fiscal 2025 and 2026, with initial products being released this year [45][48]

Financial Data and Key Metrics Changes - Non-GAAP gross margins increased to 28%, up 230 basis points from the year-ago quarter [6] - Non-GAAP diluted earnings per share were $0.66 on sales of $383 million [6][39] - Cash flow from operations was approximately $41 million, with cash and cash equivalents reaching a record $401 million [6][17] Business Line Data and Key Metrics Changes - IPS sales totaled $171 million, representing 45% of total sales, with a 31% increase year-over-year excluding Stratus Technologies [32] - Memory sales were $148 million, with operating margins of approximately 8% [35] - LED Solutions generated $64 million, up 15% sequentially from the previous quarter [11] Market Data and Key Metrics Changes - The LED market is showing signs of recovery, with customer design activity improving [36] - The company expects modest revenue growth in the LED segment for the fourth quarter [37] Company Strategy and Development Direction - The company is focusing on delivering high-performance, high-availability enterprise solutions, particularly in AI and HPC [24][31] - A divestiture of the majority stake in SMART Modular Brazil is aimed at refocusing on enterprise solutions [18] - The company is optimistic about growth opportunities in AI and machine learning over the next three to five years [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging global economic environment but expressed confidence in the company's positioning for future growth [6][24] - The company anticipates that the divestiture will be accretive to non-GAAP gross margins and earnings per share [19] Other Important Information - The company reported a decrease in operating expenses due to cost containment initiatives [15] - Inventory levels decreased to $226 million, driven by reductions in IKEA and memory inventories [16] Q&A Session Summary Question: Growth in IPS business and AI interest - Management noted significant growth in the RFQ funnel, particularly from Tier 2 and Tier 3 cloud providers, and highlighted interest in financial and healthcare sectors [27] Question: AI exposure as a percentage of total revenue - Management indicated difficulty in quantifying AI revenue but estimated exposure to be over $250 million for fiscal '23 [56][70] Question: LED market trends - Management observed improving customer design activity and revenue growth in the LED segment, despite ongoing channel burn [72] Question: Brazil divestiture impact - Management stated the divestiture would be neutral to slightly positive for non-GAAP EPS and highlighted plans for capital allocation post-transaction [78][84] Question: Competitive landscape and advantages - Management emphasized the company's focus on providing customized solutions and the importance of customer relationships over hardware-only sales [66][90]

THIRD QUARTER FY23 SGH FINANCIAL RESULTS JUNE 29, 2023 SGHI Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements concerning or regarding future events and SGH's future f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 26, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38102 SMART GLOBAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) Cayman Islands 98-1013909 (State or other jurisdicti ...

SMART Global Holdings, Inc. (NASDAQ:SGH) Q2 2023 Earnings Conference Call April 5, 2023 4:30 PM ET Company Participants Mark Adams - Chief Executive Officer Jack Pacheco - Chief Operating Officer Ken Rizvi - Chief Financial Officer Suzanne Schmidt - Investor Relations, SMART Global Conference Call Participants Kevin Cassidy - Rosenblatt Brian Chin - Stifel Sidney Ho - Deutsche Bank Nick Doyle - Needham Operator Good afternoon. Thank you for attending today, the SMART Global Holdings Second Quarter Fiscal 20 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 24, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38102 SMART GLOBAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) Cayman Islands 98-1013909 (State or other juris ...

Financial Data and Key Metrics Changes - In Q1 2023, net sales totaled $465 million, with a record non-GAAP gross margin of 27.8%, exceeding guidance [9][83][78] - Non-GAAP diluted earnings per share were $0.79, also above the high end of guidance [9][83] - Inventory increased to $416 million from $323 million in the previous quarter, driven by inventory needed to support expected IPS revenue [11][120] - Cash and cash equivalents decreased to $325 million from $363 million in the prior quarter [120] Business Line Data and Key Metrics Changes - IPS revenue reached a record $211 million, up 46% sequentially and 78% year-over-year, representing 45% of total SGH revenue [5][118] - LED Solutions revenue was $63 million, with expectations for lower revenue in Q2 due to declining demand [7][121] - Memory Solutions Group revenue was $192 million, accounting for 41% of total sales, with a decline attributed to reduced worldwide memory pricing and softening demand [8][118] Market Data and Key Metrics Changes - The LED business faced challenges in China due to COVID-related policies, impacting supply chains and demand in the U.S. and Europe [7] - Demand in the consumer space is expected to remain weak, particularly in Brazil, with further softening anticipated in Q2 [116][121] Company Strategy and Development Direction - The company is focused on diversifying its business model, transitioning from a memory module company to a more diversified set of specialty businesses [66] - There is a commitment to increasing recurring services as a larger component of the solutions offered to customers [85] - The integration of Stratus Technologies into IPS is expected to enhance the portfolio of edge HPC AI and cloud solutions [6][66] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding visibility into demand for the second half of fiscal 2023, citing macroeconomic headwinds [84][37] - The company remains optimistic about long-term demand driven by trends in 5G, AI, and high-performance computing [23][87] - Management is actively monitoring project schedules and customer environments to navigate the current economic landscape [21][61] Other Important Information - The company repurchased 182,000 shares for $2.8 million during the quarter, with a total of approximately $53 million spent under the share repurchase authorization [12] - Non-GAAP operating expenses for Q1 were $74.4 million, up from $61.1 million in the previous quarter [10] Q&A Session Summary Question: Expectations for February quarter margins - Management indicated that margins are expected to be consistent with the previous quarter, with slight declines due to the LED business and service mix [15][16] Question: Revenue mix for first half versus second half - Management suggested a potential revenue mix of 55% in the first half versus 45% in the second half, though visibility remains limited [17][42] Question: Trends in RFQs and service contracts - Management noted stable RFQ processes but highlighted challenges in project implementation visibility [21][44] Question: Impact of pricing challenges in memory space - Management acknowledged pricing challenges in the consumer memory market but noted stability in the specialty memory business [18][126] Question: Contribution of Stratus to revenue - Stratus contributed significantly to service revenue growth, with overall service revenues reaching $75 million, up from $33 million in the prior year [89][138] Question: Future interest expense outlook - Management expects cash net interest expense to be approximately $8 million per quarter, influenced by current SOFR rates [34][114]

Financial Performance - Total net sales for the three months ended November 25, 2022, were $465.5 million, a slight decrease from $469.9 million in the same period of 2021, representing a 0.5% decline[13] - Gross profit for the same period was $118.4 million, down from $122.2 million year-over-year, indicating a decrease of approximately 3.2%[13] - Operating income decreased to $17.6 million from $34.8 million, reflecting a decline of 49.5% compared to the prior year[13] - Net income attributable to SGH for the three months ended November 25, 2022, was $5.0 million, a significant drop from $20.0 million in the same period of 2021, representing a decrease of 75.1%[13] - Net income for the three months ended November 25, 2022, was $5.324 million, a decrease of 74.3% compared to $20.698 million for the same period in 2021[18] - Basic earnings per share for the quarter were $0.10, down from $0.41 in the same quarter of 2021[92] - Total segment operating income for the three months ended November 25, 2022, was $54.8 million, down from $69.2 million in the prior year[95] Expenses and Costs - Research and development expenses increased to $24.1 million, up from $17.7 million, marking a rise of 36.9% year-over-year[13] - The company reported a depreciation expense of $19.789 million for the three months ended November 25, 2022, compared to $15.813 million for the same period in 2021[18] - Share-based compensation expense for the three months ended November 25, 2022, was $10.412 million, slightly up from $9.775 million in the same period of 2021[18] - Share-based compensation expense increased to $10.4 million from $9.8 million year-over-year[79] - The company recorded a restructure charge of $2.0 million in connection with workforce reductions and project eliminations[85] Assets and Liabilities - Total assets as of November 25, 2022, were $1.8 billion, an increase from $1.6 billion as of August 26, 2022, reflecting a growth of 15.0%[12] - Long-term debt rose to $797.0 million from $591.4 million, indicating an increase of 34.8%[12] - Cash and cash equivalents decreased to $324.8 million from $363.1 million as of August 26, 2022[12] - Accounts receivable increased by $129.695 million during the three months ended November 25, 2022, while inventories decreased by $82.882 million[18] - As of November 25, 2022, total inventories amounted to $416.082 million, with raw materials at $179.520 million, work in process at $78.048 million, and finished goods at $158.514 million[35] Acquisitions and Investments - The company completed the acquisition of Stratus Technologies on August 29, 2022, for a cash purchase price of $225 million, with potential contingent consideration of up to $50 million based on performance[25] - The provisional fair value of the net assets acquired from Stratus Technologies is estimated at $263.046 million, with goodwill of $125.929 million assigned to the IPS segment[30] - The fair value of the contingent consideration (Earnout) at the acquisition date was estimated at $20.8 million, based on a Monte Carlo simulation analysis[26] - As of November 25, 2022, the fair value of the Earnout was adjusted to $24.5 million, reflecting updated estimates of Stratus Technologies' gross profit[27] - The company capitalized $126.4 million for intangible assets in the first quarter of 2023, primarily related to the acquisition of Stratus Technologies[40] Cash Flow and Financial Position - Cash flows from operating activities resulted in a net cash outflow of $73.985 million for the three months ended November 25, 2022, compared to a net cash inflow of $15.146 million for the same period in 2021[18] - Total cash, cash equivalents, and restricted cash at the end of the period was $327.621 million, down from $363.065 million at the beginning of the period[18] - The company had receivables for earned but unused financial credits of $19.0 million as of November 25, 2022, which can be utilized through December 2027[68] Market and Economic Conditions - The company anticipates continued challenges due to supply chain disruptions and macroeconomic factors affecting customer demand[7] - The company anticipates continued challenges due to macroeconomic factors, including supply chain disruptions and foreign currency fluctuations[8] Segment Performance - Memory Solutions segment reported net sales of $192.0 million, down 20% from $239.4 million in the prior year[95] - Intelligent Platform Solutions segment saw a significant increase in net sales to $211.0 million, up 78% from $118.7 million in the previous year[95] - LED Solutions segment net sales decreased to $62.5 million, down 44% from $111.9 million in the same quarter last year[95]