SMART Global Holdings, Inc. (NASDAQ:SGH) Q4 2019 Earnings Conference Call - Final Transcript
Oct 03, 2019 • 04:30 pm ET
Good afternoon, ladies and gentlemen, and welcome to the SMART Global Holdings Fourth Quarter Fiscal 2019 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.
I would now like to turn the conference over to your host Ms. Suzanne Schmidt. You may begin the call, ma'am.
Thank you, operator. Good afternoon, and thank you for joining us on today's earnings conference call to discuss SMART Global Holdings fourth quarter and full year fiscal 2019 results. Ajay Shah, Chairman and Chief Executive Officer will begin the call with the discussion of the market and the business, followed by Jack Pacheco, Chief Operating and Financial Officer, who will review the financial results in more detail and provide the forward guidance, after which we will open the call to your questions.
As a reminder, our earnings press release and a replay of today's call can be accessed under the Investor Relations section of SMART's website at smartgh.com. We encourage you to go to our website throughout the quarter for the most current information on the company, including information on the various financial conferences we will be attending.
Before we begin the call, I would like to note that today's remarks and the answers to questions may include forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events, including financial projections and future market conditions is a forward-looking statement. Actual results may differ materially from those expressed in these forward-looking statements. For more information, please refer to the risk factors discussed in the documents we file from time to time with the SEC, including our most recent Form 10-K and Form 10-Q. We assume no obligation to update these forward-looking statements, which speak as of today.
Additionally, during this call, our non-GAAP financial measures will be discussed. Reconciliations for those directly comparable GAAP financial measures are included in today's earnings press release.
With that, I will now turn the call over to Chairman and CEO, Ajay Shah.
Thank you, Suzanne, and welcome to everyone on the call. Fiscal 2019 ending August 31, was an amazing year on the journey of transformation for SMART Global Holdings. We're making great progress since we started fiscal 2019 as a predominantly memory products company with 62% of fiscal 2018 revenue generated primarily from sales of standard memory products in Brazil.
In contrast, today, we are more balanced company with 32% of revenue from Brazil. 30% of our revenues coming from a new vertical called Specialty Computing and Storage Systems, while 38% of our revenues are generated from our Specialty Memory Products business during our fiscal Q4 that we just concluded. Along the way, we face down a turbulent market, especially in the second half of fiscal 2019, as commodity memory component prices fell by over 60%, significantly affecting our Brazil memory products selling prices. We also faced other macroeconomic headwinds related to trade and capital spending affecting our overall business conditions in all business areas. Finally, changes in the way