SGH Reports Third Quarter Fiscal 2024 Financial Results

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Negative)

Insights

SGH has reported sequential growth in both revenue and earnings for the third quarter of fiscal 2024. Net sales increased by 5.5% compared to the previous quarter, reaching $300.6 million. This growth is a positive sign, especially in a competitive market landscape. GAAP earnings per share (EPS) turned positive at $0.10, a significant improvement from a loss of $(0.26) in the prior quarter, showcasing substantial progress in profitability.

The Non-GAAP EPS came in at $0.37, climbing 37% quarter over quarter. This metric excludes specific items like share-based compensation, thus providing a clearer picture of the core business performance. The improvement in gross margins—both GAAP (29.6%) and non-GAAP (32.3%)—indicates effective cost management and potentially better pricing power.

However, it's important to note the year-over-year decline in revenue across segments like Memory Solutions and Intelligent Platform Solutions. This signals some market challenges or shifts in demand that investors need to monitor. Despite these concerns, the overall financial health appears stable and the outlook for Q4 suggests continued improvement.

SGH's announcement highlights their strategic shift towards high-performance, high-availability enterprise solutions. This transition aligns with industry trends where companies seek to leverage AI-driven capabilities. Given the complexity and demand for AI deployment, SGH's emphasis on becoming a trusted partner could enhance its market position.

The increased non-GAAP gross margin of 32.3% is noteworthy, reflecting optimized operations and possibly higher value offerings. Moreover, the outlook for Q4 with $325 million in sales suggests confidence in continued growth, although the broad guidance range indicates some uncertainty.

For retail investors, understanding these shifts is crucial. SGH's ability to sustain growth in a volatile tech market would be key to long-term success. Watching how they navigate sector challenges and capitalize on AI trends will be pivotal for future investment decisions.

07/09/2024 - 04:05 PM

Sequential Revenue Growth Drives GAAP EPS of $0.10, Non-GAAP EPS of $0.37

MILPITAS, Calif.--(BUSINESS WIRE)-- SMART Global Holdings, Inc. (“SGH” or the “Company”) (NASDAQ: SGH) today reported financial results for the third quarter of fiscal 2024.

Third Quarter Fiscal 2024 Highlights

Net sales of $300.6 million, up 5.5% versus the prior quarter
GAAP gross margin of 29.6% versus 28.8% in the prior quarter
Non-GAAP gross margin of 32.3% versus 31.5% in the prior quarter
GAAP EPS of $0.10 versus $(0.26) in the prior quarter
Non-GAAP EPS of $0.37 versus $0.27 in the prior quarter, up 37% quarter over quarter

"We are pleased with our Q3 operating results and continued progress in our transformation into a high-performance, high-availability enterprise solutions company," said Mark Adams, CEO of SGH. "Our customers are looking for a trusted deployment partner to help them solve the complexity of AI, and we feel we are well positioned with our portfolio of systems, software and managed services to enable their success," concluded Adams.

Quarterly Financial Results

	GAAP ⁽¹⁾								Non-GAAP ⁽²⁾
(in thousands, except per share amounts)	Q3 FY24		Q2 FY24			Q3 FY23			Q3 FY24		Q2 FY24		Q3 FY23
Net sales:
Memory Solutions	$	91,629	$	83,297		$	109,458		$	91,629	$	83,297	$	109,458
Intelligent Platform Solutions		144,968		141,405			170,854			144,968		141,405		170,854
LED Solutions		63,983		60,119			64,106			63,983		60,119		64,106
Total net sales	$	300,580	$	284,821		$	344,418		$	300,580	$	284,821	$	344,418

Gross profit	$	88,906	$	81,934		$	100,480		$	96,962	$	89,735	$	108,990
Operating income (loss)		11,511		(3,312	)		(2,386	)		33,325		26,514		42,327
Net income (loss) attributable to SGH		5,616		(13,620	)		(19,648	)		20,221		14,141		28,731
Diluted earnings (loss) per share	$	0.10	$	(0.26	)	$	(0.40	)	$	0.37	$	0.27	$	0.57

(1)		GAAP represents U.S. Generally Accepted Accounting Principles.
(2)		Non-GAAP represents GAAP excluding the impact of certain activities. Further information regarding the Company’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures is included within this press release.

Business Outlook

As of July 9, 2024, SGH is providing the following financial outlook for the fourth quarter of fiscal 2024:

	GAAP Outlook	Adjustments		Non-GAAP Outlook
Net sales	$325 million +/- $25 million	—		$325 million +/- $25 million
Gross margin	29.5% +/- 1.5%	2%	(A)	31.5% +/- 1.5%
Operating expenses	$81 million +/- $2 million	($15) million	(B)(C)	$66 million +/- $2 million
Diluted earnings (loss) per share	$0.03 +/- $0.15	$0.37	(A)(B)(C)(D)	$0.40 +/- $0.15
Diluted shares	55.7 million	(1) million		54.7 million

Non-GAAP adjustments (in millions)
(A) Share-based compensation and amortization of acquisition-related intangibles included in cost of sales	$	8
(B) Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A		12
(C) Other adjustments		3
(D) Estimated income tax effects		(2	)
	$	21

Third Quarter Fiscal 2024 Earnings Conference Call and Webcast Details

SGH will hold a conference call and webcast to discuss the third quarter of fiscal 2024 results and related matters today, July 9, 2024, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Interested parties may access the call by dialing +1-833-470-1428 in the United States or +1-929-526-1599 from international locations, using the access code 829754. The earnings presentation and a live webcast of the conference call can be accessed from the Company’s investor relations website (https://ir.smartm.com/investors/default.aspx) where they will remain available for approximately one year.

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements concerning or regarding future events and the future financial and operating performance of SGH, including each of its lines of business; statements regarding the extent and timing of and expectations regarding SGH’s future revenues and expenses and customer demand; statements regarding SGH’s strategic investments and priorities; statements regarding long-term effective tax rates; and statements regarding the business and financial outlook for the next fiscal quarter described under “Business Outlook” above.

These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “could,” and other words of similar meaning. Forward-looking statements provide SGH’s current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of SGH’s control, including but not limited to: global business and economic conditions and growth trends in technology industries, our customer markets and various geographic regions; uncertainties in the geopolitical environment; the ability to manage our cost structure; disruptions in our operations or supply chain; changes in trade regulations or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers’ negative reactions to them; incurring unanticipated costs related to the sale of our SMART Brazil business; issues, delays or complications in integrating the operations of Stratus Technologies; limitations on or changes in the availability of supply of materials and components; fluctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; our dependence on a select number of customers and the timing and volume of customer orders; production or manufacturing difficulties; competitive factors; technological changes; difficulties with, or delays in, the introduction of new products; slowing or contraction of growth in the LED market; changes to applicable tax regimes or rates; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; and the continuing availability of borrowings under term loans and revolving lines of credit and our ability to raise capital through debt or equity financings.

These and other risks, uncertainties and factors are described in greater detail under the sections titled “Risk Factors,” “Critical Accounting Estimates,” “Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Liquidity and Capital Resources” contained in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and the Company’s other filings with the U.S. Securities and Exchange Commission. In addition, such risks, uncertainties and factors as outlined above and in such filings do not constitute all risks, uncertainties and factors that could cause actual results of SGH to be materially different from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that the Company makes in this press release speak only as of the date of this press release. Except as required by law, SGH does not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made.

Statement Regarding Use of Non-GAAP Financial Measures

SGH management uses non-GAAP measures to supplement SGH’s financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. These non-GAAP measures exclude certain items, such as share-based compensation expense; amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships, trademarks/trade names and backlog acquired in connection with business combinations); acquisition-related inventory adjustments; diligence, acquisition and integration expense; restructure charges; impairment of goodwill; changes in the fair value of contingent consideration; gains (losses) from changes in currency exchange rates; amortization of debt discount and other costs; gain (loss) on extinguishment of debt; other infrequent or unusual items and related tax effects and other tax adjustments. While amortization of acquisition-related intangible assets is excluded, the revenues from acquired companies is reflected in the Company’s non-GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense; income tax expense; depreciation and amortization expense; share-based compensation expense; acquisition-related inventory adjustments; diligence, acquisition and integration expense; restructure charges; impairment of goodwill; changes in the fair value of contingent consideration; gain (loss) on extinguishment of debt and other infrequent or unusual items.

Beginning in 2024, for our non-GAAP reporting, we are utilizing a long-term projected non-GAAP effective tax rate of 28%, which includes the tax impact of pre-tax non-GAAP adjustments and reflects currently available information as well as other factors and assumptions. While we expect to use this normalized non-GAAP effective tax rate through 2024, this long-term non-GAAP effective tax rate may be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Our GAAP effective tax can vary significantly from quarter to quarter based on a variety of factors, including, but not limited to, discrete items which are recorded in the period they occur, the tax effects of certain items of income or expense, significant changes in our geographic earnings mix or changes to our strategy or business operations. We are unable to predict the timing and amounts of these items, which could significantly impact our GAAP effective tax rate, and therefore we are unable to reconcile our forward-looking non-GAAP effective tax rate measure to our GAAP effective tax rate.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about SGH’s financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the “Reconciliation of GAAP to Non-GAAP Measures” tables below.

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.

Learn more about us at SGHcorp.com.

SMART Global Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

	Three Months Ended									Nine Months Ended
	May 31, 2024			March 1, 2024			May 26, 2023			May 31, 2024			May 26, 2023
Net sales:
Memory Solutions	$	91,629		$	83,297		$	109,458		$	260,594		$	338,083
Intelligent Platform Solutions		144,968			141,405			170,854			405,197			604,276
LED Solutions		63,983			60,119			64,106			193,857			182,233
Total net sales		300,580			284,821			344,418			859,648			1,124,592
Cost of sales		211,674			202,887			243,938			605,958			801,006
Gross profit		88,906			81,934			100,480			253,690			323,586

Operating expenses:
Research and development		19,681			20,526			20,338			61,596			69,682
Selling, general and administrative		57,249			61,385			67,914			175,851			195,696
Impairment of goodwill		—			—			—			—			17,558
Change in fair value of contingent consideration		—			—			14,800			—			24,900
Other operating (income) expense		465			3,335			(186	)		6,739			5,366
Total operating expenses		77,395			85,246			102,866			244,186			313,202
Operating income (loss)		11,511			(3,312	)		(2,386	)		9,504			10,384

Non-operating (income) expense:
Interest expense, net		6,167			7,249			9,314			22,975			27,238
Other non-operating (income) expense		441			248			354			113			12,299
Total non-operating (income) expense		6,608			7,497			9,668			23,088			39,537
Income (loss) before taxes		4,903			(10,809	)		(12,054	)		(13,584	)		(29,153	)

Income tax provision (benefit)		(1,323	)		2,198			7,216			4,409			26,687
Net income (loss) from continuing operations		6,226			(13,007	)		(19,270	)		(17,993	)		(55,840	)
Net income (loss) from discontinued operations		—			—			(4,807	)		(8,148	)		10,301
Net income (loss)		6,226			(13,007	)		(24,077	)		(26,141	)		(45,539	)
Net income attributable to noncontrolling interest		610			613			378			1,784			1,143
Net income (loss) attributable to SGH	$	5,616		$	(13,620	)	$	(24,455	)	$	(27,925	)	$	(46,682	)

Basic earnings (loss) per share:
Continuing operations	$	0.11		$	(0.26	)	$	(0.40	)	$	(0.38	)	$	(1.16	)
Discontinued operations		—			—			(0.10	)		(0.15	)		0.21
	$	0.11		$	(0.26	)	$	(0.50	)	$	(0.53	)	$	(0.95	)

Diluted earnings (loss) per share:
Continuing operations	$	0.10		$	(0.26	)	$	(0.40	)	$	(0.38	)	$	(1.16	)
Discontinued operations		—			—			(0.10	)		(0.15	)		0.21
	$	0.10		$	(0.26	)	$	(0.50	)	$	(0.53	)	$	(0.95	)

Shares used in per share calculations:
Basic		52,570			52,031			49,380			52,219			49,152
Diluted		54,283			52,031			49,380			52,219			49,152

SMART Global Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (In thousands, except percentages) (Unaudited)

	Three Months Ended									Nine Months Ended
	May 31, 2024			March 1, 2024			May 26, 2023			May 31, 2024			May 26, 2023
GAAP gross profit	$	88,906		$	81,934		$	100,480		$	253,690		$	323,586
Share-based compensation expense		1,760			1,691			1,595			5,266			4,545
Amortization of acquisition-related intangibles		5,909			5,894			6,704			17,747			19,785
Flow-through of inventory step up		—			—			—			—			2,599
Cost of sales-related restructure		387			216			211			1,271			5,763
Non-GAAP gross profit	$	96,962		$	89,735		$	108,990		$	277,974		$	356,278

GAAP gross margin		29.6	%		28.8	%		29.2	%		29.5	%		28.8	%
Effect of adjustments		2.7	%		2.7	%		2.4	%		2.8	%		2.9	%
Non-GAAP gross margin		32.3	%		31.5	%		31.6	%		32.3	%		31.7	%

GAAP operating expenses	$	77,395		$	85,246		$	102,866		$	244,186		$	313,202
Share-based compensation expense		(9,432	)		(8,948	)		(8,047	)		(27,535	)		(25,109	)
Amortization of acquisition-related intangibles		(3,857	)		(3,857	)		(4,905	)		(11,778	)		(13,497	)
Diligence, acquisition and integration expense		(4	)		(5,885	)		(8,637	)		(6,678	)		(18,193	)
Impairment of goodwill		—			—			—			—			(17,558	)
Change in fair value of contingent consideration		—			—			(14,800	)		—			(24,900	)
Restructure charge		(465	)		(3,335	)		186			(6,739	)		(5,366	)
Other		—			—			—			—			(1,800	)
Non-GAAP operating expenses	$	63,637		$	63,221		$	66,663		$	191,456		$	206,779

GAAP operating income (loss)	$	11,511		$	(3,312	)	$	(2,386	)	$	9,504		$	10,384
Share-based compensation expense		11,192			10,639			9,642			32,801			29,654
Amortization of acquisition-related intangibles		9,766			9,751			11,609			29,525			33,282
Flow-through of inventory step up		—			—			—			—			2,599
Cost of sales-related restructure		387			216			211			1,271			5,763
Diligence, acquisition and integration expense		4			5,885			8,637			6,678			18,193
Impairment of goodwill		—			—			—			—			17,558
Change in fair value of contingent consideration		—			—			14,800			—			24,900
Restructure charge		465			3,335			(186	)		6,739			5,366
Other		—			—			—			—			1,800
Non-GAAP operating income	$	33,325		$	26,514		$	42,327		$	86,518		$	149,499

SMART Global Holdings, Inc. Reconciliation of GAAP to Non-GAAP Measures (In thousands, except per share amounts) (Unaudited)

	Three Months Ended									Nine Months Ended
	May 31, 2024			March 1, 2024			May 26, 2023			May 31, 2024			May 26, 2023
GAAP net income (loss) attributable to SGH	$	5,616		$	(13,620	)	$	(19,648	)	$	(19,777	)	$	(56,983	)
Share-based compensation expense		11,192			10,639			9,642			32,801			29,654
Amortization of acquisition-related intangibles		9,766			9,751			11,609			29,525			33,282
Flow-through of inventory step up		—			—			—			—			2,599
Cost of sales-related restructure		387			216			211			1,271			5,763
Diligence, acquisition and integration expense		4			5,885			8,637			6,678			18,193
Impairment of goodwill		—			—			—			—			17,558
Change in fair value of contingent consideration		—			—			14,800			—			24,900
Restructure charge		465			3,335			(186	)		6,739			5,366
Amortization of debt discount and other costs		817			968			937			2,827			3,054
Loss (gain) on extinguishment or prepayment of debt		792			325			—			1,117			15,924
Foreign currency (gains) losses		606			182			410			242			55
Other		—			—			—			—			1,800
Income tax effects		(9,424	)		(3,540	)		2,319			(14,523	)		8,110
Non-GAAP net income attributable to SGH	$	20,221		$	14,141		$	28,731		$	46,900		$	109,275

Weighted-average shares outstanding - Diluted:
GAAP weighted-average shares outstanding		54,283			52,031			49,380			52,219			49,152
Adjustment for dilutive securities and capped calls		(333	)		1,043			754			1,216			770
Non-GAAP weighted-average shares outstanding		53,950			53,074			50,134			53,435			49,922

Diluted earnings (loss) per share from continuing operations:
GAAP diluted earnings (loss) per share	$	0.10		$	(0.26	)	$	(0.40	)	$	(0.38	)	$	(1.16	)
Effect of adjustments		0.27			0.53			0.97			1.26			3.35
Non-GAAP diluted earnings per share	$	0.37		$	0.27		$	0.57		$	0.88		$	2.19

Net income (loss) attributable to SGH	$	5,616		$	(13,620	)	$	(19,648	)	$	(19,777	)	$	(56,983	)
Interest expense, net		6,167			7,249			9,314			22,975			27,238
Income tax provision (benefit)		(1,323	)		2,198			7,216			4,409			26,687
Depreciation expense and amortization of intangible assets		15,525			17,156			18,554			50,335			52,802
Share-based compensation expense		11,192			10,639			9,642			32,801			29,654
Flow-through of inventory step up		—			—			—			—			2,599
Cost of sales-related restructure		387			216			211			1,271			5,763
Diligence, acquisition and integration expense		4			5,885			8,637			6,678			18,193
Impairment of goodwill		—			—			—			—			17,558
Change in fair value of contingent consideration		—			—			14,800			—			24,900
Restructure charge		465			3,335			(186	)		6,739			5,366
Loss on extinguishment of debt		792			325			—			1,117			15,924
Other		—			—			—			—			1,800
Adjusted EBITDA	$	38,825		$	33,383		$	48,540		$	106,548		$	171,501

SMART Global Holdings, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)

As of	May 31, 2024			August 25, 2023
Assets
Cash and cash equivalents	$	453,791		$	365,563
Short-term investments		13,746			25,251
Accounts receivable, net		211,842			219,247
Inventories		177,299			174,977
Other current assets		85,649			51,790
Current assets of discontinued operations		—			70,574
Total current assets		942,327			907,402
Property and equipment, net		107,646			118,734
Operating lease right-of-use assets		61,729			68,444
Intangible assets, net		131,380			160,185
Goodwill		161,958			161,958
Deferred tax assets		77,903			74,085
Other noncurrent assets		63,190			15,150
Total assets	$	1,546,133		$	1,505,958

Liabilities and Equity
Accounts payable and accrued expenses	$	230,646		$	182,035
Current debt		—			35,618
Deferred revenue		88,719			48,096
Other current liabilities		31,777			32,731
Acquisition-related contingent consideration		—			50,000
Current liabilities of discontinued operations		—			77,770
Total current liabilities		351,142			426,250
Long-term debt		667,042			754,820
Noncurrent operating lease liabilities		62,054			66,407
Other noncurrent liabilities		35,374			29,248
Total liabilities		1,115,612			1,276,725

Commitments and contingencies

SMART Global Holdings shareholders’ equity:
Ordinary shares		1,790			1,726
Additional paid-in capital		517,548			476,703
Retained earnings		54,532			82,457
Treasury shares		(150,438	)		(132,447	)
Accumulated other comprehensive income (loss)		17			(205,964	)
Total SGH shareholders’ equity		423,449			222,475
Noncontrolling interest in subsidiary		7,072			6,758
Total equity		430,521			229,233
Total liabilities and equity	$	1,546,133		$	1,505,958

SMART Global Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Three Months Ended									Nine Months Ended
	May 31, 2024			March 1, 2024			May 26, 2023			May 31, 2024			May 26, 2023
Cash flows from operating activities
Net income (loss)	$	6,226		$	(13,007	)	$	(24,077	)	$	(26,141	)	$	(45,539	)
Net income (loss) from discontinued operations		—			—			(4,807	)		(8,148	)		10,301
Net income (loss) from continuing operations		6,226			(13,007	)		(19,270	)		(17,993	)		(55,840	)
Adjustments to reconcile net income (loss) from continuing operations to cash provided by (used for) operating activities
Depreciation expense and amortization of intangible assets		15,525			17,156			18,554			50,335			52,802
Amortization of debt discount and issuance costs		817			968			937			2,827			3,054
Share-based compensation expense		11,192			10,639			9,642			32,801			29,654
Impairment of goodwill		—			—			—			—			17,558
Change in fair value of contingent consideration		—			—			14,800			—			24,900
(Gain) loss on extinguishment or prepayment of debt		792			325			—			1,117			15,924
Deferred income taxes, net		(3,840	)		476			(5	)		(3,646	)		1,625
Other		(3,228	)		(208	)		(809	)		(2,772	)		3,307
Changes in operating assets and liabilities:
Accounts receivable		(42,124	)		872			(12,525	)		7,406			159,508
Inventories		(4,535	)		35,678			56,413			(2,321	)		66,653
Other assets		15,424			(23,229	)		16,950			(5,703	)		7,057
Accounts payable and accrued expenses and other liabilities		83,632			(22,587	)		(51,612	)		84,626			(226,357	)
Payment of acquisition-related contingent consideration		—			(29,000	)		—			(29,000	)		(73,724	)
Net cash provided by (used for) operating activities from continuing operations		79,881			(21,917	)		33,075			117,677			26,121
Net cash provided by (used for) operating activities from discontinued operations		(101	)		—			7,963			(28,336	)		41,467
Net cash provided by (used for) operating activities		79,780			(21,917	)		41,038			89,341			67,588

Cash flows from investing activities
Capital expenditures and deposits on equipment		(3,777	)		(5,204	)		(11,984	)		(13,629	)		(31,674	)
Acquisition of business, net of cash acquired		—			—			—			—			(213,073	)
Proceeds from maturities of investment securities		9,915			12,290			—			31,870			—
Purchases of held-to-maturity investment securities		(1,000	)		(11,034	)		—			(20,503	)		—
Other		(518	)		(558	)		431			(1,264	)		670
Net cash provided by (used for) investing activities from continuing operations		4,620			(4,506	)		(11,553	)		(3,526	)		(244,077	)
Net cash provided by (used for) investing activities from discontinued operations		451			—			(1,273	)		119,389			(5,745	)
Net cash provided by (used for) investing activities	$	5,071		$	(4,506	)	$	(12,826	)	$	115,863		$	(249,822	)

SMART Global Holdings, Inc. Consolidated Statements of Cash Flows, Continued (In thousands) (Unaudited)

	Three Months Ended									Nine Months Ended
	May 31, 2024			March 1, 2024			May 26, 2023			May 31, 2024			May 26, 2023
Cash flows from financing activities
Repayments of debt	$	(75,000	)	$	(37,211	)	$	(7,211	)	$	(126,634	)	$	(14,422	)
Payment of acquisition-related contingent consideration		—			(21,000	)		—			(21,000	)		(28,100	)
Payments to acquire ordinary shares		(2,129	)		(2,732	)		(660	)		(17,991	)		(16,883	)
Distribution to noncontrolling interest		—			—			—			(1,470	)		(2,009	)
Proceeds from issuance of ordinary shares		3,817			792			4,180			8,064			8,430
Proceeds from debt		—			—			—			—			295,287
Payment of premium in connection with convertible note exchange		—			—			—			—			(14,141	)
Net cash paid for settlement and purchase of Capped Calls		—			—			—			—			(4,304	)
Other		(1	)		(1	)		(688	)		(584	)		(5,765	)
Net cash used for financing activities from continuing operations		(73,313	)		(60,152	)		(4,379	)		(159,615	)		218,093
Net cash used for financing activities from discontinued operations		—			—			(255	)		(606	)		(379	)
Net cash provided by (used for) financing activities		(73,313	)		(60,152	)		(4,634	)		(160,221	)		217,714

Effect of changes in currency exchange rates		(76	)		(155	)		813			(1,256	)		2,730
Net increase (decrease) in cash and cash equivalents		11,462			(86,730	)		24,391			43,727			38,210
Cash and cash equivalents at beginning of period		442,329			529,059			376,884			410,064			363,065
Cash and cash equivalents at end of period	$	453,791		$	442,329		$	401,275		$	453,791		$	401,275

View source version on businesswire.com: https://www.businesswire.com/news/home/20240709861465/en/

Investor Contact

Suzanne Schmidt

Investor Relations

+1-510-360-8596

ir@sghcorp.com

PR Contact

Maureen O’Leary

Director Communications

+1-602-330-6846

pr@sghcorp.com

Source: SMART Global Holdings, Inc.

FAQ

What were SGH's net sales for Q3 fiscal 2024?

SGH reported net sales of $300.6 million for Q3 fiscal 2024.

How did SGH's GAAP EPS perform in Q3 fiscal 2024?

SGH's GAAP EPS improved to $0.10 in Q3 fiscal 2024, up from a loss of $(0.26) in the prior quarter.

What was SGH's non-GAAP EPS for Q3 fiscal 2024?

SGH's non-GAAP EPS was $0.37 for Q3 fiscal 2024, a 37% increase from the previous quarter.

How did SGH's gross margin change in Q3 fiscal 2024?

SGH's GAAP gross margin improved to 29.6% from 28.8%, and non-GAAP gross margin increased to 32.3% from 31.5% in the previous quarter.

What is SGH's revenue guidance for Q4 fiscal 2024?

SGH projects net sales of approximately $325 million for Q4 fiscal 2024.

SGH Reports Third Quarter Fiscal 2024 Financial Results

Insights

FAQ

What were SGH's net sales for Q3 fiscal 2024?

How did SGH's GAAP EPS perform in Q3 fiscal 2024?

What was SGH's non-GAAP EPS for Q3 fiscal 2024?

How did SGH's gross margin change in Q3 fiscal 2024?

What is SGH's revenue guidance for Q4 fiscal 2024?

NASDAQ:SGH

SGH Rankings

SGH Latest News

SGH Stock Data

Trending News

SGH Reports Third Quarter Fiscal 2024 Financial Results

Insights

Financial Analyst positive

Market Research Analyst positive

FAQ

What were SGH's net sales for Q3 fiscal 2024?

How did SGH's GAAP EPS perform in Q3 fiscal 2024?

What was SGH's non-GAAP EPS for Q3 fiscal 2024?

How did SGH's gross margin change in Q3 fiscal 2024?

What is SGH's revenue guidance for Q4 fiscal 2024?

NASDAQ:SGH

SGH Rankings

SGH Latest News

SGH Stock Data