Financial 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 decreased to 30.0%, down 80 basis points[5]. - GAAP diluted EPS for Q1 fiscal 2026 was $0.04, compared to $0.10 in the same quarter last year, while non-GAAP diluted EPS remained at $0.49[5]. - Operating income for Q1 fiscal 2026 was $19.6 million, compared to $17.4 million in the same quarter last year[6]. - Net income attributable to Penguin Solutions for Q1 fiscal 2026 was $5.3 million, compared to $5.2 million in the same quarter last year[6]. - Total net sales for the three months ended November 28, 2025, were $343.071 million, a slight increase from $337.922 million in the previous quarter and a decrease from $341.102 million in the same quarter last year[24]. - 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 were $136.521 million, compared to $132.159 million in the previous quarter and significantly up from $96.706 million year-over-year[24]. - Gross profit for the three months ended November 28, 2025, was $96.109 million, resulting in a gross margin of 28.0%[25]. - Operating income increased to $19.582 million from $12.448 million in the previous quarter, reflecting improved operational efficiency[24]. - Net income attributable to Penguin Solutions was $5.270 million, down from $9.431 million in the previous quarter but slightly up from $5.217 million year-over-year[24]. - Non-GAAP operating income for the three months ended November 28, 2025, was $41.528 million, compared to $39.170 million in the previous quarter[25]. - The company reported a GAAP operating margin of 5.7% for the quarter, with a non-GAAP operating margin of 12.1%[25]. - Non-GAAP net income attributable to Penguin Solutions increased to $32,391,000 for the three months ended November 28, 2025, from $28,843,000 in the previous quarter, representing a growth of 5.4%[26]. Future Projections - 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 projected at 29% +/- 1%[8]. - Operating expenses are expected to be $307 million +/- $10 million for fiscal 2026, with non-GAAP operating expenses projected at $250 million +/- $10 million[8]. Corporate Actions - The company has agreed to divest its remaining 19% interest in Zilia Technologies for a purchase price of $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, affecting its corporate structure and stock classification[21]. Balance Sheet Highlights - Total assets decreased to $1,598,195,000 as of November 28, 2025, from $1,617,200,000 as of August 29, 2025[27]. - Cash and cash equivalents increased to $461,451,000 as of November 28, 2025, compared to $453,754,000 as of August 29, 2025[27]. - 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]. - Accounts receivable increased to $326,892,000 as of November 28, 2025, from $307,904,000 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]. - Total current liabilities decreased to $458,110,000 as of November 28, 2025, from $473,899,000 as of August 29, 2025[27]. Research and Development - Research and development expenses were $18.693 million, a decrease from $19.861 million in the previous quarter[24].
Penguin Solutions, Inc.(PENG) - 2026 Q1 - Quarterly Results