v3.26.1
Segment and Other Information
 6 Months Ended
Feb. 27, 2026
Segment Reporting [Abstract]  
Segment and Other Information
Segment and Other Information
Segment information presented below is consistent with how our Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, evaluates our results of operations to make decisions about allocating resources and assessing performance using segment net sales, cost of sales, operating expenses, and operating income (loss). The CODM is regularly provided this segment information to assess relative segment performance and allocate resources to the segment in the annual planning process.
We have the following three business units, which are our reportable segments:
•Advanced Computing: Our Advanced Computing segment, under our Penguin Computing and Stratus brands, offers specialized platform solutions and services for artificial intelligence, high-performance computing, machine learning, advanced modeling and the internet of things that span the continuum of edge, core and cloud. Our solutions are designed specifically for customers across multiple markets, including hyperscale, neocloud, financial services, energy, government, education, healthcare and others.
•Integrated Memory: Our Integrated Memory segment, under our SMART Modular Technologies brand, provides high-performance and reliable integrated memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. These specialty products are tailored to meet customer-specific requirements across networking and communications, enterprise storage and computing, including server applications and other vertical markets. These products are marketed to original equipment manufacturers and to commercial and government customers. The Integrated Memory segment also offers SMART Supply Chain Services, which provides customized, integrated supply chain services to enable our customers to better manage supply chain planning and execution, reduce costs and increase productivity.
•Optimized LED: Our Optimized LED segment, under our Cree LED brand, offers a broad portfolio of application-optimized LEDs focused on improving lumen density, intensity, efficacy, optical control and/or reliability. Backed by expert design assistance and superior sales support, our LED products enable our customers to develop and market LED-based products for general lighting, video displays and specialty lighting applications.
Segments are determined based on sources of sales, types of customers and operating performance.
There are no differences between the accounting policies for our segment reporting and our consolidated results of operations. Operating expenses directly associated with the activities of a specific segment are charged to that segment. Certain other indirect operating income and expenses are generally allocated to segments based on their respective percentage of net sales. We do not identify (other than goodwill) or report internally our assets nor allocate certain expenses and amortization, interest, other non-operating (income) expense or taxes to segments.
Three Months EndedSix Months Ended
February 27,
2026		February 28,
2025		February 27,
2026		February 28,
2025
Net sales:
Advanced Computing$115,715 $200,157 $267,167 $377,583 
Integrated Memory171,629 105,260 308,150 201,966 
Optimized LED55,655 60,102 110,753 127,072 
Total net sales$342,999 $365,519 $686,070 $706,621 
Costs of Goods Sold
Advanced Computing$78,495 $131,107 $178,173 $246,038 
Integrated Memory127,722 80,125 233,250 155,689 
Optimized LED35,649 41,879 70,593 87,363 
Total Costs of Goods Sold241,866 253,110 482,016 489,090 
Operating Expense
Advanced Computing$29,927 $31,975 $59,582 $64,354 
Integrated Memory16,252 14,253 31,313 28,277 
Optimized LED15,483 17,090 32,160 34,891 
Total Operating Expenses61,662 63,318 123,055 127,522 
Segment operating income:
Advanced Computing$7,293 $36,933 $29,412 $67,050 
Integrated Memory27,655 10,970 43,587 18,086 
Optimized LED4,523 1,187 8,000 4,872 
Total segment operating income39,471 49,090 80,999 90,008 
Reconciliation of profit (loss)
Stock-based compensation expense(5,119)(11,580)(15,199)(23,111)
Amortization of acquisition-related intangibles(7,509)(8,839)(15,017)(18,594)
Cost of sales-related restructuring— (77)483 (35)
Diligence, acquisition and integration expense— (567)— (1,400)
Redomiciliation costs
— (2,359)— (3,602)
Impairment of goodwill— (6,079)— (6,079)
Restructuring charges(1,048)(859)(5,790)(968)
Other(106)(242)(205)(375)
Total unallocated(13,782)(30,602)(35,728)(54,164)
Total non-operating income (expense)$27,262 $(1,974)$15,540 $(7,006)
Income (loss) before taxes$52,951 $16,514 $60,811 $28,838 

Depreciation included in segment operating income was as follows:
Three Months EndedSix Months Ended
February 27,
2026		February 28,
2025		February 27,
2026		February 28,
2025
Advanced Computing
$2,025 $1,928 $4,160 $3,707 
Integrated Memory
892 947 1,781 1,871 
Optimized LED
2,104 2,130 4,174 4,444 
$5,021 $5,005 $10,115 $10,022