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Mar 01, 2024

SMART Q2 2024 Earnings Report

Reported financial results, showing a slight increase in net sales and mixed EPS performance compared to the previous quarter.

Key Takeaways

SGH reported second quarter fiscal 2024 results with net sales of $284.8 million, a 3.9% increase sequentially. GAAP EPS was $(0.26) and non-GAAP EPS was $0.27.

Net sales increased by 3.9% compared to the prior quarter, reaching $284.8 million.

GAAP gross margin was 28.8%, a decrease from 30.2% in the prior quarter.

Non-GAAP gross margin was 31.5%, a decrease from 33.3% in the prior quarter.

Non-GAAP EPS increased to $0.27 from $0.24 in the prior quarter.

Total Revenue
$285M
Previous year: $429M
-33.6%
EPS
$0.27
Previous year: $0.76
-64.5%
Gross Profit
$81.9M
Previous year: $110M
-25.8%
Cash and Equivalents
$442M
Previous year: $376M
+17.6%
Free Cash Flow
-$27.1M
Previous year: $84.3M
-132.2%
Total Assets
$1.52B
Previous year: $1.64B
-7.5%

SMART

SMART

SMART Revenue by Segment

Forward Guidance

SGH is providing financial outlook for the third quarter of fiscal 2024 with net sales expected to be $300 million +/- $25 million and diluted earnings per share to be $0.30 +/- $0.15.

Positive Outlook

  • Net sales are expected to be $300 million +/- $25 million.
  • Gross margin is expected to be 32% +/- 1.5%.
  • Operating expenses are projected to be $66 million +/- $2 million.
  • Diluted earnings per share are anticipated to be $0.30 +/- $0.15.
  • Diluted shares are expected to be 54.4 million.

Challenges Ahead

  • GAAP diluted earnings per share are projected to be $(0.07) +/- $0.15.
  • Operating expenses are expected to be $80 million +/- $2 million (GAAP).
  • Gross margin is expected to be 29% +/- 1.5% (GAAP).
  • Diluted shares are expected to be 52.6 million (GAAP).
  • Unspecified potential changes in the global tax environment may affect the non-GAAP effective tax rate.

Revenue & Expenses

Visualization of income flow from segment revenue to net income