What happened
Shares of SMART Global Holdings (SGH 1.08%) have jumped today, up by 26% as of 12:45 p.m. EDT, after the company reported fourth-quarter earnings yesterday. The company hit record revenue for the fiscal year.
So what
Revenue in the fourth quarter skyrocketed 68% to $374 million, translating into non-GAAP net income of $40 million, or $1.72 per share. On a GAAP basis, net income was $29.7 million, or $1.28 per share. Both top- and bottom-line results beat consensus estimates, which were expecting $369.2 million in sales and an adjusted profit of $1.66 per share. Much of SMART's growth has been attributable to its recent acquisition of Penguin Computing. Full-year revenue came in at $1.3 billion.
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SMART also appointed industry veteran Bryan Ingram as a new independent director just a few days ago.
Now what
"We completed fiscal 2018 with another great quarter, including the closing of our acquisition of Penguin Computing," CEO Ajay Shah said in a statement. "In addition, we closed our first full fiscal year as a public company with record revenues that crossed the $1 billion mark. Driving this performance was strength in our Specialty Memory business which had a very strong quarter and earned new NVDIMM and VLP RDIMM design wins at major Storage and Server customers."
Shah expects all of SMART's business segments to put up growth next fiscal year. The company also issued first-quarter guidance, calling for sales of $375 million to $390 million. Gross margin should be 22% to 23%, along with non-GAAP earnings per share of $1.74 to $1.79. That bottom-line guidance is above the $1.69 per share in adjusted profit that the Street was modeling for.
