SMART Global Holdings(SGH) - 2024 Q4 - Annual Results

Financial Performance - Net sales for fiscal year 2024 were $1.2 billion, down from $1.4 billion in fiscal year 2023[3] - Q4 FY24 net sales were $311 million, down 1.7% compared to the year-ago quarter[3] - Penguin Solutions reported total net sales of $1,170.8 million for the year ended August 30, 2024, compared to $1,441.3 million in the previous year, representing a decrease of 18.8%[17] - The company's gross profit for the year ended August 30, 2024, was $340.8 million, down from $415.2 million in the previous year, a decline of 17.9%[17] - Operating income for the year ended August 30, 2024, was $18.3 million, compared to $8.7 million in the previous year, an increase of 109.4%[17] - Net loss attributable to Penguin Solutions for the year ended August 30, 2024, was $52.5 million, compared to a net loss of $187.5 million in the previous year, an improvement of 72.0%[17] - Net income (loss) from continuing operations was $(23.792) million for the three months ended August 30, 2024[24] Gross Margin and Profitability - GAAP gross margin for fiscal year 2024 was 29.1%, up 30 basis points from fiscal year 2023[3] - Non-GAAP gross margin for fiscal year 2024 was 31.9%, up 20 basis points from fiscal year 2023[3] - Non-GAAP gross profit for the three months ended August 30, 2024, was $96,007 thousand, compared to $96,962 thousand for the three months ended May 31, 2024[18] - Non-GAAP gross margin for the three months ended August 30, 2024, was 30.9%, compared to 32.3% for the three months ended May 31, 2024[18] Earnings Per Share (EPS) - GAAP EPS for fiscal year 2024 was $(0.85), compared to $0.15 in fiscal year 2023[3] - Non-GAAP EPS for fiscal year 2024 was $1.25, compared to $2.52 in fiscal year 2023[3] - Non-GAAP diluted earnings per share for the three months ended August 30, 2024, was $0.37, compared to $0.37 for the three months ended May 31, 2024[20] Segment Performance - Intelligent Platform Solutions segment net sales for fiscal year 2024 were $554.6 million, down from $749.7 million in fiscal year 2023[4] - Memory Solutions segment net sales for fiscal year 2024 were $356.4 million, down from $443.3 million in fiscal year 2023[4] - LED Solutions segment net sales for fiscal year 2024 were $259.8 million, up from $248.3 million in fiscal year 2023[4] - Penguin Solutions' Intelligent Platform Solutions segment generated $554.6 million in net sales for the year ended August 30, 2024, a decrease of 26.0% compared to the previous year[17] - The Memory Solutions segment reported net sales of $356.4 million for the year ended August 30, 2024, down 19.6% from the previous year[17] - The LED Solutions segment generated $259.8 million in net sales for the year ended August 30, 2024, an increase of 4.6% compared to the previous year[17] Expenses - Research and development expenses for the year ended August 30, 2024, were $81.5 million, down 10.0% from the previous year[17] - Selling, general and administrative expenses for the year ended August 30, 2024, were $233.9 million, a decrease of 10.3% compared to the previous year[17] - Share-based compensation expense for the three months ended August 30, 2024, was $10,359 thousand, compared to $11,192 thousand for the three months ended May 31, 2024[22] - Amortization of acquisition-related intangibles for the three months ended August 30, 2024, was $9,747 thousand, compared to $9,766 thousand for the three months ended May 31, 2024[22] - Restructure charge for the three months ended August 30, 2024, was $325 thousand, compared to $465 thousand for the three months ended May 31, 2024[22] - Depreciation and amortization expenses totaled $15.381 million for the three months ended August 30, 2024[24] Cash Flow and Liquidity - Cash and cash equivalents increased to $383.147 million in 2024 from $365.563 million in 2023[23] - Accounts receivable, net rose to $251.743 million in 2024 from $219.247 million in 2023[23] - Inventories decreased to $151.213 million in 2024 from $174.977 million in 2023[23] - Total current liabilities dropped to $327.596 million in 2024 from $426.250 million in 2023[23] - Long-term debt reduced to $657.347 million in 2024 from $754.820 million in 2023[23] - Net cash used for operating activities was $(12.156) million for the three months ended August 30, 2024[24] - Capital expenditures and deposits on equipment amounted to $(5.795) million for the three months ended August 30, 2024[24] - Net cash used for financing activities from continuing operations was $49.88 million for the period ending August 30, 2024, compared to $73.31 million for the previous quarter[25] - Total repayments of debt amounted to $224.7 million for the period ending August 30, 2024, a significant increase from $7.21 million in the same period last year[25] - Proceeds from debt issuance were $192.69 million for the period ending August 30, 2024, compared to $0 in the previous quarter[25] - Net cash decrease in cash, cash equivalents, and restricted cash was $70.31 million for the period ending August 30, 2024, compared to a net increase of $11.46 million in the previous quarter[25] - Cash, cash equivalents, and restricted cash at the end of the period were $383.48 million, down from $453.79 million at the beginning of the period[25] - Payments to acquire ordinary shares totaled $3.32 million for the period ending August 30, 2024, compared to $2.13 million in the previous quarter[25] - Proceeds from issuance of ordinary shares were $1.75 million for the period ending August 30, 2024, down from $3.82 million in the previous quarter[25] - Net cash provided by financing activities from discontinued operations was $0 for the period ending August 30, 2024, compared to a net use of $0.43 million in the same period last year[25] - Effect of changes in currency exchange rates was $0 for the period ending August 30, 2024, compared to a negative impact of $0.08 million in the previous quarter[25] - Cash, cash equivalents, and restricted cash at the beginning of the period were $453.79 million, up from $442.33 million in the previous quarter[25] Outlook and Projections - Fiscal year 2025 net sales outlook is 15% YoY growth +/- 5%, with a GAAP gross margin of 30% +/- 1%[6] - The company's non-GAAP effective tax rate for fiscal 2024 is projected to be 28%, which may be subject to change due to various factors[14] Non-GAAP Metrics - Non-GAAP operating income for the three months ended August 30, 2024, was $33,739 thousand, compared to $33,325 thousand for the three months ended May 31, 2024[18] - Adjusted EBITDA for the three months ended August 30, 2024, was $39,293 thousand, compared to $38,825 thousand for the three months ended May 31, 2024[21] - Non-GAAP net income attributable to Penguin Solutions for the three months ended August 30, 2024, was $20,007 thousand, compared to $20,221 thousand for the three months ended May 31, 2024[22] - GAAP net income (loss) attributable to Penguin Solutions for the three months ended August 30, 2024, was $(24,547) thousand, compared to $5,616 thousand for the three months ended May 31, 2024[22]