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
SMART Modular Technologies Reports Preliminary Fourth Quarter and Fiscal Year 2008 Net Sales and Gross Profit Results
| Source: SMART Modular Technologies
FREMONT, CA--(Marketwire - September 9, 2008) - SMART Modular Technologies (WWH), Inc. ("SMART"
or the "Company") (NASDAQ : SMOD ), a leading independent manufacturer of
memory modules, solid state drives, embedded computing subsystems, and
TFT-LCD display products, today announced its anticipated net sales and
gross profit results for the fourth quarter and fiscal year 2008, based on
its preliminary review.
For the fourth quarter of fiscal 2008, SMART expects to report net sales of
approximately $158 to $164 million and gross profit of approximately $24 to
$26 million.
Additionally, the Company will incur restructuring charges, as well as
non-cash accounting charges related to year-end financial reviews which are
not yet finalized. The restructuring plan, when finalized, is expected to
improve the Company's financial performance through prudent cost reductions
and efficiency initiatives while reallocating resources and investment to
its higher growth businesses.
The Company had previously provided guidance for the fourth quarter of
fiscal 2008 as follows: net sales of approximately $160 to $170 million,
gross profit of approximately $27 to $29 million, and GAAP net income of
approximately $0.06 to $0.07 per diluted share.
For fiscal 2008, SMART expects to report net sales of approximately $668 to
$674 million and gross profit of approximately $118 to $120 million.
SMART expects to end the fourth quarter of fiscal 2008 with approximately
$113 to $118 million in cash and cash equivalents, as compared to $117
million at the end of the third quarter of fiscal 2008.
"Our Brazil operations performed well last quarter, our overall management
and execution metrics continue to demonstrate effective controls, and we
continued to make solid progress with our SSD business," commented Iain
MacKenzie, CEO and president, SMART Modular Technologies. "However,
several factors impacted our net sales and gross profit results for our
fourth fiscal quarter, including: 1) the persistent oversupply in the DRAM
market, 2) the deterioration of the economic climate in the U.S., which
tempered customer demand for our products, and 3) prolonged and aggressive
price-driven competition of DRAM-based memory modules."
"In the face of these challenges, we remain focused on both our execution
and the development of new products that bring a market advantage to our
customers. In particular, our leading high density DRAM modules will
position us well once the DRAM market stabilizes, and our recently
announced six new industrial-grade SSD product offerings enable SMART to
expand its presence in the defense, aerospace, industrial, and embedded
application areas and address new, more demanding storage market
opportunities," concluded Mr. MacKenzie.
These financial results are preliminary and subject to the Company's
customary quarterly and year-end closing and review procedures.
No conference call will be held in conjunction with this press release.
SMART will report its full fourth quarter and fiscal year 2008 financial
results and future outlook, and hold its regularly scheduled conference
call to discuss its results at 1:30 p.m. Pacific Daylight Time (PDT), or
4:30 p.m. Eastern Daylight Time (EDT), on Thursday, September 25, 2008. The
call may be accessed U.S. toll free by calling (800) 218-0204 or U.S. toll
by calling (303) 205-0033. Please join the conference call at least ten
minutes early in order to register. The passcode for the call is "SMART".
SMART will also offer a live and archived webcast of the conference call,
accessible from the Company's website at www.smartm.com. A telephonic
replay of the conference call will be available through midnight PDT,
October 9, 2008, by dialing (800) 405-2236 and entering the passcode
11119315#. Callers outside the U.S. and Canada may access the replay by
dialing (303) 590-3000.
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, restructuring plan,
component pricing, 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 would cause or contribute to such differences
include, but are not limited to, unanticipated costs associated with or
failure to achieve the benefits of the proposed restructuring initiatives,
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 (SEC) including the Company's Form 10-K
for the fiscal year ended August 31, 2007, its Form 10-Q for the quarter
ended November 30, 2007, its Form 10-Q for the quarter ended February 29,
2008, and its Form 10-Q for the quarter ended May 30, 2008. 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.
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.