Tue, Jul 9, 9:15 PM (60 days ago)
SMART Global Holdings, Inc. (SGH) reported its financial results for the quarter ended May 31, 2024. Key highlights include: 1. **Revenue**: Net sales decreased by 12.7% year-over-year to $300.6 million, driven by declines in both the Intelligent Platform Solutions (IPS) and Memory Solutions segments, while LED Solutions remained relatively stable. 2. **Profitability**: Gross profit margin slightly improved to 29.6%. Operating income was $11.5 million, a reversal from a $2.4 million loss in the prior year, though non-GAAP operating income decreased to $33.3 million from $42.3 million. 3. **Expenses**: Reductions in selling, general, and administrative expenses contributed to improved operating results. Research and development expenses declined by 3.2%. 4. **Cash Flow**: Operating activities generated $117.7 million in cash, while investing activities used $3.5 million. Financing activities resulted in a $159.6 million outflow, primarily due to debt repayments and share repurchases. 5. **SMART Brazil Divestiture**: Completed the sale of an 81% interest in SMART Brazil, recognizing a loss of $8.9 million. 6. **Future Outlook**: The company anticipates continued restructuring and potential further impairment of the Penguin Edge business. Overall, SGH is focusing on strategic realignments and managing costs amid fluctuating market demands.