SMART Global Holdings ( SGH - Free Report) , a Zacks Ranked #1 (Strong Buy) company is a designer, manufacturer and supplier of electronic subsystems to OEMs. It engaged in the computer, industrial, networking, telecommunications, aerospace and defense markets. The company operates primarily in the U.S., Europe, Asia and Latin America. Smart Global Holdings Inc. is headquartered in Newark, California. Recent Earnings The company reported their second quarter results since going public on September 28th where they easily beat both the Zacks consensus earnings and revenue estimates. On a year over year basis, the company saw gains in Net Sales +52.5% (fifth consecutive quarter of YoY increases), Gross Profit +60.5%, and Operating Income +415%. Management also noted that they paid down $61.1 million of their term loans from the proceeds of their IPO, and refinanced other debt that reduced overall interest expenses. Driving Factors Brazil PC DRAM, the specialty memory segment, and Brazil mobile acted as strong tailwinds for the company. Specifically, the Brazil PC/smartphone segment grew by +23% on a sequential basis. Continued growth in the Brazilian markets is expected to push sales through 2018. Further, management noted that they see strength coming from their server/storage and All Flash Arrays which are contributing to their increased future growth expectations. Management’s Take According to Iain MacKenzie, President and CEO, “ We completed fiscal 2017 on a strong note, having accomplished a number of key milestones that set the foundation for continued momentum as we enter fiscal 2018. The strength of the global memory market contributed to all of our businesses across the board. In SMART Brazil we are also benefitting from the improving economy and the introduction of new products. Increasing demand from our networking and storage customers is driving healthy growth in our Specialty Memory business as well. We also recently paid off a portion of our term loan with the proceeds of our IPO, as well as completing an important debt refinancing that clears the path for improved operating leverage in our financial model, enabling us to drive increasing returns for our shareholders.” Price and Earnings Consensus Graph As you can see below, since the IPO SMART Global’s price has more than doubled, and is expected to continue to rise.