Penguin Solutions (PENG) CEO Mark Adams joins Julie Hyman and Josh Lipton on Market Domination to discuss the company’s brand transition, fiscal fourth quarter earnings miss, and what sets the company that builds artificial intelligence (AI) for enterprise customers apart from competitors.

Adams explains that “business can be lumpy at times,” with some deployments being built toward the end of the quarter or rolling into the next: “That's just the nature of large-scale infrastructure deployments. So, what I would say is, overall, we're in guidance slightly below the midpoint but continue to be very bullish on the business.”

Looking ahead, the CEO says, “Our business is different than the traditional OEM (original equipment manufacturer) systems company. I think sometimes that gets lost on our investors and what's different about it is we lead with the services and software approach, and the systems kind of follow in our sales motion.

"We help our customers design the systems. We then build them for them and then deploy them with both of our systems expertise, our management software, and management services. And that integrated approach is what drives our margins significantly higher than our competitors.”

Adams affirms that "when we put 15% growth up there, it's 15% growth. That's higher margins than the industry average and so that's why we remain so bullish that fiscal year '25 can be a great year for us.” Adams says the company is continuing to evolve as Penguin Solutions.

“If you look back four years ago, we were a memory module company… We're investing to scale out our business as we speak, as the transformation continues.” He adds that this is "the evolution of our company and the fact that deployments will increase, we like our growth potential.”

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This post was written by Naomi Buchanan.