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Penguin Solutions Reports Fourth Quarter and Full Year Fiscal 2024 Financial Results

by Business Wire

Oct. 16, 2024
5:18 AM GMT+9

SMART Global Holdings Is Now Penguin Solutions

Q4 FY24 Revenue Across All Business Segments Up Sequentially

MILPITAS, Calif.–(BUSINESS WIRE)–$PENG #AI–Penguin Solutions, Inc. (“Penguin Solutions,” “we,” “us,” or the “Company”) (NASDAQ: PENG) today announced its new company name and reported financial results for the fourth quarter and full year fiscal 2024.


New Company Name and Ticker Symbol

The Company is pleased to announce the successful completion of its name change from SMART Global Holdings, Inc. to Penguin Solutions, Inc., a move that reflects the Company’s strategic transformation and evolving focus on key areas such as artificial intelligence (“AI”) infrastructure deployment, advanced memory enterprise solutions and high-performance computing. Effective today, the Company’s ordinary shares are trading under the new ticker symbol “PENG” on Nasdaq.

Fiscal 2024 Highlights

  • Net sales of $1.2 billion versus $1.4 billion in fiscal year 2023
  • GAAP gross margin of 29.1%, up 30 basis points versus fiscal year 2023
  • Non-GAAP gross margin of 31.9%, up 20 basis points versus fiscal year 2023
  • GAAP EPS of $(0.85) versus $0.15 in fiscal year 2023
  • Non-GAAP EPS of $1.25 versus $2.52 in fiscal year 2023

Fourth Quarter Fiscal 2024 Highlights

  • Net sales of $311 million, down 1.7% versus the year-ago quarter
  • GAAP gross margin of 28.0%, down 90 basis points versus the year-ago quarter
  • Non-GAAP gross margin of 30.9%, down 80 basis points versus the year-ago quarter
  • GAAP EPS of $(0.46) versus $1.17 in the year-ago quarter
  • Non-GAAP EPS of $0.37 versus $0.35 in the year-ago quarter

“We are pleased with our Q4 results, highlighted by our third consecutive quarter of sequential top line growth,” said Mark Adams, CEO of Penguin Solutions. “Our Company’s transition to Penguin Solutions reinforces our commitment to solving the complexities of AI infrastructure, managing our customers’ implementations with the design, build, deployment, and management of cutting-edge AI solutions,” concluded Adams.

Annual Financial Results

 

GAAP (1)

 

Non-GAAP (2)

(in thousands, except per share amounts)

FY24

 

FY23

 

FY24

 

FY23

Net sales:

 

 

 

 

 

 

 

Intelligent Platform Solutions

$

554,552

 

 

$

749,708

 

$

554,552

 

$

749,708

Memory Solutions

 

356,426

 

 

 

443,264

 

 

356,426

 

 

443,264

LED Solutions

 

259,818

 

 

 

248,278

 

 

259,818

 

 

248,278

Total net sales

$

1,170,796

 

 

$

1,441,250

 

$

1,170,796

 

$

1,441,250

 

 

 

 

 

 

 

 

Gross profit

$

340,776

 

 

$

415,171

 

$

373,981

 

$

456,578

Operating income

 

18,295

 

 

 

8,745

 

 

120,257

 

 

179,794

Net income (loss) attributable to Penguin Solutions

 

(44,324

)

 

 

7,858

 

 

66,907

 

 

127,681

Diluted earnings (loss) per share

$

(0.85

)

 

$

0.15

 

$

1.25

 

$

2.52

Quarterly Financial Results

 

GAAP (1)

 

Non-GAAP (2)

(in thousands, except per share amounts)

Q4 FY24

 

Q3 FY24

 

Q4 FY23

 

Q4 FY24

 

Q3 FY24

 

Q4 FY23

Net sales:

 

 

 

 

 

 

 

 

 

 

 

Intelligent Platform Solutions

$

149,355

 

 

$

144,968

 

$

145,432

 

 

$

149,355

 

$

144,968

 

$

145,432

Memory Solutions

 

95,832

 

 

 

91,629

 

 

105,181

 

 

 

95,832

 

 

91,629

 

 

105,181

LED Solutions

 

65,961

 

 

 

63,983

 

 

66,045

 

 

 

65,961

 

 

63,983

 

 

66,045

Total net sales

$

311,148

 

 

$

300,580

 

$

316,658

 

 

$

311,148

 

$

300,580

 

$

316,658

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

87,086

 

 

$

88,906

 

$

91,585

 

 

$

96,007

 

$

96,962

 

$

100,300

Operating income (loss)

 

8,791

 

 

 

11,511

 

 

(1,639

)

 

 

33,739

 

 

33,325

 

 

30,295

Net income (loss) attributable to Penguin Solutions

 

(24,547

)

 

 

5,616

 

 

64,841

 

 

 

20,007

 

 

20,221

 

 

18,406

Diluted earnings (loss) per share

$

(0.46

)

 

$

0.10

 

$

1.17

 

 

$

0.37

 

$

0.37

 

$

0.35

(1)

GAAP represents U.S. Generally Accepted Accounting Principles.

(2)

Non-GAAP represents GAAP excluding the impact of certain activities. Further information regarding the Company’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures is included within this press release.

Business Outlook

As of October 15, 2024, Penguin Solutions is providing the following financial outlook for fiscal year 2025:

 

GAAP

Outlook

Adjustments

Non-GAAP

Outlook

Net sales

15% YoY Growth +/- 5%

15% YoY Growth +/- 5%

Gross margin

30% +/- 1%

2%

(A)

32% +/- 1%

Operating expenses

$335 million +/- $15 million

($60) million

(B)(C)

$275 million +/- $15 million

Diluted earnings per share

$0.30 +/- $0.20

$1.40

(A)(B)(C)(D)

$1.70 +/- $0.20

Diluted shares

56.3 million

56.3 million

Non-GAAP adjustments (in millions)

 

(A) Share-based compensation and amortization of acquisition-related intangibles included in cost of sales

$

31

 

(B) Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A

 

48

 

(C) Other adjustments

 

12

 

(D) Estimated income tax effects

 

(12

)

 

$

79

 

Fourth Quarter and Full Year Fiscal 2024 Earnings Conference Call and Webcast Details

Penguin Solutions will hold a conference call and webcast to discuss the fourth quarter and full year fiscal 2024 results and related matters today, October 15, 2024, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Interested parties may access the call by dialing +1-833-470-1428 in the United States or +1-929-526-1599 from international locations, using the access code 916986. The earnings presentation and a live webcast of the conference call can be accessed from the Company’s investor relations website (https://ir.penguinsolutions.com/investors/default.aspx) where they will remain available for approximately one year.

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements concerning or regarding future events and the future financial and operating performance of Penguin Solutions; statements regarding the extent and timing of and expectations regarding Penguin Solutions’ future revenues and expenses; statements regarding Penguin Solutions’ strategic transformation and priorities; statements regarding long-term effective tax rates; and statements regarding the business and financial outlook for the next fiscal year described under “Business Outlook” above.

These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “could,” and other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of our control, including but not limited to: global business and economic conditions and growth trends in technology industries (including trends and markets related to AI), our customer markets and various geographic regions; uncertainties in the geopolitical environment; the ability to manage our cost structure; disruptions in our operations or supply chain as a result of global pandemics or otherwise; changes in trade regulations or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including our rebranding and related strategy, any potential collaborations and additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers’ negative reactions to them; issues, delays or complications in integrating the operations of Stratus Technologies; failure to achieve the intended benefits of the sale of SMART Brazil and its business; limitations on or changes in the availability of supply of materials and components; fluctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; our dependence on a select number of customers and the timing and volume of customer orders; production or manufacturing difficulties; competitive factors; technological changes; difficulties with, or delays in, the introduction of new products; slowing or contraction of growth in the memory market, LED market or other markets in which we participate; changes to applicable tax regimes or rates; changes to the valuation allowance for our deferred tax assets, including any potential inability to realize these assets in the future; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; and the continuing availability of borrowings under term loans and revolving lines of credit and our ability to raise capital through debt or equity financings.

These and other risks, uncertainties and factors are described in greater detail under the sections titled “Risk Factors,” “Critical Accounting Estimates,” “Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Liquidity and Capital Resources” contained in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and our other filings with the U.S. Securities and Exchange Commission. In addition, such risks, uncertainties and factors as outlined above and in such filings do not constitute all risks, uncertainties and factors that could cause our actual results to be materially different from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we do not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made.

Statement Regarding Use of Non-GAAP Financial Measures

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP effective tax rate, non-GAAP net income, non-GAAP weighted-average shares outstanding, non-GAAP diluted earnings per share and Adjusted EBITDA. Penguin Solutions management uses these non-GAAP measures to supplement Penguin Solutions’ financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. These non-GAAP measures exclude certain items, such as share-based compensation expense; amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships and trademarks/trade names acquired in connection with business combinations); acquisition-related inventory adjustments; diligence, acquisition and integration expense; restructure charges; impairment of goodwill; changes in the fair value of contingent consideration; gains (losses) from changes in currency exchange rates; amortization of debt issuance costs; gain (loss) on extinguishment or prepayment of debt; other infrequent or unusual items and related tax effects and other tax adjustments. While amortization of acquisition-related intangible assets is excluded, the revenues from acquired companies is reflected in the Company’s non-GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense; income tax provision (benefit); depreciation and amortization expense; share-based compensation expense; acquisition-related inventory adjustments; diligence, acquisition and integration expense; restructure charges; impairment of goodwill; changes in the fair value of contingent consideration; gain (loss) on extinguishment or prepayment of debt and other infrequent or unusual items.

In fiscal 2024, for our non-GAAP reporting, we began to utilize a long-term projected non-GAAP effective tax rate of 28%, which includes the tax impact of pre-tax non-GAAP adjustments and reflects currently available information as well as other factors and assumptions. While we expect to use this normalized non-GAAP effective tax rate through fiscal 2025, this long-term non-GAAP effective tax rate may be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Our GAAP effective tax rate can vary significantly from quarter to quarter based on a variety of factors, including, but not limited to, discrete items which are recorded in the period they occur, the tax effects of certain items of income or expense, significant changes in our geographic earnings mix or changes to our strategy or business operations. We are unable to predict the timing and amounts of these items, which could significantly impact our GAAP effective tax rate, and therefore we are unable to reconcile our forward-looking non-GAAP effective tax rate measure to our GAAP effective tax rate.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about Penguin Solutions’ financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the “Reconciliation of GAAP to Non-GAAP Measures” tables below.

About Penguin Solutions

The most exciting technological advancements are also the most challenging for companies to adopt. At Penguin Solutions, we support our customers in achieving their ambitions across our computing, memory, and LED lines of business. With our expert skills, experience, and partnerships, we turn our customers’ most complex challenges into compelling opportunities.

For more information, visit www.penguinsolutions.com.

Penguin Solutions, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Year Ended

 

August 30,
2024

 

May 31,
2024

 

August 25,
2023

 

August 30,
2024

 

August 25,
2023

Net sales:

 

 

 

 

 

 

 

 

 

Intelligent Platform Solutions

$

149,355

 

 

$

144,968

 

 

$

145,432

 

 

$

554,552

 

 

$

749,708

 

Memory Solutions

 

95,832

 

 

 

91,629

 

 

 

105,181

 

 

 

356,426

 

 

 

443,264

 

LED Solutions

 

65,961

 

 

 

63,983

 

 

 

66,045

 

 

 

259,818

 

 

 

248,278

 

Total net sales

 

311,148

 

 

 

300,580

 

 

 

316,658

 

 

 

1,170,796

 

 

 

1,441,250

 

Cost of sales

 

224,062

 

 

 

211,674

 

 

 

225,073

 

 

 

830,020

 

 

 

1,026,079

 

Gross profit

 

87,086

 

 

 

88,906

 

 

 

91,585

 

 

 

340,776

 

 

 

415,171

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

19,941

 

 

 

19,681

 

 

 

20,883

 

 

 

81,537

 

 

 

90,565

 

Selling, general and administrative

 

58,029

 

 

 

57,249

 

 

 

65,026

 

 

 

233,880

 

 

 

260,722

 

Impairment of goodwill

 

 

 

 

 

 

 

1,534

 

 

 

 

 

 

19,092

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

4,100

 

 

 

 

 

 

29,000

 

Other operating (income) expense

 

325

 

 

 

465

 

 

 

1,681

 

 

 

7,064

 

 

 

7,047

 

Total operating expenses

 

78,295

 

 

 

77,395

 

 

 

93,224

 

 

 

322,481

 

 

 

406,426

 

Operating income (loss)

 

8,791

 

 

 

11,511

 

 

 

(1,639

)

 

 

18,295

 

 

 

8,745

 

 

 

 

 

 

 

 

 

 

 

Non-operating (income) expense:

 

 

 

 

 

 

 

 

 

Interest expense, net

 

5,403

 

 

 

6,167

 

 

 

9,183

 

 

 

28,378

 

 

 

36,421

 

Other non-operating (income) expense

 

20,971

 

 

 

441

 

 

 

(462

)

 

 

21,084

 

 

 

11,837

 

Total non-operating (income) expense

 

26,374

 

 

 

6,608

 

 

 

8,721

 

 

 

49,462

 

 

 

48,258

 

Income (loss) before taxes

 

(17,583

)

 

 

4,903

 

 

 

(10,360

)

 

 

(31,167

)

 

 

(39,513

)

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

6,209

 

 

 

(1,323

)

 

 

(75,890

)

 

 

10,618

 

 

 

(49,203

)

Net income (loss) from continuing operations

 

(23,792

)

 

 

6,226

 

 

 

65,530

 

 

 

(41,785

)

 

 

9,690

 

Net loss from discontinued operations

 

 

 

 

 

 

 

(205,685

)

 

 

(8,148

)

 

 

(195,384

)

Net income (loss)

 

(23,792

)

 

 

6,226

 

 

 

(140,155

)

 

 

(49,933

)

 

 

(185,694

)

Net income attributable to noncontrolling interest

 

755

 

 

 

610

 

 

 

689

 

 

 

2,539

 

 

 

1,832

 

Net income (loss) attributable to Penguin Solutions

$

(24,547

)

 

$

5,616

 

 

$

(140,844

)

 

$

(52,472

)

 

$

(187,526

)

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

Continuing operations

$

(0.46

)

 

$

0.11

 

 

$

1.28

 

 

$

(0.85

)

 

$

0.16

 

Discontinued operations

 

 

 

 

 

 

 

(4.05

)

 

 

(0.15

)

 

 

(3.94

)

 

$

(0.46

)

 

$

0.11

 

 

$

(2.77

)

 

$

(1.00

)

 

$

(3.78

)

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

Continuing operations

$

(0.46

)

 

$

0.10

 

 

$

1.17

 

 

$

(0.85

)

 

$

0.15

 

Discontinued operations

 

 

 

 

 

 

 

(3.71

)

 

 

(0.15

)

 

 

(3.80

)

 

$

(0.46

)

 

$

0.10

 

 

$

(2.54

)

 

$

(1.00

)

 

$

(3.65

)

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

Basic

 

53,071

 

 

 

52,570

 

 

 

50,807

 

 

 

52,428

 

 

 

49,566

 

Diluted

 

53,071

 

 

 

54,283

 

 

 

55,523

 

 

 

52,428

 

 

 

51,322

 

Penguin Solutions, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended

 

Year Ended

 

August 30,
2024

 

May 31,
2024

 

August 25,
2023

 

August 30,
2024

 

August 25,
2023

GAAP gross profit

$

87,086

 

 

$

88,906

 

 

$

91,585

 

 

$

340,776

 

 

$

415,171

 

Share-based compensation expense

 

1,847

 

 

 

1,760

 

 

 

1,789

 

 

 

7,113

 

 

 

6,334

 

Amortization of acquisition-related intangibles

 

5,909

 

 

 

5,909

 

 

 

5,876

 

 

 

23,656

 

 

 

25,661

 

Flow-through of inventory step up

 

 

 

 

 

 

 

 

 

 

 

 

 

2,599

 

Cost of sales-related restructure

 

865

 

 

 

387

 

 

 

1,050

 

 

 

2,136

 

 

 

6,813

 

Non-GAAP gross profit

$

96,007

 

 

$

96,962

 

 

$

100,300

 

 

$

373,981

 

 

$

456,578

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

28.0

%

 

 

29.6

%

 

 

28.9

%

 

 

29.1

%

 

 

28.8

%

Effect of adjustments

 

2.9

%

 

 

2.7

%

 

 

2.8

%

 

 

2.8

%

 

 

2.9

%

Non-GAAP gross margin

 

30.9

%

 

 

32.3

%

 

 

31.7

%

 

 

31.9

%

 

 

31.7

%

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

$

78,295

 

 

$

77,395

 

 

$

93,224

 

 

$

322,481

 

 

$

406,426

 

Share-based compensation expense

 

(8,512

)

 

 

(9,432

)

 

 

(7,785

)

 

 

(36,047

)

 

 

(32,894

)

Amortization of acquisition-related intangibles

 

(3,838

)

 

 

(3,857

)

 

 

(5,443

)

 

 

(15,616

)

 

 

(18,940

)

Diligence, acquisition and integration expense

 

(2,094

)

 

 

(4

)

 

 

(2,676

)

 

 

(8,772

)

 

 

(20,869

)

Impairment of goodwill

 

 

 

 

 

 

 

(1,534

)

 

 

 

 

 

(19,092

)

Change in fair value of contingent consideration

 

 

 

 

 

 

 

(4,100

)

 

 

 

 

 

(29,000

)

Restructure charge

 

(325

)

 

 

(465

)

 

 

(1,681

)

 

 

(7,064

)

 

 

(7,047

)

Other

 

(1,258

)

 

 

 

 

 

 

 

 

(1,258

)

 

 

(1,800

)

Non-GAAP operating expenses

$

62,268

 

 

$

63,637

 

 

$

70,005

 

 

$

253,724

 

 

$

276,784

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income (loss)

$

8,791

 

 

$

11,511

 

 

$

(1,639

)

 

$

18,295

 

 

$

8,745

 

Share-based compensation expense

 

10,359

 

 

 

11,192

 

 

 

9,574

 

 

 

43,160

 

 

 

39,228

 

Amortization of acquisition-related intangibles

 

9,747

 

 

 

9,766

 

 

 

11,319

 

 

 

39,272

 

 

 

44,601

 

Flow-through of inventory step up

 

 

 

 

 

 

 

 

 

 

 

 

 

2,599

 

Cost of sales-related restructure

 

865

 

 

 

387

 

 

 

1,050

 

 

 

2,136

 

 

 

6,813

 

Diligence, acquisition and integration expense

 

2,094

 

 

 

4

 

 

 

2,676

 

 

 

8,772

 

 

 

20,869

 

Impairment of goodwill

 

 

 

 

 

 

 

1,534

 

 

 

 

 

 

19,092

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

4,100

 

 

 

 

 

 

29,000

 

Restructure charge

 

325

 

 

 

465

 

 

 

1,681

 

 

 

7,064

 

 

 

7,047

 

Other

 

1,558

 

 

 

 

 

 

 

 

 

1,558

 

 

 

1,800

 

Non-GAAP operating income

$

33,739

 

 

$

33,325

 

 

$

30,295

 

 

$

120,257

 

 

$

179,794

 

Penguin Solutions, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Year Ended

 

August 30,
2024

 

May 31,
2024

 

August 25,
2023

 

August 30,
2024

 

August 25,
2023

GAAP net income (loss) attributable to Penguin Solutions

$

(24,547

)

 

$

5,616

 

 

$

64,841

 

 

$

(44,324

)

 

$

7,858

 

Share-based compensation expense

 

10,359

 

 

 

11,192

 

 

 

9,574

 

 

 

43,160

 

 

 

39,228

 

Amortization of acquisition-related intangibles

 

9,747

 

 

 

9,766

 

 

 

11,319

 

 

 

39,272

 

 

 

44,601

 

Flow-through of inventory step up

 

 

 

 

 

 

 

 

 

 

 

 

 

2,599

 

Cost of sales-related restructure

 

865

 

 

 

387

 

 

 

1,050

 

 

 

2,136

 

 

 

6,813

 

Diligence, acquisition and integration expense

 

2,094

 

 

 

4

 

 

 

2,676

 

 

 

8,772

 

 

 

20,869

 

Impairment of goodwill

 

 

 

 

 

 

 

1,534

 

 

 

 

 

 

19,092

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

4,100

 

 

 

 

 

 

29,000

 

Restructure charge

 

325

 

 

 

465

 

 

 

1,681

 

 

 

7,064

 

 

 

7,047

 

Amortization of debt issuance costs

 

897

 

 

 

817

 

 

 

1,010

 

 

 

3,724

 

 

 

4,064

 

Loss (gain) on extinguishment or prepayment of debt

 

21,646

 

 

 

792

 

 

 

 

 

 

22,763

 

 

 

15,924

 

Foreign currency (gains) losses

 

(1,072

)

 

 

606

 

 

 

(276

)

 

 

(830

)

 

 

(221

)

Other

 

1,558

 

 

 

 

 

 

 

 

 

1,558

 

 

 

1,800

 

Income tax effects

 

(1,865

)

 

 

(9,424

)

 

 

(79,103

)

 

 

(16,388

)

 

 

(70,993

)

Non-GAAP net income attributable to Penguin Solutions

$

20,007

 

 

$

20,221

 

 

$

18,406

 

 

$

66,907

 

 

$

127,681

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding – Diluted:

 

 

 

 

 

 

 

 

 

GAAP weighted-average shares outstanding

 

53,071

 

 

 

54,283

 

 

 

55,523

 

 

 

52,428

 

 

 

51,322

 

Adjustment for dilutive securities and capped calls

 

1,434

 

 

 

(333

)

 

 

(2,233

)

 

 

1,268

 

 

 

(558

)

Non-GAAP weighted-average shares outstanding

 

54,505

 

 

 

53,950

 

 

 

53,290

 

 

 

53,696

 

 

 

50,764

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

GAAP diluted earnings (loss) per share

$

(0.46

)

 

$

0.10

 

 

$

1.17

 

 

$

(0.85

)

 

$

0.15

 

Effect of adjustments

 

0.83

 

 

 

0.27

 

 

 

(0.82

)

 

 

2.10

 

 

 

2.37

 

Non-GAAP diluted earnings per share

$

0.37

 

 

$

0.37

 

 

$

0.35

 

 

$

1.25

 

 

$

2.52

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Penguin Solutions

$

(24,547

)

 

$

5,616

 

 

$

64,841

 

 

$

(44,324

)

 

$

7,858

 

Interest expense, net

 

5,403

 

 

 

6,167

 

 

 

9,183

 

 

 

28,378

 

 

 

36,421

 

Income tax provision (benefit)

 

6,209

 

 

 

(1,323

)

 

 

(75,890

)

 

 

10,618

 

 

 

(49,203

)

Depreciation expense and amortization of intangible assets

 

15,381

 

 

 

15,525

 

 

 

18,830

 

 

 

65,716

 

 

 

71,632

 

Share-based compensation expense

 

10,359

 

 

 

11,192

 

 

 

9,574

 

 

 

43,160

 

 

 

39,228

 

Flow-through of inventory step up

 

 

 

 

 

 

 

 

 

 

 

 

 

2,599

 

Cost of sales-related restructure

 

865

 

 

 

387

 

 

 

1,050

 

 

 

2,136

 

 

 

6,813

 

Diligence, acquisition and integration expense

 

2,094

 

 

 

4

 

 

 

2,676

 

 

 

8,772

 

 

 

20,869

 

Impairment of goodwill

 

 

 

 

 

 

 

1,534

 

 

 

 

 

 

19,092

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

4,100

 

 

 

 

 

 

29,000

 

Restructure charge

 

325

 

 

 

465

 

 

 

1,681

 

 

 

7,064

 

 

 

7,047

 

Loss on extinguishment of debt

 

21,646

 

 

 

792

 

 

 

 

 

 

22,763

 

 

 

15,924

 

Other

 

1,558

 

 

 

 

 

 

 

 

 

1,558

 

 

 

1,800

 

Adjusted EBITDA

$

39,293

 

 

$

38,825

 

 

$

37,579

 

 

$

145,841

 

 

$

209,080

 

Contacts

Investor Contact:
Suzanne Schmidt

Investor Relations

+1-510-360-8596

[email protected]

PR Contact:

Maureen O’Leary

Director, Communications

+1-602-330-6846

[email protected]

Read full story here

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