Why Smart Global Holdings Inc (NASDAQ: SGH) stock is going gangbusters today

Free $100 Forex No-Deposit Bonus

Smart Global Holdings Inc (NASDAQ: SGH) stock surged 8.2% in the pre-market session of July 8th, 2020 (Source: Google finance) post third quarter 2020 update. The firm’s top line surged over 19% yoy against prior corresponding period boosted by solid Specialty Memory business. Specialty Memory products contributed Forty five percent of revenues with 33% coming from Brazil business, and 22% from specialty computing products business. Specialty Memory products business rose 15% yoy but the growth was slightly impacted by pandemic related slowdowns. Mobile and PCs revenue accounted 27% of overall revenues, while Network and Telecom accounted 25%. Servers and Storage contributed 15% of overall revenues while Industrial, Defense & Others accounted 33% of overall revenues.

Brazil business generated $92.7 million in revenues for the quarter, accounting over 33% of overall net sales, even though the pandemic led to economic slowdown in the country, as well as weakened Brazilian currency. During the third quarter of 2020, the firm introduced a 7-chip based eMCP or multi-chip package with 64 gigabytes of flash and four gigabytes of LPDRAM in Brazil for major smartphone customers, and have subsequently seen the steady growth of high-density mobile memory sales.

Non-GAAP gross profit for the third quarter rose to $55.9 million as compared with last quarter’s $52.9 million. Non-GAAP net income and EPS surged 116% and 106% yoy against same period last year. The firm reported several new high performances, high density DDR4 Module solutions for space constrained applications. The firm’s Ruggedized products performance is good as the segment made new design wins for an application to be used by the U.S. Navy and a boot [ph] die product to be used by the U.S. Army.

The firm’s Penguin Computing expanded its partnership with Intel and is now joined the Intel’s Select Solutions partner program. With this move, Penguin’s customers would leverage the potential of high-performance computing NAI, through reference designs and deliver a series of verified and quick-to-deploy infrastructure solutions optimized for high performance computing and AI/Machine learning application. Penguin also expanded its partnership with AMD to deliver HPC Systems to several top tier universities for COVID-19 related research.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.