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May 26, 2023

SMART Q3 2023 Earnings Report

Achieved strong operating results and record cash and equivalents.

Key Takeaways

SMART Global Holdings reported strong Q3 fiscal 2023 results with a non-GAAP gross margin increase to 28.0% and non-GAAP EPS of $0.66. The company ended the quarter with a record $401 million in cash and cash equivalents and announced an agreement to sell an 81% interest in SMART Brazil.

Net sales were $383 million, a 17.1% decrease compared to the year-ago quarter.

GAAP gross margin increased by 100 basis points year-over-year to 25.7%.

Non-GAAP EPS was $0.66, compared to $0.87 in the year-ago quarter.

The company reported record cash and cash equivalents of $401 million.

Total Revenue
$383M
Previous year: $463M
-17.1%
EPS
$0.66
Previous year: $0.87
-24.1%
Gross Margin
25.7%
Non-GAAP Gross Margin
28%
Gross Profit
$98.6M
Previous year: $114M
-13.9%
Cash and Equivalents
$401M
Previous year: $387M
+3.5%
Free Cash Flow
$27.8M
Previous year: $27.6M
+0.8%
Total Assets
$1.59B
Previous year: $1.55B
+2.4%

SMART

SMART

Forward Guidance

SGH is providing the following financial outlook for its fourth quarter of fiscal 2023: Net sales $375 million +/- $25 million, Gross margin 26% +/- 1%, Operating expenses $87 million +/- $2 million, Diluted earnings (loss) per share $0.02 +/- $0.15, Diluted shares 54.5 million.

Positive Outlook

  • Net sales are expected to be $375 million +/- $25 million.
  • Gross margin is anticipated to be 26% +/- 1%.
  • Operating expenses are projected to be $87 million +/- $2 million.
  • Diluted earnings per share are forecasted at $0.02 +/- $0.15.
  • Diluted shares are expected to be 54.5 million.