Penguin Solutions, Inc. (NASDAQ: PENG) today announced that its SMART Modular NV‑CMM E3.S 2T non‑volatile memory module has achieved CXL 2.0 compliance and has been added to the CXL Consortium’s Integrators List. The milestone confirms that the module meets the industry’s interoperability standards for high‑bandwidth, low‑latency persistent memory, enabling it to be paired with a broad range of processors and accelerators in AI and data‑center environments.
The E3.S 2T module delivers persistent storage with enterprise‑class reliability and recovery features, making it well suited for in‑memory databases, high‑performance computing, and AI inference workloads that demand both speed and durability. By supporting the CXL 2.0 protocol, the module can be integrated into unified memory architectures that combine DRAM, flash, and non‑volatile memory on a single platform, a key requirement for next‑generation AI infrastructure.
Penguin’s product launch aligns with its announced transition from a legacy hardware provider to a pure‑play AI infrastructure company. The company’s memory segment grew 30 % in fiscal 2025, and the new module expands the integrated memory portfolio that underpins its end‑to‑end AI solutions. Strategic partnerships with Dell and SK Telecom reinforce the company’s ability to deliver these solutions to large cloud and hyperscaler customers.
In its most recent earnings release, Penguin reported Q4 FY2025 results that beat expectations. Non‑GAAP diluted EPS of $0.43 surpassed the consensus estimate of $0.41, a beat of $0.02, while revenue of $338 million came in just $0.43 million below the $337.57 million estimate. The EPS beat was driven by disciplined cost control and a favorable product mix that increased the share of higher‑margin AI‑centric memory sales. The slight revenue miss reflected a modest decline in legacy hardware sales, offset by the strong momentum in the memory segment.
Penguin also reported Q1 FY2026 results that again beat earnings expectations. Non‑GAAP diluted EPS of $0.49 exceeded the $0.41 estimate by $0.08, while revenue of $343.1 million fell $1.975 million short of the $345.075 million consensus. The EPS beat was largely attributable to continued cost discipline and a higher mix of AI‑related contracts, whereas the revenue miss was due to a small decline in legacy product demand. Management reiterated a 6 % net‑sales growth outlook for FY2026 and an adjusted EPS target of $2.00, but the guidance range of ±$0.25 signals cautious optimism amid a competitive market and margin compression from the shift to lower‑margin AI services.
Mark Adams, CEO, said the company’s FY2025 performance “was a year of strong execution and meaningful progress in our transformation from a holding company structure to an enterprise AI infrastructure solutions company.” Andy Mills, Vice President of Advanced Product Development, added, “We are proud to have our SMART CXL NV‑CMM E3.S 2T memory module recognized for its compliance with CXL standards. This achievement underscores our commitment to delivering high‑quality, interoperable memory solutions that meet the evolving needs of our customers.” The launch, the first new product milestone in the past 30 days, positions Penguin to capture growing demand for unified memory in AI infrastructure and supports its roadmap that includes an upcoming Optical Memory Appliance aimed at scaling HBM technology by late 2026.
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