On July 9, 2024, SMART Global Holdings Inc (SGH, Financial) released its 8-K filing reporting financial results for the third quarter of fiscal 2024. The company, a designer and manufacturer of electronic products focused on memory and computing technology, operates in three segments: Memory Solutions, Intelligent Platform Solutions, and LED Solutions.
Performance Overview
SMART Global Holdings Inc (SGH, Financial) reported net sales of $300.6 million for Q3 FY2024, surpassing the analyst estimate of $300.00 million. This represents a 5.5% increase from the previous quarter's $284.8 million. The company achieved a GAAP EPS of $0.10, significantly outperforming the estimated -$0.03, and a non-GAAP EPS of $0.37, up 37% from the prior quarter's $0.27.
Segment Performance
The company's revenue growth was driven by its three segments:
| Segment | Q3 FY24 Revenue | Q2 FY24 Revenue | Q3 FY23 Revenue |
|---|---|---|---|
| Memory Solutions | $91.6 million | $83.3 million | $109.5 million |
| Intelligent Platform Solutions | $145.0 million | $141.4 million | $170.9 million |
| LED Solutions | $64.0 million | $60.1 million | $64.1 million |
Financial Achievements
SMART Global Holdings Inc (SGH, Financial) reported a GAAP gross margin of 29.6%, up from 28.8% in the previous quarter, and a non-GAAP gross margin of 32.3%, up from 31.5%. The company's operating income improved to $11.5 million from a loss of $3.3 million in Q2 FY2024. Net income attributable to SGH was $5.6 million, compared to a loss of $13.6 million in the prior quarter.
Key Metrics
Important metrics from the income statement include:
| Metric | Q3 FY24 | Q2 FY24 | Q3 FY23 |
|---|---|---|---|
| Gross Profit | $88.9 million | $81.9 million | $100.5 million |
| Operating Income | $11.5 million | $(3.3) million | $(2.4) million |
| Net Income | $5.6 million | $(13.6) million | $(19.6) million |
Commentary and Analysis
"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."
The company's performance highlights its ability to navigate challenges and capitalize on opportunities in the semiconductor industry. The sequential revenue growth and improved margins indicate strong operational execution and strategic positioning.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from SMART Global Holdings Inc for further details.
