Smart Modular Raises Fiscal 2Q10 Fiscal Guidance

SMART Modular Technologies, Inc., manufacturer of memory modules and solid-state storage products, is raising its guidance for the second quarter of fiscal 2010 ending February 26, 2010 based on the Company’s preliminary review of its anticipated financial performance.

The Company expects to report net sales in the range of $140 to $145 million, approximately 10% higher than the previous guidance of $125 to $135 million. Gross profit is expected to be in the range of $36 to $38 million, approximately 20% higher than the previous guidance of $30 to $32 million.

The Company expects to report GAAP diluted net income per share in the range of $0.16 to $0.18 for the second quarter of fiscal 2010, substantially exceeding its previous guidance of $0.06 to $0.08 per share announced on December 17, 2009. Non-GAAP diluted net income per share is expected to be in the range of $0.14 to $0.16, a substantial increase to the previous guidance provided by the Company of $0.09 to $0.11.

The improved guidance for the second quarter of fiscal 2010 is primarily driven by a combination of the positive DRAM pricing environment, continued strong end user demand from both the PC and enterprise markets and less than anticipated adverse impact from seasonality.

Third Quarter Fiscal 2010 Outlook
For the third quarter of fiscal 2010 ending May 28, 2010, SMART expects net sales to be relatively flat sequentially as demand stabilizes. Gross profit is expected to be in the range of $29 to $32 million, and GAAP diluted net income per share is expected to be in the range of $0.07 to $0.09 as DDR2 availability increases and DRAM pricing moderates. On a non-GAAP basis, SMART estimates net income per diluted share will be in the range of $0.09 to $0.11.