January 11, 2024
Cree LED‘s Revenue Bounce Back Continues
LED Solutions business segment sees third consecutive quarter of revenue growth
SMART Global Holdings, Inc. has announced its financial results for the first quarter of fiscal 2024, which ended on November 29, 2023. Despite an overall downturn for the company during this period, the LED Solutions segment, known primarily through its Cree LED brand, emerged as a notable performer.
Cree LED is a maker of LED chips and components, and is not affiliated with Cree Lighting, a maker of lighting fixtures, lamps and controls.
For Q1 FY24, the LED Solutions division reported sales of $69.8 million, accounting for about 25% of the company's total net sales for the quarter. This performance is significant, especially considering the segment's recent history of financial fluctuations and the broader context of the company's challenges during the quarter.
The LED Solutions nearly $70 million in revenue represents an 11.5% year-over-year growth for the segment from Q1 FY23, indicating a continued rebound after a period of declining sales. The segment, which has experienced notable fluctuations since SMART Global Holdings acquired Cree LED in March 2021, achieved a sales high of $112 million in Q1 FY22. However, it saw a downward trend thereafter, reaching a low of $56 million in Q2 FY23.
The recent uptick in sales for three consecutive quarters demonstrates both the challenges and resilience within the LED lighting components sector. This recovery is significant for SMART Global Holdings as it seeks to stabilize its position in the competitive LED solutions market.
SMART Global Holdings, a company with a diversified portfolio that extends beyond LED Solutions, faced an overall decline in sales across its various business units. In the first quarter of fiscal 2024, the company reported net sales of $274.2 million, a significant 30.0% decrease compared to the same quarter in the previous year.
Apart from LED Solutions, SMART Global Holdings operates in other key segments, notably Memory Solutions and Intelligent Platform Solutions. The Memory Solutions segment caters to the rising demand in the high-tech industry for advanced memory technologies, playing a crucial role in data centers, high-performance computing, and AI applications. Intelligent Platform Solutions, on the other hand, delves into the realm of computing solutions, focusing on high-availability and high-performance systems required in enterprise-level operations.
Smart Global Holdings and Cree LED are not affiliated with the Cree Lighting brand.
