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Feb 24, 2023

SMART Q2 2023 Earnings Report

SGH's financial performance reflected resilience, marked by a strong non-GAAP gross margin and non-GAAP EPS that exceeded guidance.

Key Takeaways

SMART Global Holdings (SGH) reported Q2 fiscal year 2023 results with net sales of $429 million. The company's non-GAAP EPS was $0.76, exceeding the high end of its guidance range, and it held $376 million in cash and cash equivalents.

Net sales reached $429 million, a decrease of 4.5% compared to the previous year's quarter.

GAAP gross margin increased to 25.7%, a 60 basis points rise year-over-year.

Non-GAAP gross margin was 28.9%, showing a 290 basis points increase compared to the prior year.

The company held $376 million in cash and cash equivalents.

Total Revenue
$429M
Previous year: $449M
-4.5%
EPS
$0.76
Previous year: $0.87
-12.6%
Gross Profit
$110M
Previous year: $113M
-2.1%
Cash and Equivalents
$376M
Previous year: $366M
+2.8%
Free Cash Flow
$84.3M
Previous year: $24.8M
+239.9%
Total Assets
$1.64B
Previous year: $1.51B
+8.7%

SMART

SMART

Forward Guidance

SGH anticipates net sales of $375 million +/- $20 million, a gross margin of 28% +/- 1%, operating expenses of $72 million +/- $3 million, and diluted earnings per share of $0.40 +/- $0.10 for the third quarter of fiscal 2023.