Smart Global Holdings: Fiscal 1Q20 Financial Results

SMART Global Holdings, Inc. reported financial results for 1FQ20.

Highlights:
• Net sales of $272.0 million
• Adjusted EBITDA of $23.5 million
• GAAP diluted EPS of $0.01
• Non-GAAP diluted EPS of $0.55
• Increased cash and equivalents to $111.4 million
• Reduced net long-term debt to $200.3 million

“In 1FQ20, our memory businesses, specialty memory products and Brazil memory performed at or above expectations. In our specialty compute business, our two 2 acquisitions in July 2019 performed as expected, while our HPC business, Penguin Computing, experienced worse than expected seasonal weakness. We remain disciplined in managing our operating model and continue to drive improvements across all of our businesses. During the quarter, we meaningfully increased our cash position while reducing our debt. Overall we were able to increase non-GAAP EPS quarter-over-quarter in a difficult memory market,” commented Ajay Shah, chairman and CEO.

“In Brazil, having completed our first full quarter under the new points-based system for local manufacturing, we are encouraged by the results with units and revenues increasing from the previous quarter,” he continued. “Looking forward, we continue to see improvement in our memory related businesses and expect our second quarter to be the low point in this market.”

Outlook for 2FQ20:
Revenue between $265 million to $275 million

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