Revenue and Sales Performance - Revenue for Q1 FY25 reached $341 million, representing a 24.4% increase compared to Q1 FY24[5] - Advanced Computing revenue grew by 49% year-over-year, contributing significantly to overall sales growth[2] - Total net sales for the three months ended November 29, 2024, reached $341,102 thousand, a 9.5% increase from $311,148 thousand in the previous quarter and a 24.3% increase from $274,247 thousand in the same period last year[18] Profitability and Earnings - GAAP gross margin was 28.7%, a decrease of 150 basis points from the previous year[5] - Non-GAAP diluted earnings per share (EPS) improved to $0.49, up from $0.24 in the year-ago quarter[5] - The company reported a net income of $5.2 million for Q1 FY25, a recovery from a net loss of $24.5 million in Q1 FY24[3] - Operating income increased significantly to $17,356 thousand compared to $8,791 thousand in the previous quarter and $1,305 thousand in the same period last year[18] - Non-GAAP net income attributable to Penguin Solutions was $26,518 thousand for the three months ended November 29, 2024, compared to $20,007 thousand in the previous quarter and $12,538 thousand in the same period last year[20] - Net income from continuing operations for the three months ended November 29, 2024, was $5,964,000, a significant improvement compared to a net loss of $23,792,000 for the previous quarter[22] Financial Outlook and Projections - The company projects a 15% year-over-year growth in net sales for fiscal year 2025, with a margin of +/- 5%[6] - Non-GAAP gross margin outlook for FY25 is set at 32% +/- 1%[6] - Operating expenses are expected to be around $275 million +/- $15 million for FY25[6] Cash Flow and Assets - Cash provided by operating activities from continuing operations was $13,819,000, compared to a cash used of $12,156,000 in the previous quarter[22] - Total assets increased to $1,583,015 thousand as of November 29, 2024, compared to $1,474,506 thousand as of August 30, 2024[21] - Cash and cash equivalents decreased to $370,295 thousand from $383,147 thousand in the previous quarter[21] - Total cash, cash equivalents, and restricted cash at the end of the period was $370,611,000, down from $383,477,000 at the end of the previous quarter[23] Liabilities and Expenses - Total current liabilities rose to $426,886 thousand from $327,596 thousand in the previous quarter, primarily due to an increase in accounts payable and accrued expenses[21] - Accounts receivable increased to $275,629 thousand, up from $251,743 thousand in the previous quarter[21] - Accounts receivable decreased by $23,885,000 during the quarter, while accounts payable and accrued expenses increased by $97,471,000[22] - The company reported a depreciation expense and amortization of intangible assets of $14,961,000 for the three months ended November 29, 2024[22] Capital Expenditures and Financing Activities - Capital expenditures for the three months ended November 29, 2024, were $1,836,000, a decrease from $5,795,000 in the previous quarter[23] - Net cash used for financing activities from continuing operations was $7,763,000, compared to $49,880,000 in the previous quarter[23] - Payments to acquire ordinary shares amounted to $11,123,000, compared to $3,318,000 in the previous quarter[23] - The company had no repayments of debt during the three months ended November 29, 2024, following a repayment of $224,703,000 in the previous quarter[23] Strategic Initiatives - Penguin Solutions continues to focus on supporting customers with AI infrastructure implementation as part of its strategic initiatives[2] - The company will hold a conference call to discuss Q1 FY25 results on January 8, 2025[8]
Penguin Solutions, Inc.(PENG) - 2025 Q1 - Quarterly Results