NEWARK, CA--(Marketwire - February 1, 2010) - SMART Modular Technologies (WWH), Inc. ("SMART"
or the "Company") (
NASDAQ:
SMOD), a leading independent manufacturer of
memory modules and solid-state storage products, today announced that it is
raising its guidance for the second quarter of fiscal 2010 ending February
26, 2010 based on the Company's preliminary review of its anticipated
financial performance.
The Company expects to report net sales in the range of $140 to $145
million, approximately 10% higher than the previous guidance of $125 to
$135 million. Gross profit is expected to be in the range of $36 to $38
million, approximately 20% higher than the previous guidance of $30 to $32
million.
The Company expects to report GAAP diluted net income per share in the
range of $0.16 to $0.18 for the second quarter of fiscal 2010,
substantially exceeding its previous guidance of $0.06 to $0.08 per share
announced on December 17, 2009. Non-GAAP diluted net income per share is
expected to be in the range of $0.14 to $0.16, a substantial increase to
the previous guidance provided by the Company of $0.09 to $0.11.
The improved guidance for the second quarter of fiscal 2010 is primarily
driven by a combination of the positive DRAM pricing environment, continued
strong end user demand from both the PC and enterprise markets and less
than anticipated adverse impact from seasonality.
Third Quarter Fiscal 2010 Outlook
For the third quarter of fiscal 2010 ending May 28, 2010, SMART expects net
sales to be relatively flat sequentially as demand stabilizes. Gross
profit is expected to be in the range of $29 to $32 million, and GAAP
diluted net income per share is expected to be in the range of $0.07 to
$0.09 as DDR2 availability increases and DRAM pricing moderates. On a
non-GAAP basis, SMART estimates net income per diluted share will be in the
range of $0.09 to $0.11.
Please refer to the Non-GAAP Information section and the "Reconciliation of
Q2 and Q3 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 second quarter of fiscal 2010 will be
available when SMART reports its quarterly financial results in March 2010.
Forward-Looking Statements
Statements contained in this press release that are not statements of
historical fact, such as any statements that use the words "will,"
"believes," "anticipates," "estimates," "expects," "intends" or similar
words that describe the Company's or its management's current or 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 may include
projections and expectations regarding the Company's net sales, financial
performance, benefits associated with operational efficiencies, the DRAM
market, new product introductions, and customer demand for its 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 could cause or contribute to such differences
include, but are not limited to, 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, lower than anticipated cash 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 Form 10-K for the fiscal
year ended August 28, 2009 filed November 9, 2009 and its Form 10-Q for the
quarter ended November 27, 2009 filed January 6, 2010. 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 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 and non-GAAP net income per diluted share.
Non-GAAP financial results do not include stock-based compensation expense
and the settlement of a lawsuit with respect to component supply. 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. 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.
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, defense,
aerospace 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 solid state drives for enterprise, defense, aerospace, industrial
automation, medical, and transportation markets. 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.
SMART MODULAR TECHNOLOGIES (WWH), INC. AND SUBSIDIARIES
RECONCILIATION OF Q2 AND Q3 FY2010 GUIDANCE FOR NON-GAAP FINANCIAL MEASURES
(In millions, except per share data; unaudited)
Three Months Ending February 26, 2010
-------------------------------------------------------
GAAP Non-GAAP
Range of Estimates Range of Estimates
--------------------- ---------------------
From To Adjustments From To
---------- ---------- ----------- ---------- ----------
Net income $ 10.4 $ 11.8 $ (1.3)(a) $ 9.1 $ 10.5
========== ========== ========== ==========
Net income per
diluted share $ 0.16 $ 0.18 $ 0.14 $ 0.16
========== ========== ========== ==========
Shares used in
computing net income
per diluted share 65.0 65.0 65.0 65.0
========== ========== ========== ==========
(a) Reflects $3.0 million gain on settlement of a lawsuit, offset by an
estimated $1.7 million adjustment for stock-based compensation expense.
Three Months Ending May 28, 2010
-------------------------------------------------------
GAAP Non-GAAP
Range of Estimates Range of Estimates
--------------------- ---------------------
From To Adjustments From To
---------- ---------- ----------- ---------- ----------
Net income $ 4.4 $ 5.8 $ 1.7 (b) $ 6.1 $ 7.5
========== ========== ========== ==========
Net income per
diluted share $ 0.07 $ 0.09 $ 0.09 $ 0.11
========== ========== ========== ==========
Shares used in
computing net income
per diluted share 65.5 65.5 65.5 65.5
========== ========== ========== ==========
(b) Reflects estimated adjustment for stock-based compensation expense.
Contact Information: Investor Contacts:
Suzanne Craig
The Blueshirt Group for SMART Modular Technologies
415-217-7722
Suzanne@blueshirtgroup.com
Barry Zwarenstein
CFO, Senior Vice President
SMART Modular Technologies
510-624-8134
Barry.Zwarenstein@smartm.com