Smart Technologies has updated its financial outlook for the 2016 fiscal year, and announced its intent to embark on a strategic review.
New solutions are generating a growing share of Smart’s total revenue. However, sales from the Smart Kapp product line are growing more slowly than predicted. As a result, the outlook for the fiscal year will be weaker than expected.
Due to this change, Smart’s management has decided to significantly cut costs – primarily relating to Kapp sales and marketing activities, and related R&D spend. They will, however, take steps to protect the core education and enterprise business operations, and associated R&D activities. This new operating model is intended to be in place before the end of the calendar year.
The board of Smart Technologies is also beginning a strategic review, and has retained Evercore Partners as its financial advisor. Moves that could be considered include the continuation of the current business model; the recapitalisation of the company; or the sale of the company or other business combination. A decision will be shared once the board has approved a specific course of action.
