Smart Global Holdings, Inc. (SGH) has reported its financial results for the third quarter of fiscal 2024, showing significant improvements in various key metrics compared to the previous quarter.
The highlights for the third quarter fiscal 2024 include a notable 5.5% increase in net sales, reaching $300.6 million. The GAAP gross margin also improved to 29.6% compared to 28.8% in the prior quarter. Furthermore, the non-GAAP gross margin saw an increase to 32.3% from 31.5% in the prior quarter.
In terms of earnings per share (EPS), the company reported a GAAP EPS of $0.10, a substantial improvement from the $(0.26) reported in the prior quarter. Similarly, the non-GAAP EPS showed significant growth, reaching $0.37 compared to $0.27 in the prior quarter, marking a 37% increase.
Breaking down the net sales by segment, memory solutions accounted for $91.6 million, intelligent platform solutions contributed $145 million, and LED solutions generated $64 million.
The quarterly financial results also revealed a positive trend in gross profit, operating income, and net income attributable to SGH. The company reported a gross profit of $88.9 million, an operating income of $11.5 million, and a net income attributable to SGH of $5.6 million.
Looking ahead, the company provided a financial outlook for the fourth quarter of fiscal 2024. SGH expects net sales to be around $325 million with a gross margin of 29.5% plus or minus 1.5% on a GAAP basis, and 31.5% plus or minus 1.5% on a non-GAAP basis. Additionally, the company anticipates operating expenses to be approximately $81 million plus or minus $2 million.
As a result of these announcements, the company's shares have moved -3.1% on the market, and are now trading at a price of $23.22. Check out the company's full 8-K submission here.
