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On Wed, 16 Oct, 12:04 AM UTC
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Penguin Solutions emerges from SMART Global rebranding By Investing.com
MILPITAS, Calif. - Penguin Solutions, Inc. (NASDAQ:PENG), formerly known as SMART Global Holdings, Inc. (NASDAQ:PENG), announced today its official rebranding as a comprehensive infrastructure solutions provider. The company, which has a 25-year history in high-performance computing (HPC), now aims to offer a full spectrum of enterprise infrastructure services, from design and deployment to management, with a focus on artificial intelligence (AI) applications and beyond. The rebranding signifies a strategic shift for the company, uniting its various business lines under the Penguin Solutions brand. This move is intended to enhance the company's ability to innovate and deliver integrated solutions across various platforms, including core systems, cloud services, and edge computing. These solutions are designed to address the specific needs of enterprises facing complex technological challenges. Mark Adams, president and CEO of Penguin Solutions, stated that the rebranding highlights the company's evolution into an enterprise solutions provider. Adams emphasized the company's commitment to partnering with customers to deliver innovation, rapid production, optimized performance, high availability, reliable security, and lasting value through their suite of solutions. While the company has transitioned to the Penguin Solutions brand, the Cree (NYSE:WOLF) LED brand, another business unit of SGH specializing in high-performance LED chips and components, will maintain its current branding. Penguin Solutions' rebranding reflects its dedication to supporting customers in adopting advanced technologies. The company leverages its expertise, experience, and partnerships to transform complex challenges into opportunities, particularly across its computing, memory, and LED business sectors. The rebranding is part of the company's broader strategy to position itself as a leader in providing end-to-end infrastructure solutions for next-generation applications. This announcement is based on a press release statement from Penguin Solutions, Inc. In other recent news, SMART Global Holdings has been making significant financial and corporate moves. The company, soon to be known as Penguin Solutions, reported Q3 revenues of $300.6 million, with its Penguin business contributing 48% of the total. SMART Global projects Q4 revenues to be around $325 million. The company has also finalized an additional $25 million sale of Convertible Senior Notes due 2030, announced a plan to offer $150 million in convertible senior notes due 2030, and amended its credit agreement. In corporate matters, SMART Global's shareholders approved a rebranding initiative, which includes a name change to Penguin Solutions, effective October 15, 2024. The company also outlined the deadlines for shareholder proposals and director nominations in preparation for their 2025 annual general meeting of shareholders. Analyst firms Needham and Stifel have maintained a Buy rating on SMART Global's stock. Needham increased the shares target to $35, while Stifel raised the price target to $32.00, both citing the company's strategic growth and focus on artificial intelligence. These are recent developments in the company's operations and financial strategy. As Penguin Solutions, Inc. (NASDAQ:PENG) embarks on its rebranding journey, investors may find valuable insights from InvestingPro's real-time data and tips. The company's strategic shift towards becoming a comprehensive infrastructure solutions provider, particularly in AI applications, aligns with some positive financial indicators. According to InvestingPro Tips, net income for Penguin Solutions is expected to grow this year, which could be a positive sign for investors considering the company's new direction. This growth expectation is further supported by the fact that three analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's future performance. However, it's worth noting that analysts anticipate a sales decline in the current year. This projection might reflect the transitional phase the company is going through as it repositions itself in the market. From a valuation perspective, InvestingPro data indicates that Penguin Solutions is trading at a high EBIT valuation multiple. This could suggest that investors are pricing in expectations for future growth, possibly related to the company's new focus on AI and enterprise infrastructure solutions. For those interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for Penguin Solutions, providing a deeper understanding of the company's financial health and market position as it navigates this significant transformation.
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Penguin Solutions shares plunge 15% on weaker guidance than expected and Q4 earnings miss By Investing.com
MILPITAS, Calif. - Penguin Solutions, Inc. (NASDAQ: PENG) saw its shares tumble 15% in after-hours trading on Tuesday after the company reported fourth quarter earnings that missed estimates and provided weaker-than-expected guidance for fiscal 2025. The artificial intelligence infrastructure and computing solutions provider posted adjusted earnings per share of $0.37 for Q4, falling short of analyst expectations of $0.40. Revenue came in at $311 million, below the consensus estimate of $325 million. For the full fiscal year 2024, Penguin Solutions reported revenue of $1.17 billion, down from $1.44 billion in fiscal 2023. Non-GAAP EPS for the year was $1.25, compared to $2.52 in the prior year. Looking ahead, the company forecast fiscal 2025 EPS of $1.50-$1.90, below the $1.92 analysts were expecting. Penguin Solutions also guided for fiscal 2025 revenue of $260-290 million, representing 15% YoY growth plus or minus 5%. "We are pleased with our Q4 results, highlighted by our third consecutive quarter of sequential top line growth," said CEO Mark Adams. He noted the company's transition to the Penguin Solutions name "reinforces our commitment to solving the complexities of AI infrastructure."
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SMART Global Holdings rebrands as Penguin Solutions, focusing on AI infrastructure and enterprise solutions. The company reports Q4 earnings miss and provides weaker-than-expected guidance, causing a 15% stock plunge.
Penguin Solutions, Inc. (NASDAQ:PENG), formerly known as SMART Global Holdings, has officially rebranded itself as a comprehensive infrastructure solutions provider. With a 25-year history in high-performance computing (HPC), the company is now positioning itself to offer a full spectrum of enterprise infrastructure services, with a particular focus on artificial intelligence (AI) applications 1.
Mark Adams, president and CEO of Penguin Solutions, emphasized that this rebranding highlights the company's evolution into an enterprise solutions provider. The move is intended to enhance the company's ability to innovate and deliver integrated solutions across various platforms, including core systems, cloud services, and edge computing 1.
The rebranding is part of a broader strategy to position Penguin Solutions as a leader in providing end-to-end infrastructure solutions for next-generation applications. This strategic shift comes with mixed financial results. In its most recent financial report, Penguin Solutions posted adjusted earnings per share of $0.37 for Q4, falling short of analyst expectations of $0.40. Revenue came in at $311 million, below the consensus estimate of $325 million 2.
For the full fiscal year 2024, the company reported revenue of $1.17 billion, down from $1.44 billion in fiscal 2023. Non-GAAP EPS for the year was $1.25, compared to $2.52 in the prior year 2.
Looking ahead, Penguin Solutions has provided guidance for fiscal 2025, forecasting EPS of $1.50-$1.90, which is below the $1.92 analysts were expecting. The company also guided for fiscal 2025 revenue of $260-290 million, representing 15% YoY growth plus or minus 5% 2.
The market response to these developments has been mixed. Following the earnings report and guidance, Penguin Solutions' shares tumbled 15% in after-hours trading on Tuesday 2. However, some analyst firms, including Needham and Stifel, have maintained a Buy rating on the stock, citing the company's strategic growth and focus on artificial intelligence 1.
Penguin Solutions' rebranding and strategic shift underscore the growing importance of AI infrastructure in the tech industry. The company's focus on providing comprehensive solutions for AI applications reflects the increasing demand for specialized infrastructure to support advanced technologies 1.
As the company navigates this transition, it faces both opportunities and challenges. While the rebranding reinforces Penguin Solutions' commitment to solving the complexities of AI infrastructure, the weaker-than-expected financial performance and guidance suggest that the company may face hurdles in the short term as it adapts to its new focus 2.
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SGH, formerly known as SMART Global Holdings, announces a strategic rebranding to Penguin Solutions. This move aligns with the company's shift towards AI and edge computing solutions, reflecting its evolving business focus and market positioning.
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Goldman Sachs initiates coverage of Penguin Solutions with a Buy rating, citing the company's strong position in enterprise AI computing and potential for significant growth driven by increasing demand for AI solutions.
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Penguin Solutions closes a $200 million strategic investment from SK Telecom, aiming to enhance its AI capabilities and expand its end-to-end AI factory offerings. The deal involves convertible preferred shares and brings changes to Penguin's board and financial outlook.
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Penguin Solutions enhances its OriginAI infrastructure and Altus server line with cutting-edge GPUs from NVIDIA and AMD, and new CPUs from AMD, targeting high-performance computing and AI workloads.
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Smart Global Holdings (SGH) sees its stock price targets raised by Stifel and Needham analysts, citing the company's strategic growth initiatives and focus on AI-driven opportunities.
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