Penguin Solutions, Inc. has disclosed its financial performance for the second quarter of fiscal 2025 and announced the forthcoming retirement of Chief Operating Officer and President of Integrated Memory, Jack Pacheco.
Financial Highlights for Q2 Fiscal 2025
- Net sales increased to $366 million, a rise of 28.3% compared to the same quarter last year.
- GAAP gross margin recorded at 28.6%, a slight decline of 20 basis points year-over-year.
- Non-GAAP gross margin at 30.8%, down 70 basis points from the previous year.
- GAAP diluted earnings per share (EPS) rose to $0.09 from a loss of $(0.26) in the prior year’s quarter.
- Non-GAAP diluted EPS improved to $0.52, up from $0.27 year-over-year.
CEO Mark Adams expressed satisfaction with the company’s performance, stating, “We are pleased with the progress we are making in fiscal year 2025. Our results reinforce our capabilities in managing the complexity of AI for our valued customers. Given our strong start to the fiscal year, we are raising the midpoint of our revenue outlook for the full year.”
Business Outlook
As of April 2, 2025, Penguin Solutions has updated its financial outlook for fiscal 2025 based on recent performance trends.
Leadership Transition
Jack Pacheco is set to retire as COO and President of Integrated Memory on December 31, 2025. A succession planning process is underway, and he may shift to a special advisor role pending the appointment of his successor. Pacheco’s tenure at the company has been extensive, spanning back to 1994, with significant contributions to the growth of the memory segment and global operations.
“On behalf of the entire company, I want to thank Jack for his nearly 25 years of leadership and dedication,” noted Adams. “Jack played a key role in scaling our memory business and strengthening our global operations.”
Details on Non-GAAP Financial Measures
This announcement includes several non-GAAP financial metrics, which management uses to supplement financial results and inform operational decisions. These measures exclude certain expenses to provide a clearer picture of the company’s operational performance. The non-GAAP figures include adjustments for share-based compensation, amortization of intangible assets, and other unique costs. While these non-GAAP measures are beneficial for internal assessments, they should not replace GAAP metrics in evaluating the company’s financial health.