Smart Tech Announces Weaker Outlook For FY 2016

SMART Technologies Inc. SMT 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 year 2017. 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 business model. 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 any form. 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.