Financial Highlights - SGH's Q3 FY23 revenue reached $383 million, exceeding the guidance midpoint of $375 million +/- $20 million[10, 24] - Non-GAAP gross margin was 28%, a 230 basis point increase compared to the year-ago quarter[14] - Non-GAAP EPS was $0.66, surpassing the Q3 FY23 guidance range of $0.30 - $0.50[10, 14] - Cash and cash equivalents totaled $401 million, a 7% increase compared to Q2 FY23[10] - Cash flow from operating activities totaled $41 million[10] Segment Performance - Intelligent Platform Solutions revenue was $171 million, accounting for 45% of total SGH revenue, up 31% compared to Q3 FY22 excluding Stratus Technologies[16, 27] - Memory Solutions revenue was $148 million, representing 39% of total SGH revenue, relatively flat sequentially[18, 27] - LED Solutions revenue was $64 million, contributing 17% of total SGH revenue, a 15% sequential increase[21, 27] Strategic Initiatives - SGH announced an agreement to divest an 81% interest in its Brazil operations, aligning with the strategy to focus on high-performance solutions[18] - The divestiture of SMART Modular Brazil is expected to be immediately accretive to non-GAAP gross margins by approximately 200+ basis points and neutral to slightly positive to non-GAAP EPS[35] - The up-front cash payment for selling 81% interest is approximately $138 million, based on an enterprise value of $205 million[33, 35] Q4 FY23 Guidance (Non-GAAP) - Net sales are expected to be $375 million +/- $25 million[40] - Gross margin is projected at 28% +/- 1%[40] - Operating expenses are anticipated to be $71 million +/- $2 million[40] - Diluted earnings per share are forecasted at $0.45 +/- $0.15[40]

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 ...

Financial Data and Key Metrics Changes - The company achieved record non-GAAP gross margins of 28.9% and non-GAAP earnings per share of $0.76, exceeding the high end of guidance on sales of $429 million [15][39] - Cash flow from operations exceeded $100 million in the quarter, with a strong balance sheet including $376 million in cash and cash equivalents [15][43] - Non-GAAP operating expenses for Q2 were $72.5 million, down from $74.4 million in the previous quarter [24] Business Line Data and Key Metrics Changes - IPS sales reached a record $222 million, representing 52% of total sales, more than doubling compared to the same quarter last year [16][40] - Memory Solutions Group sales were $151 million, accounting for 35% of total sales, with a sequential decline attributed to lower worldwide memory pricing and reduced demand for PCs and mobile phones [9][40] - LED Solutions Group sales totaled $56 million, or 13% of overall sales, facing challenges due to soft demand and customers reducing inventory levels [55][40] Market Data and Key Metrics Changes - The Brazil Memory Business is stabilizing, with expectations for growth driven by solid-state drives, 5G, and DDR5 applications [10] - The company noted ongoing macroeconomic headwinds affecting demand across various segments, particularly in the LED market [55] Company Strategy and Development Direction - The company is focused on long-term growth tied to trends in AI, machine learning, data analytics, 5G, enterprise storage, and specialty lighting [5][59] - The integration of Stratus Technologies is expected to enhance service offerings and improve revenue stability [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the memory business, citing steps taken by larger suppliers to balance supply and demand [21][65] - The company is navigating a challenging environment while continuing to invest in long-term growth [62] Other Important Information - The company repurchased 677,000 shares for $11 million during the quarter, with a total of approximately $58 million spent under the share repurchase authorization since April 2022 [44] - Inventory decreased to $294 million at the end of Q2, down from $416 million in the prior quarter, driven by higher IPS shipments [42] Q&A Session Summary Question: Can you provide details on the stabilization of memory solutions? - Management indicated that both specialty memory and Brazil memory are stabilizing, with a bottoming out of pricing and demand appearing to stabilize [60][78] Question: What is the visibility for the IPS business beyond Q3? - Management noted that they are building backlog towards the end of the fiscal year, with optimism about growth markets such as AI and machine learning [66][67] Question: How is the services mix expected to change in the back half of the year? - Management expects the services portion to be similar to Q2 levels, potentially slightly higher, driven by a strong services component within IPS [93][95] Question: What are the demand signals in the LED business, particularly in China? - Management noted a combination of improved channel behavior and direct customer demand signals, providing encouragement for Q3 visibility [105] Question: Can you elaborate on the channel inventory for the memory business? - Management clarified that they have limited channel exposure in the memory business, primarily selling directly to OEMs and contract manufacturers [106]

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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 26, 2022 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 jurisdiction of ...

SMART Global Holdings, Inc. (NASDAQ:SGH) Q4 2022 Earnings Conference Call October 10, 2022 4:30 PM ET Company Participants Suzanne Schmidt - Head of IR Mark Adams - CEO Ken Rizvi - CFO Conference Call Participants Brian Chin - Stifel Tom O'Malley - Barclays Raji Gill - Needham & Company Sidney Ho - Deutsche Bank Kevin Cassidy - Rosenblatt Securities Presentation Operator Good afternoon, everyone. Welcome to the SGH Fourth Quarter Fiscal 2022 Earnings Call. My name is Don Tan, I'll be your operator for today ...

FOURTH QUARTER AND FULL YEAR FY22 SGH FINANCIAL RESULTS October 4, 2022 SGHI © 2022 SGH | 1 Disclaimer This presentation and oral communications made during the course of this presentation will contain "forward-looking statements," including, among other things, statements regarding future events and the future financial performance of SGH (including the business outlook for the next fiscal quarter) and statements regarding growth drivers in SGH's industries and markets. These forward-looking statements are ...

Financial Performance - For the three months ended May 27, 2022, net sales increased to $462.54 million, up from $437.73 million in the same period last year, representing a growth of 5.9%[18] - Gross profit for the three months ended May 27, 2022, was $114.46 million, compared to $84.49 million for the same period in 2021, reflecting a significant increase of 35.4%[18] - Operating income for the three months ended May 27, 2022, rose to $35.31 million, compared to $2.89 million in the prior year, indicating a substantial improvement[18] - Net income attributable to SGH for the three months ended May 27, 2022, was $24.11 million, a turnaround from a net loss of $7.21 million in the same quarter of 2021[18] - The company reported a basic earnings per share of $0.48 for the three months ended May 27, 2022, compared to a loss per share of $0.15 in the prior year[18] - Comprehensive income attributable to SGH for the three months ended May 27, 2022, was $42.92 million, compared to a loss of $4.64 million in the same quarter of 2021[21] - Net income for the nine months ended May 27, 2022, was $48,165 thousand, a significant increase from $1,217 thousand in the same period of 2021[29] Assets and Liabilities - Total current assets increased to $1.17 billion as of May 27, 2022, from $950.82 million as of August 27, 2021, marking a growth of 23.0%[15] - Total liabilities rose to $1.15 billion as of May 27, 2022, compared to $1.03 billion as of August 27, 2021, reflecting an increase of 12.5%[15] - Total assets as of May 27, 2022, increased to $1.55 billion, up from $1.34 billion as of August 27, 2021, representing a growth of 15.6%[15] - The company reported total equity of $399,069,000 as of May 27, 2022, an increase from $392,602,000 as of the previous period[24] Cash Flow and Investments - Cash flows from operating activities provided $84,025 thousand, compared to $105,328 thousand in the prior year, indicating a decrease of approximately 20.2%[29] - The company reported a net cash increase of $164,340 thousand, up from $38,181 thousand in the previous year, reflecting a growth of 329.5%[29] - Cash and cash equivalents increased to $387.33 million as of May 27, 2022, from $222.99 million as of August 27, 2021, marking an increase of 73.5%[15] - The company reported capital expenditures of $29,298,000 for the nine months ended May 27, 2022, down from $40,017,000 in the same period of 2021, reflecting a reduction of about 26.5%[29] Research and Development - The company invested $20.30 million in research and development for the three months ended May 27, 2022, up from $16.72 million in the same period last year, an increase of 21.0%[18] - Research and development expenses rose by $3.6 million, or 21.4%, in Q3 2022, and by $24.2 million, or 74.4%, for the first nine months of 2022 compared to the same period in the prior year[149] Shareholder Activities - The company issued 1,243 shares under equity plans, resulting in an increase of $4,389,000 in additional paid-in capital[24] - SMART Global Holdings repurchased ordinary shares amounting to $(13,905,000) during the period ending May 27, 2022[24] - The company reported a treasury stock value of $(67,345,000) as of May 27, 2022, reflecting ongoing share repurchase activities[24] Acquisitions and Future Plans - The acquisition of Stratus Technologies is expected to close by the end of calendar year 2022, with a cash purchase price of $225 million and potential contingent consideration of up to $50 million based on performance[34][36] - The acquisition of the LED Business from Cree, Inc. was completed for a total consideration of $72.4 million in cash and a promissory note of $125 million, with potential earn-out payments based on performance[130][131] Segment Performance - Memory Solutions segment reported net sales of $265.85 million for the three months ended May 27, 2022, an increase of 10.5% from $240.12 million in the same period of 2021[124] - Intelligent Platform Solutions segment achieved net sales of $95.35 million for the three months ended May 27, 2022, slightly down from $95.86 million in the prior year[124] - LED Solutions segment generated net sales of $101.35 million for the three months ended May 27, 2022, consistent with $101.76 million in the same period of 2021[124] Economic and Market Conditions - The global semiconductor shortage has adversely affected the company's operating results, highlighting the risks associated with reliance on third-party suppliers[137] - The company anticipates that macro-economic factors, including the COVID-19 pandemic, may impact demand across its business segments, particularly in Brazil[134] Accounting and Compliance - The company adopted several accounting standards in 2022, including ASU 2021-08, which had no significant impact on financial statements[37] - A share dividend was declared on January 3, 2022, with one ordinary share for every one outstanding ordinary share, impacting the financial statements accordingly[36]