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SGH Reports 3Q Results, Acquires Stratus Technologies

SGH Reports 3Q Results, Acquires Stratus Technologies

MILPITAS, Calif.—SMART Global Holdings, Inc. (“SGH” or the “Company”) (NASDAQ: SGH) today reported financial results for the third quarter of fiscal 2022. Per-share measures for all periods reflect the effect of the February 2022 two-for-one share split.

Third Quarter Fiscal 2022 Highlights

  • Announced entry into a definitive agreement to acquire Stratus Technologies
    (see separate press release issued on June 29, 2022 for details)
  • Net sales of $463 million, up 6% versus the year-ago quarter
  • GAAP gross margin of 24.7%, up 540 basis points versus the year-ago quarter
  • Non-GAAP gross margin of 25.7%, up 380 basis points versus the year-ago quarter
  • GAAP EPS of $0.44 versus GAAP loss per share of $(0.15) in the year-ago quarter
  • Non-GAAP EPS of $0.87, up 24% versus the year-ago quarter
  • Repurchased ~450 thousand shares for $10.2 million in cash

YTD Fiscal 2022 Highlights

  • Net sales of $1.38 billion, up 34% versus the year-ago period
  • GAAP gross margin of 25.3%, up 690 basis points versus the year-ago period
  • Non-GAAP gross margin of 26.3%, up 610 basis points versus the year-ago period
  • GAAP EPS of $0.84 versus GAAP EPS of $0.01 for the year-ago period
  • Non-GAAP EPS of $2.81, up 85% versus the year-ago period

“I am extremely proud of our team’s execution in Q3 in the midst of the macro-economic headwinds that all companies are facing,” commented CEO Mark Adams. “We achieved strong financial results, with our ninth consecutive quarter of year-over-year revenue growth, coupled with strong gross margins and EPS, both of which exceeded our third quarter guidance.”

The Company also announced its entry into a definitive agreement to acquire Stratus Technologies, a leader in high-availability, fault-tolerant systems and software in the data center and at the Edge.

“Today, we are taking another important step in our transformation with the announcement of our entry into a definitive agreement to acquire Stratus Technologies, a global leader in simplified, protected, and autonomous computing solutions in the data center and at the Edge,” continued Mr. Adams. “Following the close of the transaction, expected to occur in the second half of calendar 2022, Stratus will operate as part of SGH’s Intelligent Platform Solutions (IPS) business line. We are excited to welcome the Stratus team to SGH as we continue to expand our capabilities with their high-availability, fault-tolerant computing platforms, software and services.”

Third Quarter Fiscal 2022 Earnings Conference Call and Webcast Details

SGH will hold a conference call and webcast to discuss the Q3 fiscal 2022 results and related matters at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Wednesday, June 29, 2022. Interested parties may access the call by dialing +1-844-200-6205 in the U.S. or +1-929-526-1599 from international locations using access code 421527. The webcast link is located on the SGH Investor Relations section of our website at https://sghcorp.com. We will also post the presentation to our website prior to the call.

Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on the SGH Investor Relations website for approximately seven days.

Click here to view complete financial report.

 

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