SMART Tech Plummets 15% on Gross Margin Pressure
Shares of SMART Tech (NASDAQ: SMT) are under much pressure during Friday's trading session after the company announced third quarter results which beat analyst estimates, but gross margins raised a cause for concern.
Commenting on the events, Nancy Knowlton, President and CEO of SMART Tech said, "While the company continues to execute its growth strategy, our gross margin during the third quarter was impacted by lower projector pricing within our bundled solutions, as well as increased sales to emerging international markets. We expect to offset this decline in our gross margin through product design projects, realizing cost savings associated with the move of assembly operations to contract manufacturers in low-cost jurisdictions and the continued drive to grow sales in the business segment."
Currently, shares of SMART Tech are trading 13% lower at $3.59.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.