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Penguin Solutions Inc. (PENG+2.49%) has submitted its 10-Q filing for the quarterly period ended February 28, 2025.
The filing includes financial statements for the quarter, showing an increase in net sales to $365.5 million from $284.8 million in the same quarter the previous year. The increase is attributed to higher sales in the Advanced Computing and Integrated Memory segments.
Cost of sales for the quarter was $260.9 million, representing 71.4% of sales, compared to 71.2% in the same quarter of the previous year. This slight increase in cost ratio is due to an unfavorable mix from higher product revenue in the Advanced Computing business.
The company reported a gross profit of $104.6 million for the quarter, compared to $81.9 million in the previous year, with the increase attributed to higher sales.
Operating expenses totaled $86.2 million, slightly up from $85.2 million in the previous year, primarily due to impairment of goodwill related to the Penguin Edge business.
Net income for the quarter was $8.9 million, compared to a net loss of $13.0 million in the previous year. After preferred dividends, net income attributable to common stockholders was $5.0 million, compared to a loss of $13.6 million in the previous year.
Cash provided by operating activities was $86.7 million, while cash used in investing and financing activities was $23.3 million and $175.1 million, respectively.
Penguin had cash, cash equivalents, and short-term investments of $647.0 million as of February 28, 2025. The company expects its existing cash and cash equivalents, along with cash generated by operating activities, to be sufficient to fund operations for at least the next 12 months.
The filing also details the divestiture of an 81% interest in SMART Brazil, resulting in a net cash inflow of $143.0 million, and a preferred share investment by SK Telecom Co., Ltd. amounting to $200.0 million.
Penguin Solutions continues to focus on expanding its Advanced Computing and Integrated Memory segments, while managing the wind down of its Penguin Edge business.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Penguin Solutions Inc. quarterly 10-Q report dated April 2, 2025. To report an error, please email earnings@qz.com.