LONDON, UK / ACCESSWIRE / July 12, 2018 / If you want access to our free earnings report on SMART Global Holdings, Inc. (NASDAQ: SGH), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SGH. On June 21, 2018, Smart Global reported financial results for the third quarter of 2018 ending May 25, 2018. The Company surpassed analysts' consensus estimates for revenue as well as earnings in Q3 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

Smart Global's net sales reached $335.48 million for Q3 FY18, reflecting an increase of 62.09% from $206.97 million in Q3 FY17, led by increased growth in specialty and Brazil businesses. The reported total revenue number beat analysts' consensus estimates of $331.83 million.

In the quarter under review, Brazil DRAM sales increased 87.12% to $71.16 million on a y-o-y basis, Brazil Mobile Memory sales advanced 126.89% to $161.59 million on a y-o-y basis and Specialty Memory sales jumped 5.12% to $102.74 million on a y-o-y basis.

During Q3 FY18, Smart Global's cost of sales was $257.42 million, an increment of 61.29% from $159.60 million in Q3 FY17. The Company's gross profit advanced 64.76% to $78.05 million in the reported quarter from $47.38 million in the prior year's comparable quarter. Gross margin also increased 0.38 percentage points to 23.27% in Q3 FY18.

Smart Global incurred total operating expenses of $29.36 million in Q3 FY18, 8.78% higher than $26.99 million in the same period in 2017. In the quarter under review, the Company's research and development (R&D) expenses increased 10.98% to $9.76 million on a y-o-y basis, while selling, general, and administrative (SG&A) expenses ascended 13.98% to $19.60 million on a y-o-y basis. Smart Global's operating profit was $48.69 million for the reported quarter, a sharp increase of 138.87% from $20.39 million in the year-ago same quarter. On a non-GAAP basis, Smart Global had an adjusted EBITDA of $51.46 million in Q3 FY18, 72.36% higher than $29.86 million in Q3 FY17.

Smart Global reported a net income of $31.95 million for the quarter ending May 25, 2018, an increase of 301.43% from $7.96 million in the same period last year. The Company's diluted earnings per share (DEPS) for the quarter under review was $1.37, up 174% from $0.50 in the year ago corresponding quarter. The results included special items such as share-based compensation costs, amortization of intangible assets, acquisition costs, foreign currency gains and tax effect of items excluded from non-GAAP results. Smart Global's non-GAAP DEPS, excluding special items, was $1.84 for Q3 FY18, an increase of 100% from $0.92 in Q3 FY17. Adjusted DEPS exceeded analysts' consensus estimates of $1.77 per share.

Cash Matters

Smart Global had cash and cash equivalents of $64.50 million as on May 25, 2018, an increase of 187.46% from $22.44 million as on August 25, 2017. The Company's long-term debt reduced 11.55% to $136.61 million as on May 25, 2018, from $154.45 million as on August 25, 2017.

Smart Global's cash flow from operating activities for the three months ending May 25, 2018, was $28.34 million, which was almost 3.26 times the operating cash flow of $8.71 million in the same period last year. The Company incurred capital expenditures and deposits on equipment of $7.79 million in the reported quarter compared to $3.78 million in the previous-year's same quarter, reflecting an increase of 105.97%.

Outlook

For fourth quarter of fiscal 2018 ending August 31, 2018, Smart Global expects net sales (GAAP/ non-GAAP) to be in the range of $360 million to $380 million and gross margin (GAAP/non-GAAP) to be in the range of 22% to 23%. The Company expects GAAP DEPS of $1.41 to $1.50 and non-GAAP DEPS of $1.62 to $1.71 for Q4 FY18. These results include the results of Penguin Computing from the acquisition dated June 08, 2018.

Stock Performance Snapshot

July 11, 2018 - At Wednesday's closing bell, SMART Global's stock declined 3.31%, ending the trading session at $30.72.

Volume traded for the day: 592.70 thousand shares.

Stock performance in the past twelve-month period - up 100.00%

After yesterday's close, SMART Global's market cap was at $668.16 million.

Price to Earnings (P/E) ratio was at 9.46.

The stock is part of the Technology sector, categorized under the Semiconductor- Memory Chips industry.

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