On a GAAP basis, quarterly revenues in the quarter ending Dec. 31, 2011 increased by about two per cent to $185.1 million. However, gross margin fell to 43 per cent, compared with 48 per cent the year before.
"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," stated Nancy Knowlton, chief executive of the Calgary-based smartboard maker.
"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."
Among those affected by shifting assembly operations are workers in Kanata. In August, the firm announced it would likely lay off two-thirds of the local workforce of 300 by the end of fiscal 2012.
The firm also changed its fiscal 2012 guidance to say adjusted net income will fall 10 per cent year-over-year. Previously, it had stated results would be consistent with last year.
Revenues for the smartboard maker will be "near the low end" of Smart's previous target of flat to a decrease of five per cent.
