MILPITAS, Calif. - Penguin Solutions, Inc. (NASDAQ: PENG) reported better-than-expected first quarter results, sending its stock up 8.2% in after-hours trading Wednesday. The company's strong performance was driven by robust growth in its Advanced Computing segment.
Penguin Solutions posted adjusted earnings per share of $0.49, surpassing the analyst consensus of $0.39. Revenue for the quarter came in at $341 million, beating estimates of $320.17 million and representing a 24.4% increase YoY.
The company's Advanced Computing segment was a standout performer, with revenue surging 49% YoY to $177.4 million. This growth helped offset more modest gains in other segments, with Integrated Memory revenue up 12.9% to $96.7 million and Optimized LED revenue down 4% to $67 million.
"Our strong performance this quarter, highlighted by a 49% year-over-year increase in Advanced Computing revenue, reflects the continued execution of our strategy to support customers navigating the complexities of AI infrastructure implementation," said CEO Mark Adams.
Gross margin declined to 28.7% from 30.2% in the year-ago quarter. On a non-GAAP basis, gross margin was 30.8%, down from 33.3% last year.
Looking ahead, Penguin Solutions reaffirmed its full-year fiscal 2025 outlook, projecting revenue growth of 15% YoY, plus or minus 5%. The company expects non-GAAP EPS of $1.50, plus or minus $0.20.
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