Penguin Solutions, Inc. reported significant financial improvements in its latest quarterly results, with total net sales reaching $365.5 million for the three months ended February 28, 2025, a 28.3% increase from $284.8 million in the same period last year. The company's profitability also saw a turnaround, posting a net income of $8.1 million compared to a net loss of $13.6 million in the prior year. For the first half of the fiscal year, net sales increased by 26.4% to $706.6 million, driven primarily by strong performance in the Advanced Computing and Integrated Memory segments.
The company attributed its revenue growth to a 41.5% increase in Advanced Computing sales, which reached $200.2 million, largely due to heightened demand for AI solutions and high-performance computing. Integrated Memory sales also rose by 26.4% to $105.3 million, benefiting from improved market demand for DRAM products. However, the Optimized LED segment remained flat, with sales of $60.1 million, reflecting challenges in direct sales across key markets like China and Europe.
Strategically, Penguin Solutions completed the divestiture of an 81% interest in SMART Brazil on November 29, 2023, which has been classified as discontinued operations in the financial statements. This divestiture is expected to have a significant impact on the company's operations and financial results moving forward. Additionally, the company raised $200 million through the issuance of convertible preferred shares to SK Telecom, enhancing its capital structure and providing additional liquidity for future growth initiatives.
Operationally, Penguin Solutions reported a total employee headcount of approximately 1,500 as of February 28, 2025, reflecting ongoing workforce adjustments in response to market conditions. The company continues to focus on expanding its geographic footprint and enhancing product adoption rates, particularly in the AI and high-performance computing sectors. Looking ahead, Penguin Solutions anticipates continued revenue growth driven by strong demand across its business segments, although it remains cautious about potential supply chain disruptions and macroeconomic factors that could impact performance.
About SMART Global Holdings, Inc.
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