Smart Modular posts 2Q profit on higher revenue

NEWARK, Calif.

Smart Modular Technologies Inc. reported a profit for the fiscal second quarter on Thursday as improved customer demand and higher pricing lifted revenue by nearly half.

Results surpassed analyst estimates, sending shares up in aftermarket activity.

In the quarter ended Feb. 26, the maker of memory storage devices earned $16.1 million, or 25 cents per share, compared with a loss of $1.9 million, or 3 cents per share, in the prior-year period.

Excluding one-time items, Smart Modular earned $14.9 million, or 23 cents per share, compared with year-ago profit of $5.4 million, or 8 cents per share.

Revenue rose to $160.1 million from $109.1 million.

Analysts projected earnings of 14 cents per share and revenue of $142.5 million, according to a Thomson Reuters survey.

Smart Modular said it expects to book fiscal third-quarter net sales of $175 million to $185 million and net income of 15 cents per share to 19 cents per share. Excluding one-time items, Smart Modular said profit should range from 18 cents per share to 22 cents per share.

Analysts expected profit of 8 cents per share and revenue of $143.8 million.

Shares of Smart Modular soared $1.03, or 14.4 percent, to $8.19 in aftermarket activity. The stock earlier rose 39 cents, or 5.8 percent, to close at $7.16. The stock has ranged from $1.20 to $7.79 over the past year.