Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 94

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part II, Item 8
Chunk 94
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, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about our financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies.

Three Months EndedNovember 29,2024December 1,2023GAAP operating income$17,356 $1,305 Share-based compensation expense11,531 10,970 Amortization of acquisition-related intangibles9,755 10,008 Cost of sales-related restructuring(42)668 Diligence, acquisition and integration expense833 789 Restructuring charges109 2,939 Other1,376 — Non-GAAP operating income$40,918 $26,679 Non-GAAP operating income (loss) by segment:  Advanced Computing$30,117 $17,901 Integrated Memory7,116 7,195 Optimized LED3,685 1,583 Total non-GAAP operating income (loss) by segment$40,918 $26,679 

Advanced Computing operating income increased by $12.2 million, or 68.2%, in the first quarter of 2025 compared to same period in the prior year, primarily due to increased net revenue, as well as lower operating expenses, mainly driven by lower subcontract services.

Optimized LED operating income increased by $2.1 million, or 132.8%, in the first quarter of 2025 compared to the same period in the prior year, primarily due to higher gross profit, stemming from better factory leverage and more favorable product mix.

Operating and Non-operating (Income) Expense

Research and Development

Research and development expense decreased by $1.6 million, or 7.4%, in the first quarter of 2025 compared to the same period in the prior year, primarily due to lower personnel-related expenses mainly driven by headcount reductions, as well as lower subcontract services mainly driven by Penguin Computing.

Selling, General and Administrative

Selling, general and administrative expense increased by $3.3 million, or 5.8%, in the first quarter of 2025 compared to the same period in the prior year, primarily due to increased professional services as a result of our rebranding efforts, preferred share investment, and higher personnel-related expenses resulting from increased bonus achievement.

Impairment of Goodwill

During the second