SMART Q4 2024 Earnings Report
Key Takeaways
Penguin Solutions reported Q4 FY24 revenue of $311 million, a slight decrease of 1.7% year-over-year, but marked by the third consecutive quarter of sequential top-line growth. The company's transition to Penguin Solutions reflects its focus on AI infrastructure and high-performance computing solutions.
Net sales reached $311 million, slightly down 1.7% compared to the previous year.
GAAP gross margin decreased to 28.0%, a 90 basis points decrease year-over-year.
Non-GAAP EPS increased to $0.37, compared to $0.35 in the year-ago quarter.
The company successfully completed its name change from SMART Global Holdings, Inc. to Penguin Solutions, Inc.
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Forward Guidance
Penguin Solutions provided financial outlook for fiscal year 2025, expecting 15% YoY growth +/- 5% for net sales and 30% +/- 1% for gross margin. Diluted earnings per share are projected at $0.30 +/- $0.20 on a GAAP basis and $1.70 +/- $0.20 on a non-GAAP basis.
Positive Outlook
- Net sales: 15% YoY Growth +/- 5%
- Gross margin: 30% +/- 1%
- Operating expenses: $335 million +/- $15 million
- Diluted earnings per share: $0.30 +/- $0.20
- Diluted shares: 56.3 million
Challenges Ahead
- Operating expenses: $335 million +/- $15 million
- Diluted earnings per share: $0.30 +/- $0.20
- Long-term non-GAAP effective tax rate may be subject to change
- The timing and amounts of discrete items, which could significantly impact GAAP effective tax rate, are unpredictable
- Global business and economic conditions and growth trends in technology industries are outside of our control