SMART Global Holdings, Inc. Ordinary Shares Stock Price, News & Analysis

SMART Global Holdings (SGH) has announced the pricing of $175.0 million in convertible senior notes due 2030, an increase from the previously announced $150.0 million. The notes will have a 2.00% interest rate, payable semi-annually, and mature on August 15, 2030. The initial conversion rate is 35.7034 ordinary shares per $1,000 principal amount, equivalent to a conversion price of about $28.01 per share.

SGH expects net proceeds of approximately $168.7 million from the offering. The company plans to use about $14.3 million for capped call transactions, $100.6 million to repurchase existing convertible notes, and the remainder to repay certain amounts under its credit facility. The offering is expected to close on or about August 6, 2024.

Cree LED, an SGH company (Nasdaq: SGH), has announced a significant upgrade to its XLamp® XE-G LEDs. The improved LEDs offer a 20% increase in efficiency for RGBW color-mixing systems and a 10% or higher efficiency gain for 13 out of 18 colors. The XE-G LEDs, with their 2.05 x 1.6 mm footprint, feature an industry-leading combination of characteristics, including a large isolated thermal pad, minimal spacing between the LED chip and package edge, ESD protection, and consistent optical source across all colors.

With 18 different color options, including various white variations, the XE-G LEDs provide lighting manufacturers with unparalleled flexibility to customize their products. The upgraded LEDs are optimized for directional lighting applications that benefit from multi-color LED designs, such as indoor directional lighting, architectural lighting, entertainment lighting, and aftermarket automotive lighting.

SMART Global Holdings (SGH) has announced a proposed private offering of $150 million in convertible senior notes due 2030, with an option for an additional $22.5 million. The notes will be offered to qualified institutional buyers under Rule 144A. They will be senior, unsecured obligations with semi-annual interest payments, maturing on August 15, 2030. SGH plans to use the proceeds to fund capped call transactions, repurchase a portion of existing 2.25% convertible notes due 2026, and repay certain amounts under its term loan credit facility. The company will also enter into capped call transactions to potentially reduce dilution and offset cash payments upon conversion.

Stratus Technologies, an SGH company (Nasdaq: SGH), has announced new capabilities for its ztC Endurance platform. The improved platform now offers SAN connectivity for enterprise data and OPC-UA interoperability for secure, single-pane-of-glass visibility. Key enhancements include:

1. 32 GB Fibre Channel technology for improved data connectivity
2. OPC-UA support for industrial automation data visibility
3. Seven nines (99.99999%) fault tolerance
4. Streamlined licensing and improved system management
5. Support for VMware vSphere 8.0 update 2

The ztC Endurance platform is available in three models: Model 7100 for large data centers, Model 5100 for medium-sized plants, and Model 3100 for shop floor locations. These enhancements aim to deliver higher compute platform availability and performance across various industries.

SMART Global Holdings (SGH) announced its intention to rebrand as Penguin Solutions, Inc., reflecting its focus on delivering AI infrastructure solutions. This transformation builds on the company's 25+ years of high-performance computing experience and over 75,000 GPUs deployed and managed. The rebranding aims to address the complexity of AI adoption across industries, leveraging Penguin Solutions' expertise in end-to-end AI infrastructure.

Key points:

• SGH to become Penguin Solutions, subject to shareholder approval
• Rebranding highlights focus on AI infrastructure solutions, services, and management
• Cree LED brand will remain unchanged
• Transition expected to complete later this year

SMART Global Holdings (SGH) has announced a $200 million preferred equity investment from SK Telecom (SKT), an affiliate of SK Group. The investment aims to enhance SGH's capabilities in AI infrastructure solutions, particularly through its Penguin Solutions brand. Key points include:

1. SGH plans to use the capital to expand its end-to-end AI factory offerings.
2. SKT and SGH will collaborate on developing global AI factory and data center solutions, advanced memory products, and NPU-based AI edge servers.
3. Penguin Solutions currently manages over 75,000 GPUs, positioning it as a leader in AI infrastructure.
4. The investment terms include 200,000 preferred shares convertible to SGH ordinary shares at $32.81 per share, with a 6% annual dividend.

The deal is expected to close by the end of 2024, subject to customary closing conditions.

Penguin Solutions, an SGH brand, has been chosen by Voltage Park to manage its large-scale NVIDIA-based clusters. The partnership aims to enhance the efficiency of Voltage Park's AI infrastructure, which includes 24,000 GPUs. Penguin will provide professional and managed services, integrating their OriginAI® solution and Scyld ClusterWare® software across four data centers. Voltage Park's environment features advanced NVIDIA H100 Tensor Core GPUs and high-performance networking to support extensive AI training workloads. This collaboration will offer customers flexible computing solutions through both short-term and long-term rental options.

SMART Global Holdings (SGH) reported its financial results for the third quarter of fiscal 2024. The company achieved net sales of $300.6 million, reflecting a 5.5% increase from the previous quarter. GAAP EPS improved to $0.10 from a loss of $(0.26) in the prior quarter, while non-GAAP EPS rose by 37% to $0.37 from $0.27. The company's gross margin also saw improvement, with GAAP gross margin at 29.6% and non-GAAP gross margin at 32.3%, compared to 28.8% and 31.5%, respectively, in the prior quarter.

Despite the positive quarter-over-quarter performance, net sales declined compared to the same period last year. Memory Solutions revenue dropped to $91.6 million from $109.5 million, and Intelligent Platform Solutions revenue decreased to $145 million from $170.9 million. For the fourth quarter, SGH projects net sales of approximately $325 million and a diluted EPS of $0.03, with non-GAAP EPS expected at $0.40.

SMART Global Holdings (SGH) has announced the grant of inducement awards to its new CFO, Nate Olmstead. These awards were approved by SGH's independent Compensation Committee in compliance with Nasdaq Listing Rule 5635(c)(4) and are part of the company's 2021 Inducement Plan. Nate Olmstead will receive time-based restricted share units (RSUs) and performance-based restricted share units (PSUs), each representing 61,331 ordinary shares. The RSUs will fully vest over four years, with 25% vesting after the first year and the rest in equal quarterly installments. The PSUs will vest based on SGH's total shareholder return relative to the median company in the Russell 2000 Index over a three-year period. The number of shares that may be earned under the PSUs ranges from 0% to 200% of the target, contingent upon continued employment.