SMART Global Holdings Inc. (NASDAQ:SGH) stock rallies 18.20% (As on July 10, 11:13:54 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 24. Intelligent Platform Solutions’ revenue is of $145M, which forms 48% of total SGH revenue. This revenue up 3% quarter over quarter. Services revenue was 22% of total SGH Q3 FY24 revenue versus 17% in the previous quarter. Memory Solutions revenue is of $92M, which is 30% of total SGH revenue and this revenue is up 10% quarter over quarter. The company has achieved key product development and customer engagement milestones including 8-DIMM DDR5 CXL add-in card and received the first production sale to an AI compute vendor; strong design -in & customer sampling activity continues, 4-DIMM add-in card; first to pass CXL Consortium standards test, a critical requirement for customer adoption and E3.S non-volatile CXL device introduced; combines DRAM and NAND, critical to ensure that AI and HPC systems do not lose data, making these systems more reliable and efficient. For the third quarter, LED Solutions’ revenue is of $64M, which is 21% of total SGH revenue and revenue is up 6% quarter over quarter.

Further, the company has announced new XLamp XFL LED family, designed for peak performance in specialty flashlight and portable lighting applications. IP protection activities is ongoing across LED applications to facilitate growth and collaboration opportunities.

SGH in the third quarter of FY 24 has reported the adjusted earnings per share of 37 cents, beating the analysts’ estimates for the adjusted earnings per share of 30 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5.5 percent to $300.58 million in the third quarter of FY 24, beating the analysts’ estimates for revenue by 0.19%. The company also reported a gross margin of 32.3% versus 31.5% in the prior quarter.

SMART Global expects fourth-quarter earnings to be in the range of 40 cents per share, plus or minus 15 cents, versus the 39 cent estimate and revenue of $325 million, plus or minus $25 million, versus the $322.22 million consensus estimate. Fourth quarter FY 24 gross margin is expected to be 31.5% plus or minus 1.5% and operating expenses is expected to be $66 million plus or minus $2 million.