Financial Performance - Total net sales for the three months ended November 29, 2024, were 341.1million,a24.3274.2 million in the same period last year[13]. - Gross profit for the same period was 97.8million,resultinginagrossmarginof28.782.9 million and a gross margin of 30.2% in the prior year[13]. - Operating income increased significantly to 17.4millionfrom1.3 million year-over-year, reflecting improved operational efficiency[13]. - Net income attributable to Penguin Solutions was 5.2million,comparedtoanetlossof19.9 million in the same quarter last year[13]. - The company reported basic earnings per share of 0.10,comparedtoalossof0.38 per share in the prior year[13]. - Comprehensive income for the quarter was 5.2million,asignificantrecoveryfromacomprehensivelossof186.3 million in the same period last year[14]. - For the three months ended November 29, 2024, net income was 5,964,000comparedtoanetlossof19,360,000 for the same period in 2023, indicating a significant turnaround in performance[17]. - Total segment operating income for the three months ended November 29, 2024, was 40.9million,comparedto26.7 million for the same period in 2023, reflecting a 53.4% increase[86]. - The company reported a net income of 5.2millionfromcontinuingoperationsforthethreemonthsendedNovember29,2024,comparedtoanetlossof11.8 million for the same period in 2023[83]. Assets and Liabilities - Total current assets rose to 995.6million,upfrom867.7 million, driven by increases in accounts receivable and inventories[12]. - Total liabilities increased to 1.17billionfrom1.08 billion, primarily due to higher accounts payable and accrued expenses[12]. - Total assets as of November 29, 2024, increased to 1,583,015,000from1,474,506,000 as of August 30, 2024, marking a 7.4% growth[12]. - Accounts payable increased to 244.3millionasofNovember29,2024,from182.0 million on August 30, 2024, representing a 34.3% increase[48]. - Long-term debt remained stable at 658.1millionasofNovember29,2024,comparedto657.3 million on August 30, 2024[49]. Cash Flow and Investments - Cash and cash equivalents decreased slightly to 370.3millionfrom383.1 million, reflecting ongoing operational investments[12]. - Operating cash flow from continuing operations was 13,819,000forthethreemonthsendedNovember29,2024,downfrom59,713,000 in the prior year, primarily due to changes in working capital[17]. - Capital expenditures for the three months ended November 29, 2024, were 1,836,000,adecreasefrom4,648,000 in the prior year, indicating a reduction in investment in fixed assets[17]. - The company repurchased shares worth 11,123,000duringthethreemonthsendedNovember29,2024,comparedto13,130,000 in the same period of the previous year[17]. - The company repurchased 80.0millionofits2.25100.6 million, resulting in a loss of 20.4millionrecognizedinQ42024[51].ResearchandDevelopment−Researchanddevelopmentexpensesdecreasedto19.8 million from 21.4million,indicatingafocusoncostmanagement[13].−Thecompanyreportedshare−basedcompensationexpenseof11,531,000 for the three months ended November 29, 2024, compared to 10,970,000intheprioryear[17].DivestituresandImpairments−ThedivestitureofSMARTBrazilwascompletedonNovember29,2023,withthecompanyretaininga19153.0 million was recognized in Q4 2023 for the net assets of SMART Brazil, which were classified as held for sale[32]. - The loss from the divestiture of the 81% interest in SMART Brazil was calculated at 190.5million,includingapre−taxlossof163.9 million[35]. - As of November 29, 2024, the carrying value of the remaining 19% interest in SMART Brazil was 37.8million,classifiedasanon−marketableequityinvestment[36].FutureOutlookandStrategicPlans−ThecompanyplanstowinddownmanufacturinganddiscontinuethesaleoflegacyproductsinitsAdvancedComputingsegmentbytheendof2025,withpotentialimpairmentof16.1 million in goodwill[47]. - The company continues to focus on expanding its Advanced Computing and Integrated Memory segments to drive future growth and profitability[84].
