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SMART Global Holdings(SGH) - 2024 Q3 - Quarterly Results
SGHSMART Global Holdings(SGH)2024-07-09 20:09

Financial Performance - Total net sales for Q3 FY24 were 300.6million,representinga5.5300.6 million, representing a 5.5% increase compared to the prior quarter[5]. - GAAP gross margin improved to 29.6% from 28.8% in the previous quarter, while non-GAAP gross margin increased to 32.3% from 31.5%[5]. - GAAP EPS for Q3 FY24 was 0.10, a significant recovery from (0.26)inthepriorquarter,whilenon−GAAPEPSrose37(0.26) in the prior quarter, while non-GAAP EPS rose 37% to 0.37 from 0.27[5].−TotalnetsalesforthethreemonthsendedMay31,2024,were0.27[5]. - Total net sales for the three months ended May 31, 2024, were 300.58 million, a decrease of 12.7% compared to 344.42millionforthesameperiodin2023[18].−GrossprofitforthethreemonthsendedMay31,2024,was344.42 million for the same period in 2023[18]. - Gross profit for the three months ended May 31, 2024, was 88.91 million, resulting in a gross margin of 29.6%, compared to 29.2% in the same period last year[19]. - Operating income for the three months ended May 31, 2024, was 11.51million,asignificantimprovementfromanoperatinglossof11.51 million, a significant improvement from an operating loss of 2.39 million in the same period of 2023[18]. - Net income attributable to SMART Global Holdings for the three months ended May 31, 2024, was 5.62million,comparedtoanetlossof5.62 million, compared to a net loss of 24.46 million in the same period last year[18]. - Non-GAAP gross profit for the three months ended May 31, 2024, was 96.96million,withanon−GAAPgrossmarginof32.396.96 million, with a non-GAAP gross margin of 32.3%[19]. - The company reported a basic earnings per share of 0.11 for the three months ended May 31, 2024, compared to a loss of 0.50pershareinthesameperiodof2023[18].−GAAPnetincomeforthethreemonthsendedMay31,2024,was0.50 per share in the same period of 2023[18]. - GAAP net income for the three months ended May 31, 2024, was 5.616 million, a significant improvement from a loss of 13.620millioninthepreviousquarter[20].−Non−GAAPnetincomefortheninemonthsendedMay31,2024,was13.620 million in the previous quarter[20]. - Non-GAAP net income for the nine months ended May 31, 2024, was 46.900 million, compared to 109.275millionforthesameperiodin2023,reflectingadecreaseofapproximately57109.275 million for the same period in 2023, reflecting a decrease of approximately 57%[20]. Future Projections - The company expects Q4 FY24 net sales to be approximately 325 million, with a variance of +/- 25million[6].−ProjectedgrossmarginforQ4FY24is29.525 million[6]. - Projected gross margin for Q4 FY24 is 29.5% +/- 1.5% for GAAP and 31.5% +/- 1.5% for non-GAAP[6]. - Operating expenses for Q4 FY24 are anticipated to be around 81 million +/- 2millionforGAAPand2 million for GAAP and 66 million +/- 2millionfornon−GAAP[6].−DilutedEPSguidanceforQ4FY24is2 million for non-GAAP[6]. - Diluted EPS guidance for Q4 FY24 is 0.03 +/- 0.15forGAAPand0.15 for GAAP and 0.40 +/- 0.15fornon−GAAP[6].−Thecompanyexpectscontinuedfocusonmarketexpansionandnewproductdevelopmenttodrivefuturegrowth[19].CompanyStrategy−Thecompanyisfocusedontransformingintoahigh−performanceenterprisesolutionsprovider,particularlyinAIdeployment[2].−Thecompanyiscommittedtostrategicinvestmentsinnewproductsandtechnologiestoenhanceitsmarketposition[10].SegmentPerformance−MemorySolutionssegmentreportednetsalesof0.15 for non-GAAP[6]. - The company expects continued focus on market expansion and new product development to drive future growth[19]. Company Strategy - The company is focused on transforming into a high-performance enterprise solutions provider, particularly in AI deployment[2]. - The company is committed to strategic investments in new products and technologies to enhance its market position[10]. Segment Performance - Memory Solutions segment reported net sales of 91.6 million, while Intelligent Platform Solutions generated 145.0millioninsalesforQ3FY24[3].BalanceSheetHighlights−TotalassetsasofMay31,2024,increasedto145.0 million in sales for Q3 FY24[3]. Balance Sheet Highlights - Total assets as of May 31, 2024, increased to 1.546 billion from 1.506billionasofAugust25,2023,representingagrowthofabout2.61.506 billion as of August 25, 2023, representing a growth of about 2.6%[21]. - Cash and cash equivalents rose to 453.791 million, up from 365.563million,indicatinganincreaseofapproximately24365.563 million, indicating an increase of approximately 24%[21]. - Total liabilities decreased to 1.116 billion from 1.277billion,showingareductionofabout12.61.277 billion, showing a reduction of about 12.6%[21]. - Total SGH shareholders' equity increased to 423.449 million from 222.475million,representingasubstantialgrowthofapproximately90.4222.475 million, representing a substantial growth of approximately 90.4%[21]. Cash Flow and Expenses - The company generated 79,881,000 in net cash from operating activities from continuing operations for the three months ended May 31, 2024, compared to a cash outflow of 21,917,000inthepreviousquarter[22].−SMARTGlobalHoldingsincurredcapitalexpendituresof21,917,000 in the previous quarter[22]. - SMART Global Holdings incurred capital expenditures of 3,777,000 for the three months ended May 31, 2024, down from 5,204,000inthepreviousquarter[23].−Thecompanyrepaid5,204,000 in the previous quarter[23]. - The company repaid 75,000,000 in debt during the three months ended May 31, 2024, compared to 37,211,000inthepreviousquarter[23].−Thenetcashusedforfinancingactivitiesfromcontinuingoperationswas37,211,000 in the previous quarter[23]. - The net cash used for financing activities from continuing operations was 73,313,000 for the three months ended May 31, 2024, compared to 60,152,000inthepreviousquarter[23].−Thecompanyreportedadepreciationexpenseof60,152,000 in the previous quarter[23]. - The company reported a depreciation expense of 15,525,000 for the three months ended May 31, 2024, compared to 17,156,000inthepreviousquarter[22].−Thecompanyreportedanetcashprovidedbyinvestingactivitiesof17,156,000 in the previous quarter[22]. - The company reported a net cash provided by investing activities of 5,071,000 for the three months ended May 31, 2024, compared to a cash outflow of $4,506,000 in the previous quarter[23].