Headquartered in California, SGH is a specialty memory manufacturer, providing chips for desktops, notebooks, servers, and smartphones. In addition to selling memory units to the Brazilian market, the company sells specialty memory to original equipment manufacturers from around the world. The company works with OEMs to develop memory that matches customer-specific requirements. SGH has relationships with industry heavyweights like Cisco Systems, Samsung, Hewlett Packard Enterprise, Dell, and LG, among others.
The company has been in business since 1992 and operations in Brazil began in 2002. More than 480 workers are employed in Brazil, where the company processes imported wafers and cuts, packages, and tests them to create memory components used to manufacture modules, flash-based products, and other memory. There is no other company in Brazil that packages and tests mobile memory for smartphones.
The Brazilian business focuses mostly on Dynamic Random Access Memory (DRAM) components and modules for desktops, notebooks, and servers. The company believes that Brazilian content and tax regulations provide financial incentives to customers to procure locally manufactured memory products. The company has leveraged its experience and success in DRAM to expand into the mobile memory arena.
Its specialty memory solutions business has a portfolio of more than 2,000 products, including all generations of DRAM, embedded and removable Flash, enterprise memory, hybrid memory, and non-volatile memory solutions. The company also helps customers manage supply chain planning and execution, reducing costs and increasing productivity.
For the six months ended February 24, the company reported an operating income of $12.91 million, which was better than a loss of $2.95 million during the year-ago period. For the fiscal year ended August 26, 2016, the company had an operating income of $6.19 million, better than an operating loss of $6.71 million during the year-ago period.
Gross billings for the six months ended February 24 totaled $733.67 million, down from $1.02 billion during the year-ago period.
SGH used $15.65 million for operating activities during the six months ended February 24. This was down from $26.01 million generated from operating activities during the year-ago period. For the fiscal year ended August 26, 2016, the company generated $15.05 million from operating activities after generating $40.76 million from operating activities during the fiscal year ended August 28, 2015.