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NEWARK, Calif., Oct. 01, 2020 (GLOBE NEWSWIRE) — SMART Global Holdings, Inc. (“SMART” or the “Company”) (NASDAQ: SGH), today reported financial results for the fourth quarter and full year fiscal 2020 ended August 28, 2020.

Fourth Quarter Fiscal 2020 Highlights:

  • Net sales of $297.0 million, 6.7% higher than the year ago quarter.
  • GAAP net income of $7.5 million, or $0.30 per share, 33.8% and 28.3% higher than the year ago quarter, respectively.
  • Non-GAAP net income of $20.4 million or $0.82 per share, 72.2% and 65.2% higher than the year ago quarter, respectively.
  • Adjusted EBITDA of $33.0 million, 30.6% higher than the year ago quarter

Fiscal 2020 Highlights:

  • Net sales of $1.1 billion, versus $1.2 billion for the prior fiscal year.
  • GAAP net loss of $1.1 million, or $0.05 per share.
  • Non-GAAP net income of $63.7 million, or $2.59 per share.
  • Adjusted EBITDA of $104.2 million.
  • Ending cash and equivalents balance exceeded $150 million.

“I am pleased to announce a strong conclusion to our fiscal 2020,” commented Mark Adams, President and CEO.  “Our fourth fiscal quarter results demonstrate the strength of our business during these challenging times.  Fourth quarter revenue grew by 5.6 percent sequentially, driven by strength in both our Specialty Compute and Storage Solutions and Brazil businesses.  Additionally, reflecting the operating leverage in our business model, we achieved non-GAAP earnings per share of $0.82, more than 17 percent higher than the previous quarter.”

“Given our strong balance sheet, we believe we are well-positioned to build on our growth and diversification strategy while leveraging our strong customer relationships, established global manufacturing and supply chain capabilities, and our track record of operational excellence,” concluded Mr. Adams.

               
Quarterly Financial Results GAAP (1)   Non-GAAP (2)
(In millions, except per share amounts) Q4 FY20 Q3 FY20 Q4 FY19   Q4 FY20 Q3 FY20 Q4 FY19
Net sales $ 297.0 $ 281.3 $ 278.4   $ 297.0 $ 281.3 $ 278.4
Gross profit $ 56.3 $ 54.2 $ 52.3   $ 57.8 $ 55.9 $ 53.4
Operating income $ 17.2 $ 10.1 $ 11.4   $ 28.4 $ 20.3 $ 18.0
Net income $ 7.5 $ 0.8 $ 5.6   $ 20.4 $ 17.1 $ 11.9
Diluted earnings per share (EPS) $ 0.30 $ 0.03 $ 0.24   $ 0.82 $ 0.70 $ 0.50

Annual Financial Results GAAP (1)   Non-GAAP (2)  
(In millions, except per share amounts) FY20 FY19   FY20 FY19  
Net sales $ 1,122.4   $ 1,212.0   $ 1,122.4 $ 1,212.0  
Gross profit $ 216.4   $ 237.5   $ 222.3 $ 240.6  
Operating income $ 41.3   $ 89.1   $ 84.2 $ 113.2  
Net income (loss) $ (1.1 ) $ 51.3   $ 63.7 $ 78.3  
Diluted earnings per share (EPS) $ (0.05 ) $ 2.19   $ 2.59 $ 3.34  
             
(1)     GAAP represents U.S. Generally Accepted Accounting Principles.
(2)     Please refer to the “Non-GAAP Information” section and the “Reconciliation of Non-GAAP Financial Measures” tables
           below for further detail on the non-GAAP financial reporting referenced above and a reconciliation of such measures
           to our nearest GAAP measures.


Business Outlook
The following statements are based upon management’s current expectations for the first quarter of fiscal 2021 ending November 27, 2020. These statements are forward-looking and actual results may differ materially. SMART undertakes no obligation to update these statements.

Net Sales $280 to $300 million
Gross Margin – GAAP / Non-GAAP 18% to 19%
Diluted EPS – GAAP $0.28 ± $0.05
   
Share-based compensation per share $0.20
Intangible amortization per share $0.14
Convertible debt discount OID and fees per share $0.08
   
Diluted EPS – Non-GAAP $0.70 ± $0.05
   
Expected diluted share count 25.0 million

Conference Call Details
SMART will host a conference call today for analysts and investors at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time.  Dial-in US toll free +1-866-487-6452, or International toll free +1-213-660-0710 using access code 4779109.  We will post an accompanying slide presentation to our website prior to the beginning of the call.

A replay of the conference call will be available for one week following today’s call through the Events section of the SMART website at www.smartgh.com or by calling US toll free +1-855-859-2056, or International toll free +1 404-537-3406; Passcode: 4779109.

Forward-Looking Statements
This release contains, and statements made during the above-referenced conference call will contain “forward-looking statements” including among other things, statements regarding future events and the future financial performance of SMART (including the business outlook for the next fiscal quarter) and statements regarding growth drivers in SMART’s industries and markets. These statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including but not limited to: business and economic conditions and growth trends in the technology industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; disruptions in our operations or in global markets as a result of the outbreak of COVID-19; changes in trade regulations or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including additional investments in new products, additional capacity and acquisitions; the DRAM market and the temporary and volatile nature of pricing trends; deterioration in customer relationships; production or manufacturing difficulties; competitive factors; technological changes; difficulties with or delays in the introduction of new products;  slowing or contraction of growth in the memory market in Brazil; reduction in or termination of incentives for local manufacturing in Brazil;  changes to applicable tax regimes or rates; prices for the end products of our customers; fluctuations in material costs and availability; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors;  changes in the availability of supply of materials, components or memory products; the inability of Penguin Computing to obtain and retain security clearances to expand its government business; and other factors and risks detailed in SMART’s filings with the Securities and Exchange Commission. Such factors and risks as outlined above and in such filings may not constitute all factors and risks that could cause actual results of SMART to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. SMART and its subsidiaries operate in a continually changing business environment and new factors emerge from time to time. SMART cannot predict such factors, nor can it assess the impact, if any, from such factors on SMART or its subsidiaries’ results. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements should not be relied upon as a prediction of actual results. These forward-looking statements are made as of today, and SMART does not intend, and has no obligation, to update or revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release, except as required by law.

Non-GAAP Information
Certain non-GAAP financial measures are contained in this press release or will be discussed on our conference call, including non-GAAP gross profit, non-GAAP operating income, Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share. We define Adjusted EBITDA as GAAP net income (loss) plus net interest expense, income tax expense, depreciation and amortization expense, share-based compensation expense, loss on extinguishment of debt/revolver, capped call mark to market (MTM) adjustment, restructuring expenses, integration expenses, COVID-19 expenses, acquisition-related expenses, gain on settlements and other infrequent or unusual items. Adjusted EBITDA is not a measure of financial performance calculated in accordance with U.S. GAAP and should be viewed as a supplement to, not a substitute for, our results of operations presented on the basis of U.S. GAAP. Adjusted EBITDA also does not purport to represent cash flow provided by, or used in, operating activities in accordance with U.S. GAAP and should not be used as a measure of liquidity.

The non-GAAP financial results presented herein exclude share-based compensation expense, intangible amortization expense, loss on extinguishment of debt/revolver, capped call MTM adjustment, convertible debt original issue discount (OID) and fees, restructuring expenses, integration expenses, COVID-19 expenses, acquisition-related expenses, gain on settlements and other infrequent or unusual expenses, and with respect to non-GAAP diluted EPS, foreign currency gains (losses). These non-GAAP financial measures are provided to enhance the user’s overall understanding of our financial performance. By excluding these charges, as well as any related tax effects, our non-GAAP results provide information to management and investors that is useful in assessing SMART’s core operating performance and in evaluating and comparing our results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results, to plan and forecast future periods, and to assess performance of certain executives for compensation purposes. The presentation of this additional information is not meant to be a substitute for the corresponding financial measures prepared in accordance with U.S. GAAP. In addition, these measures may not be used similarly by other companies and therefore may not be comparable between companies.

Investors are encouraged to review the “Reconciliation of Non-GAAP Financial Measures to GAAP Results” and “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA” tables below for more detail on non-GAAP calculations.

About SMART Global Holdings
The SMART lines of business are leading designers and manufacturers of electronic products focused on memory and computing technology areas. The Company specializes in application specific product development and support for customers in enterprise, government and OEM sales channels. Customers rely on SMART as a strategic supplier with top tier customer service, product quality, and technical support with engineering, sales, manufacturing, supply chain and logistics capabilities worldwide. The Company targets customers in markets such as communications, storage, networking, mobile, industrial automation, industrial internet of things, government, military, edge computing and high performance computing.  SMART operates in three primary product areas: Specialty Memory products, Brazil products and Specialty Compute and Storage Solutions.

For more information about  SMART Global Holdings business units, visit: SMART Modular TechnologiesSMART Embedded Computing; SMART Supply Chain Services;  and Penguin Computing.

 
SMART Global Holdings, Inc.
and Subsidiaries
Consolidated Income Statements
(In thousands, except per share data)
                         
        Three Months Ended   Fiscal Year Ended
         August 28,
2020
 
   May 29,
2020
 
   August 30,
2019 
   August 28,
2020
 
   August 30,
2019 
Net sales:                    
  Specialty Memory Products   $ 125,142     $ 127,700     $ 104,634     $ 467,826     $ 458,946  
  Brazil Products     105,011       92,701       89,123       389,411       536,495  
  Specialty Compute and Storage Solutions     66,877       60,886       84,643       265,140       216,558  
    Total net sales     297,030       281,287       278,400       1,122,377       1,211,999  
Cost of sales (1) (2)     240,693       227,054       226,108       905,981       974,472  
  Gross profit     56,337       54,233       52,292       216,396       237,527  
Operating expenses:                    
  Research and development (1)     8,032       14,436       13,536       52,056       47,920  
  Selling, general and administrative (1) (2)     27,587       29,733       30,024       119,523       103,226  
  Restructuring charge     3,487                   3,487        
  Change in estimated fair value of acquisition-related contingent consideration                 (2,700 )           (2,700 )
    Total operating expenses     39,107       44,169       40,860       175,065       148,446  
    Income from operations     17,230       10,064       11,432       41,330       89,081  
Other income (expense):                    
  Interest expense, net     (3,265 )     (3,094 )     (4,567 )     (15,000 )     (20,716 )
  Other income (expense), net     (299 )     (3,445 )     819       (16,970 )     (2,161 )
    Total other expense     (3,564 )     (6,539 )     (3,748 )     (31,970 )     (22,877 )
    Income before income taxes     13,666       3,525       7,684       9,360       66,204  
Provision for income taxes     6,139       2,700       2,059       10,503       14,872  
    Net income (loss)   $ 7,527     $ 825     $ 5,625     $ (1,143 )   $ 51,332  
                         
Earnings per share:                    
  Basic   $ 0.31     $ 0.03     $ 0.24     $ (0.05 )   $ 2.24  
  Diluted   $ 0.30     $ 0.03     $ 0.24     $ (0.05 )   $ 2.19  
                         
Shares used in computing earnings per share:                    
  Basic     24,290       24,066       23,366       23,994       22,959  
  Diluted     24,839       24,431       23,825       23,994       23,468  
                         
(1) Includes share-based compensation expense as follows:                    
  Cost of sales   $ 861     $ 699     $ 682     $ 3,022     $ 2,485  
  Research and development     763       780       687       3,069       2,654  
  Selling, general and administrative     1,582       3,428       4,194       12,625       13,060  
    Total stock-based compensation expense   $ 3,206     $ 4,907     $ 5,563     $ 18,716     $ 18,199  
                         
(2) Includes amortization of intangible assets expense as follows:                  
  Cost of sales   $ 647     $ 647     $ 436     $ 2,588     $ 566  
  Selling, general and administrative     2,767       2,767       2,165       11,066       5,048  
    Total amortization expense   $ 3,414     $ 3,414     $ 2,601     $ 13,654     $ 5,614  
                         

 
SMART Global Holdings, Inc.
and Subsidiaries
Reconciliation of Non-GAAP Financial Measures to GAAP Results
(In thousands, except per share data)
                         
        Three Months Ended   Fiscal Year Ended
        August 28,
2020
  May 29,
2020
  August 30,
2019
  August 28,
2020
  August 30,
2019
Reconciliation of gross profit:                    
GAAP gross profit   $ 56,337     $ 54,233     $ 52,292     $ 216,396     $ 237,527  
  GAAP gross margin     19.0 %     19.3 %     18.8 %     19.3 %     19.6 %
Add: Share-based compensation included in cost of sales     861       699       682       3,022       2,485  
Add: Intangible amortization included in cost of sales     647       647       436       2,588       566  
Add: COVID-19 expenses           282             282        
Non-GAAP gross profit   $ 57,845     $ 55,861     $ 53,410     $ 222,288     $ 240,578  
  Non-GAAP gross margin     19.5 %     19.9 %     19.2 %     19.8 %     19.8 %
Reconciliation of operating expenses:                    
GAAP operating expenses   $ 39,107     $ 44,169     $ 40,860     $ 175,065       148,446  
Less: Share-based compensation expense included in opex                    
  Research and development     763       780       687       3,069       2,654  
  Selling, general and administrative     1,582       3,428       4,194       12,625       13,060  
    Total     2,345       4,208       4,881       15,694       15,714  
Less: Amortization of intangible assets included in opex                    
  Selling, general and administrative     2,767       2,767       2,165       11,066       5,048  
    Total     2,767       2,767       2,165       11,066       5,048  
Less: Legal fees – term loan (payment holiday)                             126  
Less: Acquisition-related expenses                 1,068       946       2,922  
Less: Integration/Restructuring expenses     4,548       1,432             9,072        
Less: COVID-19 expenses           228             228        
Less: Contingent consideration fair value adjustment                 (2,700 )           (2,700 )
Non-GAAP operating expenses   $ 29,447     $ 35,534     $ 35,446     $ 138,060     $ 127,336  
                         
Reconciliation of income from operations:                    
GAAP income from operations   $ 17,230     $ 10,064     $ 11,432     $ 41,330     $ 89,081  
  GAAP operating margin     5.8 %     3.6 %     4.1 %     3.7 %     7.3 %
                         
Add: Share-based compensation expense     3,206       4,907       5,563       18,716       18,199  
Add: Amortization of intangible assets     3,414       3,414       2,601       13,654       5,614  
Add: Legal fees – term loan (payment holiday)                             126  
Add: Acquisition-related expenses                 1,068       946       2,922  
Add: Integration/Restructuring expenses     4,548       1,432             9,072        
Add: COVID-19 expenses           510             510        
Add: Contingent consideration fair value adjustment                 (2,700 )           (2,700 )
                         
Non-GAAP income from operations   $ 28,398     $ 20,327     $ 17,964     $ 84,228     $ 113,242  
  Non-GAAP operating margin     9.6 %     7.2 %     6.5 %     7.5 %     9.3 %
                         

 
SMART Global Holdings, Inc.
and Subsidiaries
Reconciliation of Non-GAAP Financial Measures to GAAP Results
(In thousands, except per share data)
                       
      Three Months Ended   Fiscal Year Ended
       August 28,
2020
 
   May 29,
2020
 
   August 30,
2019 
   August 28,
2020
 
   August 30,
2019 
Reconciliation of income before income taxes:                    
GAAP income before income taxes   $ 13,666     $ 3,525     $ 7,684     $ 9,360     $ 66,204  
Add: Share-based compensation expense     3,206       4,907       5,563       18,716       18,199  
Add: Amortization of intangible assets     3,414       3,414       2,601       13,654       5,614  
Add: Legal fees – term loan (payment holiday)                             126  
Add: Acquisition-related expenses                 1,068       946       2,922  
Add: Integration/Restructuring expenses     4,548       1,432             9,072        
Add: COVID-19 expenses           510             510        
Add: Gain on settlement of indemnity claim     (364 )             (364 )    
Add: Extinguishment of term loan/revolver           192             6,822        
Add: Capped call MTM adjustment           2,924             7,719        
Add: Convertible debt discount OID and fees     2,026       1,960             4,385        
Add: Contingent consideration fair value adjustment                 (2,700 )           (2,700 )
Add: Foreign currency (gains)/losses     822       484       (332 )     3,408       3,149  
Non-GAAP income before income taxes   $        27,318     $        19,348     $        13,884     $        74,228     $        93,514  
                       
Reconciliation of provision for income taxes:                    
GAAP provision for income taxes   $ 6,139     $ 2,700     $ 2,059     $ 10,503     $ 14,872  
  GAAP effective tax rate     44.9 %     76.6 %     26.8 %     112.2 %     22.5 %
Less: Goodwill tax credit     (673 )     484             295        
Tax effect of adjustments to GAAP results     (82 )     (48 )     33       (340 )     (314 )
Non-GAAP provision for income taxes   $          6,894     $          2,264     $          2,026     $        10,548     $        15,186  
  Non-GAAP effective tax rate     25.2 %     11.7 %     14.6 %     14.2 %     16.2 %
                       
Reconciliation of net income (loss) and earnings per share (diluted):                     
GAAP net income (loss)   $          7,527     $             825     $          5,625     $         (1,143 )   $        51,332  
Adjustments to GAAP net income (loss):                    
  Share-based compensation     3,206       4,907       5,563       18,716       18,199  
  Amortization of intangible assets     3,414       3,414       2,601       13,654       5,614  
  Legal fees – term loan (payment holiday)                             126  
  Acquisition related expenses                 1,068       946       2,922  
  Integration/Restructuring expenses     4,548       1,432             9,072        
  COVID-19 expenses           510             510        
  Extinguishment of term loan/revolver           192             6,822        
  Capped call MTM adjustment           2,924             7,719        
  Convertible debt discount OID and fees     2,026       1,960             4,385        
  Gain on settlement of indemnity claim     (364 )                 (364 )      
  Goodwill tax credit     (673 )     484             295        
  Contingent consideration fair value adjustment                 (2,700 )           (2,700 )
  Foreign currency (gains)/losses     822       484       (332 )     3,408       3,149  
  Tax effect of items excluded from non-GAAP results     (82 )     (48 )     33       (340 )     (314 )
                       
Non-GAAP net income   $        20,424     $        17,084     $        11,858     $        63,680     $        78,328  
                       
Shares used in computing earnings per share (diluted)     24,839       24,431       23,825       24,566       23,468  
                       
Non-GAAP earnings per share (diluted)   $            0.82     $            0.70     $            0.50     $            2.59     $            3.34  
                       
GAAP earnings per share (diluted)   $ 0.30     $ 0.03     $ 0.24     $ (0.05 )   $ 2.19  
                       

 
SMART Global Holdings, Inc.
and Subsidiaries
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
(In thousands)
                       
      Three Months Ended   Fiscal Year Ended
       August 28,
2020
 
   May 29,
2020
 
   August 30,
2019 
   August 28,
2020
 
   August 30,
2019 
                       
GAAP net income (loss)   $         7,527     $            825     $         5,625     $        (1,143 )   $       51,332  
                       
  Share-based compensation expense     3,206       4,907       5,563       18,716       18,199  
  Amortization of intangible assets     3,414       3,414       2,601       13,654       5,614  
  Interest expense, net     3,265       3,094       4,567       15,000       20,716  
  Provision for income tax     6,139       2,700       2,059       10,504       14,872  
  Depreciation     5,219       5,405       6,452       22,776       23,592  
  Legal fees – term loan (payment holiday)                             126  
  Acquisition-related expenses(1)                 1,068       946       2,922  
  Integration/Restructuring expenses     4,548       1,432             9,072        
  COVID-19 expenses           510             510        
  Extinguishment of term loan/revolver           192             6,822        
  Capped call MTM adjustment           2,924             7,719        
  Gain on settlement of indemnity claim     (364 )                 (364 )      
  Contingent consideration fair value adjustment(1)               (2,700 )           (2,700 )
  Adjusted EBITDA   $       32,954     $       25,403     $       25,235     $     104,212     $     134,673  
                       
   
  (1) Amounts related to acquisitions of new businesses, SMART EC & Wireless (July 2019).
                             

 
SMART Global Holdings, Inc.
and Subsidiaries
Consolidated Balance Sheets
(In thousands)
             
        August 28,   August 30,
          2020       2019  
Assets        
Current assets:        
  Cash and cash equivalents   $ 150,811     $ 98,139  
  Accounts receivable, net     215,918       217,433  
  Inventories     162,991       118,738  
  Prepaid expenses and other current assets     26,990       37,950  
    Total current assets     556,710       472,260  
                 
Property and equipment, net     54,705       68,345  
Operating lease right-of-use assets     25,013        
Other noncurrent assets     20,554       12,784  
Intangible assets, net     55,671       69,325  
Goodwill     73,955       81,423  
    Total assets   $ 786,608     $ 704,137  
Liabilities and Shareholders’ Equity        
Current liabilities:        
  Accounts payable   $ 224,660     $ 164,866  
  Accrued liabilities     57,829       48,980  
  Current portion of long-term debt           24,054  
    Total current liabilities     282,489       237,900  
                 
Long-term debt     195,573       182,450  
Long-term operating lease liabilities     20,829        
Other long-term liabilities     5,613       10,327  
    Total liabilities     504,504       430,677  
         
Shareholders’ equity:        
  Ordinary shares     737       712  
  Additional paid-in capital     346,131       285,994  
  Accumulated other comprehensive loss     (228,240 )     (177,866 )
  Retained earnings     163,476       164,620  
    Total shareholders’ equity     282,104       273,460  
    Total liabilities and shareholders’ equity   $ 786,608     $ 704,137  
             

 
SMART Global Holdings, Inc.
and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
                             
            Three Months Ended   Fiscal Year Ended
             August 28,
2020
 
   May 29,
2020
 
  August 30,
2019
   August 28,
2020
 
   August 30,
2019 
Cash flows from operating activities:                    
  Net income (loss)   $ 7,527     $ 825     $ 5,625     $ (1,143 )   $ 51,332  
  Adjustments to reconcile net income (loss) to net cash provided by operating activities:                    
    Depreciation and amortization     8,633       8,818       9,054       36,430       29,206  
    Share-based compensation     3,206       4,907       5,563       18,716       18,199  
    Provision for doubtful accounts receivable and sales returns     (118 )     70       (66 )     (75 )     (90 )
    Deferred income tax benefit     (2,181 )     425       (1,149 )     (2,115 )     (719 )
    (Gain) Loss on disposal of property and equipment     2,565       41       56       2,546       77  
    Loss on mark-to-market adjustment of the capped call           2,924             7,719        
    Loss on extinguishment of debt/revolver           192             6,822        
    Amortization of debt discounts and issuance costs     2,080       2,005       718       5,866       2,803  
    Amortization of operating lease right-of-use assets     1,491       1,287             5,060        
    Change in fair value of contingent consideration                 (2,700 )           (2,700 )
    Changes in operating assets and liabilities:                    
      Accounts receivable     5,537       (13,396 )     27,582       (12,348 )     35,240  
      Inventories     20,641       (26,932 )     19,312       (51,840 )     102,083  
      Prepaid expenses and other assets     (1,291 )     (7,615 )     (3,393 )     (2,410 )     (1,606 )
      Accounts payable     (26,251 )     39,031       (19,684 )     69,436       (64,569 )
      Operating lease liabilities     (1,260 )     (1,362 )           (4,763 )      
      Accrued expenses and other liabilities     (4,421 )     2,401       8,023       482       401  
        Net cash provided by operating activities     16,159       13,623       48,941       78,382       169,657  
                     
Cash flows from investing activities:                    
  Capital expenditures and deposits on equipment     (7,386 )     (7,521 )     (3,321 )     (24,275 )     (33,433 )
  Proceeds from sale of property and equipment     250       58       10       404       81  
  Acquisitions of business, net of cash acquired                 (75,940 )           (76,088 )
        Net cash used in investing activities     (7,136 )     (7,462 )     (79,251 )     (23,871 )     (109,440 )
                     
Cash flows from financing activities:                    
  Long-term debt payment – Term Loan                       (5,625 )      
  Long-term debt payment – BNDES     (615 )     (685 )     (1,680 )     (2,907 )     (6,753 )
  Purchase of capped call                       (21,825 )      
  Proceeds from convertible notes due 2026, net of discount                       243,125        
  Payment for extinguishment of long-term debt                       (204,904 )      
  Proceeds from borrowings under revolving line of credit     42,500       42,000       19,000       103,000       254,500  
  Repayments of borrowings under revolving line of credit     (42,500 )     (42,000 )     (19,000 )     (103,000 )     (254,500 )
  Proceeds from issuance of ordinary shares from share option exercises   554       134       1,300       2,495       5,070  
  Proceeds from issuance of ordinary shares from ESPP           1,742             2,984       2,303  
  Withholding tax on restricted stock units     (96 )     (282 )     (290 )     (749 )     (520 )
        Net cash provided by (used in) financing activities     (157 )     909       (670 )     12,594       100  
                             
  Effect of exchange rate changes on the cash and cash equivalents     10,100       (17,084 )     3,020       (14,434 )     588  
                             
        Net increase (decrease) in cash and cash equivalents     18,966       (10,015 )     (27,960 )     52,672       60,905  
                                                 
Cash and cash equivalents at beginning of period     131,845       141,860       126,099       98,139       37,234  
Cash and cash equivalents at end of period   $ 150,811     $ 131,845     $ 98,139     $ 150,811     $ 98,139  
                             

Investor Contact:
Suzanne Schmidt
Investor Relations for SMART Global Holdings, Inc.
(510) 360-8596
[email protected]

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