Editor’s Note: Smart Global Holdings is the company that acquired Cree LED. As of this writing the stock price is 51.39+7.58 (+17.30%)
MILPITAS, Calif., October 12, 2021–(BUSINESS WIRE)–SMART Global Holdings, Inc. (“SGH” or the “Company”) (Nasdaq: SGH) today reported financial results for the fourth quarter and full year fiscal 2021.
Fourth Quarter Fiscal 2021 Financial Highlights
- Net sales of $467.7 million, up 57% from the year ago quarter
- GAAP gross margin of 25.2%, up 620 basis points versus the year ago quarter
- Non-GAAP gross margin of 26.4%, up 690 basis points versus the year ago quarter
- GAAP EPS of $0.78, up 160% versus the year ago quarter
- Non-GAAP EPS of $2.16, up 163% versus the year ago quarter
Fiscal 2021 Highlights
- Net sales of $1.5 billion, up 34% versus the prior year
- GAAP gross margin of 20.5%, up 120 basis points versus the prior year
- Non-GAAP gross margin of 22.2%, up 240 basis points versus the prior year
- GAAP EPS of $0.83 compared with ($0.05) in the prior year
- Non-GAAP EPS of $5.22, up 102% versus the prior year
“Fiscal 2021 has been a transformative year for SGH. We are proud of the team’s many accomplishments across each of our lines of business, Intelligent Platform Solutions, Memory Solutions, and LED solutions,” commented SGH CEO Mark Adams. “As we enter fiscal 2022, we believe we have the right platform to continue to execute our growth and diversification strategy while increasing value for our stakeholders.”
Fourth Quarter Fiscal 2021 and Historical Financial Data
Quarterly Financial Results | GAAP (1) | Non-GAAP (2) | ||||||
(In millions, except per share amounts) | Q4 FY21 | Q3 FY21 | Q4 FY20 | Q4 FY21 | Q3 FY21 | Q4 FY20 | ||
Net sales | $ 467.7 | $ 437.7 | $ 297.0 | $ 467.7 | $ 437.7 | $ 297.0 | ||
Gross profit | $ 117.8 | $ 84.5 | $ 56.3 | $ 123.6 | $ 95.7 | $ 57.8 | ||
Operating income | $ 31.7 | $ 2.9 | $ 17.2 | $ 66.6 | $ 43.3 | $ 28.4 | ||
Net income (loss) (3) | $ 20.7 | $ (7.2 | ) | $ 7.5 | $ 55.1 | $ 35.5 | $ 20.4 | |
Diluted earnings (loss) per share (EPS) | $ 0.78 | $ (0.30 | ) | $ 0.30 | $ 2.16 | $ 1.39 | $ 0.82 |
Annual Financial Results | GAAP (1) | Non-GAAP (2) | ||||
(In millions, except per share amounts) | FY21 | FY20 | FY21 | FY20 | ||
Net sales | $ 1,501.1 | $ 1,122.4 | $ 1,501.1 | $ 1,122.4 | ||
Gross profit | $ 308.4 | $ 216.4 | $ 332.6 | $ 222.3 | ||
Operating income | $ 55.2 | $ 41.3 | $ 160.8 | $ 84.2 | ||
Net income (loss) (3) | $ 21.3 | $ (1.1 | ) | $ 132.2 | $ 63.7 | |
Diluted earnings (loss) per share (EPS) | $ 0.83 | $ (0.05 | ) | $ 5.22 | $ 2.59 |
(1) | GAAP represents U.S. Generally Accepted Accounting Principles. | ||||||
(2) | Please refer to the “Non-GAAP Information” section and the “Reconciliation of Non-GAAP Financial Measures” tables below for further detail on the non-GAAP financial reporting referenced above and a reconciliation of such measures to our nearest GAAP measures. | ||||||
(3) | Refers to net income (loss) attributable to SGH. |
Business Outlook
GAAP | Non-GAAP | ||||||||
Outlook | Adjustments | Outlook | |||||||
Net sales | $440 to $480 million | – | $440 to $480 million | ||||||
Gross Margin | 24% to 26% | 1% (A) | 25% to 27% | ||||||
Diluted EPS | $1.20 ± $0.20 | $0.80 (A,B,C) | $2.00 ± $0.20 | ||||||
Diluted shares | 27 million | (1) million | 26 million | ||||||
Non-GAAP adjustments (in millions): | |||||||||
(A) | Share-based compensation and amortization of intangible assets– cost of sales | $ 6 | |||||||
(B) | Share-based compensation and amortization of intangible assets– R&D and SG&A | $ 11 | |||||||
(C) | Convertible debt discount OID and fees, integration costs and other adjustments | $ 3 | |||||||
$ 20 |
As of October 12, 2021, SGH is providing the following financial outlook for its first quarter of fiscal 2022: