MILPITAS, Calif. — SMART Global Holdings, Inc. (“SGH” or the “Company”) reported financial results for the first quarter of fiscal 2024.
On November 29, 2023, we completed our previously announced divestiture of an 81% interest in our SMART Brazil operations. Our SMART Brazil operations are classified as discontinued operations in the accompanying financial information for all periods presented. The following discussion relates to our continuing operations, which exclude SMART Brazil.
First Quarter Fiscal 2024 Highlights for Continuing Operations
- Net sales of $274.2 million, down 30.0% versus the year-ago quarter
- Record GAAP gross margin of 30.2%, up 160 basis points versus the year-ago quarter
- Record Non-GAAP gross margin of 33.3%, up 200 basis points versus the year-ago quarter
- GAAP EPS of $(0.23) versus $(0.08) in the year-ago quarter
- Non-GAAP EPS of $0.24 versus $0.75 in the year-ago quarter
“We are pleased with the progress we are making on our transformation journey, marked by the strategic divestiture of our Brazil business and another quarter of record non-GAAP gross margins reflecting the continued shift to higher value enterprise solutions,” commented CEO Mark Adams. “Additionally, we ended our first quarter with record cash and short term-investments of $553 million, allowing us to continue investing strategically in AI, developing products based on advanced memory technologies and strengthening CreeLED’s portfolio to enable future long term growth,” concluded Adams.
Share Repurchase Authorization
On January 8, 2024, the Audit Committee of the Board of Directors approved a $75 million share repurchase authorization, bringing total share repurchase authorizations over the last two years to $150 million. Under the share repurchase authorization, the Company may repurchase its outstanding ordinary shares from time to time through open market purchases, privately-negotiated transactions or otherwise. The share repurchase authorization has no expiration date, may be suspended or terminated by the Audit Committee at any time and does not obligate the Company to acquire any amount of ordinary shares.
Quarterly Financial Results of Continuing Operations
Business Outlook
As of January 9, 2024, SGH is providing the following financial outlook for its continuing operations for the second quarter of fiscal 2024:
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