Company: PENG
Filing Date: 2025-04-30
Form Type: CORRESP
Source: 0001193125-25-107591
Chunk: 1

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-30
Form: CORRESP
Chunk 1
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 |     | a description of potential events and/or changes in circumstances that could reasonably be expected to 
 negatively affect the key assumptions.                                                                 |

Please refer to Item 303(b)(3) of Regulation S-K. Response:We respectfully acknowledge the Staff’s comment. In the Company’s quarterly report on Form 10-Qfor the quarter ended February 28, 2025, filed on April 2, 2025, the Company provided further updates regarding the expected completion timeline for the previously-announced wind down of certain aspects of the Penguin Edge reporting unit, now anticipated to be completed by approximately the end of 2025, as well as recent and expected impairments to associated goodwill, as set forth in the following disclosure on page 31: During the second quarter of 2023, we initiated a plan pursuant to which we intend to wind down manufacturing and discontinue the sale of certain legacy products offered through our Penguin Edge business by approximately the end of 2025. In connection therewith and with the preparation of the financial statements included in this Quarterly Report, we assessed goodwill associated with our Penguin Edge business within our Advanced Computing segment and concluded it was partially impaired. As a result, we recorded a charge of $6.1 million in the second quarter of 2025 to impair the carrying value of Advanced Computing goodwill. We currently anticipate that the goodwill of the Penguin Edge reporting unit of $10.0 million as of February 28, 2025 will become further impaired in future periods. In light of the Company’s plans to wind down the business and its current expectation of future further impairment of related goodwill, the Company does not believe that there is material uncertainty regarding the likelihood of future impairment. Instead, the Company believes that such impairment is probable. In addition, following the impairment described above, as of the end of the second quarter of fiscal year 2025 (“FY25”), the fair value of the Penguin Edge business was equal to its carrying value. In future filings, if the Company’s situation requires and to the extent material, the Company will disclose the percentage by which fair value exceeded carrying value at the date of the most recent test, the degree of uncertainty associated with the assumptions, and potential events and/or changes in circumstances that could reasonably be expected to negatively affect the key assumptions.

Page 3 Notes to Consolidated Financial Statements Other Operating (Income) Expense, page 97

| 2. | We note your disclosure that in 2024 and 2023, you initiated plans that included workforce reductions and