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May 27, 2022

SMART Q3 2022 Earnings Report

Reported ninth consecutive quarter of year-over-year revenue growth and announced entry into a definitive agreement to acquire Stratus Technologies.

Key Takeaways

SMART Global Holdings reported strong Q3 fiscal 2022 financial results with net sales of $463 million, a GAAP gross margin of 24.7%, and GAAP EPS of $0.44. The company also announced a definitive agreement to acquire Stratus Technologies.

Net sales increased by 6% year-over-year to $463 million.

GAAP gross margin rose by 540 basis points year-over-year to 24.7%.

GAAP EPS was $0.44, compared to a loss of $(0.15) in the year-ago quarter.

Signed a definitive agreement to acquire Stratus Technologies.

Total Revenue
$463M
Previous year: $438M
+5.7%
EPS
$0.87
Previous year: $0.7
+24.3%
Gross Profit
$114M
Previous year: $84.5M
+35.5%
Cash and Equivalents
$387M
Previous year: $189M
+104.9%
Free Cash Flow
$27.6M
Previous year: $44.1M
-37.5%
Total Assets
$1.55B
Previous year: $1.19B
+30.7%

SMART

SMART

Forward Guidance

SGH provides financial outlook for its fourth quarter of fiscal 2022 with net sales between $420 to $460 million and diluted earnings per share of $0.22 +/- $.10.

Positive Outlook

  • Net sales are expected to be between $420 million and $460 million.
  • Gross margin is projected to be between 22.5% and 24.5%.
  • Non-GAAP gross margin is expected to be between 23.5% and 25.5%.
  • Diluted earnings per share are forecasted at $0.22 +/- $.10.
  • Non-GAAP diluted earnings per share are projected at $0.65 +/- $.10.