SMART Global Holdings, Inc. (NASDAQ:SGH) Q3 2023 Earnings Call Transcript

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Mark Adams: Well, I think look, we’re seeing a lot of activity right now. Brian, it’s difficult for all the factors I mentioned at the front-end of the call, meaning the timing of budgets and deployments and how we’re working on that, we are long-term bullish. We’re not ready to forecast the year at this point, just given the timing of our fiscal year and the budgeting process at our customers. But the budgets are kind of being worked on. We’ve got tremendous activity. There are some supply-chain issues that we’re working through that as it relates to how that would impact future deployments, obviously the broader macro trends. I’m not sure we’re out-of-the woods on the macroeconomic environment. So we’re trying to be careful just to not overstate where things are. We’re excited about our long-term obviously and will be kind of giving you more color as we get closer to our customers budgeting process and future Q1 and Q2 activity.

Ken Rizvi: Yes, Brian, [Multiple Speakers] you asked about the disc ops. That — we will take that because the deal was announced here in our Q4. We will evaluate that as we head through the end of Q4, whether or not the Brazil business will be available for — held as available-for sale/disc ops and we’ll evaluate that as we exit Q4.

Brian Chin: Okay, that makes sense. And then maybe just lastly, to hone in back on the discussion around AI, when you think about the duration of your sales cycle, I guess your sales, design, and implementation cycle, as well as those possible supply constraints, it’s something like the middle of next year be reasonable to maybe expect some of this upswing in AI engagement to translate into revenue?

Mark Adams: I think that’s fair as we sit here today and I’m not trying to over hedge, Brian, but I think that’s fair based on what we’re seeing in terms of some of the core technology lead times and manufacturing ramps and some of the newer launches in the industry. I’m sure you follow the industry, as well as we do and there’s been some technology announcements and early customer shipping in some areas and from the market leaders in GPUs, for example. I would anticipate in the middle of next year we start to see a little bit more favorable conditions for availability of supply.

Brian Chin: All right. That’s helpful. Thanks.

Operator: Thank you, Mr. Chin. That concludes the question-and-answer session. I will now turn the call over to Mark Adams for any further remarks.

Mark Adams: Well, thank you all for joining today. We are continuing to be very positive about the business. If you look-back over the last three years, we’re — we feel like we’re way ahead of where the transformation might have been, as we looked at starting in August of ‘20. A lot of good things going on here at the company. We’re excited for both ourselves and our Brazil team on the path that we have for each other going in different directions, but supporting each other through the process. And we like the secular tailwinds we have in AI, machine-learning, and data analytics to drive our future and we appreciate you attending today’s call. Thank you.

Operator: That concludes the SGH third quarter fiscal 2023 earnings call. Thank you for your participation. You may now disconnect your lines.

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