MILPITAS, Calif. — SMART Global Holdings, Inc. today reported financial results for the second quarter of fiscal 2023.
Second Quarter Fiscal 2023 Highlights
- Net sales of $429 million, down 4.5% versus the year-ago quarter
- GAAP gross margin of 25.7%, up 60 basis points versus the year-ago quarter
- Non-GAAP gross margin of 28.9%, up 290 basis points versus the year-ago quarter
- GAAP EPS of $(0.55) versus $0.04 in the year-ago quarter
- Non-GAAP EPS of $0.76 versus $0.87 in the year-ago quarter
- Cash and cash equivalents of $376 million
“Our second quarter fiscal 2023 results demonstrate the resilience of our business, highlighted by strong non-GAAP gross margin of 28.9% and non-GAAP EPS of $0.76, which was above the high end of our guidance range. We exited Q2 with a strong balance sheet, including $376 million in cash and cash equivalents,” commented CEO Mark Adams. “We remain disciplined in managing our expenses given the continued challenging economic environment, while maintaining strategic investments to capitalize on the tailwinds of AI, machine learning, data analytics, networking and specialty lighting, which we believe will drive long-term growth for SGH and create value for our shareholders,” concluded Adams.
Quarterly Financial Results
|
|
GAAP (1) |
|
Non-GAAP (2) |
|||||||||||||||
|
(in millions, except per share amounts) |
Q2 FY23 |
|
Q1 FY23 |
|
Q2 FY22 |
|
Q2 FY23 |
|
Q1 FY23 |
|
Q2 FY22 |
|||||||
|
Net sales |
$ |
429.2 |
|
|
$ |
465.5 |
|
$ |
449.2 |
|
$ |
429.2 |
|
$ |
465.5 |
|
$ |
449.2 |
|
Gross profit |
|
110.4 |
|
|
|
118.4 |
|
|
112.7 |
|
|
123.9 |
|
|
129.2 |
|
|
116.9 |
|
Operating income (loss) |
|
(7.2 |
) |
|
|
17.6 |
|
|
16.8 |
|
|
51.4 |
|
|
54.8 |
|
|
57.4 |
|
Net income (loss) attributable to SGH |
|
(27.2 |
) |
|
|
5.0 |
|
|
2.5 |
|
|
37.6 |
|
|
39.5 |
|
|
47.6 |
|
Diluted earnings (loss) per share |
$ |
(0.55 |
) |
|
$ |
0.10 |
|
$ |
0.04 |
|
$ |
0.76 |
|
$ |
0.79 |
|
$ |
0.87 |
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 April 4, 2023, SGH is providing the following financial outlook for its third quarter of fiscal 2023:
|
|
GAAP Outlook |
Adjustments |
Non-GAAP Outlook |
|
|
Net sales |
$375 million +/- $20 million |
— |
$375 million +/- $20 million |
|
|
Gross margin |
26% +/- 1% |
2% |
(A) |
28% +/- 1% |
|
Operating expenses |
$90 million +/- $3 million |
$18 million |
(B)(C) |
$72 million +/- $3 million |
|
Diluted earnings (loss) per share |
$(0.03) +/- $0.10 |
$0.43 |
(A)(B)(C)(D) |
$0.40 +/- $0.10 |
|
Diluted shares |
50 million |
— |
50 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 |
13 |
||
(C) Other adjustments |
5 |
||
(D) Estimated tax effects |
(5 |
) |
|
$ |
21 |
||