Earnings release
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NEWS RELEASE Penguin Solutions Reports Q1 Fiscal 2026 Financial Results 2026-01-06 Solid First Quarter Driven by Operational Excellence and Memory Growth FREMONT, Calif.--(BUSINESS WIRE)-- Penguin Solutions, Inc. (“Penguin Solutions,” “we,” “us,” or the “Company”) (NASDAQ: PENG) today reported nancial results for the rst quarter of scal 2026. First Quarter Fiscal 2026 Highlights Net sales of $343 million, up 1% versus the year-ago quarter GAAP gross margin of 28.0%, down 70 basis points versus the year-ago quarter Non-GAAP gross margin of 30.0%, down 80 basis points versus the year-ago quarter GAAP diluted EPS of $0.04 versus $0.10 in the year-ago quarter Non-GAAP diluted EPS of $0.49 for the current and year-ago quarter “In Q1 we expanded our pipeline and made progress on our strategic priorities, while delivering solid operating results,” said Mark Adams, CEO of Penguin Solutions. “We continue to see signs of a shift in the AI market toward enterprise adoption and production-scale deployments, with workloads evolving from training environments into inference-driven use cases. This aligns well with our strengths in solution design, integration, and management. We remain focused on executing with discipline, deepening partnerships, and innovating across our core businesses.” Penguin Solutions Reaches Agreement to Divest Remaining Interest in Brazil Memory Module Business On December 29, 2025, SMART Modular Technologies (LX) S.à r.l. (“Seller”), a wholly owned indirect subsidiary of the Company, entered into a Stock Transfer Agreement (the “Stock Transfer Agreement”), by and among Seller, Lexar 1
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Europe B.V. (“Buyer”), Zilia Technologies Indústria e Comércio de Componentes Eletrônicos Ltda. (“Zilia Technologies”) (formerly SMART Modular Technologies do Brasil - Indústria e Comércio de Componentes Ltda.), Shenzhen Longsys Electronics Co., Ltd., and Shanghai Intelligent Memory Semiconductor Co., Ltd. ( 上海慧忆半导体有 限公司 ). Pursuant to the Stock Transfer Agreement, Seller will sell to Buyer Seller’s remaining 19% interest in Zilia Technologies for a purchase price of $46.08 million (the “Transaction”). Upon the closing of the Transaction, we will no longer hold any interest in Zilia Technologies. The closing is subject to certain customary closing conditions and is expected to occur on or about March 30, 2026 and no later than April 28, 2026. Zilia Technologies assembles and tests standards-based, commodity memory modules for electronics manufacturers that sell devices to Brazilian consumers. Quarterly Financial Results GAAP(1) Non-GAAP(2) (in thousands, except per share amounts)Q1-26Q4-25Q1-25Q1-26Q4-25Q1-25 Net sales:Advanced Computing$151,452$138,336$177,426$151,452$138,336$177,426Integrated Memory 136,521132,15996,706136,521132,15996,706 Optimized LED 55,09867,42766,97055,09867,42766,970 Total net sales $343,071$337,922$341,102$343,071$337,922$341,102 Gross pro t $96,109$ 96,731$ 97,812$102,921$104,317$105,122Operating income (loss)19,58212,44817,35641,52839,17040,918Net income (loss) attributable to Penguin Solutions5,2709,431 5,21732,39128,84326,518Diluted earnings (loss) per share$ 0.04$ 0.11$ 0.10$ 0.49$ 0.43$ 0.49 (1)GAAP represents U.S. Generally Accepted Accounting Principles.(2)Non-GAAP represents GAAP excluding the impact of certain activities. Further information regarding the Company’s use of non-GAAP measures andreconciliations between GAAP and non-GAAP measures are included within this press release. Business Outlook As of January 6, 2026, Penguin Solutions is providing the following nancial outlook for scal year 2026: Updated OutlookGAAPOutlook AdjustmentsNon-GAAPOutlook Net sales 6% YoY Growth +/-10%— 6% YoY Growth +/-10%Gross margin 27% +/- 1% 2% (A) 29% +/- 1%Operating expenses$307 million +/- $10 million($57) million(B)(C) $250 million +/- $10 millionDiluted earnings per share$0.85 +/- $0.25$1.15 (A)(B)(C)(D)(E)(F)$2.00 +/- $0.25Diluted shares 55 million — 55 million 2
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Non-GAAP adjustments (in millions) (A) Stock-based compensation and amortization of acquisition-related intangibles included in cost of sales$ 30(B) Stock-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A49(C) Other operating adjustments 8(D) Other non-operating adjustments (1) 3(E) Estimated income tax e ects (20) (F) Estimated e ect of allocation of earnings to participating securities(7) $ 63 (1)Primarily re ects net losses associated with non-marketable equity securities. Previous OutlookGAAPOutlook AdjustmentsNon-GAAPOutlook Net sales 6% YoY Growth +/-10%— 6% YoY Growth +/-10%Gross margin 27.5% +/- 1%2% (A) 29.5% +/- 1%Operating expenses$312 million +/- $10 million($57) million(B)(C) $255 million +/- $10 millionDiluted earnings per share$0.89 +/- $0.25$1.11(A)(B)(C)(D)(E)$2.00 +/- $0.25Diluted shares 55 million — 55 million Non-GAAP adjustments (in millions) (A) Stock-based compensation and amortization of acquisition-related intangibles included in cost of sales$ 30(B) Stock-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A49(C) Other adjustments 8(D) Estimated income tax e ects (19) (E) Estimated e ect of allocation of earnings to participating securities(7) $ 61 First Quarter Fiscal 2026 Earnings Conference Call and Webcast Details Penguin Solutions will hold a conference call and webcast to discuss the rst quarter scal 2026 results and related matters today, January 6, 2026, at 1:30 p.m. Paci c Time (4:30 p.m. Eastern Time). Interested parties may access the call by registering online at https://events.q4inc.com/analyst/915576911?pwd=gG3IB56p, at which time registrants will receive dial-in information as well as a conference ID. The live webcast will also be accessible from the Penguin Solutions investor relations website (https://ir.penguinsolutions.com/investors/default.aspx) on the Events page, along with the related earnings press release and slide presentation. The webcast replay will be made available on the Quarterly Results page after the call concludes. An archived version of the webcast will be available on the Penguin Solutions investor relations website for approximately one year after the webcast date. Use of Forward-Looking Statements 3
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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that are not historical in nature, that are predictive or that depend upon or refer to future events or conditions. These statements may include, but are not limited to, statements concerning or regarding future events and the future nancial and operating performance of Penguin Solutions; statements regarding the extent and timing of and expectations regarding Penguin Solutions’ future net sales, sales mix and expenses; statements regarding Penguin Solutions’ strategic transformation, agreement to divest its remaining interest in Zilia Technologies, business momentum, and emerging leadership position; statements regarding long- term e ective tax rates; and statements regarding the business and nancial outlook for scal year 2026 described under “Business Outlook” above. These statements can be identi ed by the fact that they do not relate strictly to historical or current facts. Forward- looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “could,” and other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of signi cant risks, uncertainties and other factors, many of which are outside of our control, including but not limited to: global business and economic conditions, including the impact on the nancial condition of our customers, particularly in challenging macroeconomic environments, growth and demand trends in technology industries (including trends and markets related to arti cial intelligence), our customer markets and various geographic regions; uncertainties in the geopolitical environment; our ability to manage our cost structure; disruptions in our operations or supply chain as a result of global pandemics, tari s or other factors; changes in trade regulations and tari s or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending, including changes in customer spending on our products and services; appropriations for government spending; the success of our strategic initiatives including the U.S. Domestication (as de ned below) and our ability to realize the anticipated bene ts thereof, our rebranding and related strategy, any existing or potential collaborations and additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers’ negative reactions to them; issues, delays or complications in integrating the operations of Stratus Technologies; failure to achieve the intended bene ts of the sale of Zilia Technologies and its business, including the planned sale of our remaining 19% interest therein and the timing and closing of such sale; the impact of and expected timing of winding down the manufacturing and discontinuing the sale of products o ered through our Penguin Edge business; limitations on or changes in the availability of supply of materials and components; uctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; our dependence on a select number of customers, and the timing and volume of customer orders and renewals; the impact of customer churn rates, including discounting and churn of 4
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signi cant customers from whom we derive a signi cant percentage of our revenue; changes in customer demand and sales mix; production or manufacturing di culties; competitive factors; technological changes; di culties with, or delays in, the introduction of new products; slowing or contraction of growth in the memory market, LED market or other markets in which we participate; changes to applicable tax regimes or rates; changes to the valuation allowance for our deferred tax assets, including any potential inability to realize these assets in the future; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; potential sales of our common stock by the holder of our issued convertible preferred stock or the anticipation of such sales; and the continuing availability of borrowings under revolving lines of credit or other debt arrangements and our ability to raise capital through debt or equity nancings. These and other risks, uncertainties and factors are described in greater detail under the sections titled “Risk Factors,” “Critical Accounting Estimates,” “Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Liquidity and Capital Resources” contained in the Annual Report on Form 10-K for the scal year ended August 29, 2025, as updated by the risk factors, if any, contained in our Quarterly Reports on Form 10-Q and in our other lings with the U.S. Securities and Exchange Commission (the “SEC”). Such risks, uncertainties and factors as outlined above and in such lings could cause our actual results to be materially di erent from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward- looking statements. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we do not undertake to update the forward-looking statements contained in this press release to re ect the impact of circumstances or events that may arise after the date that the forward-looking statements were made. Statement Regarding Use of Non-GAAP Financial Measures This press release and the accompanying tables contain the following non-GAAP nancial measures: non-GAAP gross pro t, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP e ective tax rate, non-GAAP net income, non-GAAP weighted-average shares outstanding, non-GAAP diluted earnings per share and adjusted EBITDA. Penguin Solutions’ management uses these non-GAAP measures to supplement Penguin Solutions’ nancial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. These non-GAAP measures exclude certain items, such as stock-based compensation expense; amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships and trademarks/trade names and backlog acquired in connection with business combinations); acquisition-related inventory adjustments; cost of sales-related restructuring; diligence, acquisition and integration expense; 5
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redomiciliation costs; restructuring charges; (gain) loss on non-marketable equity securities; impairment of goodwill; changes in the fair value of contingent consideration; (gains) losses from changes in foreign currency exchange rates; amortization of debt issuance costs; (gain) loss on extinguishment or prepayment of debt; other infrequent or unusual items and related tax e ects and other tax adjustments. While amortization of acquisition- related intangible assets is excluded, the revenues from acquired companies are re ected in the Company’s non- GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense; income tax provision (bene t); depreciation expense and amortization of intangible assets; stock-based compensation expense; cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; (gain) loss on non-marketable equity securities; impairment of goodwill; restructuring charges; loss on extinguishment of debt and other infrequent or unusual items. Our GAAP e ective tax rate can vary signi cantly from quarter to quarter based on a variety of factors, including, but not limited to, discrete items which are recorded in the period they occur, the tax e ects of certain items of income or expense, signi cant changes in our geographic earnings mix or changes to our strategy or business operations. We are unable to predict the timing and amounts of these items, which could signi cantly impact our GAAP e ective tax rate, and therefore we are unable to reconcile our forward-looking non-GAAP e ective tax rate measure to our GAAP e ective tax rate. Non-GAAP nancial measures should not be considered as a substitute for, or superior to, measures of nancial performance prepared in accordance with GAAP, as they exclude important information about Penguin Solutions’ nancial 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. In addition, adjusted EBITDA does not purport to represent cash ow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the “Reconciliation of GAAP to Non-GAAP Measures” tables below. Explanatory Note On June 30, 2025, we completed the redomiciliation of the parent company of our corporate group, Penguin Solutions (Cayman), Inc. (formerly known as Penguin Solutions, Inc.), a Cayman Islands exempted company (“Penguin Solutions Cayman”), from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions, Inc., a Delaware corporation (“Penguin Solutions Delaware”), becoming our publicly traded parent company (the “U.S. Domestication”). Penguin Solutions Delaware is the successor issuer to Penguin 6
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Solutions Cayman. The U.S. Domestication was approved by the shareholders of Penguin Solutions Cayman and e ected via a court-sanctioned scheme of arrangement under Cayman Islands law, pursuant to which each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share of Penguin Solutions Cayman was exchanged for one share of convertible preferred stock of Penguin Solutions Delaware. Additional information about the U.S. Domestication was included in Penguin Solutions Cayman’s de nitive proxy statement on Schedule 14A, led with the SEC on April 2, 2025. As used in this press release, unless stated otherwise or the context requires otherwise, the terms “Penguin Solutions,” “Company,” “we,” “our,” “us” or similar terms (i) for periods prior to the consummation of the U.S. Domestication, refer to Penguin Solutions Cayman and its consolidated subsidiaries and (ii) for periods at or after the consummation of the U.S. Domestication, refer to Penguin Solutions Delaware and its consolidated subsidiaries. Throughout this press release, we refer to our equity securities (i) for periods prior to the consummation of the U.S. Domestication, as ordinary shares and/or convertible preferred shares and (ii) for periods at or after the consummation of the U.S. Domestication, as shares of common stock and/or shares of convertible preferred stock. About Penguin Solutions The most exciting technological advancements are also the most challenging for companies to adopt. At Penguin Solutions, we support our customers in achieving their ambitions across our Advanced Computing, Integrated Memory, and Optimized LED lines of business. With our expert skills, experience, and partnerships, we turn our customers’ most complex challenges into compelling opportunities. For more information, visit www.penguinsolutions.com. Penguin Solutions, Inc.Consolidated Statements of Operations (In thousands, except per share amounts)(Unaudited) Three Months Ended November28, 2025 August 29, 2025 November29, 2024 Net sales:Advanced Computing $ 151,452$ 138,336$ 177,426Integrated Memory 136,521132,159 96,706 Optimized LED 55,098 67,427 66,970 Total net sales 343,071337,922 341,102 Cost of sales 246,962241,191 243,290 Gross pro t 96,109 96,731 97,812 Operating expenses:R h dd l t 18693 19861 19811 7
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Research and development 18,693 19,861 19,811Selling, general and administrative 53,092 58,602 60,536Impairment of goodwill — 4,690 — Other operating expense 4,742 1,130 109 Total operating expenses 76,527 84,283 80,456 Operating income 19,582 12,448 17,356 Non-operating (income) expense:Interest expense, net 47 153 4,396 Other non-operating (income) expense11,675 2,941 636 Total non-operating (income) expense11,722 3,094 5,032 Income (loss) before taxes 7,860 9,354 12,324 Income tax provision (bene t) 1,805 (1,196) 6,360 Net income (loss) 6,055 10,550 5,964 Net income attributable to noncontrolling interest785 1,119 747 Net income (loss) attributable to Penguin Solutions5,270 9,431 5,217 Preferred stock dividends 3,033 3,034 — Income available for distribution 2,237 6,397 5,217 Income allocated to participating securities231 666 — Net income available to common stockholders$ 2,006$ 5,731$ 5,217 Earnings (loss) per share:Basic $ 0.04$ 0.11$ 0.10Diluted $ 0.04$ 0.11$ 0.10Common stock used in per share calculations:Basic 52,900 52,553 53,482Diluted 54,991 54,371 54,312 Penguin Solutions, Inc.Reconciliation of GAAP to Non-GAAP Measures (In thousands, except percentages)(Unaudited) Three Months Ended November 28, 2025 August 29, 2025November 29, 2024 GAAP gross pro t $ 96,109$ 96,731$ 97,812Stock-based compensation expense1,386 1,324 1,643Amortization of acquisition-related intangibles5,909 5,920 5,909Cost of sales-related restructuring(483) 342 (42) Other — — (200) Non-GAAP gross pro t $ 102,921$ 104,317$ 105,122 GAAP gross margin 28.0% 28.6% 28.7% E ect of adjustments 2.0% 2.3% 2.1% Non-GAAP gross margin 30.0% 30.9% 30.8% GAAP operating expenses$ 76,527$ 84,283$ 80,456Stock-based compensation expense(8,694) (6,490) (9,888)Amortization of acquisition-related intangibles(1,599) (1,885) (3,846)Diligence, acquisition and integration expense— (133) (833)Redomiciliation costs(1) — (2,734) (1,243)Impairment of goodwill — (4,690) —Restructuring charges (4,742) (1,130) (109) Other (1) (99) (2,074) (333) Non-GAAP operating expenses$ 61,393$ 65,147$ 64,204 GAAP operating income$ 19,582$ 12,448$ 17,356Stock-based compensation expense10,080 7,814 11,531Amortization of acquisition-related intangibles7,508 7,805 9,755Cost of sales-related restructuring(483) 342 (42)Diligence, acquisition and integration expense— 133 833Redomiciliation costs(1) — 2,734 1,243Impairment of goodwill — 4,690 —Restructuring charges 4,742 1,130 109 Other (1) 99 2,074 133 Non-GAAP operating income$ 41,528$ 39,170$ 40,918 GAAP operating margin 5.7% 3.7% 5.1% E ect of adjustments 6.4% 7.9% 6.9% Non-GAAP operating margin12.1% 11.6% 12.0% (1)I th d t f l2025b b ki t t ltdtthUSD titi f “Oth”Allid tdh b 8
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(1) In the second quarter of scal 2025 we began breaking out costs related to the U.S. Domestication from “Other.” All periods presented have beenadjusted to re ect this change. Penguin Solutions, Inc.Reconciliation of GAAP to Non-GAAP Measures (In thousands, except per share amounts)(Unaudited) Three Months Ended November28, 2025August 29, 2025 November29, 2024 GAAP net income (loss) attributable to Penguin Solutions$ 5,270$ 9,431$ 5,217Stock-based compensation expense10,080 7,814 11,531Amortization of acquisition-related intangibles7,508 7,805 9,755Cost of sales-related restructuring (483) 342 (42)Diligence, acquisition and integration expense— 133 833Redomiciliation costs(1) — 2,734 1,243Loss (gain) on non-marketable equity investments10,000 — —Impairment of goodwill — 4,690 —Restructuring charges 4,742 1,130 109Amortization of debt issuance costs 658 674 953Loss (gain) on extinguishment or prepayment of debt— 2,908 —Foreign currency (gains) losses 1,212 287 1,028Other (1) 956 2,074 133 Income tax e ects(2) (7,552) (11,179) (4,242) Non-GAAP net income attributable to Penguin Solutions32,391 28,843 26,518 Preferred stock dividends 3,033 3,034 — Non-GAAP income available for distribution29,358 25,809 26,518 Income allocated to participating securities2,990 2,639 — Non-GAAP net income available to common stockholders$ 26,368$ 23,170$ 26,518 Weighted-average shares outstanding - Diluted: GAAP weighted-average shares outstanding54,991 54,371 54,312 Adjustment for dilutive securities and capped calls(1,228) (838) — Non-GAAP weighted-average shares outstanding53,763 53,533 54,312 Diluted earnings (loss) per share from continuing operations: GAAP diluted earnings (loss) per share$ 0.04$ 0.11$ 0.10 E ect of adjustments 0.45 0.32 0.39 Non-GAAP diluted earnings per share$ 0.49$ 0.43$ 0.49 Net income (loss) attributable to Penguin Solutions$ 5,270$ 9,431$ 5,217Interest expense, net 47 153 4,396Income tax provision (bene t) 1,805 (1,196) 6,360Depreciation expense and amortization of intangible assets12,819 13,206 14,961Stock-based compensation expense10,080 7,814 11,531Cost of sales-related restructuring (483) 342 (42)Diligence, acquisition and integration expense— 133 833Redomiciliation costs(1) — 2,734 1,243Impairment of goodwill — 4,690 —Restructuring charges 4,742 1,130 109Loss on extinguishment of debt — 2,908 —Loss (gain) on non-marketable equity investments10,000 — — Other (1) 956 2,074 133 Adjusted EBITDA $ 45,236$ 43,419$ 44,741 (1) In the second quarter of scal 2025 we began breaking out costs related to the U.S. Domestication from “Other.” All periods presented have beenadjusted to re ect this change.(2) The three months and year ended August 29, 2025 include ($8,249) as a one-time tax e ect of the U.S. Domestication completed in the fourthquarter of scal 2025. Penguin Solutions, Inc.Consolidated Balance Sheets (In thousands)(Unaudited) N b A t 9
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As of November28, 2025 August29, 2025 Assets Cash and cash equivalents $ 461,451$453,754Accounts receivable, net 326,892307,904Accounts receivable, net - related party 15,076 —Inventories 213,205255,182 Other current assets 50,39047,387 Total current assets 1,067,0141,064,227Property and equipment, net 90,38392,603Operating lease right-of-use assets 57,25458,847Intangible assets, net 80,56887,754Goodwill 145,895145,895Deferred tax assets 99,02399,107 Other noncurrent assets 58,05868,767 Total assets $1,598,195$1,617,200 Liabilities, Temporary Equity and Stockholders' Equity Accounts payable and accrued expenses $ 347,526$318,761Current debt 19,97419,945Deferred revenue 43,64873,893 Other current liabilities 46,96261,300 Total current liabilities 458,110473,899Long-term debt 442,333441,893Noncurrent operating lease liabilities 61,40662,736 Other noncurrent liabilities 31,87730,445 Total liabilities 993,7261,008,973 Commitments and contingenciesTemporary equityPreferred stock, $0.03 par value; authorized 30,000 shares; 200 shares of convertible preferred stock issued andoutstanding as of November 28, 2025 and August 29, 2025. Redemption amount of 200,400 and 200,500 as ofNovember 28, 2025 and August 29, 2025, respectively.202,710202,710Penguin Solutions stockholders’ equity:Common stock, $0.03 par value; authorized 200,000 shares; 63,605 shares issued and 52,560 outstanding as ofNovember 28, 2025; 62,756 shares issued and 52,738 outstanding as of August 29, 2025.1,908 1,883Additional paid-in capital 565,105551,712Retained earnings 48,94646,709Treasury stock, 11,045 and 10,018 shares held as of November 28, 2025 and August 29, 2025, respectively(226,269) (206,076) Accumulated other comprehensive income 13 18 Total Penguin Solutions stockholders’ equity389,703394,246 Noncontrolling interest in subsidiary 12,05611,271 Total stockholders' equity 401,759405,517 Total liabilities, temporary equity and stockholders' equity$1,598,195$1,617,200 Penguin Solutions, Inc.Consolidated Statements of Cash Flows (In thousands)(Unaudited) Three Months Ended November28, 2025August 29, 2025 November29, 2024 Cash ows from operating activities Net income (loss) $ 6,055$10,550$5,964Adjustments to reconcile net income (loss) from continuing operations to cash provided by (usedfor) operating activitiesDepreciation expense and amortization of intangible assets12,81913,20614,961Amortization of debt issuance costs 658 673 953Stock-based compensation expense 10,0807,81411,531Loss on impairment of non-marketable equity investment10,000 — —Impairment of goodwill — 4,690 —Loss on extinguishment debt — 2,908 —Deferred income taxes, net 85 (15,234) 211Other 2,129 177 (712)Changes in operating assets and liabilities:Accounts receivable (34,064) (15,400) (23,885)Inventories 41,977(70,834) (93,380)Other assets (876) (6,088) 705 Accounts payable and accrued expenses and other liabilities(17,805) (2,894) 97,471 31058 (70432) 13819 10
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Net cash provided by (used for) operating activities31,058(70,432) 13,819 Cash ows from investing activities Capital expenditures and deposits on equipment(2,853) (2,925) (1,836)Proceeds from sales and maturities of investment securities— 38,8763,780Purchases of held-to-maturity investment securities— (12,939) (20,723) Other (521) (645) (143) Net cash provided by (used for) investing activities(3,374) 22,367(18,922) Cash ows from nancing activities Repayments of debt — (300,015) —Payments to acquire common stock (20,193) (3,080) (11,123)Payment of preferred stock cash dividends(3,133) (2,760) —Proceeds from issuance of common stock3,339 1,0583,360Proceeds from borrowing under line of credit— 100,000— Other — (3,255) — Net cash used for nancing activities (19,987) (208,052) (7,763) Net increase (decrease) in cash, cash equivalents and restricted cash7,697(256,117) (12,866) Cash, cash equivalents and restricted cash at beginning of period454,070710,187383,477 Cash, cash equivalents and restricted cash at end of period$461,767$454,070$370,611 Investor Contact: Suzanne Schmidt Investor Relations +1-510-360-8596 ir@penguinsolutions.com PR Contact: Maureen O’Leary Corporate Communications 1-602-330-6846 pr@penguinsolutions.com Source: Penguin Solutions, Inc. 11