SMART Global Holdings Inc. (NASDAQ:SGH) stock rallies 13.10% (As on January 10, 11:32:40 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 24. Cash and cash equivalents were $529.059 million as of Dec. 1, 2023, compared to $365.563 million as of Aug. 25, 2023. Intelligent Platform Solutions revenue was of $119M; 43% of total SGH revenue. Memory Solutions revenue was of $86M; 31% of total SGH revenue. LED Solutions revenue was of $70M, 25% of total SGH revenue.

SGH in the first quarter of FY 24 has reported the adjusted earnings per share of 24 cents, beating the analysts’ estimates for the adjusted earnings per share of 16 cents. The company had reported 30 percent decline in the adjusted revenue growth to $274.25 million in the first quarter of FY 24, missing the analysts’ estimates for revenue by $0.75 million. The company has delivered record Non-GAAP gross margin of 33.3%, up 200 bp vs Q1 FY23 reflecting continued shift towards higher value enterprise solutions

Additionally, the company has approved a $75 million share repurchase authorization, bringing total share repurchase authorizations over the last two years to $150 million.

Smart Global Holdings sees second-quarter adjusted earnings per share to be of 25 cents plus or minus 10 cents. Revenue is anticipated to be $285 million plus or minus $25 million.

On the other hand, the company through its wholly owned subsidiary SMART Modular Technologies (LX) S.à.r.l., completed its previously announced sale of 81% of SMART Modular Technologies do Brasil – Indústria e Comercio de Componentes Ltda. (“SMART Brazil”) to Lexar Europe B.V., an affiliate of Shenzhen Longsys Electronics Co., Ltd. Under the terms of the agreement, the purchase price valued 100% of SMART Brazil at an enterprise value of $205 million. This amount has two separate components, an upfront value of $170 million and a deferred value of $35 million. At closing, SGH received approximately $140 million for 81% of SMART Brazil’s outstanding equity, which amount reflects certain customary adjustments and is net of estimated withholding tax due in connection with the closing. Eighteen months following today’s closing, SGH will receive a deferred cash payment of approximately $28 million (81% of $35 million). In addition to the upfront and deferred cash payments, SGH has retained a 19% interest in SMART Brazil.