SMART Global Holdings(US:SGH)2026-01-06 21:10Financial Performance - Net sales for Q1 fiscal 2026 were $343 million, representing a 1% increase compared to the same quarter last year[5]. - GAAP gross margin decreased to 28.0%, down 70 basis points year-over-year, while non-GAAP gross margin fell to 30.0%, down 80 basis points[5]. - GAAP diluted EPS was $0.04, a decrease from $0.10 in the year-ago quarter, while non-GAAP diluted EPS remained stable at $0.49[5]. - The company expects net sales growth of 6% year-over-year for fiscal 2026, with a margin of +/-10%[8]. - Projected GAAP gross margin for fiscal 2026 is 27% +/- 1%, while non-GAAP gross margin is expected to be 29% +/- 1%[8]. - Operating expenses are forecasted at $307 million +/- $10 million for GAAP, and $250 million +/- $10 million for non-GAAP[8]. - Operating income for Q1 was $19.6 million, compared to $12.4 million in the previous quarter[6]. - Net income attributable to Penguin Solutions for Q1 was $5.3 million, down from $9.4 million in the year-ago quarter[6]. - Non-GAAP operating income was reported at $41.528 million, an increase from $39.170 million in the previous quarter and $40.918 million year-over-year[25]. - The GAAP operating margin for the latest quarter was 5.7%, compared to 3.7% in the previous quarter and 5.1% year-over-year[25]. Segment Performance - Advanced Computing segment net sales were $151.5 million, Integrated Memory segment sales were $136.5 million, and Optimized LED segment sales were $55.1 million in Q1[6]. - Advanced Computing segment sales reached $151.452 million, up from $138.336 million in the previous quarter but down from $177.426 million year-over-year[24]. - Integrated Memory segment sales increased to $136.521 million from $132.159 million quarter-over-quarter and significantly up from $96.706 million year-over-year[24]. Cash Flow and Assets - Net cash provided by operating activities was $31,058,000 for the three months ended November 28, 2025, compared to a net cash used of $70,432,000 in the previous quarter[28]. - Total current assets as of November 28, 2025, were $1,067,014,000, slightly up from $1,064,227,000 as of August 29, 2025[27]. - Cash and cash equivalents increased to $461,451,000 as of November 28, 2025, from $453,754,000 as of August 29, 2025[27]. - Total liabilities decreased to $993,726,000 as of November 28, 2025, from $1,008,973,000 as of August 29, 2025[27]. - Inventories decreased to $213,205,000 as of November 28, 2025, from $255,182,000 as of August 29, 2025[27]. Equity and Earnings - Total stockholders' equity decreased to $401,759,000 as of November 28, 2025, from $405,517,000 as of August 29, 2025[27]. - Non-GAAP net income attributable to Penguin Solutions increased to $32,391,000 for the three months ended November 28, 2025, up from $28,843,000 in the previous quarter[26]. - GAAP net income for the three months ended November 28, 2025, was $5,270,000, compared to $9,431,000 for the previous quarter[26]. - Adjusted EBITDA for the three months ended November 28, 2025, was $45,236,000, compared to $43,419,000 in the previous quarter[26]. Corporate Actions - The company plans to divest its remaining 19% interest in Zilia Technologies for $46.08 million, expected to close by April 28, 2026[3]. - The company completed the redomiciliation from the Cayman Islands to Delaware on June 30, 2025, resulting in a change of its publicly traded parent company[21].