Penguin Solutions Files 10-Q for Q1 2025

TL;DR

Penguin Solutions (formerly SMART Global) filed its 10-Q. Financials look steady.

AI Summary

Penguin Solutions, Inc. filed its 10-Q for the period ending November 29, 2024. The company, formerly known as SMART Global Holdings, Inc., operates in the Semiconductors & Related Devices sector. The filing covers financial data and operational details for the period.

Why It Matters

This filing provides investors with an update on Penguin Solutions' financial performance and position as of November 29, 2024, crucial for understanding the company's trajectory in the semiconductor industry.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information, not indicating any immediate or unusual risks.

Key Numbers

• 2024-11-29 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 2025-01-08 — Filing Date (Shows when the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Penguin Solutions, Inc. (company) — Filer of the 10-Q
• SMART Global Holdings, Inc. (company) — Former name of Penguin Solutions, Inc.
• 20241129 (date) — End of the reporting period
• 20250108 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• sgh-20241129.htm (10-Q) — 989KB
• pengq1-25form10xqex311.htm (EX-31.1) — 10KB
• pengq1-25form10xqex312.htm (EX-31.2) — 10KB
• pengq1-25form10xqex321.htm (EX-32.1) — 4KB
• pengq1-25form10xqex322.htm (EX-32.2) — 4KB
• sgh-20241129_g1.jpg (GRAPHIC) — 70KB
• 0001628280-25-000944.txt ( ) — 7422KB
• sgh-20241129.xsd (EX-101.SCH) — 61KB
• sgh-20241129_cal.xml (EX-101.CAL) — 116KB
• sgh-20241129_def.xml (EX-101.DEF) — 268KB
• sgh-20241129_lab.xml (EX-101.LAB) — 714KB
• sgh-20241129_pre.xml (EX-101.PRE) — 502KB
• sgh-20241129_htm.xml (XML) — 853KB

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 25 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4

Controls and Procedures

Controls and Procedures 33

Other Information

PART II. Other Information Item 1

Legal Proceedings

Legal Proceedings 34 Item 1A

Risk Factors

Risk Factors 34 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3 Defaults Upon Senior Securities 34 Item 4 Mine Safety Disclosures 35 Item 5 Other Information 35 Item 6 Exhibits 35

Signatures

Signatures 37 2 Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q ("Quarterly Report") contains "forward-looking statements" that are not historical in nature, that are predictive or that depend upon or refer to future events or conditions. These statements may include, but are not limited to, statements regarding future events or our future financial or operating performance, the extent and timing of, and expectations regarding, our future revenues and expenses and customer demand, statements regarding the deployment of our products and services, statements regarding our reliance on third parties, statements regarding our rebranding initiatives and strategy, and statements using words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "plan," "potential," "should" and similar words and the negatives thereof constitute forward-looking statements. 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 (including trends and markets related to artificial intelligence ("AI")), our customer markets and various geographic regions; uncertainties in the geopolitical environment; our ability to manage our cost structure; disruptions in our operations or supply chain as a result of global pandemics or otherwise; 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 our rebranding and related strategy, any potential collaborations, and additional investments in new produ

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 Penguin Solutions, Inc. Consolidated Balance Sheets (In thousands, except par value amount) (Unaudited) As of November 29, 2024 August 30, 2024 Assets Cash and cash equivalents $ 370,295 $ 383,147 Short-term investments 23,430 6,337 Accounts receivable, net 275,629 251,743 Inventories 246,952 151,213 Other current assets 79,273 75,264 Total current assets 995,579 867,704 Property and equipment, net 100,239 106,548 Operating lease right-of-use assets 58,317 60,349 Intangible assets, net 111,926 121,454 Goodwill 161,958 161,958 Deferred tax assets 84,934 85,078 Other noncurrent assets 70,062 71,415 Total assets $ 1,583,015 $ 1,474,506 Liabilities and Equity Accounts payable and accrued expenses $ 284,636 $ 219,090 Deferred revenue 41,326 63,954 Other current liabilities 100,924 44,552 Total current liabilities 426,886 327,596 Long-term debt 658,070 657,347 Noncurrent operating lease liabilities 58,611 60,542 Other noncurrent liabilities 30,499 29,813 Total liabilities 1,174,066 1,075,298 Commitments and contingencies Penguin Solutions shareholders' equity: Preferred shares, $ 0.03 par value; authorized 30,000 shares; none issued or outstanding — — Ordinary shares, $ 0.03 par value; authorized 200,000 shares; 61,067 shares issued and 53,438 outstanding as of November 29, 2024; 60,226 shares issued and 53,277 outstanding as of August 30, 2024 1,832 1,807 Additional paid-in capital 528,201 513,335 Retained earnings 35,202 29,985 Treasury shares, 7,629 and 6,949 shares held as of November 29, 2024 and August 30, 2024, respectively ( 164,879 ) ( 153,756 ) Accumulated other comprehensive income (loss) 19 10 Total Penguin Solutions shareholders' equity 400,375 391,381 Noncontrolling interest in subsidiary 8,574 7,827 Total equity 408,949 399,208 Total liabilities and equity $ 1,583,015 $ 1,474,506 The accompanying notes are an integral part of these consolidated financial

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 Penguin Solutions, Inc. ("Penguin Solutions," "we," "us," "our," the "Company" or similar terms) 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 30, 2024 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 30, 2024. 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, r

View Full Filing

View this 10-Q filing on SEC EDGAR