The Calgary-based smartboard maker saw its net income decrease by 94.5 per cent year-over-year in the first quarter of fiscal 2013, to $1.5 million from $23 million the same period last year.
Revenues at the company, which has Ottawa operations, were down 14 per cent year-over-year, sitting at $174.5 million compared to $202.4 million last year.
North American sales declined significantly, which the company stated was a result of constrained education budgets in the United States.
"We continued to execute during the first quarter, despite the challenging macro environment for education funding in North America and Europe," stated Tom Hodson, interim president and CEO.
Smart’s gross margin was 46 per cent, down from 50 per cent for the prior-year period, but up from the previous two quarters as a result of the company moving its assembly operations to contract manufacturers and other cost-down initiatives mitigating the decline.
The company incurred $5.7 million in one-time costs this quarter for consulting fees related to strategy and business process reviews, as well as organizational changes.
Smart says it anticipates the North American and European education markets to remain difficult for the rest of the fiscal year, and that the company may face a full-year revenue decline for fiscal 2013.
As of June 30, Smart had cash and cash equivalents of $88.4 million and $290.5 million of debt outstanding.
In the fourth quarter of fiscal 2012, the company disclosed a $2.7 million GAAP loss, and revenues fell by 11 per cent
Earlier this year, Smart’s CEO and executive chair – both co-founders of the company – resigned from their positions.
Smart laid off two-thirds of its Kanata workforce of 300 people recently as all digital whiteboard assembly shifted to contract manufacturers.