The whole %#@)(*&!% Story:
SMART Modular Technologies,
Inc. (Nasdaq: SMOD) today reported financial results for its second quarter ended April 30,
1998.
Net sales for the second quarter of fiscal 1998 increased 26 percent to $181.4 million from
$143.7 million recorded during the second quarter of fiscal 1997. For the six months ended
April 30, 1998, net sales totaled $384.3 million, an increase of 40 percent compared to net
sales of $275.3 million recorded in the same period of fiscal 1997. Net income for the second
quarter of fiscal 1998 rose 47 percent to $14.0 million from $9.5 million earned in the same
quarter of fiscal 1997.
Diluted net income per share grew 36 percent to $0.30 in the second quarter of fiscal 1998
from $0.22 in the same period of fiscal 1997. Net income for the six months ended April 30,
1998 totaled $30.4 million, or $0.64 per diluted share, compared to $18.2 million, or $0.42 per
diluted share recorded in the same period of fiscal 1997, representing an increase in net
income and diluted net income per share of 67 percent and 52 percent, respectively.
"In terms of financial performance, the second quarter progressed largely as we expected,"
stated Ajay Shah, SMART's President and CEO. "Operationally we spent approximately $9
million in the quarter in our continued efforts to add high-end surface mount technology and
test capacity in each of our manufacturing sites and, importantly, opened a new
manufacturing site in Penang, Malaysia. Also, we introduced a number of new products,
including 256MB SDRAM and registered SDRAM DIMMS adding to our PC 100 module
family; a 56K PCI internal modem card, a 56K HSP modem card; and Flash Memory with
an IDE interface. In addition, we had several important design wins in all of our product
lines. In particular, our embedded computer product division had several important design
wins. Finally, we continued to enhance our capabilities through the staffing of certain key
factory management positions, and by adding engineering, sales and quality assurance
personnel."
Shah continued, "Looking forward, we believe we have positioned ourselves with the
operational capabilities, capacity, products and people necessary to address the needs of the
markets and customers we serve. We further believe that the long-term prospects in our
markets are positive. However, as we look forward over at least the next two fiscal quarters
we see an uncertain environment. The reasons for this include ongoing efforts by OEMs to
reduce factory and channel inventories, lack of visibility in our options business, an
industry-wide excess supply of standard memory modules and, most fundamentally,
questions about the strength of end-user demand in a number of industry segments. Given
these considerations, in our third quarter of fiscal 1998 we currently expect that net sales will
be approximately $155 million and diluted net income per share will be approximately $0.19.
In our fiscal fourth quarter, we currently expect that net sales will be approximately $180
million and diluted net income per share will be approximately $0.26." |
