SMART Global Holdings Reports Third Quarter Fiscal 2018 Financial Results

SMART Global Holdings (NASDAQ:SGH), parent company of SMART Modular Technologies reported financial results for the third quarter of fiscal ended May 25, 2018.

The company had net sales of $335.5 million which was 62 percent higher than comparable quarter of prior year. The company’s GAAP operating income was $48.7 million.

As quoted in the press release:

“I am pleased to report another strong sales quarter with net revenues 62 percent higher than the comparable period a year ago.  Both our Specialty and Brazil businesses performed very well.  Additionally, as announced on June 11, we have embarked upon the first step in our strategy to broaden our offerings with the acquisition of Penguin Computing,” commented Ajay Shah, Chairman and Chief Executive Officer of SMART Global Holdings.

Quarterly Financial Results	GAAP (1)							Non-GAAP (2)
(In millions, except per share amounts)	Q3 FY18		Q2 FY18		Q3 FY17			Q3 FY18		Q2 FY18		Q3 FY17
Net sales	$	335.5	$	314.0	$	207.0		$	335.5	$	314.0	$	207.0
Gross profit	$	78.1	$	73.0	$	47.4		$	78.5	$	73.2	$	47.6
Operating income	$	48.7	$	45.1	$	20.4		$	53.8	$	48.5	$	24.8
Net income	$	31.9	$	36.8	$	8.0		$	43.0	$	37.7	$	14.6
Diluted earnings per share (EPS) (3)	$	1.37	$	1.60	$	0.50		$	1.84	$	1.64	$	0.92

 

Jack Pacheco, Chief Operating and Financial Officer, added, “The strength in net sales in the third fiscal quarter was due to continued strength in our Specialty Memory business and our increased penetration into the Brazilian market.  That said, due to the recent depreciation of the Brazilian Real, we saw a $0.27 per share negative impact to our GAAP earnings due to foreign currency losses.  The Specialty Memory business and our Brazil memory business continue to be markets where we have a unique competitive advantage, a proven business model, and growth potential in multiple sectors.”

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