SMART Global Holdings Files Q3 2024 10-Q

TL;DR

**SGH Q3 24 10-Q FILED. FINANCIALS OUT.**

AI Summary

SMART Global Holdings, Inc. filed its 10-Q for the period ending May 31, 2024. The company, operating in the semiconductors and related devices industry, reported financial results for its third fiscal quarter of 2024. Key financial data and operational details for this period are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for SMART Global Holdings, Inc., crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: medium — As a semiconductor company, SMART Global Holdings is subject to industry cyclicality, supply chain disruptions, and intense competition, which can impact financial performance.

Key Numbers

• 2024 Q3 — Fiscal Quarter (Reporting period for this 10-Q filing)
• 08/26 — Fiscal Year End (Indicates the company's fiscal year closing date)

Key Players & Entities

• SMART Global Holdings, Inc. (company) — Filer of the 10-Q
• 0001628280-24-031519 (filing_id) — Accession Number for the 10-Q filing
• 20240531 (date) — End of the reporting period for the 10-Q
• 3674 (sic_code) — Standard Industrial Classification for Semiconductors & Related Devices
• 39870 EUREKA DRIVE, NEWARK, CA 94560-4809 (address) — Company's business and mailing address

FAQ

Key Financial Figures

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

Filing Documents

• sgh-20240531.htm (10-Q) — 1451KB
• sghq3-24form10xqex101.htm (EX-10.1) — 57KB
• sghq3-24form10xqex102.htm (EX-10.2) — 60KB
• sghq3-24form10xqex311.htm (EX-31.1) — 10KB
• sghq3-24form10xqex312.htm (EX-31.2) — 10KB
• sghq3-24form10xqex321.htm (EX-32.1) — 4KB
• sghq3-24form10xqex322.htm (EX-32.2) — 4KB
• gbdou1amziqb000001.jpg (GRAPHIC) — 4KB
• gbdou1amziqb0000011.jpg (GRAPHIC) — 4KB
• gbdou1amziqb0000012.jpg (GRAPHIC) — 4KB
• gbdou1amziqb0000013.jpg (GRAPHIC) — 4KB
• sgh-20240531_g1.jpg (GRAPHIC) — 4KB
• sgh-20240531_g2.jpg (GRAPHIC) — 76KB
• 0001628280-24-031519.txt ( ) — 9245KB
• sgh-20240531.xsd (EX-101.SCH) — 64KB
• sgh-20240531_cal.xml (EX-101.CAL) — 128KB
• sgh-20240531_def.xml (EX-101.DEF) — 346KB
• sgh-20240531_lab.xml (EX-101.LAB) — 767KB
• sgh-20240531_pre.xml (EX-101.PRE) — 555KB
• sgh-20240531_htm.xml (XML) — 1228KB

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 27 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 and Use of Proceeds 36 Item 3 Defaults Upon Senior Securities 36 Item 4 Mine Safety Disclosures 36 Item 5 Other Information 36 Item 6 Exhibits 37

Signatures

Signatures 38 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 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 4 SMART Global Holdings, Inc. Consolidated Balance Sheets (In thousands, except par value amount) (Unaudited) As of May 31, 2024 August 25, 2023 Assets Cash and cash equivalents $ 453,791 $ 365,563 Short-term investments 13,746 25,251 Accounts receivable, net 211,842 219,247 Inventories 177,299 174,977 Other current assets 85,649 51,790 Current assets of discontinued operations — 70,574 Total current assets 942,327 907,402 Property and equipment, net 107,646 118,734 Operating lease right-of-use assets 61,729 68,444 Intangible assets, net 131,380 160,185 Goodwill 161,958 161,958 Deferred tax assets 77,903 74,085 Other noncurrent assets 63,190 15,150 Total assets $ 1,546,133 $ 1,505,958 Liabilities and Equity Accounts payable and accrued expenses $ 230,646 $ 182,035 Current debt — 35,618 Deferred revenue 88,719 48,096 Acquisition-related contingent consideration — 50,000 Other current liabilities 31,777 32,731 Current liabilities of discontinued operations — 77,770 Total current liabilities 351,142 426,250 Long-term debt 667,042 754,820 Noncurrent operating lease liabilities 62,054 66,407 Other noncurrent liabilities 35,374 29,248 Total liabilities 1,115,612 1,276,725 Commitments and contingencies SMART Global Holdings shareholders' equity: Ordinary shares, $ 0.03 par value; authorized 200,000 shares; 59,676 shares issued and 52,865 outstanding as of May 31, 2024; 57,542 shares issued and 51,901 outstanding as of August 25, 2023 1,790 1,726 Additional paid-in capital 517,548 476,703 Retained earnings 54,532 82,457 Treasury shares, 6,811 and 5,641 shares held as of May 31, 2024 and August 25, 2023, respectively ( 150,438 ) ( 132,447 ) Accumulated other comprehensive income (loss) 17 ( 205,964 ) Total SGH shareholders' equity 423,449 222,475 Noncontrolling interest in subsidiary 7,072 6,758 Total equity 430,521 229,233 Total liabilities and equity $ 1,546,133 $ 1,505,958

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