Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 105

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part II, Item 8
Chunk 105
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 dividend and participation rights in undistributed earnings. Under this method, all current period earnings, distributed and undistributed, are allocated to ordinary shares and participating securities based on their respective rights to receive dividends. The CPS are considered a participating security. The CPS are not included in the computation of basic EPS in periods in which we have a net loss, as the CPS are not contractually obligated to share in our net losses.With respect to the CPS, diluted EPS is calculated using the more dilutive of the two-class method or if-converted method. The two-class method uses net income available to ordinary shareholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income and assumes conversion of all potential shares including the participating securities. Dilutive potential ordinary shares include outstanding share options, unvested restricted share units, convertible notes and convertible preferred shares.The following table summarizes the computation of basic and diluted EPS under the two-class or if-converted method in applicable periods, as well as the anti-dilutive shares excluded:Three Months EndedSix Months EndedFebruary 28,2025March 1,2024February 28,2025March 1,2024Net income (loss) from continuing operations$8,082 $(13,620)$13,299 $(25,393)Net income (loss) from discontinued operations — — — (8,148)Net income (loss) attributable to Penguin Solutions – Basic and Diluted8,082 (13,620)13,299 (33,541)Less: Preferred share dividends2,600 — 2,600 — Income available for distribution5,482 (13,620)10,699 (33,541)Income allocated to participating securities482 — 492 — Net income available to ordinary shareholders$5,000 $(13,620)$10,207 $(33,541)Weighted-average shares outstanding – Basic53,45452,03153,46852,050Dilutive effect of equity plans and convertible senior notes930—1,016—Weighted-average shares outstanding – Diluted54,38452,03154,48452,050Basic earnings (loss) per ordinary share:Continuing operations$0.09 $(0.26)$0.19 $(0.49)Discontinued operations— — — (0.15)$0.09 $(0.26)$0.19 $(0