NEWARK, CA, Oct. 26, 2009 (Marketwire) --
NEWARK, CA -- (Marketwire) -- 10/26/09 -- SMART Modular Technologies (WWH), Inc. ("SMART" or the "Company") (NASDAQ: SMOD), a leading independent manufacturer of memory modules, solid state drives, embedded computing subsystems, and TFT-LCD display products, today announced that it recently repurchased $26.2 million aggregate principal amount of its senior secured floating rate notes due 2012 (the "Notes") at a discount. Using $25 million cash on hand, SMART paid 95.5% of the principal or face amount of the Notes to acquire and retire such debt early. The aggregate principal amount outstanding under the Notes is now $55.1 million, down from $81.3 million.
By using cash on hand to extinguish almost one-third of its long-term debt, SMART expects to save $1.5 million in annual interest expense based on the current interest rate under the Notes of approximately 5.8%. Earlier this month, SMART reported that it had approximately $147.7 million of cash and cash equivalents as of August 28, 2009 (the end of its fiscal 2009) and that it had generated operating cash flow of $52.5 million during fiscal 2009.
"We took advantage of an opportunity to repurchase a portion of our long-term debt at a discount. The repurchase utilized our excess cash to retire debt early and is accretive to income, while reducing leverage," explained Barry Zwarenstein, SMART's Senior Vice President and Chief Financial Officer. "On a long-term basis, we expect to generate positive cash flow from operations, which will further strengthen our balance sheet and enhance our financial flexibility."
About SMART
SMART is a leading independent designer, manufacturer and supplier of electronic subsystems to original equipment manufacturers, or OEMs. SMART offers more than 500 standard and custom products to OEMs engaged in the computer, industrial, networking, gaming, telecommunications, and embedded application markets. Taking innovations from the design stage through manufacturing and delivery, SMART has developed a comprehensive memory product line that includes DRAM, SRAM, and Flash memory in various form factors. Under its Adtron brand, SMART also offers high performance, high capacity solid state drives for enterprise, defense/aerospace, industrial automation, medical, and transportation markets. SMART's Display Products Group designs, manufactures, and sells thin film transistors (TFT) liquid crystal display (LCD) solutions to customers developing casino gaming systems as well as embedded applications such as kiosk, ATM, point-of-service, and industrial control systems. SMART's presence in the U.S., Europe, Asia, and Latin America enables it to provide its customers with proven expertise in international logistics, asset management, and supply-chain management worldwide.
