First Quarter Fiscal 2018 Highlights:

•Net sales of $265.4. million, 67% higher than year ago quarter

•GAAP operating income of $31.5 million

•GAAP net income of $21.0 million

•Adjusted EBITDA of $36.9 million

•GAAP diluted EPS of $0.92

•Non-GAAP diluted EPS of $1.05

Quarterly Financial Results

GAAP ⁽¹⁾

Non-GAAP ⁽²⁾

(In millions, except per share amounts)

Q1 FY18

Q4 FY17

Q1 FY17

Q1 FY18

Q4 FY17

Q1 FY17

Net sales

$

265.4

$

223.0

$

159.3

$

265.4

$

223.0

$

159.3

Gross profit

$

57.8

$

48.0

$

29.7

$

58.1

$

48.2

$

29.8

Operating income

$

31.5

$

20.6

$

3.6

$

34.6

$

25.4

$

7.7

Net income (loss)

$

21.0

$

(10.2

)

$

(3.2

)

$

23.8

$

17.4

$

0.5

Earnings (loss) per share

$

0.92

$

(0.48

)

$

(0.23

)

$

1.05

$

0.79

$

0.04

(1)

GAAP represents U.S. Generally Accepted Accounting Principles.

(2)

Please refer to the “Non-GAAP Information” section and the "Reconciliation of Non-GAAP Financial Measures" table below for further detail on the non-GAAP financial reporting referenced above and a reconciliation of such measures to our nearest GAAP measures.

Net Sales - GAAP/Non-GAAP

$280 to $300 million

Gross Margin  - GAAP/Non-GAAP

21% to 23%

Earnings per share - GAAP

$1.18 to $1.24

Intangible amortization per share

$

0.05

Stock-based compensation per share

$

0.07

Earnings per share - Non-GAAP

$1.30 to $1.36

Expected diluted share count

23.0 million

Three Months Ended

November 24, 2017

August 25, 2017

November 25, 2016

Net sales:

Brazil DRAM

$

51,959

$

46,830

$

19,328

Brazil Mobile Memory

105,891

87,935

56,211

Specialty Memory

107,559

88,254

83,805

Total net sales

265,409

223,019

159,344

Cost of sales ⁽¹⁾

207,573

175,011

129,634

Gross profit

57,836

48,008

29,710

Operating expenses:

Research and development ^{(1) (2)}

8,550

9,718

9,697

Selling, general and administrative ^{(1) (2)}

17,818

17,722

15,410

Management advisory fees

—

—

1,000

Restructuring

—

—

(14

)

Total operating expenses

26,368

27,440

26,093

Income from operations

31,468

20,568

3,617

Other income (expense):

Interest expense, net

(4,599

)

(6,132

)

(6,266

)

Other income (expense), net

(2,715

)

(20,887

)

103

Total other expense

(7,314

)

(27,019

)

(6,163

)

Income (loss) before income taxes

24,154

(6,451

)

(2,546

)

Provision for income taxes

3,149

3,758

661

Net income (loss)

$

21,005

$

(10,209

)

$

(3,207

)

Earnings per share:

Basic

$

0.97

$

(0.48

)

$

(0.23

)

Diluted

$

0.92

$

(0.48

)

$

(0.23

)

Shares used in computing per-share calculation:

Basic

21,673

21,435

13,870

Diluted

22,715

21,435

13,870

(1) Includes share-based compensation expense as follows:

Cost of sales

$

218

$

192

$

126

Research and development

274

232

215

Selling, general and administrative

1,113

1,407

709

Total stock-based compensation expense

$

1,605

$

1,831

$

1,050

(2) Includes amortization of intangible assets expense as follows:

Research and development

$

245

$

1,225

$

1,224

Selling, general and administrative

1,023

1,746

1,799

Total amortization expense

$

1,268

$

2,971

$

3,023

Three Months Ended

November 24, 2017

August 25,

2017

November 25, 2016

Reconciliation of gross profit:

GAAP gross profit

$

57,836

$

48,008

$

29,710

GAAP gross margin

21.8

%

21.5

%

18.6

%

Add: Share-based compensation included in cost of sales

218

192

126

Non-GAAP gross profit

$

58,054

$

48,200

$

29,836

Non-GAAP gross margin

21.9

%

21.6

%

18.7

%

Reconciliation of operating expenses:

GAAP operating expenses

$

26,368

$

27,440

$

26,093

Less: Share-based compensation expense included in opex

Research and development

274

232

215

Selling, general and administrative

1,113

1,407

709

Total

1,387

1,639

924

Less: Amortization of intangible assets included in opex

Research and development

245

1,225

1,224

Selling, general and administrative

1,023

1,746

1,799

Total

1,268

2,971

3,023

Less: S-1 related costs

300

—

—

Non-GAAP operating expenses

$

23,413

$

22,830

$

22,146

Reconciliation of income from operations:

GAAP income from operations

$

31,468

$

20,568

$

3,617

GAAP operating margin

11.9

%

9.2

%

2.3

%

Add: Share-based compensation expense

1,605

1,831

1,050

Add: Amortization of intangible assets

1,268

2,971

3,023

Add: S-1 related costs

300

—

—

Non-GAAP income from operations

$

34,641

$

25,370

$

7,690

Non-GAAP operating margin

13.1

%

11.4

%

4.8

%

Reconciliation of provision for income taxes:

GAAP provision for income taxes

$

3,149

$

3,758

$

661

GAAP effective tax rate

13.0

%

-58.3

%

-26.0

%

Tax effect of adjustments to GAAP results

(348

)

(317

)

(337

)

Non-GAAP provision for income taxes

$

3,497

$

4,075

$

998

Non-GAAP effective tax rate

12.8

%

19.0

%

65.4

%

Reconciliation of net income (loss) and earnings per share (diluted):

GAAP net income (loss)

$

21,005

$

(10,209

)

$

(3,207

)

Adjustments to GAAP net income:

Share-based compensation

1,605

1,831

1,050

Amortization of intangible assets

1,268

2,971

3,023

Amortization of debt discount related to warrants

—

1,214

—

S-1 related costs

300

—

—

Loss on early debt repayment

—

6,743

—

Loss on extinguishment of LT debt

—

15,194

—

Tax effect of items excluded from non-GAAP results

(348

)

(317

)

(337

)

Non-GAAP net income

$

23,830

$

17,427

$

529

Shares used in computing earnings per share (diluted)

22,715

22,011

14,479

Non-GAAP earnings per share (diluted)

$

1.05

$

0.79

$

0.04

Three Months Ended

November 24,

2017

August 25,

2017

November 25,

2016

GAAP net income (loss)

$

21,005

$

(10,209

)

$

(3,207

)

Share-based compensation expense

1,605

1,831

1,050

Amortization of intangible assets

1,268

2,971

3,023

Interest expense, net

4,599

6,132

6,266

Provision for income tax

3,149

3,758

661

Depreciation

5,002

4,869

5,539

S-1 related costs

300

—

—

Management advisory fees

—

—

1,000

Loss on early debt repayment *

—

6,743

—

Loss on extinguishment of LT debt **

—

15,194

—

Restructuring

—

—

(14

)

Special retention bonuses

—

—

25

Investment advisory fees

—

—

406

Adjusted EBITDA

$

36,928

$

31,289

$

14,749

November 24,

August 25,

2017

2017

Assets

Current assets:

Cash and cash equivalents

$

23,503

$

22,436

Accounts receivable, net

236,199

183,303

Inventories

128,158

127,135

Prepaid expenses and other current assets

12,226

14,115

Total current assets

400,086

346,989

Property and equipment, net

55,134

55,182

Other noncurrent assets

25,772

26,728

Intangible assets, net

3,692

5,107

Goodwill

44,626

46,022

Total assets

$

529,310

$

480,028

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

$

235,226

$

189,717

Accrued liabilities

21,674

27,316

Current portion of long-term debt

22,500

22,841

Total current liabilities

279,400

239,874

Long-term debt

148,249

154,450

Deferred tax liabilities

1,041

1,439

Other long-term liabilities

1,869

1,869

Total liabilities

$

430,559

$

397,632

Shareholders’ equity:

Ordinary shares

656

653

Additional paid-in capital

234,686

232,162

Accumulated other comprehensive loss

(150,387

)

(143,210

)

Retained earnings

13,796

(7,209

)

Total shareholders’ equity

98,751

82,396

Total liabilities and shareholders’ equity

$

529,310

$

480,028

Three Months Ended

November 24, 2017

August 25, 2017

November 25, 2016

Cash flows from operating activities:

Net income (loss)

$

21,005

$

(10,209

)

$

(3,207

)

Adjustments to reconcile net income (loss) to net cash

   provided by (used in) operating activities:

Depreciation and amortization

6,270

7,839

8,562

Share-based compensation

1,605

1,831

1,050

Provision for doubtful accounts receivable and sales returns

28

(82

)

(192

)

Deferred income tax benefit

(220

)

(1,194

)

(305

)

Loss on disposal of property and equipment

—

223

—

Extinguishment loss on long-term debt

—

15,194

—

Loss on early debt payment

—

6,744

—

Amortization of debt discounts and issuance costs

729

1,807

1,022

Changes in operating assets and liabilities:

Accounts receivable

(55,801

)

(6,910

)

21,610

Inventories

(3,746

)

9,333

9,000

Prepaid expenses and other assets

1,758

(799

)

624

Accounts payable

47,492

(22,407

)

(56,400

)

Accrued expenses and other liabilities

(4,863

)

4,639

1,215

Net cash provided by (used in) operating activities

14,257

6,009

(17,021

)

Cash flows from investing activities:

Capital expenditures and deposits on equipment

(6,039

)

(7,499

)

(3,075

)

Proceeds from sale of property and equipment

—

184

—

Net cash used in investing activities

(6,039

)

(7,315

)

(3,075

)

Cash flows from financing activities:

Long-term debt payment

(6,184

)

(2,009

)

(5,331

)

Early payment of long-term debt

—

(61,127

)

—

Payment for extinguishment of long-term debt

—

(151,008

)

—

Proceeds from issuance of long-term debt, net of costs paid

—

156,962

—

Fees paid for revolving line of credit refinancing

(299

)

(3,167

)

—

Issuance of ordinary shares from an initial public offering,

   net of underwriting commissions

—

63,507

—

Payment of costs related to initial public offering

(1,289

)

(949

)

—

Proceeds from borrowings under revolving line of credit

105,500

119,500

110,250

Repayments of borrowings under revolving line of credit

(105,500

)

(119,500

)

(110,250

)

Proceeds from issuance of ordinary shares from share option exercise

539

58

—

Tax payments due upon issuance of ordinary shares for

   release of restricted stock units

—

(763

)

—

Net cash used in financing activities

(7,233

)

1,504

(5,331

)

Effect of exchange rate changes on cash and cash equivalents

82

(103

)

479

Net increase (decrease) in cash and cash equivalents

1,067

95

(24,948

)

Cash and cash equivalents at beginning of period

22,436

22,341

58,634

Cash and cash equivalents at end of period

$

23,503

$

22,436

$

33,686