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May 29, 2020

SMART Q3 2020 Earnings Report

Reported financial results with revenue and gross profit growth, and a strong increase in non-GAAP earnings per share.

Key Takeaways

SMART Global Holdings reported a 19.4% increase in net sales compared to the year-ago quarter, reaching $281.3 million. GAAP net income was $0.8 million, or $0.03 per share, while non-GAAP net income was $17.1 million, or $0.70 per share. Adjusted EBITDA was $25.4 million, 32.5% higher than the year-ago quarter.

Net sales increased by 19.4% year-over-year to $281.3 million.

GAAP net income was $0.8 million, or $0.03 per share.

Non-GAAP net income was $17.1 million, or $0.70 per share.

Adjusted EBITDA increased by 32.5% year-over-year to $25.4 million.

Total Revenue
$281M
Previous year: $236M
+19.4%
EPS
$0.35
Previous year: $0.17
+105.9%
Gross Profit
$54.2M
Previous year: $43M
+25.9%
Cash and Equivalents
$132M
Previous year: $126M
+4.6%
Free Cash Flow
$6.11M
Previous year: $35.8M
-83.0%
Total Assets
$792M
Previous year: $670M
+18.3%

SMART

SMART

Forward Guidance

For the fourth quarter of fiscal 2020, SMART Global Holdings expects net sales between $290 to $310 million, GAAP and Non-GAAP gross margin between 20% to 22%, GAAP diluted EPS of $0.34 ± $0.08, and Non-GAAP diluted EPS of $0.78 ± $0.08.

Positive Outlook

  • Net Sales: $290 to $310 million
  • Gross Margin (GAAP / Non-GAAP): 20% to 22%
  • Diluted EPS (GAAP): $0.34 ± $0.08
  • Diluted EPS (Non-GAAP): $0.78 ± $0.08
  • Expected diluted share count: 24.5 million

Challenges Ahead

  • Share-based compensation per share: $0.21
  • Intangible amortization per share: $0.15
  • Convertible debt discount OID and fees per share: $0.08