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Aug 25, 2023

SMART Q4 2023 Earnings Report

Reported financial results for the fourth quarter and full year fiscal 2023.

Key Takeaways

SMART Global Holdings reported Q4 fiscal 2023 results, with net sales of $316.7 million and a GAAP EPS of $1.17. Non-GAAP gross margin increased to 31.7%, and non-GAAP earnings were $0.35 per share. The company exited the quarter with $391 million in cash, cash equivalents and short term investments.

Net sales were $316.7 million, a decrease of 12.6% compared to the year-ago quarter.

GAAP gross margin increased to 28.9%, up 290 basis points from the previous year.

Non-GAAP gross margin increased to 31.7%, up 460 basis points from the previous year.

GAAP EPS was $1.17, compared to $0.18 in the year-ago quarter.

Total Revenue
$317M
Previous year: $438M
-27.7%
EPS
$0.35
Previous year: $0.8
-56.3%
Gross Profit
$91.6M
Previous year: $104M
-11.8%
Cash and Equivalents
$366M
Previous year: $363M
+0.7%
Free Cash Flow
$34.9M
Previous year: $12.1M
+189.6%
Total Assets
$1.51B
Previous year: $1.57B
-4.2%

SMART

SMART

Forward Guidance

SGH is providing the following financial outlook for its continuing operations for the first quarter of fiscal 2024: Net sales $275 million +/- $25 million, Gross margin 28.5% +/- 1%, Operating expenses $82 million +/- $1 million, Diluted earnings (loss) per share $(0.16) +/- $0.15, Diluted shares 55.6 million

Positive Outlook

  • Net sales $275 million +/- $25 million
  • Gross margin 31.5% +/- 1%
  • Operating expenses $67 million +/- $1 million
  • Diluted earnings (loss) per share $0.15 +/- $0.15

Challenges Ahead

  • Gross margin 28.5% +/- 1%
  • Operating expenses $82 million +/- $1 million
  • Diluted earnings (loss) per share $(0.16) +/- $0.15
  • Share-based compensation and amortization of acquisition-related intangibles included in cost of sales $8 million
  • Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A $13 million