Penguin Solutions, Inc. · NASDAQ:PENG
Penguin Solutions — SMART Global Holdings — Q4 2021 Earnings Presentation
20 slides from Penguin Solutions's earnings presentation, Oct 12, 2021
Slide 1: Q4 FY2021 SGH Financial Results
Q4 FY2021 SGH FINANCIAL RESULTS OCTOBER 12, 2021
Slide 2: Disclaimer
Disclaimer This presentation and oral communications made during the course of this presentation will contain "forward- Statement Regarding Use of Non-GAAP Financial Measures: looking statements," including, among other things, statements regarding future events and the future financial performance
Slide 3: Speakers
Mark Adams President and CEO SMART Global Holdings SPEAKERS Ken Rizvi SVP and CFO SMART Global Holdings 03
Slide 4: SGH Business Lines
SGH Business Lines Common operating model § Deliver custom solutions § Serve specialty markets § Leverage core capabilities in engineering, manufacturing, managed services, and quality Intelligent Platform Solutions Memory Solutions LED Solutions 4
Slide 5: FY 2021: A Transformational Year
FY 2021: A Transformational Year Expanded addressable markets Achieved record results with a Improved governance and with complementary LED more diversified business mix disclosures solutions acquisition § FY21 Revenues up 34% to $1.5 Billion § Improved Board independence and § Specialty market focu
Slide 6: Intelligent Platform Solutions
Intelligent Platform Solutions PERFORMANCE HIGHLIGHTS PRODUCT HIGHLIGHTS CUSTOMER HIGHLIGHTS Q4 FY21 revenue of $98M Released major software updates for Navy & Air Force super compute performance scaling and security design wins § Up 46% vs. Q4 FY20 § Q4 FY21 software and managed services § SCYLD Cl
Slide 7: Memory Solutions
Memory Solutions PERFORMANCE HIGHLIGHTS PRODUCT HIGHLIGHTS CUSTOMER HIGHLIGHTS Q4 FY21 revenue of $247M New products; new vertical markets Expanding engagements with key customers § Up 7% year-over-year § Delivered first samples of memory modules based § Providing specialized accelerator cards to hy
Slide 8: LED Solutions
LED Solutions PERFORMANCE HIGHLIGHTS MANUFACTURING TRANSFORMATION PRODUCT HIGHLIGHTS Q4 FY21 revenue of $123M Transition to Sapphire + fab-lite model Delivery of application-optimized solutions § Up 21% vs. Q3 FY21 § Expected completion by end of calendar 2022 § Launched 3rd Gen Extreme High-Power L
Slide 9: Financial Review
FINANCIAL REVIEW KEN RIZVI, SVP AND CFO 9
Slide 10: A Strong Year of Performance
A Strong Year of Performance Record Non-GAAP quarterly results NON-GAAP NON-GAAP NET SALES GROSS MARGIN EPS FY2021 $1.5 B 22.2% $5.22 Change vs. FY20 up 34% up 240 bp up 102% Q4 FY21 $468 M 26.4% $2.16 Change vs. Q4 FY20 up 57% up 690 bp up 163% Q4 Guide* $440-$480 M 22-24% $1.45-$1.75 * Guidance pr
Slide 11: Q4 FY2021 Non-GAAP Operating Results
Q4 FY2021 Non-GAAP Operating Results ($ M) Q4 FY20 Q3 FY21 Q4 FY21 Net sales $297.0 $437.7 $467.7 Intelligent Platform Solutions $66.9 $95.9 $97.6 Memory Solutions $230.2 $240.1 $247.3 LED Solutions* - $101.8 $122.8 Gross profit $57.8 $95.7 $123.6 Operating expenses $29.4 $52.4 $57.0 Net income $20.
Slide 12: Q4 FY2021 Net Sales by End Market
Q4 FY2021 Net Sales by End Market Mobile & PCs 23% Network & Telecom 26% Servers & Storage AI/Data Analytics/Machine 11% Learning 15% Industrial, Defense & Other 12% 13% Advanced Lighting
Slide 13: Q4 FY2021 Balance Sheet Highlights
Q4 FY2021 Balance Sheet Highlights Working Q3 FY21 Q4 FY21 Q3 FY21 Q4 FY21 Q3 FY21 Q4 FY21 Capital Cash Flow CapEx Net Accounts Cash & $274.9M $313.4M $189.0M $223.0M CapEx $5.2 M $7.6 M Receivable Equivalents (at period end) Days Sales 39 days 39 days CF from Depreciation $9.1 M $9.4 M Outstanding
Slide 14: Q1 FY 2022 Guidance
Q1 FY 2022 Guidance GAAP NON-GAAP OUTLOOK ADJUSTMENTS OUTLOOK Net Sales $440 to $480 million ‒ $440 to $480 million Gross Margin 24% to 26% 1% (A) 25% to 27% Diluted EPS $1.20 ± $0.20 $0.80 (A,B,C) $2.00 ± $0.20 Diluted Shares 27 million (1) million 26 million 14
Slide 15: Thank You
THANK YOU 15
Slide 16: Appendix
APPENDIX 016
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three Months Ended Fiscal Year Ended August 27, May 28, August 28, August 27, August 28, 2021 2021 2020 2021 2020 Reconciliation of gross profit: GAAP gross profit $ 117,794 $ 84,487 $ 56,337 $ 308,380 $ 216,396 GAAP gross margin 25.2% 19.3% 19.0% 20.5% 19.3% Add: Sha
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three Months Ended Fiscal Year Ended August 27, May 28, August 28, August 27, August 28, 2021 2021 2020 2021 2020 Reconciliation of net income (loss) and earnings per share (diluted): GAAP net income (loss) $ 20,652 $ (7,211) $ 7,527 $ 21,310 $ (1,143) Adjustments to
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Three Months Ended Fiscal Year Ended August 27, May 28, August 28, August 27, August 28, 2021 2021 2020 2021 2020 GAAP net income (loss) $ 20,652 $ (7,211) $ 7,527 $ 21,310 $ (1,143) Share-based compensation expense 9,010 8,381 3,206 33,877 18,716 Amortization of inta
Slide 20: Convertible Dilution
— Convertible Dilution rH Convertible Share Net Share Dilution Dilution Table Dilution Capped Call to SGH Stock Price $40.00 0.00 0.00 0.00 $42.50 0.27 0.27 0.00 $45.00 0.60 0.60 0.00 $47.50 0.89 0.89 0.00 $50.00 1.16 1.16 0.00 $52.50 1.39 1.39 0.00 $55.00 1.61 1.52 0.10 $57.50 181 1.45 0.36 $60.00
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