Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 3

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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69.8 %Gross profit97,812 28.7 %82,850 30.2 % Operating expenses: Research and development19,811 5.8 %21,389 7.8 %Selling, general and administrative60,536 17.7 %57,217 20.9 %Other operating (income) expense109 — %2,939 1.1 %Total operating expenses80,456 23.6 %81,545 29.7 %Operating income (loss)17,356 5.1 %1,305 0.5 % Non-operating (income) expense: Interest expense, net4,396 1.3 %9,559 3.5 %Other non-operating (income) expense636 0.2 %(576)(0.2)%Total non-operating (income) expense5,032 1.5 %8,983 3.3 %Income (loss) before taxes12,324 3.6 %(7,678)(2.8)% Income tax provision6,360 1.9 %3,534 1.3 %Net income (loss) from continuing operations5,964 1.7 %(11,212)(4.1)%Net loss from discontinued operations— — %(8,148)(3.0)%Net income (loss)5,964 1.7 %(19,360)(7.1)%Net income attributable to noncontrolling interest747 0.2 %561 0.2 %Net income (loss) attributable to Penguin Solutions$5,217 1.5 %$(19,921)(7.3)%

Percentages represent percentage of total net sales. Summations of percentages may not compute precisely due to rounding.

Net Sales, Cost of Sales and Gross Profit

Net sales increased by $66.9 million, or 24.4%, in the first quarter of 2025 compared to the same period in the prior year due to higher sales from our Advanced Computing and Integrated Memory business segments. Advanced Computing net sales increased by $58.6 million, or 49.3%, primarily due to higher hardware sales driven by increased demand for AI solutions and high-performance computing. Integrated Memory net sales increased by $11.0 million, or 12.9%,