Smart Technologies 4Q misses; outlook disappoints
Smart Technologies Inc., a maker of touch-screen interactive white boards, said Wednesday that its fourth-quarter net income fell 28 percent as marketing and research costs grew but revenue growth didn't keep pace. The results and the company's outlook were worse than expected and shares nose-dived.
Net income at the Calgary, Alberta-based company in the three months to March 31 fell to $7.6 million, or 6 cents per share, from $10.5 million, also 6 cents per share. The company had about 57 million more shares outstanding in 2010 quarter.
Excluding the effect of foreign currency movements, adjusted earnings came to a penny per share, down from 3 cents per share a year ago. That was well short of the 8 cents per share expected by analysts polled by FactSet.
Revenue rose 8 percent to $167.3 million from $155.6 million, beating the $163 million in revenue expected by analysts.
CEO Nancy Knowlton said in a statement that the additional expenses for things such as research and development were critical "to maintain our long-term competitive edge in the market and take advantage of emerging opportunities."
For full-year fiscal 2012, Smart expects revenue to be flat to down 5 percent from fiscal 2011. Analysts expected a 6 percent revenue gain to $845 million.
Shares plunged $1.34, or 13.8 percent, to $8.38 in after-hours trading Wednesday following the release of the results. Shares closed down a penny at $9.72 in the regular session.