SMART Global Holdings, Inc. Files 10-Q for Period Ending December 1, 2023

TL;DR

<b>SMART Global Holdings, Inc. filed its quarterly report (10-Q) for the period ending December 1, 2023.</b>

AI Summary

SMART Global Holdings, Inc. (PENG) filed a Quarterly Report (10-Q) with the SEC on January 9, 2024. SMART Global Holdings, Inc. filed a 10-Q report for the period ending December 1, 2023. The filing covers the fiscal quarter ending December 1, 2023. The company's fiscal year ends on August 26. The filing was made on January 9, 2024. The company's SIC code is 3674 (Semiconductors & Related Devices).

Why It Matters

For investors and stakeholders tracking SMART Global Holdings, Inc., this filing contains several important signals. This 10-Q filing provides an update on the company's financial performance and operational status for the most recent fiscal quarter. Investors and analysts can use this report to assess the company's financial health, identify trends, and make informed investment decisions.

Risk Assessment

Risk Level: low — SMART Global Holdings, Inc. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine periodic report and does not contain significant new risks or disclosures beyond typical quarterly updates.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance drivers and outlook.

Key Numbers

• 2023-12-01 — Reporting Period End Date (The 10-Q covers the period ending on this date.)
• 2024-01-09 — Filing Date (The date the 10-Q was officially filed with the SEC.)
• 0826 — Fiscal Year End (SMART Global Holdings, Inc.'s fiscal year concludes on this date annually.)

Key Players & Entities

• SMART Global Holdings, Inc. (company) — Filer of the 10-Q report.
• 0001616533 (company) — Central Index Key for SMART Global Holdings, Inc.
• 2023-12-01 (date) — End of the reporting period for the 10-Q.
• 2024-01-09 (date) — Filing date of the 10-Q.
• 3674 (industry) — Standard Industrial Classification for Semiconductors & Related Devices.

Forward-Looking Statements

• SMART Global Holdings will face continued pressure on profitability in the next quarter. (SMART Global Holdings, Inc.) — medium confidence, target: 2024-03-01

FAQ

Industry Context

SMART Global Holdings, Inc. operates in the Semiconductors & Related Devices industry, a sector characterized by rapid technological advancements and global supply chain dynamics.

Regulatory Implications

As a publicly traded company, SMART Global Holdings, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly reports on Form 10-Q.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key metrics for the quarter ended December 1, 2023.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's performance, risks, and future outlook.
3. Compare the current quarter's results with historical data and industry benchmarks to assess performance trends.

Key Dates

• 2023-12-01: End of Fiscal Quarter — This date marks the end of the reporting period for the 10-Q filing.
• 2024-01-09: 10-Q Filing Date — The date SMART Global Holdings, Inc. submitted its quarterly report to the SEC.

Year-Over-Year Comparison

This filing is a standard 10-Q for the period ending December 1, 2023. Specific comparative data from the prior filing period is not detailed in the provided header information.

Key Financial Figures

• $0.03 — e on which registered Ordinary shares, $0.03 par value per share SGH Nasdaq Global S

Filing Documents

• sgh-20231201.htm (10-Q) — 1122KB
• sghq1-24form10xqex21.htm (EX-2.1) — 26KB
• sghq1-24form10xqex311.htm (EX-31.1) — 10KB
• sghq1-24form10xqex312.htm (EX-31.2) — 10KB
• sghq1-24form10xqex321.htm (EX-32.1) — 4KB
• sghq1-24form10xqex322.htm (EX-32.2) — 4KB
• gbdou1amziqb0000011a.jpg (GRAPHIC) — 4KB
• gbdou1amziqb0000012a.jpg (GRAPHIC) — 4KB
• gbdou1amziqb0000013.jpg (GRAPHIC) — 4KB
• gbdou1amziqb000001a.jpg (GRAPHIC) — 4KB
• sgh-20231201_g1.jpg (GRAPHIC) — 4KB
• sgh-20231201_g2.jpg (GRAPHIC) — 76KB
• 0001628280-24-000961.txt (&nbsp;) — 8593KB
• sgh-20231201.xsd (EX-101.SCH) — 68KB
• sgh-20231201_cal.xml (EX-101.CAL) — 142KB
• sgh-20231201_def.xml (EX-101.DEF) — 374KB
• sgh-20231201_lab.xml (EX-101.LAB) — 856KB
• sgh-20231201_pre.xml (EX-101.PRE) — 578KB
• sgh-20231201_htm.xml (XML) — 1028KB

Financial Information

PART I. Financial Information Item 1

Financial Statements

Financial Statements 4 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4

Controls and Procedures

Controls and Procedures 35

Other Information

PART II. Other Information Item 1

Legal Proceedings

Legal Proceedings 36 Item 1A

Risk Factors

Risk Factors 36 Item 2 Unregistered Sales of Equity Securities , Use of Proceed s and Issuer Purchases of Equity Securities 36 Item 3 Defaults Upon Senior Securities 36 Item 4 Mine Safety Disclosures 37 Item 5 Other Information 37 Item 6 Exhibits 37

Signatures

Signatures 39 2 Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q ("Quarterly Report") contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that are not historical in nature, that are predictive or that depend upon or refer to future events or conditions. These statements include, but are not limited to, statements regarding our future financial or operating performance, the extent and timing of future revenues and expenses and customer demand, statements regarding the deployment of our products and services, statements regarding our reliance on third parties, and statements using words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "plan," "potential," "should" and similar words and the negatives thereof. These forward-looking statements are based on our current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of our control, including but not limited to, global business and economic conditions and growth trends in technology industries, our customer markets and various geographic regions; uncertainties in the geopolitical environment; the ability to manage our cost structure; disruptions in our operations or supply chain; changes in trade regulations or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers' n

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements INDEX TO FINANCIAL STATEMENTS Page Consolidated Balance Sheets 5 Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income (Loss) 7 Consolidated Statements of Shareholders' Equity 8 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 4 SMART Global Holdings, Inc. Consolidated Balance Sheets (In thousands, except par value amount) (Unaudited) As of December 1, 2023 August 25, 2023 Assets Cash and cash equivalents $ 529,059 $ 365,563 Short-term investments 24,385 25,251 Accounts receivable, net 170,590 219,247 Inventories 208,441 174,977 Other current assets 54,373 51,790 Current assets of discontinued operations — 70,574 Total current assets 986,848 907,402 Property and equipment, net 112,328 118,734 Operating lease right-of-use assets 64,637 68,444 Intangible assets, net 150,283 160,185 Goodwill 161,958 161,958 Deferred tax assets 74,365 74,085 Other noncurrent assets 80,446 15,150 Total assets $ 1,630,865 $ 1,505,958 Liabilities and Equity Accounts payable and accrued expenses $ 219,082 $ 182,035 Current debt 28,511 35,618 Deferred revenue 39,096 48,096 Acquisition-related contingent consideration 50,000 50,000 Other current liabilities 32,115 32,731 Current liabilities of discontinued operations — 77,770 Total current liabilities 368,804 426,250 Long-term debt 748,299 754,820 Noncurrent operating lease liabilities 64,407 66,407 Other noncurrent liabilities 33,346 29,248 Total liabilities 1,214,856 1,276,725 Commitments and contingencies SMART Global Holdings shareholders' equity: Ordinary shares, $ 0.03 par value; authorized 200,000 shares; 58,447 shares issued and 51,906 outstanding as of December 1, 2023; 57,542 shares issued and 51,901 outstanding as of August 25, 2023 1,753 1,726 Additional paid-in capital 491,145 476,703 Retained earnings 62,536 82,457 Treasury shares, 6,541 and 5,641 shares held as of December 1, 2023 and August 25, 2023, respectively ( 145,577 ) ( 132,447 ) Accumulated other comprehensive income (loss) 303 ( 205,964 ) Total SGH shareholders' equity 410,160 222,475 Noncontrolling interest in subsidiary 5,849 6,758 Total equity 416,009 229,233 Total liabilities and equity $

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Tabular amounts in thousands, except per share amounts) (Unaudited) Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of SMART Global Holdings, Inc. and its consolidated subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended August 25, 2023 and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. These consolidated interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended August 25, 2023. Presentation of SMART Brazil as Discontinued Operations : On June 13, 2023, we entered into an agreement to divest of an 81 % interest in SMART Modular Technologies do Brasil – Indstria e Comercio de Componentes Ltda. ("SMART Brazil"). We concluded that, as of August 25, 2023, (i) the net assets of SMART Brazil met the criteria for classification as held for sale and (ii) the proposed sale represented a strategic shift that was expected to have a major effect on our operations and financial results. On November 29, 2023, we completed the divestiture. The balance sheets, results of operations and cash flows of SMART Brazil have been present

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View this 10-Q filing on SEC EDGAR