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Aug 27, 2021

SMART Q4 2021 Earnings Report

SGH achieved record quarterly and annual revenue, demonstrating strong performance across all business segments.

Key Takeaways

SMART Global Holdings, Inc. reported a strong Q4 fiscal 2021 with net sales of $467.7 million, up 57% year-over-year, and GAAP EPS of $0.78, up 160% year-over-year. Non-GAAP EPS was $2.16, a 163% increase year-over-year. The company's GAAP gross margin improved to 25.2%, and non-GAAP gross margin reached 26.4%. Fiscal year 2021 was transformative for SGH, marked by accomplishments across its Intelligent Platform Solutions, Memory Solutions, and LED Solutions business lines.

Net sales reached $467.7 million, a 57% increase from the previous year's quarter.

GAAP gross margin improved to 25.2%, a 620 basis points increase year-over-year.

GAAP EPS increased to $0.78, reflecting a 160% growth compared to the year-ago quarter.

Non-GAAP EPS rose to $2.16, marking a 163% increase year-over-year.

Total Revenue
$468M
Previous year: $297M
+57.5%
EPS
$1.08
Previous year: $0.41
+163.4%
Gross Margin
25.2%
Non-GAAP Gross Margin
26.4%
Gross Profit
$118M
Previous year: $56.3M
+109.1%
Cash and Equivalents
$223M
Previous year: $151M
+47.9%
Free Cash Flow
$40.5M
Previous year: $9.42M
+329.4%
Total Assets
$1.34B
Previous year: $787M
+71.0%

SMART

SMART

Forward Guidance

SGH is providing the following financial outlook for its fourth quarter of fiscal 2021: Net Sales $440 to $480 million, Gross Margin 24% to 26%, Diluted EPS $1.20 ± $0.20, Diluted shares 27 million, Non-GAAP Outlook Net Sales $440 to $480 million, Gross Margin 25% to 27%, Diluted EPS $2.00 ± $0.20, Diluted shares 26 million

Positive Outlook

  • Net Sales $440 to $480 million
  • Gross Margin 24% to 26%
  • Diluted EPS $1.20 ± $0.20
  • Net Sales $440 to $480 million
  • Gross Margin 25% to 27%

Challenges Ahead

  • Share-based compensation and amortization of intangible assets - Cost of sales $6 million
  • Share-based compensation and amortization of intangible assets - R&D and SG&A $11 million
  • Convertible debt discount OID and fees, integration costs and other adjustments $3 million
  • Diluted shares 27 million
  • Diluted shares 26 million