Penguin Solutions, Inc.(PENG) - 2025 Q2 - Quarterly Report

Financial Performance - Total net sales for the three months ended February 28, 2025, reached $365.5 million, a 28.3$284.8 million in the same period last year[13] - Gross profit for the six months ended February 28, 2025, was $202.5 million, compared to$164.8 million for the same period in 2024, reflecting a 22.8% increase[13] - Operating income for the three months ended February 28, 2025, was $18.5 million, a significant recovery from an operating loss of$3.3 million in the prior year[13] - Net income attributable to Penguin Solutions for the three months ended February 28, 2025, was $8.1 million, compared to a net loss of$13.6 million in the same period last year[13] - The comprehensive income attributable to Penguin Solutions for the six months ended February 28, 2025, was $13,306,000, compared to$172,529,000 for the same period in 2024, indicating a decrease of about 92%[14] - Basic earnings per share for continuing operations for the three months ended February 28, 2025, was $0.09, compared to a loss of$(0.26) for the same period in 2024[93] Cash and Assets - Cash and cash equivalents increased to $621.7 million as of February 28, 2025, up from$383.1 million as of August 30, 2024[12] - Total assets grew to $1.81 billion as of February 28, 2025, compared to$1.47 billion as of August 30, 2024, marking a 22.8% increase[12] - The company reported long-term debt of $638.900 million as of February 28, 2025, compared to$657.347 million as of August 30, 2024[49] - As of February 28, 2025, cash and cash equivalents were $596.5 million, with short-term investments totaling$25.3 million[41] Liabilities and Equity - The company reported a total current liabilities of $473.7 million as of February 28, 2025, compared to$327.6 million as of August 30, 2024, indicating a 44.5% increase[12] - The total shareholders' equity as of February 28, 2025, was $602,528,000, reflecting an increase from$399,208,000 as of August 30, 2024, which is an increase of approximately 51%[15] - Total liabilities increased to $1.20 billion, up from$1.08 billion in the previous reporting period[12] Research and Development - Research and development expenses for the three months ended February 28, 2025, were $19.9 million, slightly down from$20.5 million in the same period last year[13] - Research and development expenses for the six months ended February 28, 2025, totaled $39,718,000, slightly down from$41,915,000 in the same period of 2024[13] Share Repurchase and Dividends - The company issued 553 shares under equity plans, resulting in an increase of $382,000 in additional paid-in capital[16] - Penguin Solutions repurchased shares worth$6,472,000 during the reporting period, contributing to a reduction in treasury shares[15] - The company declared and paid preferred cash dividends of $2.2 million in the second quarter of 2025, with accrued preferred dividends of$0.4 million as of February 28, 2025[63] Segment Performance - Advanced Computing segment sales increased to $200.2 million, up 41.5$141.4 million year-over-year[95] - Integrated Memory segment sales rose to $105.3 million, a 26.4$83.3 million in the prior year[95] - Total segment operating income for the three months was $49.1 million, compared to$26.5 million in the same period last year, reflecting an increase of 85.2%[95] Future Outlook - The company anticipates continued growth in revenues driven by new product launches and market expansion initiatives[6] - The company anticipates continued growth in the Advanced Computing and Integrated Memory segments, driven by demand in AI and high-performance computing markets[96] - The company plans to continue focusing on advanced computing solutions across multiple markets, including financial services and healthcare, to drive future growth[96] Impairments and Restructuring - The company incurred an impairment of goodwill of $6,079,000 during the three months ended February 28, 2025[13] - Restructuring charges recorded in the first six months of 2025 amounted to$1.0 million, compared to $6.3 million in the same period of 2024[84] - The company anticipates recording additional restructuring charges in future quarters[84] Tax and Other Expenses - The effective tax rate for the second quarter of 2025 was 46.3$4.6 million, compared to $3.3 million for the same period in 2024, reflecting a year-over-year increase of 40.4%[52]