Smart Global Holdings Inc (NASDAQ:SGH) shares lost ground early Friday, after the company reported weaker-than-expected Q4 results and issued Q1 guidance below analyst estimates.
The company, based in Newark, Calif., had net sales of $278.4 million, GAAP operating income of $11.4 million, and GAAP net income of $5.6 million
Adjusted EBITDA was $25.2 million, while GAAP diluted EPS came in at $0.24, and non-GAAP diluted EPS of $0.50.
To quote CEO Ajay Singh, "Fiscal 2019 was a year of two halves. In the first half we experienced a healthy memory pricing environment and our financial results benefited from that strength.
"In the second half of fiscal 2019 component pricing in the memory market declined significantly, which primarily impacted our business in Brazil and, to a lesser extent, our Specialty Memory Products, and resulted in overall revenues in fiscal 2019 declining year-over-year by 6%.
"Despite this challenging business environment," Singh concluded, "our Specialty Memory Products business grew year-over-year, and our Specialty Compute and Storage Solutions business finished strong representing 30% of total net sales for the fourth quarter of fiscal 2019."
"The SMART lines of business," read Friday’s press release, "are leading designers and manufacturers of electronic products focused on memory and computing technology areas. The company specializes in application specific product development and support for customers in enterprise, government and OEM sales channels.
"Customers rely on SMART as a strategic supplier with top tier customer service, product quality, and technical support with engineering, sales, manufacturing, supply chain and logistics capabilities worldwide."
SGH shares handed back seven cents to $25.34.
