Here's the results:
Business Wire - May 19, 1999 16:31
FREMONT, Calif.--(BUSINESS WIRE)--May 19, 1999--SMART Modular
Technologies, Inc. (Nasdaq:SMOD) today reported financial results for its second quarter
ended April 30, 1999.
Net sales for the second quarter of fiscal 1999 increased 42 percent to $257.9 million from
$181.4 million recorded during the second quarter of fiscal 1998. Net income for the second
quarter of fiscal 1999 decreased 8 percent to $12.8 million from $14.0 million recorded
during the second quarter of fiscal 1998. Diluted net income per share decreased 7 percent
to $0.28 in the second quarter of fiscal 1999 from $0.30 recorded during the same period of
fiscal 1998.
"We are pleased with our overall financial results and the improvements over the previous
quarter. We experienced significant growth in our data communications products group and
in our embedded boards group while seeing continued good unit demand in our memory
division in an environment of declining DRAM prices. Operations performance was
significantly improved compared to the previous quarter as costs have been brought back
within target levels. We continue to see strength in overall demand, particularly for our data
communications and embedded products and in unit demand for our memory products,"
stated Ajay Shah, SMART's CEO.
"During the quarter, we expanded our embedded computer line of products to include the
Pentium processor-based SMARTengine IIcPCI-6U, the SMARTengine PCI+ISA with the
functionality of a PCI and ISA bus in one standard connector, and the SMARTengine
iPC-Baby AT board. We also launched PC133 memory modules in densities ranging from
64MB to 1GB, and continued our preparation for Rambus RIMM(TM)and SO
RIMM(TM)production. Additionally, the I/O division released its Mini PCI card, which
provides an internal data/fax modem and/or networking PCI card for small form factors such
as notebooks," noted Shah.
"We added key personnel in the areas of business development and operations throughout
our worldwide facilities. And importantly this past quarter, Keith McDonald, a longtime and
well-respected industry veteran joined the company as President. We believe that Keith's
extensive knowledge of the memory module market and his understanding and experience in
the embedded processor and data communications industries will help SMART to take
advantage of the opportunities for growth in each of the major business segments.
"Finally, we are proud of the recent recognition SMART has received for its efforts to reach
a higher level of excellence. Recently, SMART was named as one of the Forbes ASAP
Dynamic 100, an annual listing of the hottest U.S. technology companies, and received S.F.
Business Times' Fast 500 Award for its revenue growth in the technology sector. SMART
was also the proud recipient of Compaq's Strategic Commodity Excellence Award for its
outstanding performance and support of Compaq objectives," concluded Shah.
SMART Modular Technologies, Inc. is a leading independent manufacturer of specialty and
standard memory modules, Flash memory cards, high performance embedded computer
modules as well as I/O product solutions. SMART offers over 500 products to leading
OEMs in the computer, networking and telecommunications industries. SMART has
manufacturing facilities in California, Puerto Rico, Malaysia and Scotland as well as design
centers in California and India and sales offices worldwide. More information on SMART
can be obtained on the Internet at http:/www.smartmodulartech.com.
The second paragraph of this press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Actual results could differ materially from
those projected in the forward-looking statements as a result of certain factors including
without limitation a reduction in end-market and/or customer demand due to among other
things economic conditions and competition.
SMART MODULAR TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Six Months Ended
April 30, April 30,
1999 1998 1999 1998
Net sales $257,851 $181,421 $521,939 $384,262
Cost of sales 225,667 150,314 459,759 318,073
Gross profit 32,184 31,107 62,180 66,189
Operating expenses:
Research and development 2,724 2,295 5,180 4,441
Sales, general and
administrative 12,137 9,883 23,637 20,588
Total operating expenses 14,861 12,178 28,817 25,029
Income from operations 17,323 18,929 33,363 41,160
Other income, net 1,536 1,588 3,282 3,515
Income before provision for
income taxes 18,859 20,517 36,645 44,675
Provision for income taxes 6,029 6,555 11,715 14,291
Net income $ 12,830 $ 13,962 $ 24,930 $ 30,384
Diluted net income per share $ 0.28 $ 0.30 $ 0.53 $ 0.64
Weighted average common and
common equivalent shares
outstanding 46,378 47,202 46,774 47,209
SMART MODULAR TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, Oct. 31,
1999 1998
ASSETS
Current Assets:
Cash, cash equivalents and investments $168,208 $175,300
Accounts receivable, net 111,934 89,203
Inventories 61,092 40,138
Prepaid expenses and other 15,311 15,342
Total current assets 356,545 319,983
Property and Equipment, net 45,597 47,920
Other 1,603 1,089
Total assets $403,745 $368,992
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 70,985 $ 64,335
Accrued expenses 10,969 12,800
Income taxes payable 16,596 11,557
Total current liabilities 98,550 88,692
Long-term Liabilities:
Other accrued expenses 682 679
Total liabilities 99,232 89,371
Shareholders' Equity 304,513 279,621
Total liabilities and shareholders' equity $403,745 $368,992
CONTACT: SMART Modular Technologies, Inc.
David B. Mullin, 510/624-8229
Rebecca Takeda, 510/624-8195
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