Penguin Solutions, Inc. · NASDAQ:PENG

Penguin Solutions — SMART Global Holdings — Q3 2024 Earnings Presentation

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

  1. Slide 1: Third Quarter FY24 SGH Financial Results

    THIRD QUARTER FY24 SGH FINANCIAL RESULTS July 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 Jack Pacheco COO of SGH and President of Memory Solutions Nate Olmstead SVP and CFO SGH © 2024 SGH | 3

  4. Slide 4: Q3 FY24 Highlights

    Revenue Revenue of $301M, up 6% sequentially, with increases across all businesses Q3 FY24 Gross Margin Highlights Non-GAAP gross margin of 32.3%, above the mid- point of our guidance range Continuing to grow customer engagements, advance software EPS and service offerings, and drive Non-GAAP EPS of

  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 $145M − 48% of total SGH revenue − Revenue up 3% quarter over quarter − Services revenue was 22% of total SGH Q3 FY24 revenue versus 17% in the previous quarter  Key Customer Wins − Multi-million dollar software and services engagement − Multiple follow-o

  7. Slide 7: Memory Solutions

    Memory Solutions  Revenue of $92M − 30% of total SGH revenue − Revenue up 10% quarter over quarter  Achieved key product development and customer engagement milestones  8-DIMM DDR5 CXL add-in card; received our first production sale to an AI compute vendor; strong design-in & customer sampling ac

  8. Slide 8: LED Solutions

    LED Solutions  Revenue of $64M − 21% of total SGH revenue − Revenue up 6% quarter over quarter  Backlog and channel visibility are improving  Cree LED remains a technology and brand leader − Announced new XLamp® XFL LED family, designed for peak performance in specialty flashlight and portable li

  9. Slide 9: Financial Review

    FINANCIAL REVIEW Jack Pacheco, EVP and COO © 2024 SGH | 9

  10. Slide 10: Non-GAAP Q3 FY24 Results

    Q3 FY24 REVENUE $301M Guidance: $300M +/- $25M Non-GAAP Q3 FY24 Results Q3 FY24 NON-GAAP GROSS MARGIN Key financial metrics 32.3% within or above midpoint Guidance: 32% +/- 1.5% of guidance range Q3 FY24 NON-GAAP EPS $0.37 Guidance: $0.30 +/- $0.15 • Guidance provided on Q2 FY24 earnings call, which

  11. Slide 11: Q3 FY24 Revenue Detail

    Q3 FY24 Revenue Detail Revenue Breakdown – Total $301M Revenue Mix by Business Product Revenue 21% $233M 48% 30% Services Revenue $67M LED Solutions Memory Solutions Intelligent Platform Solutions Note: Percentages may not total precisely 100% due to rounding © 2024 SGH | 11

  12. Slide 12: Q3 FY24 Non-GAAP Operating Results

    Q3 FY24 Non-GAAP Operating Results 1 ($M) Q3 FY24 Q2 FY24 Q3 FY23 Revenue $300.6 $284.8 $344.4 Intelligent Platform Solutions $145.0 $141.4 $170.9 Memory Solutions $91.6 $83.3 $109.5 LED Solutions $64.0 $60.1 $64.1 Non-GAAP Gross profit2 $97.0 $89.7 $109.0 Non-GAAP Operating expenses2 $63.6 $63.2 $6

  13. Slide 13: Q3 FY24 Balance Sheet Highlights

    Q3 FY24 Balance Sheet Highlights Continuing Operations Working Q2 FY24 Q3 FY24 Cash Capital Capital Flow Q2 FY24 Q3 FY24 Expenditures Q2 FY24 Q3 FY24 Net Cash, Equivalents Accounts $170M $212M & ST investments $466M $468M CapEx $5.2M $3.8M Receivable (at period end) Days Sales CF from 41 days 42 day

  14. Slide 14: Our Guidance

    OUR GUIDANCE © 2024 SGH | 14

  15. Slide 15: Q4 FY24 Guidance

    Q4 FY24 Guidance GAAP Outlook Adjustments Non-GAAP Outlook Net Sales $325 million +/- $25 million — $325 million +/- $25 million Gross margin 29.5% +/- 1.5% 2% (A) 31.5% +/- 1.5% Operating expenses $81 million +/- $2 million $(15) million (B)(C) $66 million +/- $2 million Diluted earnings (loss) per

  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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