Slide 1: Q2 FY2022 SGH Financial Results
Q2 FY2022 SGH FINANCIAL RESULTS APRIL 5, 2022
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
Slide 4: SGH Q2 FY22 Highlights
SGH Q2 FY22 Highlights Revenue up 48% YoY Strong Gross Margin • Revenue of $449M • GAAP gross margin of 25%, up ~750 bp YoY • 8th consecutive quarter of YoY growth • Non-GAAP gross margin of 26%, up ~660 bp YoY Non-GAAP EPS Up Announced Significantly $75 million • GAAP EPS of $0.04, Share Repurchase
Slide 5: Intelligent Platform Solutions
Intelligent Platform Solutions PERFORMANCE HIGHLIGHTS SOLUTIONS HIGHLIGHTS BRAND LAUNCH YTD FY22 revenue of $201M Announced key engagement with Meta New umbrella brand: Penguin Solutions § YTD FY22 revenue up 33% vs. year ago § Providing AI-optimized architecture and § To showcase the full breadth o
Slide 6: LED Solutions
LED Solutions PERFORMANCE HIGHLIGHTS MANUFACTURING TRANSFORMATION PRODUCT/TECHNOLOGY HIGHLIGHTS Q2 FY22 revenue of $107M Transition to Sapphire + fab-lite model Delivering innovative, application-optimized LEDs § In line with expectations, with Q2 product § Progress continues § Good traction with ne
Slide 7: Memory Solutions
Memory Solutions PERFORMANCE HIGHLIGHTS PRODUCT HIGHLIGHTS TECHNOLOGY HIGHLIGHTS Q2 FY22 revenue of $260M New products; new vertical markets Developing solutions for the Edge of the network § Up 9% vs. Q1 FY22; up 19% vs. Q2 FY21 § NV-CXL and CXL Add-in Card solutions for § Growth driven by sales of
Slide 8: Financial Review
FINANCIAL REVIEW KEN RIZVI, SVP AND CFO © 2022 SGH 8
Slide 9: Non-GAAP Quarterly Results
Non-GAAP Quarterly Results 8th consecutive quarter of year-over-year growth Non-GAAP Non-GAAP Net Sales Gross Margin EPS Q2 FY22 $449 M 26% $0.87 Change vs. Q2 FY21 up 48% up ~660 bp Up 98% Q2 Guidance* $415-$455 M 24-26% $0.73 +/- $0.08 Note: all per share measures reflect the February 2022 two-for
Slide 10: Q2 FY2022 Non-GAAP Operating Results
Q2 FY2022 Non-GAAP Operating Results ($ M) Q2 FY22 Q1 FY22 Q2 FY21 Net sales $449.2 $469.9 $304.0 Intelligent Platform Solutions $82.3 $118.7 $85.4 Memory Solutions $260.1 $239.4 $218.6 LED Solutions* $106.8 $111.9 $-- Gross profit $116.9 $127.0 $59.3 Operating expenses $59.5 $57.9 $32.1 Net income
Slide 11: Q2 FY2022 Net Sales by End Market
Q2 FY2022 Net Sales by End Market Mobile & PCs 24% 23% Network & Telecom Servers & Storage AI/Data Analytics/Machine 11% Learning 15% Industrial, Defense & Other 15% Advanced Lighting 12% © 2022 SGH 11
Slide 12: Q2 FY2022 Balance Sheet Highlights
Q2 FY2022 Balance Sheet Highlights Working Q1 FY22 Q2 FY22 Q1 FY22 Q2 FY22 Q1 FY22 Q2 FY22 Capital Cash Flow CapEx Net Accounts Cash & $344.1M $385.9M $233.1M $365.8M CapEx $12.8 M $7.4M Receivable Equivalents (at period end) Days Sales 39 days 45 days CF from Depreciation $9.5 M $10.2 M Outstanding
Slide 13: Q3 FY 2022 Guidance
Q3 FY 2022 Guidance GAAP Non-GAAP Outlook Adjustments Outlook Net Sales $435 to $475 million ‒ $435 to $475 million Gross Margin 23% to 25% 1% (A) 24% to 26% Diluted EPS $0.35 ± $0.08 $0.40 (A,B,C) $0.75 ± $0.08 Diluted Shares 57 million (3) million 54 million See appendix for GAAP to non-GAAP recon
Slide 14: Powering Growth. Expanding Possibilities.
POWERING GROWTH. EXPANDING POSSIBILITIES. © 2022 SGH 14
Slide 15: Appendix
APPENDIX © 2022 SGH 15
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2022 SGH 16
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2022 SGH 17
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2022 SGH 18
Slide 19: Convertible Dilution
Convertible Dilution © 2022 SGH 19