— Smart Global Holdings (NASDAQ: SGH) reported its first-quarter 2020 adjusted earnings of $0.55 per share versus $0.73 per share expected.
— Net sales plunged by 31% to $272 million versus $280.02 million expected.
— The GAAP earnings dipped by 99% as its high performance computing business, Penguin Computing, experienced worse than expected seasonal weakness.
— In Brazil, having completed the first full quarter under the new points-based system for local manufacturing, the company is encouraged by the results with units and revenues increased from the previous quarter.
— Looking ahead into the second quarter, the company expects earnings of $0.09-0.19 per share on a GAAP basis and $0.45-0.55 per share on an adjusted basis. The consensus estimates EPS of $0.58 per share.
— Sales are predicted to be in the range of $265-275 million. This is better than the analysts’s view of $270.53 million for the second quarter.
— Looking forward, the company continues to see improvement in its Memory related businesses and expects its second-quarter to be the low point in this market.