SMART Global Holdings, Inc. (NASDAQ:SGH) Q2 2024 Earnings Call Transcript

I don’t sense that happening overnight. I don’t sense that’s something that’s going to change the business dynamics. Because more often than not in this type of pricing recovery market, the revenue gain and gross margin dollar contribution mutes out any of the gross margin percentage impact.

Ken Rizvi: Yeah. And what I’d add to that is as we see revenue start to grow, both from units and ASPs over a period of time, where we will see that at the bottom line is an improvement in operating income percent. And you can see that just in the past couple of years, this business, for the memory-specific business, was running at op incomes north of 10%, and we’re below that now. So as we start to see unit demand improve as well as ASPs, that should flow to the bottom margin.

Denis Pyatchanin: Great. Thank you.

Mark Adams: Thank you.

Operator: And team, at this time we do not have any further questions registered in the queue. So I will turn the call back over for any final remarks.

Mark Adams: Well, great. Thank you all for joining. Before just closing out the call, I just wanted to let you know that we have plans for an upcoming IR Day in the next few months or so and details will be coming to you soon. In the meantime, look forward to seeing you at shows and NDRs and the likes. And thanks again for joining today. Have a great week.

Operator: That concludes today’s call. Thank you all for your participation. And you may now disconnect your lines.