Company Quick10K Filing
Smart Global Holdings
Price31.15 EPS1
Shares24 P/E37
MCap757 P/FCF5
Net Debt94 EBIT34
TEV850 TEV/EBIT25
TTM 2019-11-30, in MM, except price, ratios
10-Q 2020-11-27 Filed 2021-01-05
10-K 2020-08-28 Filed 2020-10-22
10-Q 2020-05-29 Filed 2020-07-07
10-Q 2020-02-28 Filed 2020-04-07
10-Q 2019-11-29 Filed 2019-12-20
10-K 2019-08-30 Filed 2019-11-06
10-Q 2019-05-31 Filed 2019-06-27
10-Q 2019-03-01 Filed 2019-03-28
10-Q 2018-11-30 Filed 2019-01-08
10-K 2018-08-31 Filed 2018-10-30
10-Q 2018-05-25 Filed 2018-06-21
10-Q 2018-02-23 Filed 2018-03-22
10-Q 2017-11-24 Filed 2017-12-21
10-K 2017-08-25 Filed 2017-10-13
10-Q 2017-05-26 Filed 2017-06-29
8-K 2020-10-18
8-K 2020-10-08
8-K 2020-10-01
8-K 2020-09-29
8-K 2020-08-28
8-K 2020-08-12
8-K 2020-07-07
8-K 2020-04-07
8-K 2020-03-30
8-K 2020-03-06
8-K 2020-02-13
8-K 2020-02-07
8-K 2020-02-06
8-K 2020-02-06
8-K 2019-12-19
8-K 2019-10-03
8-K 2019-07-09
8-K 2019-07-08
8-K 2019-06-27
8-K 2019-04-01
8-K 2019-03-28
8-K 2019-01-29
8-K 2019-01-08
8-K 2018-10-04
8-K 2018-10-02
8-K 2018-06-21
8-K 2018-06-08
8-K 2018-04-06
8-K 2018-03-22
8-K 2018-03-14
8-K 2018-01-29
8-K 2018-01-24
8-K 2018-01-19

SGH 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 6. Exhibits
EX-2.1 sgh-ex21_165.htm
EX-10.2 sgh-ex102_274.htm
EX-31.1 sgh-ex311_9.htm
EX-31.2 sgh-ex312_6.htm
EX-32.1 sgh-ex321_8.htm
EX-32.2 sgh-ex322_7.htm

Smart Global Holdings Earnings 2020-11-27

Balance SheetIncome StatementCash Flow
0.80.60.50.30.20.02017201820192020
Assets, Equity
0.40.30.20.10.0-0.12017201820192020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12017201820192020
Ops, Inv, Fin

sgh-10q_20201127.htm
0001616533 --08-27 2021 Q1 false P48M P48M P65D false P10D Last day of each calendar quarter Every one, two, three, six, nine or twelve months after the date of each borrowing Quarterly Quarterly P1Y1M6D P4Y0M0D P6M P4Y P10Y P4Y P10Y P9M P1Y P2Y P2Y P2Y P5Y P5Y P60Y P4Y P4Y P5Y P7Y P7Y P1Y P4Y P6Y us-gaap:AccruedLiabilitiesMember us-gaap:AccruedLiabilitiesMember P6Y3M P6Y3M P6Y11M12D P7Y3D P6Y3M29D 0001616533 2020-08-29 2020-11-27 xbrli:shares 0001616533 2020-12-09 iso4217:USD 0001616533 2020-11-27 0001616533 2020-08-28 iso4217:USD xbrli:shares 0001616533 2019-08-31 2019-11-29 0001616533 us-gaap:CommonStockMember 2019-08-30 0001616533 us-gaap:AdditionalPaidInCapitalMember 2019-08-30 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-30 0001616533 us-gaap:RetainedEarningsMember 2019-08-30 0001616533 2019-08-30 0001616533 us-gaap:AdditionalPaidInCapitalMember 2019-08-31 2019-11-29 0001616533 us-gaap:CommonStockMember 2019-08-31 2019-11-29 0001616533 us-gaap:CommonStockMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember srt:RestatementAdjustmentMember 2019-11-29 0001616533 us-gaap:AdditionalPaidInCapitalMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember srt:RestatementAdjustmentMember 2019-11-29 0001616533 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember srt:RestatementAdjustmentMember 2019-11-29 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-31 2019-11-29 0001616533 us-gaap:RetainedEarningsMember 2019-08-31 2019-11-29 0001616533 us-gaap:CommonStockMember 2019-11-29 0001616533 us-gaap:AdditionalPaidInCapitalMember 2019-11-29 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-11-29 0001616533 us-gaap:RetainedEarningsMember 2019-11-29 0001616533 2019-11-29 0001616533 us-gaap:CommonStockMember 2020-08-28 0001616533 us-gaap:AdditionalPaidInCapitalMember 2020-08-28 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-08-28 0001616533 us-gaap:RetainedEarningsMember 2020-08-28 0001616533 us-gaap:AdditionalPaidInCapitalMember 2020-08-29 2020-11-27 0001616533 us-gaap:CommonStockMember 2020-08-29 2020-11-27 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-08-29 2020-11-27 0001616533 us-gaap:RetainedEarningsMember 2020-08-29 2020-11-27 0001616533 us-gaap:CommonStockMember 2020-11-27 0001616533 us-gaap:AdditionalPaidInCapitalMember 2020-11-27 0001616533 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-11-27 0001616533 us-gaap:RetainedEarningsMember 2020-11-27 0001616533 sgh:BrazilianDevelopmentBankMember 2019-08-31 2019-11-29 0001616533 sgh:ArtesynEmbeddedComputingIncMember 2020-08-29 2020-11-27 0001616533 sgh:InforceComputingIncorporationMember 2020-08-29 2020-11-27 0001616533 sgh:PremiereLogisticsMember 2020-08-29 2020-11-27 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-08-29 2020-11-27 sgh:Reportingunit xbrli:pure 0001616533 us-gaap:AccountingStandardsUpdate201409Member 2020-08-29 2020-11-27 0001616533 srt:MinimumMember 2020-08-29 2020-11-27 0001616533 srt:MaximumMember 2020-08-29 2020-11-27 0001616533 us-gaap:ServiceMember 2020-08-29 2020-11-27 0001616533 us-gaap:ServiceMember 2019-08-31 2019-11-29 0001616533 us-gaap:ProductMember 2020-08-29 2020-11-27 0001616533 us-gaap:ProductMember 2019-08-31 2019-11-29 0001616533 us-gaap:AccountsReceivableMember 2020-11-27 0001616533 sgh:ContractAssetsMember 2020-11-27 0001616533 us-gaap:AccountsReceivableMember 2020-08-28 0001616533 sgh:ContractAssetsMember 2020-08-28 0001616533 us-gaap:AccountsReceivableMember 2020-08-29 2020-11-27 0001616533 sgh:ContractAssetsMember 2020-08-29 2020-11-27 0001616533 sgh:ContractLiabilityMember 2020-11-27 0001616533 sgh:ContractLiabilityMember 2020-08-28 0001616533 sgh:ContractLiabilityMember 2020-08-29 2020-11-27 0001616533 2020-11-28 2020-11-27 0001616533 2021-08-28 2020-11-27 0001616533 2023-08-26 2020-11-27 0001616533 us-gaap:ResearchAndDevelopmentExpenseMember 2020-08-29 2020-11-27 0001616533 us-gaap:ResearchAndDevelopmentExpenseMember srt:MinimumMember 2020-08-29 2020-11-27 0001616533 us-gaap:ResearchAndDevelopmentExpenseMember srt:MaximumMember 2020-08-29 2020-11-27 0001616533 us-gaap:ResearchAndDevelopmentExpenseMember 2019-08-31 2019-11-29 0001616533 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2020-08-29 2020-11-27 0001616533 sgh:SMARTBrazilMember sgh:ICMSMember 2020-08-29 2020-11-27 iso4217:BRL 0001616533 sgh:ICMSMember 2020-11-27 0001616533 sgh:ICMSMember 2020-08-28 0001616533 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember sgh:ICMSMember 2020-11-27 0001616533 us-gaap:OtherNoncurrentAssetsMember sgh:ICMSMember 2020-11-27 0001616533 us-gaap:OtherNoncurrentAssetsMember sgh:ICMSMember 2020-08-28 0001616533 sgh:ICMSMember 2019-08-31 2020-08-28 0001616533 sgh:ICMSMember 2020-08-29 2020-11-27 0001616533 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember sgh:ICMSMember 2020-08-28 0001616533 sgh:ICMSMember us-gaap:EarliestTaxYearMember 2020-08-29 2020-11-27 0001616533 sgh:ICMSMember us-gaap:LatestTaxYearMember 2020-08-29 2020-11-27 0001616533 sgh:SaoPauloTaxAuthoritiesMember sgh:ICMSMember 2017-12-21 0001616533 sgh:SaoPauloTaxAuthoritiesMember sgh:ICMSMember srt:MinimumMember 2016-04-01 2016-04-30 0001616533 sgh:SaoPauloTaxAuthoritiesMember sgh:ICMSMember srt:MaximumMember 2016-04-01 2016-04-30 sgh:Installment 0001616533 2018-09-01 2018-11-30 0001616533 sgh:ICMSMember 2018-11-30 0001616533 sgh:SaoPauloTaxAuthoritiesMember sgh:ICMSMember 2018-12-01 2019-03-01 0001616533 2020-05-30 2020-08-28 0001616533 srt:MinimumMember us-gaap:EquipmentMember 2020-08-29 2020-11-27 0001616533 srt:MaximumMember us-gaap:EquipmentMember 2020-08-29 2020-11-27 0001616533 srt:MinimumMember sgh:OfficeFurnitureSoftwareComputersAndEquipmentMember 2020-08-29 2020-11-27 0001616533 srt:MaximumMember sgh:OfficeFurnitureSoftwareComputersAndEquipmentMember 2020-08-29 2020-11-27 0001616533 srt:MinimumMember us-gaap:LeaseholdImprovementsMember 2020-08-29 2020-11-27 0001616533 srt:MaximumMember us-gaap:LeaseholdImprovementsMember 2020-08-29 2020-11-27 0001616533 sgh:PenangMember us-gaap:LandMember 2020-08-29 2020-11-27 0001616533 sgh:SpecialtyMemoryMember 2019-08-30 0001616533 sgh:BrazilBusinessSegmentsMember 2019-08-30 0001616533 sgh:SpecialtyComputeAndStorageSolutionsMember 2019-08-30 0001616533 sgh:SpecialtyComputeAndStorageSolutionsMember 2019-08-31 2020-08-28 0001616533 2019-08-31 2020-08-28 0001616533 sgh:BrazilBusinessSegmentsMember 2019-08-31 2020-08-28 0001616533 sgh:SpecialtyMemoryMember 2020-08-28 0001616533 sgh:BrazilBusinessSegmentsMember 2020-08-28 0001616533 sgh:SpecialtyComputeAndStorageSolutionsMember 2020-08-28 0001616533 sgh:BrazilBusinessSegmentsMember 2020-08-29 2020-11-27 0001616533 sgh:SpecialtyMemoryMember 2020-11-27 0001616533 sgh:BrazilBusinessSegmentsMember 2020-11-27 0001616533 sgh:SpecialtyComputeAndStorageSolutionsMember 2020-11-27 0001616533 us-gaap:CustomerRelationshipsMember 2020-11-27 0001616533 us-gaap:TrademarksAndTradeNamesMember 2020-11-27 0001616533 us-gaap:TechnologyBasedIntangibleAssetsMember 2020-11-27 0001616533 us-gaap:OrderOrProductionBacklogMember 2020-11-27 0001616533 us-gaap:CustomerRelationshipsMember 2020-08-28 0001616533 us-gaap:TrademarksAndTradeNamesMember 2020-08-28 0001616533 us-gaap:TechnologyBasedIntangibleAssetsMember 2020-08-28 0001616533 us-gaap:OrderOrProductionBacklogMember 2020-08-28 0001616533 us-gaap:TechnologyBasedIntangibleAssetsMember 2020-08-29 2020-11-27 0001616533 us-gaap:CustomerRelationshipsMember srt:MinimumMember 2020-08-29 2020-11-27 0001616533 us-gaap:TrademarksAndTradeNamesMember srt:MinimumMember 2020-08-29 2020-11-27 0001616533 us-gaap:CustomerRelationshipsMember srt:MaximumMember 2020-08-29 2020-11-27 0001616533 us-gaap:TrademarksAndTradeNamesMember srt:MaximumMember 2020-08-29 2020-11-27 0001616533 us-gaap:OrderOrProductionBacklogMember srt:MaximumMember 2020-08-29 2020-11-27 0001616533 us-gaap:CostOfSalesMember 2020-08-29 2020-11-27 0001616533 us-gaap:CostOfSalesMember 2019-08-31 2019-11-29 0001616533 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-08-29 2020-11-27 0001616533 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-08-31 2019-11-29 0001616533 sgh:BrazilianOperatingSubsidiariesMember 2020-08-29 2020-11-27 0001616533 sgh:BrazilianOperatingSubsidiariesMember 2019-08-31 2019-11-29 sgh:Supplier 0001616533 us-gaap:SupplierConcentrationRiskMember 2020-11-27 0001616533 us-gaap:SupplierConcentrationRiskMember 2020-08-28 0001616533 us-gaap:SupplierConcentrationRiskMember 2020-08-29 2020-11-27 0001616533 us-gaap:SupplierConcentrationRiskMember 2019-08-31 2019-11-29 0001616533 us-gaap:AccountingStandardsUpdate201602Member 2020-11-27 0001616533 sgh:CreeLEDIncMember 2020-11-26 2020-11-27 0001616533 srt:MinimumMember sgh:CreeLEDIncMember 2020-11-26 2020-11-27 0001616533 srt:MaximumMember sgh:CreeLEDIncMember 2020-11-26 2020-11-27 0001616533 sgh:CreeLEDIncMember 2020-10-18 2020-10-18 0001616533 sgh:CreeLEDIncMember 2020-10-18 0001616533 sgh:CreeLEDIncMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-10-18 0001616533 sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 0001616533 sgh:IndemnificationObligationsMember sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember us-gaap:FairValueInputsLevel3Member 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember us-gaap:FairValueInputsLevel3Member us-gaap:LineOfCreditMember us-gaap:PrimeRateMember 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember us-gaap:FairValueInputsLevel3Member sgh:TermLoanMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember 2020-08-28 0001616533 sgh:ArtesynEmbeddedComputingIncMember 2020-11-27 0001616533 sgh:ArtesynEmbeddedComputingIncMember srt:ScenarioPreviouslyReportedMember 2019-07-08 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember srt:RestatementAdjustmentMember 2019-07-08 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember srt:ScenarioPreviouslyReportedMember 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember srt:RestatementAdjustmentMember 2019-07-08 0001616533 us-gaap:CustomerRelationshipsMember sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 0001616533 us-gaap:TechnologyBasedIntangibleAssetsMember sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 0001616533 us-gaap:CustomerRelationshipsMember srt:MinimumMember sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 2019-07-08 0001616533 us-gaap:CustomerRelationshipsMember srt:MaximumMember sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 2019-07-08 0001616533 us-gaap:TechnologyBasedIntangibleAssetsMember sgh:ArtesynEmbeddedComputingIncMember 2019-07-08 2019-07-08 0001616533 sgh:ArtesynEmbeddedComputingIncMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-08-31 2020-08-28 0001616533 sgh:ArtesynEmbeddedComputingIncMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-09-01 2019-08-30 0001616533 sgh:InforceComputingIncorporationMember 2019-07-09 2019-07-09 0001616533 sgh:IndemnificationObligationsMember sgh:InforceComputingIncorporationMember 2019-07-09 2019-07-09 0001616533 sgh:PostClosingAdjustmentsMember sgh:InforceComputingIncorporationMember 2019-07-09 2019-07-09 0001616533 sgh:InforceComputingIncorporationMember 2020-05-29 2020-08-28 0001616533 sgh:InforceComputingIncorporationMember srt:ScenarioPreviouslyReportedMember 2019-07-09 2019-07-09 0001616533 sgh:InforceComputingIncorporationMember srt:RestatementAdjustmentMember 2019-07-09 2019-07-09 0001616533 srt:ScenarioPreviouslyReportedMember sgh:InforceComputingIncorporationMember 2019-07-09 0001616533 sgh:InforceComputingIncorporationMember 2019-07-09 0001616533 srt:RestatementAdjustmentMember sgh:InforceComputingIncorporationMember 2019-07-09 0001616533 us-gaap:CustomerRelationshipsMember sgh:InforceComputingIncorporationMember 2019-07-09 0001616533 us-gaap:TechnologyBasedIntangibleAssetsMember sgh:InforceComputingIncorporationMember 2019-07-09 0001616533 us-gaap:CustomerRelationshipsMember sgh:InforceComputingIncorporationMember 2019-07-09 2019-07-09 0001616533 us-gaap:TechnologyBasedIntangibleAssetsMember sgh:InforceComputingIncorporationMember 2019-07-09 2019-07-09 0001616533 sgh:InforceComputingIncorporationMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-08-31 2020-08-28 0001616533 sgh:InforceComputingIncorporationMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-09-01 2019-08-30 0001616533 sgh:PremiereLogisticsMember 2019-02-01 2019-02-28 0001616533 sgh:PremiereLogisticsMember 2019-02-28 0001616533 srt:AffiliatedEntityMember 2020-08-29 2020-11-27 0001616533 srt:AffiliatedEntityMember 2019-08-31 2019-11-29 0001616533 sgh:InforceComputingIncorporationMember us-gaap:CommonStockMember sgh:ChiefExecutiveOfficerAndBoardMember 2019-07-09 2019-07-09 0001616533 sgh:InforceComputingIncorporationMember us-gaap:CommonStockMember sgh:ChiefExecutiveOfficerAndBoardMember 2019-07-09 0001616533 sgh:InforceComputingIncorporationMember us-gaap:CommonStockMember sgh:ChiefExecutiveOfficerAndBoardMember 2020-05-30 2020-08-28 0001616533 us-gaap:ForwardContractsMember 2020-08-28 0001616533 us-gaap:ForwardContractsMember 2020-11-27 0001616533 us-gaap:NondesignatedMember us-gaap:ForwardContractsMember 2019-08-31 2019-11-29 0001616533 us-gaap:NondesignatedMember us-gaap:ForwardContractsMember 2020-08-29 2020-11-27 0001616533 us-gaap:ForwardContractsMember 2019-08-31 2019-11-29 0001616533 us-gaap:ForwardContractsMember 2020-08-29 2020-11-27 0001616533 sgh:OfficeFurnitureSoftwareComputersAndEquipmentMember 2020-11-27 0001616533 sgh:OfficeFurnitureSoftwareComputersAndEquipmentMember 2020-08-28 0001616533 us-gaap:ManufacturingFacilityMember 2020-11-27 0001616533 us-gaap:ManufacturingFacilityMember 2020-08-28 0001616533 us-gaap:LeaseholdImprovementsMember 2020-11-27 0001616533 us-gaap:LeaseholdImprovementsMember 2020-08-28 0001616533 sgh:OfficeLeasesMember 2020-11-27 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember us-gaap:PrivatePlacementMember 2020-02-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember sgh:ExerciseOfOptionToPurchaseAdditionalNotesByInitialPurchasersMember us-gaap:PrivatePlacementMember 2020-02-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember 2020-02-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember 2020-01-29 2020-02-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember 2020-08-29 2020-11-27 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember srt:MinimumMember 2020-01-29 2020-02-28 sgh:TradingDay sgh:BusinessDay 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember srt:MaximumMember 2020-01-29 2020-02-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember srt:MinimumMember us-gaap:DebtInstrumentRedemptionPeriodOneMember 2020-01-29 2020-02-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember us-gaap:DebtInstrumentRedemptionPeriodOneMember 2020-01-29 2020-02-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember 2020-11-27 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember 2020-08-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember us-gaap:FairValueInputsLevel2Member 2020-11-27 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember us-gaap:FairValueInputsLevel2Member 2020-08-28 0001616533 sgh:TwoPointTwoFivePercentageConvertibleSeniorNotesDueTwoThousandTwentySixMember 2019-08-31 2020-08-28 0001616533 sgh:CappedCallOptionMember 2020-11-27 0001616533 sgh:CappedCallOptionMember 2020-08-29 2020-11-27 0001616533 sgh:CappedCallOptionMember 2020-03-30 2020-03-30 0001616533 us-gaap:OtherNonoperatingIncomeExpenseMember sgh:CappedCallOptionMember 2019-08-31 2020-08-28 0001616533 sgh:TermLoansMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-08-09 0001616533 sgh:TermLoansMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-08-08 2017-08-09 0001616533 sgh:RevolvingLoansMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-08-09 0001616533 sgh:RevolvingLoansMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-08-08 2017-08-09 0001616533 sgh:InitialRevolverMaturityDateMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-08-08 2017-08-09 0001616533 sgh:InitialRevolverMaturityDateMember sgh:SecondAmendedAndRestatedCreditAgreementMember srt:MaximumMember 2017-08-08 2017-08-09 0001616533 sgh:IncrementalFacilityAgreementMember sgh:TermLoanMember 2018-06-08 0001616533 sgh:IncrementalFacilityAgreementMember 2018-06-08 2018-06-08 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember srt:MaximumMember 2020-08-29 2020-11-27 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember srt:MinimumMember 2020-08-29 2020-11-27 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember 2020-08-29 2020-11-27 0001616533 sgh:AmendedCreditAgreementMember sgh:TermLoanMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-08-08 2017-08-09 0001616533 sgh:AmendedCreditAgreementMember sgh:TermLoanMember us-gaap:BaseRateMember 2017-08-08 2017-08-09 0001616533 2020-02-28 0001616533 sgh:IncrementalTermLoanMember 2020-02-28 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember 2017-08-08 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember 2017-08-08 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember srt:MaximumMember 2017-08-08 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember srt:MinimumMember 2017-08-08 2017-08-09 0001616533 us-gaap:BaseRateMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2020-08-29 2020-11-27 0001616533 us-gaap:LondonInterbankOfferedRateLIBORMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2020-08-29 2020-11-27 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoanMember 2020-08-29 2020-11-27 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoanMember 2017-08-08 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoanMember 2020-11-27 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:IncrementalTermLoanMember 2018-09-01 2019-08-30 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:IncrementalTermLoanMember 2018-09-01 2018-11-30 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:IncrementalTermLoanMember 2021-02-01 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoanMember 2019-08-31 2019-11-29 0001616533 sgh:FirstYearMember sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoanMember 2020-11-27 0001616533 sgh:SecondYearMember sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoanMember 2020-11-27 0001616533 sgh:ThirdYearMember sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoanMember 2020-11-27 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:SeventyFivePercentExcessCashFlowMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:SeventyFivePercentExcessCashFlowMember srt:MinimumMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:FiftyPercentExcessCashFlowMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:FiftyPercentExcessCashFlowMember srt:MinimumMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:FiftyPercentExcessCashFlowMember srt:MaximumMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TwentyFivePercentExcessCashFlowMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TwentyFivePercentExcessCashFlowMember srt:MaximumMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-08-08 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-06-02 2017-06-02 0001616533 sgh:NewTermLoanMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-08-09 0001616533 sgh:NewTermLoanMember sgh:SecondAmendedAndRestatedCreditAgreementMember 2017-06-02 2017-06-02 0001616533 sgh:AmendedCreditAgreementMember sgh:TermLoanMember 2017-08-08 2017-08-09 0001616533 sgh:AmendedCreditAgreementMember sgh:TermLoanMember 2017-08-09 0001616533 sgh:AmendedCreditAgreementMember 2017-08-09 0001616533 sgh:AmendedCreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2017-08-09 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoansMember 2020-02-11 2020-02-11 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoansMember 2020-02-11 0001616533 sgh:SecondAmendedAndRestatedCreditAgreementMember sgh:TermLoansMember us-gaap:OtherNonoperatingIncomeExpenseMember 2020-02-11 2020-02-11 0001616533 sgh:TermLoanMember sgh:AmendedCreditAgreementMember 2020-11-27 0001616533 us-gaap:RevolvingCreditFacilityMember sgh:AmendedCreditAgreementMember 2020-11-27 0001616533 sgh:TermLoanMember sgh:SeniorSecuredCreditAgreementMember 2020-08-28 0001616533 us-gaap:RevolvingCreditFacilityMember sgh:SeniorSecuredCreditAgreementMember 2020-08-28 0001616533 sgh:ThirdAmendedAndRestatedCreditAgreementMember us-gaap:RevolvingCreditFacilityMember 2020-03-06 2020-03-06 0001616533 sgh:ThirdAmendedAndRestatedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember sgh:ThirdAmendedAndRestatedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 us-gaap:BaseRateMember srt:MaximumMember sgh:ThirdAmendedAndRestatedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 srt:MaximumMember sgh:ThirdAmendedAndRestatedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember sgh:ThirdAmendedAndRestatedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 us-gaap:BaseRateMember srt:MinimumMember sgh:ThirdAmendedAndRestatedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 srt:MinimumMember sgh:ThirdAmendedAndRestatedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 srt:MinimumMember sgh:ThirdAmendedAndRestatedCreditAgreementMember us-gaap:LetterOfCreditMember 2020-03-06 2020-03-06 0001616533 sgh:AmendedCreditAgreementMember 2020-03-06 2020-03-06 0001616533 sgh:ThirdAmendedAndRestatedCreditAgreementMember sgh:AssetBasedRevolvingFacilitiesMember 2020-03-06 0001616533 sgh:ABLCreditAgreementMember sgh:AssetBasedRevolvingFacilitiesMember us-gaap:SubsequentEventMember 2020-12-23 0001616533 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityAboveFiftyMillionMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 us-gaap:BaseRateMember srt:MinimumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityAboveFiftyMillionMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 srt:MinimumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityAboveFiftyMillionMember us-gaap:SubsequentEventMember 2020-12-23 0001616533 us-gaap:LondonInterbankOfferedRateLIBORMember sgh:ABLCreditAgreementMember sgh:CreditFacilityBetweenThirtyFiveAndFiftyMillionMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 us-gaap:BaseRateMember sgh:ABLCreditAgreementMember sgh:CreditFacilityBetweenThirtyFiveAndFiftyMillionMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 srt:MaximumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityBetweenThirtyFiveAndFiftyMillionMember us-gaap:SubsequentEventMember 2020-12-23 0001616533 srt:MinimumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityBetweenThirtyFiveAndFiftyMillionMember us-gaap:SubsequentEventMember 2020-12-23 0001616533 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityBelow35MillionMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 us-gaap:BaseRateMember srt:MaximumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityBelow35MillionMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 srt:MaximumMember sgh:ABLCreditAgreementMember sgh:CreditFacilityBelow35MillionMember us-gaap:SubsequentEventMember 2020-12-23 0001616533 sgh:AssetBasedRevolvingFacilitiesMember srt:MaximumMember sgh:ABLCreditAgreementMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 sgh:AssetBasedRevolvingFacilitiesMember srt:MinimumMember sgh:ABLCreditAgreementMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 sgh:ABLCreditAgreementMember sgh:AssetBasedRevolvingFacilitiesMember us-gaap:SubsequentEventMember 2020-12-22 2020-12-23 0001616533 sgh:ABLCreditAgreementMember sgh:AssetBasedRevolvingFacilitiesMember 2020-08-29 2020-11-27 0001616533 sgh:FundingAuthorityForStudiesAndProjectsCreditAgreementMember us-gaap:SubsequentEventMember 2020-12-31 0001616533 sgh:FundingAuthorityForStudiesAndProjectsCreditAgreementMember us-gaap:SubsequentEventMember 2020-12-01 2020-12-31 0001616533 sgh:FundingAuthorityForStudiesAndProjectsCreditAgreementMember us-gaap:SubsequentEventMember 2020-11-29 2020-11-30 0001616533 us-gaap:SubsequentEventMember sgh:FundingAuthorityForStudiesAndProjectsCreditAgreementMember 2020-12-30 0001616533 sgh:BrazilianDevelopmentBankTwoThousandAndThirteenCreditAgreementMember 2013-12-31 0001616533 sgh:BrazilianDevelopmentBankTwoThousandAndThirteenCreditAgreementMember 2020-08-29 2020-11-27 0001616533 sgh:BrazilianDevelopmentBankTwoThousandAndThirteenCreditAgreementMember 2020-11-27 0001616533 sgh:BrazilianDevelopmentBankTwoThousandAndThirteenCreditAgreementMember 2020-08-28 0001616533 sgh:BrazilianDevelopmentBankTwoThousandAndFourteenCreditAgreementMember 2014-12-31 0001616533 sgh:BrazilianDevelopmentBankTwoThousandAndFourteenCreditAgreementMember 2020-11-27 0001616533 sgh:BrazilianDevelopmentBankTwoThousandAndFourteenCreditAgreementMember 2020-08-29 2020-11-27 0001616533 us-gaap:FairValueInputsLevel1Member us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-11-27 0001616533 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-11-27 0001616533 us-gaap:FairValueInputsLevel2Member us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:FairValueMeasurementsRecurringMember 2020-11-27 0001616533 us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:FairValueMeasurementsRecurringMember 2020-11-27 0001616533 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-11-27 0001616533 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-11-27 0001616533 us-gaap:FairValueMeasurementsRecurringMember 2020-11-27 0001616533 us-gaap:FairValueInputsLevel1Member us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:FairValueInputsLevel2Member us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:DerivativeFinancialInstrumentsAssetsMember us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:FairValueInputsLevel2Member us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-08-28 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember us-gaap:EmployeeStockOptionMember 2011-08-25 2011-08-26 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember us-gaap:EmployeeStockOptionMember 2014-09-25 2017-08-25 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember sgh:AfterAugustTwentySixTwoThousandElevenAndBeforeSeptemberTwentyThreeTwoThousandFourteenMember us-gaap:EmployeeStockOptionMember 2011-08-27 2014-09-23 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember us-gaap:RestrictedStockUnitsRSUMember 2011-08-25 2011-08-26 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-11-27 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-08-28 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2019-02-01 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2019-08-31 2020-08-28 sgh:StockOption 0001616533 us-gaap:PerformanceSharesMember 2018-03-01 2018-03-31 0001616533 us-gaap:PerformanceSharesMember 2019-10-30 2019-11-29 0001616533 us-gaap:PerformanceSharesMember 2019-08-31 2019-11-29 0001616533 us-gaap:PerformanceSharesMember 2020-05-29 2020-08-28 0001616533 us-gaap:PerformanceSharesMember srt:MinimumMember 2018-03-01 2018-03-31 0001616533 us-gaap:PerformanceSharesMember srt:MaximumMember 2018-03-01 2018-03-31 0001616533 us-gaap:PerformanceSharesMember 2020-08-01 2020-08-31 0001616533 sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2019-08-31 2019-11-29 0001616533 us-gaap:EmployeeStockOptionMember sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-08-29 2020-11-27 0001616533 sgh:RestrictedStockAwardsAndRestrictedStockUnitsMember sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-08-28 0001616533 sgh:RestrictedStockAwardsAndRestrictedStockUnitsMember sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-08-29 2020-11-27 0001616533 sgh:RestrictedStockAwardsAndRestrictedStockUnitsMember sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-11-27 0001616533 sgh:PerformanceBasedRestrictedShareAwardMember 2020-08-29 2020-11-27 0001616533 sgh:PerformanceBasedRestrictedShareUnitMember 2019-08-31 2019-11-29 0001616533 sgh:RestrictedStockAwardsRestrictedStockUnitsAndPerformanceStockUnitsMember sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-08-29 2020-11-27 0001616533 sgh:RestrictedStockAwardsRestrictedStockUnitsAndPerformanceStockUnitsMember sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2019-08-31 2019-11-29 0001616533 sgh:RestrictedStockAwardsRestrictedStockUnitsAndPerformanceStockUnitsMember sgh:TwoThousandSeventeenShareIncentivePlanSGHPlanMember 2020-11-27 0001616533 us-gaap:EmployeeStockMember 2018-01-31 0001616533 us-gaap:EmployeeStockMember 2018-01-01 2018-01-31 0001616533 us-gaap:EmployeeStockMember 2020-08-29 2020-11-27 0001616533 us-gaap:EmployeeStockMember 2019-08-31 2020-08-28 0001616533 us-gaap:EmployeeStockMember 2020-11-27 0001616533 us-gaap:EmployeeStockMember 2020-08-28 0001616533 sgh:SanDiskCorporationMember 2013-08-20 2013-08-21 0001616533 sgh:SanDiskCorporationMember 2013-08-30 0001616533 sgh:SMARTModularTechnologiesIndustriaDeComponentesEletronicosLtdaMember 2012-02-23 0001616533 sgh:SMARTModularTechnologiesIndustriaDeComponentesEletronicosLtdaMember 2013-12-12 0001616533 sgh:DRAMMember sgh:SMARTModularTechnologiesIndustriaDeComponentesEletronicosLtdaMember 2013-12-12 0001616533 sgh:FlashMember sgh:SMARTModularTechnologiesIndustriaDeComponentesEletronicosLtdaMember 2013-12-12 0001616533 sgh:SMARTModularTechnologiesIndustriaDeComponentesEletronicosLtdaMember 2020-11-27 0001616533 sgh:SpecialtyMemoryMember 2020-08-29 2020-11-27 0001616533 sgh:SpecialtyComputeAndStorageSolutionsMember 2020-08-29 2020-11-27 0001616533 sgh:SpecialtyMemoryMember 2019-08-31 2019-11-29 0001616533 sgh:BrazilBusinessSegmentsMember 2019-08-31 2019-11-29 0001616533 sgh:SpecialtyComputeAndStorageSolutionsMember 2019-08-31 2019-11-29 0001616533 country:US 2020-08-29 2020-11-27 0001616533 country:US 2019-08-31 2019-11-29 0001616533 sgh:ShipToRegionsBrazilMember 2020-08-29 2020-11-27 0001616533 sgh:ShipToRegionsBrazilMember 2019-08-31 2019-11-29 0001616533 srt:AsiaMember 2020-08-29 2020-11-27 0001616533 srt:AsiaMember 2019-08-31 2019-11-29 0001616533 srt:EuropeMember 2020-08-29 2020-11-27 0001616533 srt:EuropeMember 2019-08-31 2019-11-29 0001616533 sgh:OtherAmericasMember 2020-08-29 2020-11-27 0001616533 sgh:OtherAmericasMember 2019-08-31 2019-11-29 0001616533 country:US 2020-11-27 0001616533 country:US 2020-08-28 0001616533 country:BR 2020-11-27 0001616533 country:BR 2020-08-28 0001616533 country:MY 2020-11-27 0001616533 country:MY 2020-08-28 0001616533 sgh:OtherCountryMember 2020-11-27 0001616533 sgh:OtherCountryMember 2020-08-28 0001616533 sgh:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-08-29 2020-11-27 0001616533 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-08-29 2020-11-27 0001616533 sgh:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-08-31 2019-11-29 0001616533 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-08-31 2019-11-29 0001616533 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember sgh:CustomerBMember 2020-08-29 2020-11-27 0001616533 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember sgh:CustomerCMember 2020-08-29 2020-11-27 0001616533 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember sgh:CustomerDMember 2020-08-29 2020-11-27 0001616533 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember sgh:CustomerBMember 2019-08-31 2020-08-28 0001616533 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember sgh:CustomerCMember 2019-08-31 2020-08-28

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 27, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-38102

 

SMART GLOBAL HOLDINGS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Cayman Islands

98-1013909

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

c/o Maples Corporate Services Limited

P.O. Box 309

Ugland House

Grand Cayman, Cayman Islands

KY1-1104

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (510) 623-1231

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Ordinary shares, $0.03 par value per share

SGH

The NASDAQ Stock Market LLC

(NASDAQ Global Select Market)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of December 9, 2020, the registrant had 24,772,568 ordinary shares outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

3

Item 1.

Financial Statements (Unaudited)

3

 

Condensed Consolidated Balance Sheets

3

 

Condensed Consolidated Statements of Operations

4

 

Condensed Consolidated Statements of Comprehensive Loss

5

 

Condensed Consolidated Statements of Shareholders’ Equity

6

 

Condensed Consolidated Statements of Cash Flows

7

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

40

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

44

Item 4.

Controls and Procedures

44

PART II.

OTHER INFORMATION

46

Item 1.

Legal Proceedings

46

Item 1A.

Risk Factors

46

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

46

Item 3.

Defaults Upon Senior Securities

46

Item 4.

Mine Safety Disclosures

46

Item 6.

Exhibits

47

Signatures

48

 

 

 

1


 

 

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve many risks and uncertainties. Forward-looking statements are identified by the use of the words “would,” “could,” “will,” “may,” “expect,” “believe,” “should,” “anticipate,” “if,” “future,” “intend,” “plan,” “estimate,” “potential,” “target,” “seek,” or “continue” and similar words and phrases, including the negatives of these terms, or other variations of these terms, that denote future events. These statements reflect our current views with respect to future events and our potential financial performance and are subject to risks and uncertainties that could cause our actual results and financial position to differ materially and adversely from what is projected or implied in any forward-looking statements included in this report. These factors include, but are not limited to, the risks described under the caption “Risk Factors” in the documents we file from time to time with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for our fiscal year ended August 28, 2020, and in this report, and in Item 2 of Part I – “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We make these forward-looking statements based upon information available on the date of this report, and we expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information or otherwise, except as required by law.

 

 

 

 

2


 

 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

SMART Global Holdings, Inc.

and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

 

 

 

November 27,

 

 

August 28,

 

 

 

2020

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

164,097

 

 

$

150,811

 

Accounts receivable, net of allowances of $89 and $101 as of November 27, 2020

   and August 28, 2020, respectively

 

 

212,886

 

 

 

215,918

 

Inventories

 

 

147,203

 

 

 

162,991

 

Prepaid expenses and other current assets

 

 

34,337

 

 

 

26,990

 

Total current assets

 

 

558,523

 

 

 

556,710

 

Property and equipment, net

 

 

60,045

 

 

 

54,705

 

Operating lease right-of-use assets

 

 

23,050

 

 

 

25,013

 

Other noncurrent assets

 

 

18,749

 

 

 

20,554

 

Intangible assets, net

 

 

52,258

 

 

 

55,671

 

Goodwill

 

 

72,100

 

 

 

73,955

 

Total assets

 

$

784,725

 

 

$

786,608

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

235,557

 

 

$

224,660

 

Accrued liabilities

 

 

47,011

 

 

 

57,829

 

Total current liabilities

 

 

282,568

 

 

 

282,489

 

Long-term debt

 

 

197,634

 

 

 

195,573

 

Long-term operating lease liabilities

 

 

19,524

 

 

 

20,829

 

Other long-term liabilities

 

 

6,681

 

 

 

5,613

 

Total liabilities

 

$

506,407

 

 

$

504,504

 

Commitments and contingencies (see Note 10)

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Ordinary shares, $0.03 par value. Authorized 200,000 shares; issued and

   outstanding 24,759 and 24,419 as of November 27, 2020 and August 28, 2020,

   respectively

 

 

751

 

 

 

737

 

Additional paid-in capital

 

 

356,827

 

 

 

346,131

 

Accumulated other comprehensive loss

 

 

(244,764

)

 

 

(228,241

)

Retained earnings

 

 

165,504

 

 

 

163,477

 

Total shareholders’ equity

 

 

278,318

 

 

 

282,104

 

Total liabilities and shareholders’ equity

 

$

784,725

 

 

$

786,608

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

3


 

SMART Global Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

November 27,

 

 

November 29,

 

 

 

2020

 

 

2019

 

Net sales (1)

 

$

291,697

 

 

$

272,018

 

Cost of sales

 

 

239,053

 

 

 

217,698

 

Gross profit

 

 

52,644

 

 

 

54,320

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

6,964

 

 

 

14,886

 

Selling, general, and administrative

 

 

38,056

 

 

 

33,553

 

Total operating expenses

 

 

45,020

 

 

 

48,439

 

Income from operations

 

 

7,624

 

 

 

5,881

 

Interest expense, net

 

 

(3,154

)

 

 

(4,492

)

Other income (expense), net

 

 

832

 

 

 

(840

)

Total other expense

 

 

(2,322

)

 

 

(5,332

)

Income before income taxes

 

 

5,302

 

 

 

549

 

Provision for income taxes

 

 

3,275

 

 

 

325

 

Net income

 

$

2,027

 

 

$

224

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

 

$

0.01

 

Diluted

 

$

0.08

 

 

$

0.01

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

Basic

 

 

24,561

 

 

 

23,713

 

Diluted

 

 

25,103

 

 

 

24,286

 

 

(1)

Includes sales to affiliates of $14,975 and $16,956 in the three months ended November 27, 2020 and November 29, 2019, respectively (see Note 3).

See accompanying notes to unaudited condensed consolidated financial statements.

4


 

SMART Global Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

November 27,

 

 

November 29,

 

 

 

2020

 

 

2019

 

Net income

 

$

2,027

 

 

$

224

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(16,523

)

 

 

(10,244

)

Comprehensive loss

 

$

(14,496

)

 

$

(10,020

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

5


 

SMART Global Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

other

 

 

 

 

 

 

Total

 

 

 

Ordinary shares

 

 

paid-in

 

 

comprehensive

 

 

Retained

 

 

shareholders’

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

loss

 

 

earnings

 

 

equity

 

Balances as of August 30, 2019

 

 

23,617

 

 

$

712

 

 

$

285,994

 

 

$

(177,866

)

 

$

164,620

 

 

$

273,460

 

Share-based compensation expense

 

 

 

 

 

 

 

 

5,956

 

 

 

 

 

 

 

 

 

5,956

 

Issuance of ordinary shares from exercises

 

 

86

 

 

 

2

 

 

 

1,164

 

 

 

 

 

 

 

 

 

1,166

 

Issuance of ordinary shares from release of restricted stock units (RSUs)

 

 

69

 

 

 

2

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

Issuance of ordinary shares from employee share purchase plan (ESPP)

 

 

67

 

 

 

2

 

 

 

1,240

 

 

 

 

 

 

 

 

 

1,242

 

Effect of adopting ASC 606

 

 

(1

)

 

 

 

 

 

(20

)

 

 

 

 

 

 

 

 

(20

)

Foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

(10,244

)

 

 

 

 

 

(10,244

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

224

 

 

 

224

 

Balances as of November 29, 2019

 

 

23,838

 

 

$

718

 

 

$

294,332

 

 

$

(188,110

)

 

$

164,844

 

 

$

271,784

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

other

 

 

 

 

 

 

Total

 

 

 

Ordinary shares

 

 

paid-in

 

 

comprehensive

 

 

Retained

 

 

shareholders’

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

loss

 

 

earnings

 

 

equity

 

Balances as of August 28, 2020

 

 

24,419

 

 

$

737

 

 

$

346,131

 

 

$

(228,241

)

 

$

163,477

 

 

$

282,104

 

Share-based compensation expense

 

 

 

 

 

 

 

 

11,088

 

 

 

 

 

 

 

 

 

11,088

 

Issuance of ordinary shares from exercises

 

 

59

 

 

 

2

 

 

 

1,335

 

 

 

 

 

 

 

 

 

1,337

 

Issuance of ordinary shares from release of RSUs

 

 

332

 

 

 

9

 

 

 

(9

)

 

 

 

 

 

 

 

 

 

Withholding tax on RSUs

 

 

(139

)

 

 

 

 

 

(3,483

)

 

 

 

 

 

 

 

 

(3,483

)

Issuance of ordinary shares from ESPP

 

 

88

 

 

 

3

 

 

 

1,765

 

 

 

 

 

 

 

 

 

1,768

 

Foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

(16,523

)

 

 

 

 

 

(16,523

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,027

 

 

 

2,027

 

Balances as of November 27, 2020

 

 

24,759

 

 

$

751

 

 

$

356,827

 

 

$

(244,764

)

 

$

165,504

 

 

$

278,318

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

6


 

SMART Global Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

November 27,

 

 

November 29,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

2,027

 

 

$

224

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

8,367

 

 

 

9,544

 

Share-based compensation

 

 

11,088

 

 

 

5,956

 

Provision for doubtful accounts receivable and sales returns

 

 

(9

)

 

 

73

 

Deferred income tax benefit

 

 

222

 

 

 

(970

)

Gain on disposal of property and equipment

 

 

(5

)

 

 

(42

)

Amortization of debt discounts and issuance costs

 

 

2,116

 

 

 

734

 

Amortization of operating lease right-of-use assets

 

 

1,413

 

 

 

1,114

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,930

)

 

 

(13,688

)

Inventories

 

 

12,919

 

 

 

(42,206

)

Prepaid expenses and other assets

 

 

(9,277

)

 

 

5,110

 

Accounts payable

 

 

18,022

 

 

 

60,438

 

Operating lease liabilities

 

 

(1,504

)

 

 

(1,082

)

Accrued expenses and other liabilities

 

 

(7,880

)

 

 

62

 

Net cash provided by operating activities

 

 

35,569

 

 

 

25,267

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures and deposits on equipment

 

 

(14,644

)

 

 

(5,158

)

Proceeds from sale of property and equipment

 

 

16

 

 

 

42

 

Net cash used in investing activities

 

 

(14,628

)

 

 

(5,116

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Long-term debt payments - BNDES

 

 

 

 

 

(6,435

)

Proceeds from borrowings under revolving line of credit