Penguin Solutions Reports 7.9% Increase

By Bobby Samwell • Wednesday, July 09 12:02 • Permanent Link

Penguin Solutions, Inc. (NASDAQ: PENG) has reported its financial results for the third quarter of fiscal 2025, showing a 7.9% increase in net sales compared to the year-ago quarter, totaling $324 million. The company's GAAP gross margin was 29.3%, down 30 basis points from the year-ago quarter, while the non-GAAP gross margin was 31.7%, down 60 basis points from the year-ago quarter.

In terms of diluted earnings per share (EPS), the GAAP figure for the quarter was $(0.01), a decrease from $0.10 in the year-ago quarter. On a non-GAAP basis, diluted EPS was reported at $0.47, up from $0.37 in the year-ago quarter.

The company's quarterly financial results also show changes in various segments. Net sales for advanced computing were $132,498, compared to $144,968 in the year-ago quarter. Integrated memory net sales were $130,124, up from $91,629 in the year-ago quarter, and optimized LED net sales were $61,629, compared to $63,983 in the year-ago quarter.

Penguin Solutions also provided an outlook for fiscal year 2025, with a new GAAP diluted EPS of $0.04+/ $0.05, and a non-GAAP diluted EPS of $1.80+/ $0.05. This represents an increase from the previous outlook of -$0.02+/ $0.10 for GAAP diluted EPS and $1.60+/ $0.10 for non-GAAP diluted EPS.

In addition, the company's operating expenses for the year are projected to be $340 million+/ $5 million on a GAAP basis and $260 million+/ $5 million on a non-GAAP basis. This marks an increase from the prior outlook of $336 million+/ $5 million for GAAP operating expenses and $265 million+/ $5 million for non-GAAP operating expenses.

Penguin Solutions also highlighted its upcoming earnings conference call and webcast to discuss the third quarter of fiscal 2025 results and related matters, scheduled for July 8, 2025, at 1:30 p.m. Pacific time. Interested parties can access the call and webcast using the provided details.

The company's press release emphasizes its commitment to delivering solid results while focusing on strategic objectives, strengthening its balance sheet, and developing AI software and services capabilities. As a result of these announcements, the company's shares have moved 1.19% on the market, and are now trading at a price of $21.19. Check out the company's full 8-K submission here.

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