By Katherine Hamilton
Penguin Solutions shares fell after the AI company said it is facing supply chain constraints and posted a decline in its advanced computing sales in the fiscal third quarter.
The stock slipped 8% to $19.57 after the market closed Tuesday. At the close, shares were up 10% for this year.
The constrained supply chain and macroeconomic environment are creating longer lead times for certain components that are incorporated into Penguin's overall solutions, Chief Financial Officer Nate Olmstead said. That is impacting how quickly the company can ramp existing and new customer projects.
Advanced computing sales, which makes up the largest share of Penguin's revenue, fell to $132.5 million from $145 million in the prior-year period.
Overall sales were up 8% year over year to $324.3 million, but fell below analysts' expectations of $328.1 million.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
July 08, 2025 17:56 ET (21:56 GMT)
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