CALGARY, Oct. 9, 2015 /CNW/ - SMART Technologies Inc. (NASDAQ: SMT)
(TSX: SMA), a leading provider of collaboration solutions, today
provided an update on its financial outlook for the balance of fiscal
2016, and announced its intent to embark on a strategic review.
Although new solutions are generating a growing share of total revenue,
sales from SMART kapp are growing at a slower rate than originally
envisaged, and as a result, the outlook for fiscal 2016 will be weaker
than anticipated. Additional information will be provided in the
Company's Q2 earnings release.
Given the change in outlook, management has taken decisive action to
significantly reduce expenses, primarily relating to kapp sales and
marketing activities and related R&D spend, while protecting core
education and enterprise business operations and associated R&D
activities. The new operating model is expected to be in place before
calendar year end. These actions are anticipated to result in the
company having sufficient liquidity and cash flow neutrality for fiscal
In addition to significantly aligning the Company's operating model to
focus on profitable and growing businesses, the Board is embarking on a
strategic review and has retained Evercore Partners as its financial
advisor to assist in this process.
The Board will consider alternatives to improve value for all
shareholders. Initiatives that could be considered include, but are not
limited to: the sale of the Company or other business combination; the
recapitalization of the Company; or continuing to execute the current
SMART does not intend to disclose developments with respect to the
strategic review process until the Board has approved a specific course
of action or otherwise determines that disclosure is necessary or
appropriate. There can be no assurances that the strategic review
process will result in an acceptable transaction or course of action in
The Board believes that the combination of cost cutting and strategic
review initiatives will provide the best available outcome for the
Company, its shareholders and stakeholders.
SMART Technologies Inc. (NASDAQ: SMT, TSX: SMA) is a world leader in
simple and intuitive solutions that enable more natural collaboration.
We are an innovator in interactive touch technologies and software that
inspire collaboration in both education and businesses around the
globe. To learn more, visit smarttech.com.
SMT - M
Certain statements made in this press release are forward-looking
statements within the meaning of the U.S. federal and applicable
Canadian securities laws. Statements that include the words "expect",
"intend", "plan", "believe", "project", "estimate", "anticipate",
"may", "will", "continue" and similar words or statements of a future
or forward-looking nature identify forward-looking statements. In
particular and without limitation, this press release contains
forward-looking statements pertaining to our financial outlook for the
balance of fiscal year 2016, our expectations regarding the time to
implement the new operating model, our expectation regarding liquidity
and cash flow for fiscal year 2017 and our expectation as to the
possible results of our strategic review.
All forward-looking statements address matters that involve risks,
uncertainties and assumptions. Accordingly, there are or will be
important factors and assumptions that could cause our actual results
and other circumstances and events to differ materially from those
indicated in these statements. We believe that these factors and
assumptions include, but are not limited to, those described under
"Risk Factors" in our Annual Report on Form 20-F for the fiscal year
ended March 31, 2015, which can be accessed on the SEDAR website at www.sedar.com or on the website of the U.S. Securities and Exchange Commission at www.sec.gov.
Although we believe that the assumptions inherent in the forward-looking
statements contained in this presentation are reasonable, undue
reliance should not be placed on these statements, which only apply as
of the date hereof. We undertake no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required by
© 2015 SMART Technologies. SMART kapp, SMART Board 6065, SMART amp,
Notebook Advantage, SMART Room System, the SMART logo and smarttech are
trademarks or registered trademarks of SMART Technologies in the U.S.
and/or other countries.
SOURCE SMART Technologies Inc.
For further information:
Investor Relations Manager
SMART Technologies Inc.
Director, Corporate Communications
SMART Technologies Inc.