SMART Global Holdings(US:SGH)2023-06-29 22:02Financial Highlights - SGH's Q3 FY23 revenue reached $383 million, exceeding the guidance midpoint of $375 million +/- $20 million[10, 24] - Non-GAAP gross margin was 28%, a 230 basis point increase compared to the year-ago quarter[14] - Non-GAAP EPS was $0.66, surpassing the Q3 FY23 guidance range of $0.30 - $0.50[10, 14] - Cash and cash equivalents totaled $401 million, a 7% increase compared to Q2 FY23[10] - Cash flow from operating activities totaled $41 million[10] Segment Performance - Intelligent Platform Solutions revenue was $171 million, accounting for 45% of total SGH revenue, up 31% compared to Q3 FY22 excluding Stratus Technologies[16, 27] - Memory Solutions revenue was $148 million, representing 39% of total SGH revenue, relatively flat sequentially[18, 27] - LED Solutions revenue was $64 million, contributing 17% of total SGH revenue, a 15% sequential increase[21, 27] Strategic Initiatives - SGH announced an agreement to divest an 81% interest in its Brazil operations, aligning with the strategy to focus on high-performance solutions[18] - The divestiture of SMART Modular Brazil is expected to be immediately accretive to non-GAAP gross margins by approximately 200+ basis points and neutral to slightly positive to non-GAAP EPS[35] - The up-front cash payment for selling 81% interest is approximately $138 million, based on an enterprise value of $205 million[33, 35] Q4 FY23 Guidance (Non-GAAP) - Net sales are expected to be $375 million +/- $25 million[40] - Gross margin is projected at 28% +/- 1%[40] - Operating expenses are anticipated to be $71 million +/- $2 million[40] - Diluted earnings per share are forecasted at $0.45 +/- $0.15[40]