Smart Technologies Prices IPO Within Range

| About: SMART Technologies (SMT)

SMART Technologies (NASDAQ:SMT), a designer, developer and seller of interactive technology products and solutions priced its IPO yesterday at $17 per share, the midpoint of its expected range.

Business Overview (from prospectus)

SMART Technologies designs, develops and sells interactive technology products and solutions that enhance learning and enable people to collaborate in innovative and effective ways. We are the global leader in the interactive whiteboard product category, which is the core of our interactive technology solutions. We introduced the world’s first interactive whiteboard in 1991 and since then have shipped over 1.6 million of our SMART Board interactive whiteboards worldwide.

SMART Board interactive whiteboards combine the simplicity of a whiteboard and the power of a computer. By touching the surface of a SMART Board interactive whiteboard, the user can control computer applications, access the Internet, write in digital ink and save and share work. Our award-winning interactive whiteboards are the result of more than 20 years of technological innovation focused on providing an intuitive and compelling user experience. Our interactive whiteboards are designed to serve as the focal point of a broad technology platform in classrooms and meeting rooms. We complement our interactive whiteboards with a range of modular and integrated interactive technology products and solutions, including hardware, software and content created by both our user community and professional content developers.

Offering: 35.3 million (26.5 million shares by selling shareholders) shares at $16 - $18 per share. Net proceeds of $59 million will be used for debt retirement.

Lead Underwriters: Morgan Stanley (NYSE:MS), Deutsche Bank Securities (NYSE:DB), RBC Capital Markets, Credit Suisse (NYSE:CS), BofA Merrill Lynch (NYSE:BAC)

Financial Highlights:

Revenue increased by 38% from $468.2 million in fiscal 2009 to $648.0 million in fiscal 2010...Gross margin for fiscal 2010 increased by $121.5 million, from 43% of revenue, in fiscal 2009, to $321.5 million, or 50% of revenue, in fiscal 2010...Selling, marketing and administration expenses increased by $39.1 million, from $99.7 million in fiscal 2009 to $138.8 million in fiscal 2010...Research and development expenses increased by 34%, from $25.0 million in fiscal 2009 to $33.6 million in fiscal 2010...Foreign exchange loss (gain) for fiscal 2010 changed by $185.8 million, from a loss of $94.0 million in fiscal 2009 to a gain of $91.8 million in fiscal income for fiscal 2010 increased by $248.6 million to $142.0 million compared to a net loss of $106.6 million in fiscal 2009...


We are engaged in an industry that is highly competitive. Because our industry is evolving and characterized by technological change, it is difficult for us to predict whether, when and by whom new competing technologies may be introduced or when new competitors may enter the market. We face increased competition from companies with strong positions in certain markets we currently serve and in new markets and regions we may enter. We compete with other interactive whiteboard developers such as Promethean World Plc (PRW), currently our principal competitor, Hitachi, Ltd. (HIT), Panasonic Corporation (PC) and Samsung Electronics Co. In addition, makers of personal computer technologies, television screens, mobile phones and other multi-media technologies such as Apple Inc. (NASDAQ:AAPL), Cisco Systems, Inc. (NASDAQ:CSCO), Dell Inc. (NASDAQ:DELL), Hewlett-Packard Company (NYSE:HPQ), LG Electronics, Inc. and Microsoft Corporation (NASDAQ:MSFT) may seek to provide integrated solutions that include interactive learning and collaboration features substantially similar to those offered by our products.

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