Smart Global sees better earnings, revenue in Q4 despite weak environment
Smart Global CEO Ajay Shah said, "Despite significant declines in memory pricing that caused our revenue to be weaker than expected during our third fiscal quarter, we were able to achieve non-GAAP earnings which was within the range of our guidance. Importantly, during the quarter we maintained our gross margins and generated $46M in cash flow from operations, ending the quarter with $126M in cash on the balance sheet thus positioning us well to execute on our growth strategies. As we look forward to our fourth fiscal quarter ending in August, we are forecasting significantly better revenue and earnings performance even though the memory pricing environment remains weak. This is due to improvements in Specialty Memory unit volumes and strength in Specialty Compute."