Penguin Solutions, Inc. is an AI Factory Platform company that designs, builds, deploys, and manages next-generation AI data centers and memory infrastructure for enterprises, sovereign AI initiatives, and neocloud providers.

# Penguin Solutions, Inc.

## Overview
Penguin Solutions describes itself as the AI Factory Platform Company. It designs, builds, deploys, and manages next-generation data centers for enterprises, sovereign AI initiatives, and neocloud providers.

Its core offering is a Full-Stack AI Factory Platform that combines differentiated infrastructure software, advanced memory technologies, compute systems, end-to-end services, and partner technologies to help customers deploy AI, optimize token economics, and maximize return on AI investments.

## Employees and geography
- Employees: approximately 2,800 worldwide (as of the end of fiscal 2026).  
- Geographic distribution: majority of employees are located in the United States, China, and Malaysia.

## Corporate identity and regulatory actions
- Name change: On October 15, 2024, the company changed its name from SMART Global Holdings, Inc. to Penguin Solutions, Inc.  
- Ticker change: The ticker symbol changed from SGH to PENG.  
- Domestication: On June 30, 2025, the parent company completed a U.S. domestication from the Cayman Islands to the State of Delaware, which did not change the legal entity structure or the company’s financial statements.

## Business segments
Penguin Solutions operates through three segments:
- Advanced Computing  
- Integrated Memory  
- Optimized LED (operating as Cree LED)

Each segment contributes specialized expertise in AI infrastructure, memory technologies, and end-to-end services to support deployment, scaling, and optimization of AI data centers. The Advanced Computing and Integrated Memory segments are described as central to the AI Factory Platform strategy.

## Divestiture of SMART Brazil (discontinued operations)
- November 29, 2023: Completed divestiture of 81% of SMART Modular Technologies do Brasil – Indústria e Comércio de Componentes Ltda. (SMART Brazil) to Lexar Europe B.V., an affiliate of Shenzhen Longsys Electronics Co., Ltd.  
- 2026: Sold the remaining 19% interest in SMART Brazil; the business was subsequently renamed Zilia Technologies.  
- Presentation: SMART Brazil operations are presented as discontinued operations for all periods in the Annual Report. SMART Brazil was previously part of the Integrated Memory segment; discussions of continuing operations exclude SMART Brazil.

## Summary takeaway
Penguin Solutions positions itself as an AI-focused data center and memory infrastructure provider with a three-segment portfolio and a global employee base of about 2,800. Major corporate actions include a name and ticker change in 2024 and a U.S. domestication in 2025. The company has completed the full divestiture of SMART Brazil, which is reported as discontinued operations.

Penguin Solutions, Inc. is an end-to-end technology company specializing in high-performance computing, integrated memory solutions, and LED products for diverse clientele globally.

# Penguin Solutions Overview

**Company Name:** Penguin Solutions, Inc.  
**Former Name:** SMART Global Holdings, Inc.  
**Ticker Symbol:** PENG (changed from SGH on October 15, 2024)  
**Employees:** Approximately 2,700 worldwide  
**Locations:** Major presence in the United States, China, and Malaysia  

## Business Model
Penguin Solutions is an end-to-end technology company that emphasizes:

- **Rapidly Bringing Innovative Ideas to Market**: They help clients convert cutting-edge technologies into tangible outcomes, emphasizing speed and scalability.
- **Tailored Solutions**: The company customizes its offerings to fit the precise needs of its diverse clientele, focusing on high-performance, high-availability, and fault-tolerant solutions.

## Business Segments
Penguin Solutions is organized into three primary segments:

1. **Advanced Computing**
   - Previously known as Intelligent Platform Solutions.
   - Focuses on high-performance computing solutions, including AI, machine learning, and IoT.
   - Brands include:
     - **Penguin Computing**: Offers OCP-based hardware solutions and high-performance computing platforms.
     - **Penguin Edge**: Supplies edge computing technology for embedded and wireless applications.
     - **Stratus Technologies**: Delivers autonomous, fault-tolerant computing solutions.
   - **2024 Revenue**: $554.6 million

2. **Integrated Memory**
   - Formerly known as Memory Solutions.
   - Specializes in the design and manufacturing of memory and storage solutions.
   - Offers products like DRAM modules, SSDs, and supply chain services.
   - Serves OEM customers across various industries.
   - **2024 Revenue**: $356.4 million

3. **Optimized LED**
   - Formerly called LED Solutions after the acquisition of Cree LED in March 2021.
   - Provides application-optimized LED products aimed at improving performance and reliability in specialty lighting and video display markets.
   - **2024 Revenue**: $259.8 million

## Financial Performance
- **2024 Total Net Sales**: Approximately $1.17 billion across all segments.
- **2024 Net Loss**: $52.5 million, indicating challenges in achieving profitability despite revenue generation.

## Customer Base
- Penguin Solutions serves a wide range of customers, including:
  - Government agencies
  - Enterprises across various sectors (energy, financial services, healthcare, manufacturing)
  - OEMs in telecommunication and networking
- Sales to the ten largest customers accounted for **58%** of total net sales in 2024.

## Key Highlights
- **Recent Developments**: 
  - Changed corporate name and rebranding reflect an ongoing transition towards AI-focused solutions.
  - Completed acquisition of Stratus Technologies in August 2022 for $225 million.
  - Sold 81% of SMART Brazil operations to Lexar Europe in November 2023.
  
## Manufacturing and R&D
- Facilities in the U.S., Malaysia, and China are certified under various ISO standards for quality and environmental management.
- Investments in R&D amounting to **$81.5 million** in 2024 to drive innovation in all business segments.

## Conclusion
Penguin Solutions operates as a comprehensive technology entity striving to deliver high-performance computing, integrated memory, and LED solutions to a diverse clientele, all while navigating significant market challenges as reflected in its financials.

Penguin Solutions, Inc.

10-K / October 20, 2026

10-K / October 24, 2024

10-K / October 20, 2026

Penguin Solutions, Inc.

Overview

Employees and geography

Corporate identity and regulatory actions

Business segments

Divestiture of SMART Brazil (discontinued operations)

Summary takeaway