NEWARK, CA--(Marketwire - November 11, 2009) - SMART Modular Technologies (WWH), Inc. ("SMART"
or the "Company") (
NASDAQ:
SMOD), a leading independent manufacturer of
memory modules, solid state storage products including SSDs, embedded
computing subsystems, and display products, today announced that it is
raising its guidance for the first quarter of fiscal 2010 based on the
Company's preliminary review of its anticipated financial performance.
The Company expects to report GAAP diluted net income per share in the
range of $0.04 to $0.06 for the first quarter of fiscal 2010, substantially
exceeding its previous guidance of ($0.01) to $0.01 per share announced on
October 1, 2009. Non-GAAP diluted net income per share is expected to be in
the range of $0.06 to $0.08, a substantial increase to the previous
guidance provided by the Company of $0.02 to $0.04.
The Company expects to report net sales in the range of $110 to $120
million, more than 10% higher than the previous guidance of $98 to $105
million. Gross profit is expected to be in the range of $24 to $26
million, approximately 20% higher than the previous guidance of $20 to $22
million.
The improved guidance is primarily driven by growth in end user demand,
particularly in the PC and enterprise markets.
Please refer to the Non-GAAP Information section and the "Reconciliation of
Q1 FY2010 Guidance for Non-GAAP Financial Measures" table below for further
detail.
No conference call will be held in conjunction with this revised guidance.
Additional information for the first quarter of fiscal 2010 will be
available when SMART reports its quarterly financial results in December.
Forward-Looking Statements
Statements contained in this press release that are not statements of
historical fact, including any statements that use the words "will,"
"believes," "anticipates," "estimates," "expects," "projects," "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. From time to time, we also may
provide oral or written forward-looking statements in other materials we
release to the public. These forward-looking statements include projections
and expectations regarding the Company's revenues and financial
performance, benefits associated with operational efficiencies, the DRAM
market, new product introductions, and customer 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, difficulties with or delays in the introduction of
new products, fluctuations in product prices and raw material costs and
availability, dependence upon third-party vendors, customer demand
(particularly from key customers), changes in industry standards or release
plans, fluctuations in the quarterly effective tax rate, possible increases
in previously estimated restructuring charges, lower than anticipated
savings from restructuring, possible future restructuring plans, higher
anticipated costs from increasing capacity, changes in foreign currency
exchange rates and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission including the Company's
recently filed Annual Report on Form 10-K for the fiscal year ended August
28, 2009. 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. Investors are cautioned not to place undue
reliance on any forward-looking statements. The Company is not obligated to
revise or update any forward-looking statements in order to reflect events
or circumstances that may arise or be discovered after the date of this
press release.
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. SMART also offers high performance, high capacity SSDs for
enterprise, defense/aerospace, industrial automation, medical, and
transportation markets. 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.
Non-GAAP Information
Certain non-GAAP financial measures are included in this press release,
including non-GAAP net income and non-GAAP net income per diluted share.
Non-GAAP financial results do not include stock-based compensation expense
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, as well as the related tax
effects, 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. In addition,
these measures may not be used similarly by other companies and therefore
may not be comparable between companies. Investors are encouraged to review
the reconciliations of GAAP to non-GAAP financial measures, which are
included below.
Reconciliation of Q1 FY2010 Guidance for Non-GAAP Financial Measures
(In millions, except per share data; unaudited)
Three Months Ending November 27, 2009
-----------------------------------------------
Non-GAAP Range GAAP Range of
of Estimates Estimates
-------------- --------------
From To Adjustments From To
------ ------ ----------- ------ ------
Net income $ 3.6 $ 4.9 $ 0.9 (a) $ 2.7 $ 4.0
====== ====== ====== ======
Net income per diluted
share $ 0.06 $ 0.08 $ 0.04 $ 0.06
====== ====== ====== ======
Shares used in computing
net income per diluted
share 64.0 64.0 64.0 64.0
====== ====== ====== ======
(a) Reflects an estimated $1.7 million adjustment for stock-based
compensation expense, offset by a $0.8 million net gain on the
repurchase and retirement of a portion of long-term debt.
Contact Information: For More Information
Investor Contacts:
Suzanne Craig
The Blueshirt Group for SMART Modular Technologies
415-217-7722
Barry Zwarenstein
CFO, Senior Vice President
SMART Modular Technologies
510-624-8134