Jenna very nice call on SMOD...i love it!!!!!check this out!!!!
Company Press Release
Smart Modular Technologies, Inc. Reports First Quarter
Fiscal 1998 Financial Results
Net Sales Up 54%
Net Income Up 89%
Diluted EPS Up 75%
FREMONT, Calif.--(BUSINESS WIRE)--Feb. 19, 1998--SMART Modular Technologies, Inc.
(NASDAQ:SMOD - news) today reported financial results for its first quarter ended January 31,
1998.
Net sales increased 54 percent to $202.8 million from $131.6 million in the first quarter of fiscal
1997. Net income for the quarter rose 89 percent to $16.4 million from $8.7 million in the same
period last year. Diluted net income per share, as adjusted for the Company's December 1997 stock
split, grew 75 percent to $0.35 from $0.20 recorded in the first quarter of fiscal 1997.
''Overall, this was a good quarter for SMART,'' stated Ajay Shah, SMART's President and Chief
Executive Officer. ''The level of business was consistent with our expectations and drove continued
growth in our bottom line results. Our sales performance was somewhat lower than we had
expected due to a dramatic reduction in DRAM pricing during the quarter coupled with continued
growth in our consigned business. However, as this quarter clearly demonstrates, our profitability is
more dependent on our value add than on DRAM pricing.''
Shah added, ''We continue to believe the market will move to adopt PC100 memory modules
based upon Synchronous DRAM. To position SMART to take advantage of this trend we
continued to aggressively add to our capacity and capabilities in all our manufacturing sites: Fremont,
California; Aguada, Puerto Rico; and East Kilbride Scotland. Capital spending in the first quarter
was approximately $10 million compared to $17 million for all of fiscal 1997.''
''Finally,'' concluded Shah, ''we added new products to our portfolio including memory modules for
desktop PCs and servers based on PC100 Synchronous DRAM, the Power PC based
SMARTengine/50cPCI-3U product in our embedded computer product line and our
world-approved 56K/ISDN/GSM PC Card modems for our communications product line.''
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 communication card solutions. SMART offers over 500 products to leading OEMs in the
computer, networking and telecommunications industries. SMART has manufacturing facilities in
California, Puerto Rico 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.smartm.com
SMART MODULAR TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
January 31,
1998 1997
Net sales $202,840 $131,612
Cost of sales 167,758 108,981
-------- --------
Gross profit 35,082 22,631
-------- --------
Operating expenses:
Research and development 2,146 1,829
Sales, general and administrative 10,706 8,126
-------- --------
Total operating expenses 12,852 9,955
-------- --------
Income from operations 22,230 12,676
Other income, net 1,927 529
-------- --------
Income before provision for income taxes 24,157 13,205
Provision for income taxes 7,735 4,495
-------- --------
Net income $ 16,422 $ 8,710
======== ========
Diluted net income per share $ 0.35 $ 0.20
======== ========
Weighted average common and common
equivalent shares outstanding 47,216 42,924
======== ========
Basic net income per share $ 0.39 $ 0.23
======== ========
Weighted average common shares
outstanding 42,472 37,888
======== ========
SMART MODULAR TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Jan. 31, Oct. 31,
1998 1997
(Unaudited)
ASSETS
Current Assets:
Cash, cash equivalents and investments $161,607 $150,003
Accounts receivable, net 78,766 95,366
Inventories 37,865 39,336
Prepaid expenses and other 17,293 18,317
-------- --------
Total current assets 295,531 303,022
Property and equipment, net 32,258 24,604
Other 688 359
-------- --------
Total assets $328,477 $327,985
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 51,991 $ 73,833
Accrued expenses 12,912 15,762
Income taxes payable 14,230 7,312
-------- --------
Total current liabilities 79,133 96,907
Long-term Liabilities:
Deferred taxes and other 676 758
-------- --------
Total liabilities 79,809 97,665
-------- --------
Total Shareholders' Equity 248,668 230,320
-------- --------
Total liabilities and
shareholders' equity $328,477 $327,985
======== ========
Contact:
SMART Modular Technologies, Inc.
David B. Mullin, 510/624-8229 (CFO)
Rebecca Takeda, 510/624-8195 (IR)
or
Morgen-Walke Associates, Inc.
Doug Sherk or Lisa Laukkanen, 415/296-7383
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