Penguin Solutions, Inc. · NASDAQ:PENG

Penguin Solutions — SMART Global Holdings — Q2 FY2024 Earnings Presentation

21 slides from Penguin Solutions's earnings presentation, Apr 9, 2024

  1. Slide 1: Second Quarter FY24 SGH Financial Results

    SECOND QUARTER FY24 SGH FINANCIAL RESULTS April 9, 2024

  2. Slide 2: Disclaimer

    Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking Any forward-looking statements that we make in this presentation speak only as of the date of this presentation. Except statements within the meaning of Section 27A of the Sec

  3. Slide 3: Speakers

    Mark Adams President and CEO SGH SPEAKERS Ken Rizvi SVP and CFO SGH © 2024 SGH | 3

  4. Slide 4: Q2 FY24 Highlights

    Revenue Revenue of $285M, led by 19% sequential increase in IPS revenue Q2 FY24 Gross Margin Highlights Non-GAAP gross margin of 31.5% within our guidance Uniquely positioned to EPS help companies manage Non-GAAP EPS of $0.27 driven by improved the complexity of AI operating expense controls impleme

  5. Slide 5: Our Business Lines

    OUR BUSINESS LINES Mark Adams, President and CEO © 2024 SGH | 5

  6. Slide 6: Intelligent Platform Solutions

    Intelligent Platform Solutions Revenue of $141M; Increasing customer 50% of total SGH engagement for AI revenue infrastructure and HPC  IPS revenue up 19% q/q solutions  Services revenue was 17%  Across cloud service of total SGH Q2 FY24 providers (CSPs), oil and revenue versus 14% in the gas, de

  7. Slide 7: Memory Solutions

    Memory Solutions  Revenue of $83M; 29% of total SGH revenue  Memory cycle showing signs of turning upwards  Pricing continuing to stabilize  Certain traditional enterprise customer inventories remain elevated  Product portfolio evolving to meet customer needs  Actively engaged with customers l

  8. Slide 8: LED Solutions

    LED Solutions  Revenue of $60M, 21% of total SGH revenue  Second fiscal quarter impacted by seasonality, as expected  Cree LED remains a technology and brand leader − Robust portfolio of intellectual property − Launched the XLamp® XP-G4 High Intensity LEDs, which are optimized for indoor directio

  9. Slide 9: Financial Review

    FINANCIAL REVIEW Ken Rizvi, SVP and CFO © 2024 SGH | 9

  10. Slide 10: Non-GAAP Q2 FY24 Results

    Q2 FY24 REVENUE $285M Guidance: $285M +/- $25M Non-GAAP Q2 FY24 Results Q2 FY24 NON-GAAP GROSS MARGIN Key financial metrics 31.5% within or above midpoint Guidance: 32.5% +/- 1% of guidance range Q2 FY24 NON-GAAP EPS $0.27 Guidance: $0.25 +/- $0.10 • Guidance provided on Q1 FY24 earnings call which

  11. Slide 11: Q2 FY24 Revenue Detail

    Q2 FY24 Revenue Detail Revenue Breakdown – Total $285M Revenue Mix by Business Product Revenue 21% $235M 50% 29% Service Revenue $49M LED Solutions Memory Solutions Intelligent Platform Solutions © 2024 SGH | 11

  12. Slide 12: Q2 FY24 Non-GAAP Operating Results

    Q2 FY24 Non-GAAP Operating Results ($M) Q2 FY24 Q1 FY24 Q2 FY23 Revenue $284.8 $274.2 $388.4 Intelligent Platform Solutions $141.4 $118.8 $222.5 Memory Solutions $83.3 $85.7 $110.3 LED Solutions $60.1 $69.8 $55.6 Non-GAAP Gross profit* $89.7 $91.3 $124.5 Non-GAAP Operating expenses* $63.2 $64.6 $68.

  13. Slide 13: Q2 FY24 Balance Sheet Highlights

    Q2 FY24 Balance Sheet Highlights Continuing Operations Working Cash Capital Capital Q1 FY24 Q2 FY24 Flow Q1 FY24 Q2 FY24 Expenditures Q1 FY24 Q2 FY24 Net Cash, Equivalents Accounts $171M $170M & ST investments $553M $466M CapEx $4.6M $5.2M Receivable (at period end) Days Sales CF from 44 days 41 day

  14. Slide 14: Our Guidance

    OUR GUIDANCE © 2024 SGH | 14

  15. Slide 15: Q3 FY24 Guidance

    Q3 FY24 Guidance GAAP Outlook Adjustments Non-GAAP Outlook Net Sales $300 million +/- $25 million — $300 million +/- $25 million Gross margin 29% +/- 1.5% 3% (A) 32% +/- 1.5% Operating expenses $80 million +/- $2 million $(14) million (B)(C) $66 million +/- $2 million Diluted earnings (loss) per sha

  16. Slide 16: Powering Growth. Expanding Possibilities.

    POWERING GROWTH. EXPANDING POSSIBILITIES. © 2024 SGH | 16

  17. Slide 17: Appendix

    APPENDIX © 2024 SGH | 17

  18. Slide 18: GAAP to Non-GAAP Reconciliations

    GAAP to Non-GAAP Reconciliations © 2024 SGH | 18

  19. Slide 19: GAAP to Non-GAAP Reconciliations

    GAAP to Non-GAAP Reconciliations © 2024 SGH | 19

  20. Slide 20: GAAP to Non-GAAP Reconciliations

    GAAP to Non-GAAP Reconciliations © 2024 SGH | 20

  21. Slide 21: Convertible Dilution

    Convertible Dilution • Note: Dilution in millions of shares © 2024 SGH | 21

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