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  "documentTitle": "SMART Global Holdings, Inc. (SGH)",
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  "presentationDate": "2019-09-25 00:00:00",
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  "notes": "The chart illustrates a divergence where Brazil revenue percentage declines while OpEx remains elevated, suggesting a shift to a higher fixed-cost business model.",
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      "text": "SGH's shift away from Brazil and into the Specialty Computing business has turned SG&A and R&D into fixed costs.",
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      "text": "Brazil % of Revenue",
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      "text": "Operating Expenses: $37,698",
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      "text": "As the Brazil segment falls as a percentage of revenue, operating expenses remain significantly elevated compared to their pre-Penguin levels. We expect these operating expenses to grow again in Q4 2019 due to the acquisitions of Artesyn Embedded Computing and InForce Computing.",
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      "text": "The chart above shows the relationship between SGH's revenue mix and its total operating expenses (R&D + SG&A). While operating expenses grow marginally with Brazilian revenue between Q1 2018 and Q3 2018, there is a pronounced shift in SGH's unit economics following the Q4 2018 (ending August 31, 2018) acquisition of Penguin Computing.",
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      "text": "SGH's shift away from Brazil and into the Specialty Computing business has turned SG&A and R&D into fixed costs. This is a fundamental shift away from the flexible, low fixed-cost business model that SGH was able to build around the government-aided Brazil business.",
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      "text": "SGH Total OpEx ($000's) vs. Brazil % of Revenue",
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