1) the extended difficult pricing environment over the course of the
past several quarters and the resulting market share loss to certain
semiconductor companies that offer memory modules, in addition to
DRAM, and compete against SMART,
2) the slower than expected ramp of high density memory modules because
SMART encountered delays in qualifying various module configurations
at its customers that stemmed from a product introduction set-back
by one of its suppliers, and
3) a higher than expected overall effective tax rate, due to a business
shortfall in a certain region with a lower tax rate.
Despite these challenges, we see signs of a return to growth as DRAM
pricing has started to improve, new product initiatives gain customer
traction, and end demand remains steady," said Iain MacKenzie, CEO and
president, SMART Modular Technologies.
These anticipated financial results are preliminary and may be impacted by
results for the balance of the fiscal quarter and will be subject to the
Company's customary quarterly closing and review procedures. No conference
call will be held in conjunction with this revised guidance. SMART will
report its full third quarter fiscal 2008 financial results and future
outlook, and hold its regularly scheduled conference call to discuss its
results after the close of market on Thursday, June 19, 2008 at 1:30 p.m.
PDT.
Forward-Looking Statements
Statements contained in this press release, including the quotations
attributed to Mr. MacKenzie, that are not statements of historical fact,
including any statements that use the words "will," "believes,"
"anticipates," "estimates," "expects," "intends" or similar words that
describe the company's or its management's future expectations, plans,
objectives, or goals, are "forward-looking statements" and are made
pursuant to the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include projections
regarding the company's financial performance, component pricing, new
product introductions, and industry demand for products.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause the actual results of the
company to be materially different from the historical results and/or from
any future results or outcomes expressed or implied by such forward-looking
statements. Factors that would cause or contribute to such differences
include, but are not limited to, the post-closing integration of the
businesses and product lines of SMART and Adtron, production or
manufacturing difficulties, competitive factors, new products and
technological changes, fluctuations in product prices and raw material
costs, dependence upon third-party vendors, customer demand, changes in
industry standards or release plans, overall effective tax rate, and other
risks detailed in the company's periodic report filings with the Securities
and Exchange Commission. Such risk factors as outlined in these reports may
not constitute all factors that could cause actual results to differ
materially from those discussed in any forward-looking statement. The
company operates in a continually changing business environment and new
factors emerge from time to time. The company cannot predict such factors,
nor can it assess the impact, if any, from such factors on the company or
its results. Accordingly, forward-looking statements should not be relied
upon as a prediction of actual results. The company is not obligated to
revise or update any forward-looking statements in order to reflect events
or circumstances that may arise after the date of this press release.
Non-GAAP Information
Certain non-GAAP financial measures are included in this press release,
including non-GAAP net income per diluted share. Non-GAAP financial results
do not include acquisition-related in-process research and development
charges and other infrequent or unusual items. These non-GAAP financial
measures are provided to enhance the user's overall understanding of our
financial performance. By excluding these charges, our non-GAAP results
provide information to management and investors that is useful in assessing
SMART's core operating performance and in evaluating and comparing our
results of operations on a consistent basis from period to period. These
non-GAAP financial measures are also used by management to evaluate
financial results and to plan and forecast future periods. The presentation
of this additional information is not meant to be a substitute for the
corresponding financial measures prepared in accordance with generally
accepted accounting principles. Investors are encouraged to review the
reconciliations of GAAP to non-GAAP financial measures, which are included
below.
(Unaudited)
(In thousands)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
May 30, June 1, May 30, June 1,
2008 2007 2008 2007
--------- ---------- ---------- ----------
Net (loss) income $ (2,223) $ 14,183 $ 20,218 $ 42,706
Add:
One-time charge to In-process
R&D related to Adtron
acquisition, (no tax effect) 5,500 -- 5,500 --
--------- ---------- ---------- ----------
Non-GAAP net income $ 3,277 $ 14,183 $ 25,718 $ 42,706
========= ========== ========== ==========
Non-GAAP diluted net income per
ordinary share $ 0.05 $ 0.22 $ 0.40 $ 0.67
========= ========== ========== ==========
Shares used in computing
diluted net income per
ordinary share 64,000 63,894 63,900 63,725
========= ========== ========== ==========
About SMART
SMART is a leading independent designer, manufacturer and supplier of
electronic subsystems to original equipment manufacturers, or OEMs. SMART
offers more than 500 standard and custom products to OEMs engaged in the
computer, industrial, networking, gaming, telecommunications, and embedded
application markets. Taking innovations from the design stage through
manufacturing and delivery, SMART has developed a comprehensive memory
product line that includes DRAM, SRAM, and Flash memory in various form
factors. Through its subsidiary, Adtron Corporation, SMART offers high
performance, high capacity solid state drives for enterprise,
defense/aerospace, industrial automation, medical, and transportation
markets. Its Embedded Products Division develops embedded computing
subsystems, backed by design and manufacturing, for markets supporting test
equipment, 3G infrastructure, and network processing applications. SMART's
Display Products Group designs, manufactures, and sells thin film
transistors (TFT) liquid crystal display (LCD) solutions to customers
developing casino gaming systems as well as embedded applications such as
kiosk, ATM, point-of-service, and industrial control systems. SMART's
presence in the U.S., Europe, Asia, and Latin America enables it to provide
its customers with proven expertise in international logistics, asset
management, and supply-chain management worldwide. See www.smartm.com for
more information.
Contact Information: For More Information Investor Contacts: Suzanne Craig The Blueshirt Group for SMART Modular Technologies 415-217-7722 Iain MacKenzie CEO, President & Director SMART Modular Technologies 510-624-8132