SGH Announces CFO Transition Plan

Rhea-AI Summary

SGH (NASDAQ: SGH) announced a transition in its CFO role. Ken Rizvi, the current CFO, will leave the company on June 30, 2024, to pursue another opportunity. Jack Pacheco, the COO and former CFO, will serve as interim CFO while SGH searches for a permanent replacement.

CEO Mark Adams thanked Rizvi for his contributions, emphasizing the company's continued focus on growth in the enterprise AI solutions market. The company also reaffirmed its financial guidance for the third quarter of fiscal 2024, initially provided on April 9, 2024.

Positive

• SGH reaffirms its financial guidance for Q3 FY2024, maintaining investor confidence.
• Jack Pacheco’s appointment as interim CFO ensures continuity due to his extensive experience and previous CFO role.
• CEO Mark Adams emphasizes continued focus on growth in the high-performance, high-availability enterprise AI solutions market.

Negative

• Departure of CFO Ken Rizvi could signal instability or internal challenges.
• Temporary appointment of an interim CFO may lead to uncertainty among investors until a permanent successor is found.

Jack Pacheco, SGH COO and Former CFO, to Serve as Interim CFO

Reiterates Financial Guidance Provided on April 9, 2024

MILPITAS, Calif.--(BUSINESS WIRE)-- SMART Global Holdings, Inc. (“SGH” or the “Company”) (NASDAQ: SGH) today announced that Ken Rizvi, senior vice president and chief financial officer (“CFO”), will depart the Company on June 30, 2024 to pursue another opportunity. Effective upon Mr. Rizvi’s departure, Jack Pacheco, the Company’s chief operating officer (“COO”) and president of Memory Solutions, and its former CFO, will assume the role of interim CFO while the Company searches for a permanent successor.

“I want to thank Ken for his leadership and contributions to SGH. He leaves behind a stronger organization both operationally and financially. We are grateful for his work and wish him all the best in his new role,” commented Mark Adams, CEO. “As we continue our transformation, we remain focused on our growth in the high-performance, high-availability enterprise AI solutions market. We look forward to welcoming a new CFO who will help us continue to execute on this strategy.”

Mr. Rizvi added, “The transformation of SGH over the past several years has been remarkable. I am excited about the growth opportunities that lie ahead, leveraging the AI and HPC capabilities of our Penguin Solutions business. The last three years have been an amazing professional journey, and I am grateful to Mark and the team for the opportunity. I am proud of what we have accomplished together.”

Mr. Pacheco, who will take on the interim CFO role, brings extensive experience and institutional knowledge to the position as both COO and the former CFO, which will ensure continuity as the Company continues its growth strategy.

Additionally, SGH is reaffirming its financial outlook for the third quarter of fiscal 2024 as described in its earnings release on April 9, 2024.

About SMART Global Holdings – SGH

At SGH, we design, build, deploy, and manage high-performance, high-availability enterprise solutions that help our customers solve for the future. Across our computing, memory, and LED lines of business, we focus on serving our customers by providing deep technical knowledge and expertise, custom design engineering, build-to-order flexibility, and a commitment to best-in-class quality.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514376158/en/

Investor Contact:

Suzanne Schmidt

Investor Relations

+1-510-360-8596

ir@sghcorp.com

PR Contact:

Valerie Sassani

VP of Marketing and Communications

+1-510-941-8921

pr@sghcorp.com

Source: SMART Global Holdings, Inc.

FAQ

When is Ken Rizvi, the CFO of SGH, departing?

Ken Rizvi will depart SGH on June 30, 2024.

Who is taking over as interim CFO of SGH?

Jack Pacheco, the COO and former CFO, will serve as interim CFO.

What does SGH's reaffirmation of financial guidance for Q3 FY2024 mean?

It indicates that SGH maintains its financial outlook for the third quarter of fiscal 2024, providing stability and confidence to investors.

What is SGH's focus moving forward?

SGH will continue focusing on growth in the high-performance, high-availability enterprise AI solutions market.

How does Jack Pacheco's appointment as interim CFO benefit SGH?

Jack Pacheco's extensive experience and previous role as CFO ensure continuity and stability during the transition.