SGH - Earnings call transcript Q3 2024 | Penguin Solutions, Inc.

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Operator

Good afternoon. Thank you for attending today's SGH Third Quarter Final 2024 Earnings Call. My name is Sheila, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to turn the conference over to our host, Suzanne Schmidt with Investor Relations. Suzanne, you may proceed.

Suzanne Schmidt

operator. you, Thank thank conference and quarter joining on us XXXX Good and you webcast earnings call third to today's results. afternoon, for discuss fiscal SGH's

Pacheco, Adams, On Financial Chief Executive are call Officer; Mark the Officer; Nate today Officer. Jack Chief Olmstead, Operating and Chief

the the on presentation throughout to forward-looking outlook. you this statements, information can most company. I about not on the limited presentation. release site call quarter like use Please note everyone financial make call, is the on and go for call for to release including, current but company's during encourage that find to You Investor will website. of forward-looking Relations We press would conference included also press read this in the the and statements the the the and note section earnings to, the accompanying that trajectory the growth slide of our and company statements remind projections to the

law, Forward-looking as on current subject forward-looking assumptions well press the presentation future uncertainties, revise guarantees in assume forward-looking date or and statements risks only uncertainties applicable are not including, and today reflected as earnings performance are and risks as and no and the to they except update filed most of the responsibility based limitation, and publicly of any the and release are are quarterly as we in without statements call recent by beliefs annual required the company's to reports. The are representative statements. made and

call A press and the when reconciliation is let to in Mark? to slide or to included all to the Mark today's measures me be CEO. accompanying considered presentation. And encourage We measures. financial and our a not GAAP also release turn consider in substitute should discuss that, over Adams, results. as of will analyzing We GAAP measures non-GAAP both isolation GAAP with measures superior from, for non-GAAP you performance. Non-GAAP our

Mark Adams

you nice for QX and X by a with I had in quarter. holiday. our Thanks, Suzanne. the third execution We fiscal all pleased thank XXXX you July the Welcome, team our very joining hope earnings call. am

results financial solutions high high of performance, are our Our clear enterprise transformation provider. a availability into evidence

in emerging enable to continue believe build, growing technology and companies our AI design, as the progress offerings, hyperscalers make operational We are engagements, cloud areas and new in providers across such uniquely We management. to software their service customer driving to positioned we ecosystem enterprises and service efficiency. to corporate from deploy advancing

upon computing, the AI implementing in we solutions, the heritage years of HPC, deep XX or like built. were is complex HPC have at address and deployment experience when businesses that complexity the very of cluster face know-how which technologies high-performance have to advanced our in scale. We With foundation which multiprocessor computing expertise infrastructure the AI

of Let million, All midpoint and above and of of in metrics the came Non-GAAP cash sheet with at me midpoint guidance or line guide, $XXX.X of investments non-GAAP third totaled in we range. of midpoint our well achieved turn $X.XX, to $XXX short-term XX.X% above slightly was our million. of the which balance with guide. of key Revenues quarter QX our the exited our margin financial gross above guidance was the strong a midpoint EPS with range. We our results.

and reliably rapidly advanced excited AI. I differentiates partner are and us and in serve to new customers have opportunities experience, we can about existing Looking for that as deploy mentioned which deep our HPC ahead, systems. a us the

but from creating infrastructure unique seen then we the our elements software from with no already they and have of work an potential expanding that in of City. proven given data in Many the as record to compute, the next systems-level even role integration We We'll of the detail strategy customer's and manage these management, turn we deployment production architecture in design solve. From week's technologies time customers center challenges a trusted accelerating who New to of networking a such to of to AI partner systems AI Analyst increase a growth almost leveraging and us deployment our started software a complex deployment, environment maximizing journey, to with have faced development have the and Day initial phase solutions. of to also a and their memory, downtime. cooling customers at design and interest complex of our serve services to in portfolio, us more of positioning in development post-implementation share York storage, system,

to review Nate I opportunity our wanted to of the most CFO. Logitech, as multibillion-dollar Olmstead company. welcome international take I our individual technology Before business was a recently Nate performance, CFO lines

cap. XX from billion While investor at where he in business billion relations market scaled spanning billion a $X.X to in planning to executive Logitech, responsibilities that Prior various Logitech, spent from joining $XX HP to years and to roles from managed had HPE business approximately Nate in $X $X.X billion finance. to and he at revenue operational

performance. on branded our Solutions our Intelligent line featuring individual IPS or our Starting to Penguin Platform with solutions. business Now business

complex range the infrastructure to Our us of of team has of address customers. with Penguin solutions, decades HPC experience needs our wide a enabling

a the for and was $XXX engagement revenue. baseline solutions sometimes cloud. of our XX% and solutions-oriented component quarter and overall managed million to services from at our our HPC come largest high compared align on-premise, of complex design, software QX, edge, the In which and overall revenues the we AI a in applications that and hardware, in the low-margin, IPS, manage of totaled oriented model. Today, portfolio with build, doesn't are businesses, We hardware revenue, deploy

education activity provide Penguin including was only. and defense Penguin in also from dollar our We've with across the orders secured some are that seeing increased services verticals. non-hardware wins, in customer and We multimillion key win, managed to software customers brought hyperscaler, follow-on meaning business a

the Endurance of simplify enabling scale. cluster productizes which Factory AI to need management and investment edge. Last the both resource integrates our required announced platform, knowledge build at accelerate of with architectures, AI and critical fault-tolerant decades expertise the AI reliable This to to and our manage of with to proven platform GPUs our solutions from address AI addition, we've offering, time software intelligent wins date the In infrastructure power achieved for which OriginAI management Penguin's ztC and and harness Penguin's deployment enterprises we the learnings computing solution, biggest our at month, Edge scratch. and without of typically and ztC

we go-to-market capabilities. and our to board some on our sales from and You week Analyst next will of bolster this more development hear hear Day at new about executives the brought

this market achievement quarter's pivotal HPC. opportunity. we play can and This early role transformative We the believe the highlight we AI in in stages of are advancing

unique Our looking are is to and customers vital for reliable AI scalable enable experience solutions. who

Working Turning to memory network manufacture advanced areas decades develop customers AI, Modular our SMART HPC in that our telecom, with leverage and supercomputing, the Memory of business, brand. the we high-performance, solutions storage closely high-reliability technology. centers, memory which our in data under and operates of the and and expertise

here. due SGH revenue we as came believe XX% and continue from we of higher total expected, mix to QX sales. we QX, than improved improve million expected Sales will Margins purchases. $XX and priced from or to levels in For lower memory were at

forth we quarter, development sampling the solutions. In product X-DIMM our strong development, in the and Advanced area customer important card, was cards, milestone Memory new engagement achieved add-in which enables the design-in for Industry by compute DDRX which with speed, X-DIMM our During the we in our product and capacity set a of new performance achieved the an and CXL add-in card activity memory of saw pass add-in important increasing milestones by number customer to Consortium and Group. test CXL we standards first

technology. In we CXL for add-in vendor. also received and customers production using compatibility ensures our to card X-DIMM QX, an this AI CXL Importantly, reliability sale compute first

NAND EX.S In combining CXL that a This a design reliable making module, addition, non-volatile computing powered as to AI leverages even like backup more thanks data operates not and our these retains capabilities. This when efficient. introduced custom is DRAM and data ensures NAND is we lost, but new devices. for restore important design, our off, non-volatile and architecture that systems critical especially high-performance applications it and DRAM

the amounts and vast Our of reinforce SMART's and to applications. the unlocking high-capacity AI quarter computations not data the and and HPC the for memory deployment AI. Efficient, of availability essential systems. indispensable enhance performance role customers' processors power required memory of manage our of manufacture high to accomplishments in overall by AI us in also leadership design, but solutions, Memory to is our underscores memory complex in well Advanced performance, the in only solutions positions this past AI GPU's-based high heritage

architectural and of such and visibility are or the sequentially while for to Solutions Finally, $XX outdoor, video lighting. of improving, LEDs our fiscal for by channel in total customers innovate application-optimized third scale. screens, sales. Backlog gaming expenses line XX% continuing keeping the as grew and products Cree team markets with its XXXX, LED to lighting, X% displays, horticulture a which business, in In total LED is revenue business specialty quarter produces current operating million of SGH

advance focus XFL peak During designed quarter, continued solutions. in lighting. Each to products. This success. tailored family, new accelerating lighting for the LED of also enabling commitment Cree and lumen our quicker process the our is developing market customer team on announced innovation performance targets, LED flashlights family manufacturers for and XLamp high-value XFL the design for in to its supporting the delivery LED portable technology and specific advanced lighting underscores

light quarter. for fact review outsourced Nate X the decades well strong R&D environment we advanced consolidation facilitate ] point. vis-a-vis Ongoing and performance support market weeks likely competitively for opportunities. The asked to I've in us joined portfolio LED LED sustained as set robust the the future Jack? to multiple activities capabilities ago. CFO our some profitability broader sector innovation through LED's as just model our [ very of role IP and guidance to at that positions our QX us Cree's across and generated of return performance continues growth. stage gross leadership competitors. In Jack these IP next growth with suggest assertion manufacturing, Cree is Importantly, technology financial margin capital-light in that applications and

Jack Pacheco

materials Thanks, to Mark. will non-GAAP tables my reconciled GAAP I website. investor release earnings which focus in on our on are results, and the our in remarks

gross of midpoint in were above the $XXX control of or by prior million million $XX of the million our $XX margin XX% guidance, revenue or our XX% from quarter, me our guidance. our quarter, midpoint revenues Non-GAAP to results. guidance Total for earnings $X.XX came $XXX XX.X%, the in the and also our share were let third non-GAAP turn at of quarter per totaled midpoint million third in up revenues quarter. which at revenue continued the was Product of the the diluted revenue, overall services our Now was quarter. at of SGH helped third expenses. In third

revenue memory by SGH XX% primarily XX% IPS. quarter for within the service quarter, that of in follows: mix LED, LED. Non-GAAP was Third revenue. as the due actions. improved XX% variable quarter, sequentially million gross margins expenses in the XXXX to and was Memory, quarter per the quarter. Non-GAAP XXXX $XX.X volumes XX% ago for translates the the EBITDA quarter, from was also ago the million $XX.X third diluted and million. quarter higher last and compared in million was quarter. Adjusted margin of ago a were driven in to XX% $XXX XX.X% $XX in $X.XX quarter a expenses sales sales were in quarter. Operating share flat million; quarter were and and $X.XX relatively mix by offset share into $XX compared quarter, reduction $XX or or ago lower or prior due $XX $XX.X down expenses primarily million; sales mix $XX in second of year of year by per in lower primarily of up XX.X% the year the earnings IPS, from IPS, million $X.XX business to cost for unit per to million compared of share million, share Gross for per third up from last sales XX.X%, to third Non-GAAP This was QX of Memory XX% the year operating

sheet balance to Turning highlights.

gross prior For in million totaled working XX.X inventory third X.Xx the sales which million on the $XXX were million and in and in Consistent turnover X.Xx respectively, our the capital, receivables, end $XXX from due accounts prior up up of $XXX XX.X $XXX the million the receipts compared calculated the from sold quarter. a past quarter, are came for third practice, quarter. to days, $XXX in $XXX outstanding goods last million, to net and the third quarter, slightly prior quarter, the quarter. days at turns sales basis, and timing cost net days outstanding end at than primarily accounts totaled with at Inventory million of were higher receivables of shipments. Days of quarter. Inventory

equivalents reminder, agent basis, and is profit revenue gross a recognize As our an meaning for we net difference related logistics on between only logistics on which the is services, net the $XXX at to accounted up the that from at as revenue. million cash quarter, the short-term services million third Cash investments and $X prior quarter. the end of of $XXX end the totaled and million

through million of program. compared Third end operating We initial from shares $XX repurchase repurchase from buyback repurchases share share operating the million April didn't quarter our the activities have totaled million cash of Since used these in quarter. third $XX.X from total generated third prior we've in in authorization the to quarter X.X our flows $XX XXXX, million a activities quarter. our used to share

end repurchases As for remind allocation our our quarter, have authorizations. To of strategy third available we capital same. everyone, the our million of $XX.X remains under the future

and in growth. our as we continue further see invest to significant for First opportunities we organic business foremost, will

acquisition to opportunities disciplined continue will we manner. evaluate a Second, in

share $XXX levels. We bringing retired the capital return us to million down we quarter Third, manner. third term our $XXX debt since reasonable at loan by shareholders million to keep principal quarter, appropriate amount to leverage authorization in first gross of the our our $XX price-sensitive the flexibility look million. to repurchase and in retire an the as incremental would provides And to opportunistic finally,

quarter, of tracking you and $X.X capital depreciation the those $X.X depreciation, expenditures million. third were million capital expenditures and in was For

fiscal our be quarter million. fourth midpoint, that will to we fourth for approximately million at Turning XXXX or expect XXXX the minus guidance, the quarter revenues $XXX plus of $XX

at to reflects the For midpoint revenues timing fourth due Our guidance be the expect low IPS, following: up double of for deployments. in the we sequentially the to quarter digits

at -digit in range For for at memory, low to the we single sequentially expect slightly the midpoint. digits the LED, expect revenues we single in to be revenues up currently up slightly be low sequentially midpoint. And the

margin be or Our the fourth fourth gross the margin the to XX.X% for plus is quarter X.X%. minus or at at XX.X% be GAAP Non-GAAP X.X%. minus to is midpoint, gross midpoint, approximately the for approximately expected plus quarter expected

or or our due to the prior fourth higher $X.XX. amortization compensation $X diluted be Our are On approximately quarter million, non basis, share-based is -GAAP expected to be expenses with up operating associated for we $XX approximately share $X.XX. million, approximately $X.XX, and quarter plus minus expected intangible asset $X.XX per expenses or slightly diluted earnings be the expense, discounts fourth variable will from share earnings expected plus revenue. GAAP primarily for a to adjustments, plus minus minus expect expense, excluding debt non-GAAP quarter, per the other

be Our the are $X shares. our Cash, quarter be expected capital the to the expected GAAP be for $X on million expenditures is is non-GAAP XX.X approximately quarter to diluted diluted share share for based to count shares expected fourth XX.X current in range fourth price, of while million. to the million stock count approximately million

including rate tax strategy may be changes The tax changes which we rate earnings this of of changes and tax non-GAAP As Brazil, reminder, available expect non-GAAP business non-GAAP was rapidly of as quarter including for well geographic significant our long-term which or currently long-term utilizing global XXXX. a rate reflects are completed in We'll the normalized environment, or to the factors use tax a operations. other our in mix projected as sale first to to the a variety through assumptions. reasons, information, evolving subject SMART XX%,

current customer that as contemplates XXXX constraints, projects. how macroeconomic can extended environment, includes global for which of the components and new forecast chain to is incorporated our existing ongoing supply ramp fourth business. into relates for lead based solutions, times impacting and especially the it headwinds on the quickly Our overall our quarter IPS are This certain we

prudent measures to environment a our in of operations investing the and -GAAP also to our further a GAAP as manage in refer navigate financial non-GAAP tables our the long-term we growth. Please release details. reconciliation for in information to earnings continue section We while manner challenging non

me for Q&A. to few Let to a remarks over Mark it turn prior

Mark Adams

Thanks, Jack.

to Before turning to-date. of am I their how reiterate to our your accomplishments questions, team I'd proud like and

offerings to operational of their deployments. drive AI continue our in our advance We support and and efficiency customers

in deep HPC complexity equips and Our the XX AI address expertise honed years, implementation environments. Specialty across Memory over us to of various

of AI, we sharing to strategy the are more growth and We at detail our the excited and HPC upcoming Day. opportunities forward future Analyst in about look

in ready are delivering stakeholders. Operator, As our we and now value we to strengthen we HPC, and to Q&A and innovate continue customers committed position our exceptional to AI for are

Operator

[Operator Kevin from Cassidy is question Rosenblatt. first company Instructions] with Our the

Kevin Cassidy

good management changing AI rapidly. the How made you've -- Mark, and market IPS' in go-to-market with also results. is strategy on Congratulations and changes the changing? HPC is the all

Mark Adams

really sit we for Kevin, a thanks the question. really, where It's for today. good question

If you the reliability, the And do that, and the an our what look module over last evolving talent solutions, as of need at X-plus we evolving infrastructure years, from company, is memory to and we nature company do we high-performance capabilities are it's back the as high transforming. a well. that evolution

leadership industry been mostly SVP growth Manca of Nate. at company, and just quarter, partnerships, XX helping build if course, a over And an opportunities new years our and about us named reach will we of a CFO grow. named a sales to when Penguin. And President we so, think and we opportunities Pete that's as there us last IPS for for BXB role because These direct the strategy. But are you continued to XX in hired partners us as standpoint. a we we've spending on sales as months. Recently, over after our who's a process and last to Osborne, the part be to scale capabilities expand very go-to-market, and Alliances Partnership of a development our SAP key mature from critical our executive still we just brought and working Specific to X in expand Dave company capabilities with and out historically, continue expand of new

new responsibility looking sure as really for we're improving, I and changing it's it's CEO whether existing We as lot development a to we new and getting a a come a a in to actually right the make So, this going assume the out. And team to leader make talent big way. always be Pete our have to always head think get a static talent build Penguin. we're better capabilities in new with review bringing and in or Manca blend or there in through business in of we're internally CFO the that don't and sure for to

We all have reinventing to ourselves be time. the

Kevin Cassidy

I the for XX be to the -- able your that seems somewhere over of and another of think, -- more AI parts going corporate How little part It handle, customers? to be XX Penguin to say, I question my other products. going we industry. is to have, you get out customers can guess, this scalable is be maybe to

Mark Adams

Kevin, to and X were to build we've we you, right where relationships a place ago months just getting first Well, I right think And, go of done out X job I'm in engagement. the and tell that I'm I'll these target all, from better people pretty pleased -- the relative expansion. to

software that services Secondly, are has. quite don't I working are partnerships, in mentioned other who skillset and customers there the Penguin with when have managed companies definitely who

business today. new the we our fall, out is tease back with and of on And trying be opportunities And X business resources pleased take really it of and lumpiness so, say we're start already to do pace business, the new to customers, years. a expansion. Part for as we as expanding of for I'm X next to company a customer the base mentioned over horizon adding that I that in where the relates scale would with about the us, the comfortable to kind base going the we and some just in are it, when very the how the I'm customer at in to we talked to

stand a and the and software the asked the quarter, got sell them We software and my center customer think didn't add, not -- a center in get to running, the customer to had and only, I they've actually and QX, infrastructure systems testament our our in the is help we but heard a value come they which where for, in, our script. We their on services meaning data services. bought, people in know just couldn't in great managed on to we us with that Penguin called services up level hardware. the you data an was software that more up environment

Operator

comes Thomas Our next from with O'Malley company question the Barclays.

Unknown Analyst

IPS. guided software Scott as talking the is will this on quarter, to noticed And margins about gross Hi, I coming be a the you step back sequential take there. more next revenue service are driven on Tom. and for but guys growth are by

the takes So, the of can seeing? give of and you us just an puts idea pressure you're margin

Jack Pacheco

bit Yes. hardware a software down in little in quarter mean, little gross will business. we I a a the drive the services, more than if that margins ship

of anything more than the mix issue a quarter So else. in

Mark Adams

so, be I over that of sorry, new engagements, to can we're enough will But -- case little on say the software be get That bit. margins the to upfront the to tends you around the give guide grow the we will in deployment, time, Street on we a kind the and hardware going accumulates as there. move and services taking advance was our be when notice to case try

Unknown Analyst

guess, you're side, as what growth you're term later memory to are elsewhere seeing on further product then well layering Can near this guided on memory And seeing industry, CXL you out? guys an as you the you Great. the in year. give Obviously, guys then and idea of, fundamentals there. the that us slight I improving

Mark Adams

Yes.

said Memory what memory. the less volatile consumer -- in business I I business describe would as As of Solutions than we've our that always high-volume kind say, enterprise is

we also we And as as didn't so favor, there in really the a much. -- volatility don't snapback but because decline see much works our both

you in of was broader price the severe think it of didn't about units, some see in XX%, was of saw if that downturn. the kind We semi XX% perspective. revenue, and and pricing. We some so, some reductions And it

cycle, And demand switch We pretty ours forecasts be beyond see it for We're back. switch and believe starting the they strong look going the half bit memory folks large-scale muted so, year. recovery than in little more back. the will QX will see pricing the on a back of the to when

You excited mentioned get first the order quarter we're our QX. production leadership early It's CXL, validation position. our to in of an in

memory to it's obviously, love cycle, but customer wins be So, know we'd the business further design ahead in we fairly and the track are the healthy. recovery on

it's So nature just pace. of business recovery I the on and less is bit of matter a the think -- cycle the downturn a our enterprise volatile little

Operator

comes question next company, Chin Brian with the Stifel. Our from

Unknown Analyst

is more largest ztC these these these just what about Could Edge frame is? which for on for This implementation adopting speak to about wins Endurance. for I time for wanted Brian. verticals are ask and you Dennis and systems the

Mark Adams

Sure.

think Xs in primary lack of these think of be rigs of hallmark platform This nascent minutes it's system market who and the critical. of set necessity [ offering a it today, the attract Xs just It's again, will Edge platforms gas ATM in a in although the It's institutions to. the as help down a kind -type desks environments, environments, gas for you and and as to reliability the really energy even you those future. like locations. on-site sector, the year. remote type really things proven oil think financial point-of-sale inferencing financial evolution evolution oil for of availability to if AI the about -- benefit the and a are as type well we to of it's have is ] our markets, type we are future. success a or towards -- in of really trading environments for oil need and great X seeing but about are where the of people a go availability And we've be looking we build and and markets X of will platform are We the compete. And great customers type got where broader support are These

Unknown Analyst

also an those about you've And some don't they industries customers what I of with names. Great. I said AI systems. and similar but maybe interest taking how you say you was, from? think note, then about think spoken kind progress Can in who previously is it more on they're HPC new and were a going household

Mark Adams

from, Yes. good our would seeing companies, software, that to be to could with well, center gas And be data the us type institutions. enterprise, interest number really that next strong oil a and I think week. Actually, talk see we're definitely Day traditional and that continue of large-scale financial as education say, is and Analyst It could at engagements. I you'll

initial had. We'll said, those to asked we're Kevin of wins in are enterprise -- talked Tier when Cloud for providers in say, the vehicle in speak the earlier, question space, was the a kind our service of last mix. And I they're as is was beyond mentioned on we some But traditional across the would of enterprises. broader I about we've the hyperscalers, call the As almost investment go-to-market, I now very X this where going industry, the next with just subset Enterprise pleased making, a about week. terms progress we're

So and that's a of where expertise, together needing solution they're provider. expertise working and design part the help in as come in deployment we the and

we in opportunities I some think are of of as that and see quarters these coming So, that matriculate gas, as I think education, been mentioned. again oil the I more and engaged in. And we've you'll the financial verticals

Unknown Analyst

you Great. the Thank for it detailed me. answer. from That's That's all.

Operator

company Doyle Needham. Nick question next the with Our from is

Nicolas Doyle

million trending wins welcome I and Just Stratus? has Nate. hardware And it associated going was And these Stratus' software been is about, the if quarter? that be product? a and guys What wondering to Hey that range? you're that a in $XX with talking type that to million or contribution is in $XX guess, fault-tolerant services

Mark Adams

disciplined product Yes, sell can basis. let me that's sell and and to we platform, in about a that think just gross environment. we're We Edge. with how in got a that Stratus we're the going margins from on-prem you're kind the to data at center of game. The perform acquisition services to to break Edge the brands just to the accretive like any we be we business that bid And that We evolution a not continues going our platform AI the of tell hardware-only I out I on excited in want to in company. out really go-forward referring software the back Gross do say, are terms very hardware at business overall capabilities. be that of and margin Edge along of the well. we're you our not the

think the platforms don't in that market at performance opportunity here compute XXXX, provide high I that's next a X and Now, but high good the over evolves really for Edge, in capability the think we're developing think I that solutions X to years. market that's availability, position I as

Nicolas Doyle

introductions seasonally Is memory getting Memory single margins Specialty at in grow other the and -- demand the Zephyr? you've memory same quarter, up in then and the inventory of And down the fourth like cycle gross offset, normally, with time is the some discussed are drivers able to a digits? expand and new fiscal able just product you better place, and low are CXL that to then why

Mark Adams

I on think it the is nailed of Yes, severity you of the end, which front memory kind cycle. the

price was were declines [ worst it on significant. record probably and dollars, bright the of memory ] cycle even terms In

fell of in quarters. down over a billion, you just If $X X billion X information, revenue below use $X to from available Micron's publicly data point

going of of but that you despite bit -- to couple just so in today, recover. a alleviate. that has that quarters, And base our such And else's for last referenced of inventory for that the we're business well. And everybody us, coming our challenges over again, a from And a to if headwind starting little in has Jack customer's pricing a seasonality largest low what's look we the the in QX. growth memory QX, acknowledged the terms we're started as proxy expect see you and that on at been was

customers at into heading to starting recovery of QX. it's a and So, really largest some just market inventory the story our is normalize

Operator

there the our closing At registered time, questions team to conference back I'd queue, other to no this so managing remarks. like pass over for are in

Mark Adams

you. Thank

we Before in able many of Thank And our not wanted Investor City York We will Day person. NASDAQ to for at in person, us contact holding to joining today. Suzanne able we that everyone closing, again our to to in for register. Please join join July you you XX MarketSite. be for on -- be you remind be New on how all I hope will joining those more via the to look information webcast. forward having

Operator

day. conference today's participation, Thank you the enjoy conclude will for rest of your That your and call.

Penguin Solutions (PENG) 9 Jul 242024 Q3 Earnings call transcript