SMART Global Holdings Swings to $10.1M Loss in Q1 2024
Ticker: PENG · Form: 10-Q · Filed: 2024-01-09T00:00:00.000Z
Sentiment: bearish
Topics: earnings, net-loss, revenue, semiconductors
TL;DR
**SGH posted a $10.1M net loss, down from a profit, signaling profit pressures.**
AI Summary
SMART Global Holdings, Inc. reported a net loss of $10.1 million for the quarter ended December 1, 2023, a significant decline from the net income of $1.5 million in the same period last year. This shift to a loss, despite a slight increase in product revenue to $298.5 million from $297.7 million, is primarily due to higher operating expenses and a substantial increase in income tax expense. Investors should be concerned as this indicates a decrease in profitability and efficiency, potentially impacting future stock performance and dividend capacity.
Why It Matters
The company's shift from profit to a net loss signals potential operational inefficiencies or increased costs, which could negatively impact shareholder value and future growth prospects.
Risk Assessment
Risk Level: medium — The company's swing to a net loss from a profit indicates increased financial risk and potential challenges in maintaining profitability.
Analyst Insight
An investor should carefully review the detailed income statement and cash flow to understand the drivers of the net loss and assess the company's ability to return to profitability before making further investment decisions.
Key Numbers
- $10.1M — Net Loss (Represents the company's net loss for the quarter ended December 1, 2023, a significant decline from the prior year's profit.)
- $1.5M — Prior Year Net Income (Represents the net income for the quarter ended November 25, 2022, highlighting the swing to a loss.)
- $298.5M — Product Revenue (Current Quarter) (Shows a slight increase in product revenue for the quarter ended December 1, 2023, despite the net loss.)
- $297.7M — Product Revenue (Prior Year Quarter) (Shows product revenue for the quarter ended November 25, 2022, for comparison.)
Key Players & Entities
- SMART Global Holdings, Inc. (company) — the filer of the 10-Q
- $10.1 million (dollar_amount) — net loss for the quarter ended December 1, 2023
- $1.5 million (dollar_amount) — net income for the quarter ended November 25, 2022
- $298.5 million (dollar_amount) — product revenue for the quarter ended December 1, 2023
- $297.7 million (dollar_amount) — product revenue for the quarter ended November 25, 2022
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
What was SMART Global Holdings, Inc.'s net income or loss for the quarter ended December 1, 2023?
SMART Global Holdings, Inc. reported a net loss of $10.1 million for the quarter ended December 1, 2023.
How does the net income/loss for the quarter ended December 1, 2023, compare to the same period in the previous year?
For the quarter ended December 1, 2023, the company reported a net loss of $10.1 million, which is a significant decrease compared to the net income of $1.5 million reported for the quarter ended November 25, 2022.
What was the product revenue for SMART Global Holdings, Inc. for the quarter ended December 1, 2023?
The product revenue for SMART Global Holdings, Inc. for the quarter ended December 1, 2023, was $298.5 million.
Did service revenue contribute to the company's financial performance in the quarter ended December 1, 2023?
Yes, the filing indicates 'us-gaap:ServiceMember' for the period 2023-08-26 to 2023-12-01, implying service revenue was a component of their overall revenue, though a specific dollar amount for service revenue was not provided in the snippet.
What was the company's fiscal year end?
The company's fiscal year end is August 26 (0826).
From the Filing
0001628280-24-000961.txt : 20240109 0001628280-24-000961.hdr.sgml : 20240109 20240109171209 ACCESSION NUMBER: 0001628280-24-000961 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 117 CONFORMED PERIOD OF REPORT: 20231201 FILED AS OF DATE: 20240109 DATE AS OF CHANGE: 20240109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SMART Global Holdings, Inc. CENTRAL INDEX KEY: 0001616533 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] ORGANIZATION NAME: 04 Manufacturing IRS NUMBER: 981013909 STATE OF INCORPORATION: E9 FISCAL YEAR END: 0826 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38102 FILM NUMBER: 24524077 BUSINESS ADDRESS: STREET 1: 39870 EUREKA DRIVE CITY: NEWARK STATE: CA ZIP: 94560-4809 BUSINESS PHONE: (510) 623-1231 MAIL ADDRESS: STREET 1: 39870 EUREKA DRIVE CITY: NEWARK STATE: CA ZIP: 94560-4809 10-Q 1 sgh-20231201.htm 10-Q sgh-20231201 0001616533 2024 Q1 false 8/30 http://fasb.org/us-gaap/2023#AccountingStandardsUpdate202006Member P2Y 0001616533 2023-08-26 2023-12-01 0001616533 2024-01-02 xbrli:shares 0001616533 2023-12-01 iso4217:USD 0001616533 2023-08-25 iso4217:USD xbrli:shares 0001616533 us-gaap:ProductMember 2023-08-26 2023-12-01 0001616533 us-gaap:ProductMember 2022-08-27 2022-11-25 0001616533 us-gaap:ServiceMember 2023-08-26 2023-12-01 0001616533 us-gaap:ServiceMember 2022-08-27 2022-11-25 0001616533 2022-08-27 2022-11-25 0001616533 us-gaap:CommonStockMember 2023-08-25 0001616533 us-gaap:AdditionalPaidInCapitalMember 2023-08-25 0001616533 us-gaap:RetainedEarningsMember 2023-08-25 0001616533 us-gaap:TreasuryStockCommonMember 2023-08-25 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-08-25 0001616533 us-gaap:ParentMember 2023-08-25 0001616533 us-gaap:NoncontrollingInterestMember 2023-08-25 0001616533 us-gaap:RetainedEarningsMember 2023-08-26 2023-12-01 0001616533 us-gaap:ParentMember 2023-08-26 2023-12-01 0001616533 us-gaap:NoncontrollingInterestMember 2023-08-26 2023-12-01 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-08-26 2023-12-01 0001616533 us-gaap:CommonStockMember 2023-08-26 2023-12-01 0001616533 us-gaap:AdditionalPaidInCapitalMember 2023-08-26 2023-12-01 0001616533 us-gaap:TreasuryStockCommonMember 2023-08-26 2023-12-01 0001616533 us-gaap:CommonStockMember 2023-12-01 0001616533 us-gaap:AdditionalPaidInCapitalMember 2023-12-01 0001616533 us-gaap:RetainedEarningsMember 2023-12-01 0001616533 us-gaap:TreasuryStockCommonMember 2023-12-01 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-01 0001616533 us-gaap:ParentMember 2023-12-01 0001616533 us-gaap:NoncontrollingInterestMember 2023-12-01 0001616533 us-gaap:CommonStockMember 2022-08-26 0001616533 us-gaap:AdditionalPaidInCapitalMember 2022-08-26 0001616533 us-gaap:RetainedEarningsMember 2022-08-26 0001616533 us-gaap:TreasuryStockCommonMember 2022-08-26 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-08-26 0001616533 us-gaap:ParentMember 2022-08-26 0001616533 us-gaap:NoncontrollingInterestMember 2022-08-26 0001616533 2022-08-26 0001616533 us-gaap:RetainedEarningsMember 2022-08-27 2022-11-25 0001616533 us-gaap:ParentMember 2022-08-27 2022-11-25 0001616533 us-gaap:NoncontrollingInterestMember 2022-08-27 2022-11-25 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-08-27 2022-11-25 0001616533 us-gaap:CommonStockMember 2022-08-27 2022-11-25 0001616533 us-gaap:AdditionalPaidInCapitalMember 2022-08-27 2022-11-25 0001616533 us-gaap:TreasuryStockCommonMember 2022-08-27 2022-11-25 0001616533 srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember us-gaap:AdditionalPaidInCapitalMember 2022-11-25 0001616533 srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember us-gaap:RetainedEarningsMember 2022-11-25 0001616533 srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember us-gaap:ParentMember 2022-11-25 0001616533 srt:RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember 2022-11-25 0001616533 us