SMART Global Holdings Inc. (NASDAQ:SGH) stock rose 2.42% (As on April 5, 11:54:12 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 23. Cash and Cash Equivalents of $376 million, up 16% vs. Q1 FY23. Cash Flow from operating activities totaled $100.5 million. Intelligent Platform Solutions’ Revenue was of $222 Million, up 170% vs. Q2 FY22 and represents 52% of total SGH revenue and services revenue doubled vs. Q2 FY22. LED Solutions’ revenue was of $56 Million. Continued macroeconomic headwinds impacted Q2 FY23 and the company believes the outsourced manufacturing model and continued innovation position us well for a recovery in the sector and expects modestly higher Q3 FY23 based on improving customer demand. Memory Solutions’ revenue was of $151 Million. It was lower sequentially due to decline in both worldwide memory pricing and demand for PCs and mobile phones and achieved Q2 FY23 segment operating margin of ~10%, representing a good performance in a challenging pricing environment. The company expects segment sales to stabilize in Q3 FY23 from Q2 FY23 levels. Business is relatively stable, led by strength in Flash products and the company remains focused on enterprise applications in the data center; primarily DDR5 and CXL. Brazil Q2 FY23 impacted by continued challenges in demand for PCs and mobile phones and growth from SSDs, 5G and DDR5 applications should drive the recovery over the coming quarters.

SGH in the second quarter of FY 23 has reported the adjusted earnings per share of 76 cents, beating the analysts’ estimates for the adjusted earnings per share of 60 cents, according to the Zacks Consensus Estimate. The company had reported 4.5 percent fall in the adjusted revenue to $429.17 million in the second quarter of FY 23, beating the analysts’ estimates for revenue by 1.34%. Non-GAAP gross margin of 28.9%, up 290 basis points versus the year-ago quarter

For the third quarter 2023, the company expects net sales to be $375 million +/- $20 million, gross margin to be 28% +/- 1%, Diluted earnings (loss) per share to be $0.40 +/- $0.10 and Operating expenses to be $72 million +/- $3 million.

Meanwhile, the company has recently  released its J Series 5050C E Class LEDs with the industry’s highest efficacy for high power LEDs: 228 lumens per watt (LPW) typical at 4000K, 70 CRI and 1W. The new J Series LEDs deliver up to three times the light output of competing 5050 LEDs at the same efficacy level.