Company: PENG
Filing Date: 2025-06-18
Form Type: CORRESP
Source: 0001193125-25-142901
Chunk: 5

Company: Penguin Solutions, Inc.
Filing Date: 2025-06-18
Form: CORRESP
Chunk 5
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 estimate. Based on the Company’s analysis, the fair value of the Penguin Edge business was determined to be lower than its carrying value, resulting in an impairment charge of $6.1M for the period ended February 28, 2025. The Company’s goodwill impairment loss reduced the Penguin Edge reporting unit’s carrying value to its fair value as of the end of the reporting period. As the Penguin Edge business continues to wind down, cash flows from the business will be received by the Company, decreasing the remaining cash flows from customer contracts and resulting in further declines in the fair value of the business and additional impairments of goodwill. Please feel free to contact me at 202-736-8715or svonalthann@sidley.com or Sonia Barros at 202-736-8387 or sbarros@sidley.com with any questions or comments. Thank you for your time and attention with respect to this matter.

| Sincerely,           |
| /s/ Sara von Althann |
| Sara von Althann     |

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| cc: | Nate Olmstead, Chief Financial Officer, Penguin Solutions, Inc. |

Anne Kuykendall, Chief Legal Officer, Penguin Solutions, Inc. Jason Rissanen, Partner, Deloitte & Touche LLP Sonia Barros, Partner, Sidley Austin LLP Martin Wellington, Partner, Sidley Austin LLP