November 9, 2010 / 10:28 PM / in 7 years

UPDATE 1-Smart Technologies Q2 profit falls

* Q2 shr $0.38 vs $0.33 yr ago

* Q2 rev $222.7 mln vs $177.8 mln yr ago

* Q2 whiteboard sales up 16 percent

* US-listed shares down 18 pct after-mkt

Nov 9 (Reuters) - Canada’s digital whiteboard maker Smart Technologies’ SMA.TO SMT.O profit fell 22 percent, as income tax expense more than doubled in the quarter, sending shares down 18 percent in after-market trade.

Despite a 14 percent rise in revenue in North America -- its largest market -- the company was conservative in its outlook for growth in the region for the second half of fiscal 2011.

Smart Technologies’ results come two months after its fiercest rival, Promethean World PRWP.L, warned of strong competitive pressures and a U.S. education industry that has borne the brunt of a slowdown in government aid. [ID:nSGE67M0HL] [ID:nSGE67G0IH]

The company, which debuted on the Toronto Stock Exchange and Nasdaq in July, posted second-quarter net income of $44.3 million compared with $56.7 million a year ago. The company had a foreign exchange gain of $14.7 million in the year-ago quarter.

However, on a per share basis, it earned 38 cents a share, compared with last year’s 33 cents a share, as there are fewer shares outstanding in this quarter.

Adjusted earnings came in at 33 cents a share.

Revenue rose 25 percent to $222.7 million, helped by a 43 percent rise in revenue from Europe, Middle East and Asia, and a 14 percent rise in North America.

Smart Technologies -- whose whiteboards allow users to write, project, save and share notes, images and websites -- said whiteboard sales rose 16 percent to 117,723 units.

The Calgary, Alberta-based company’s shares, which have shed over a fourth of their value since listing, closed at $C13.30 on Tuesday on the Toronto Stock Exchange.

The U.S.-listed stock was down 18 percent at $10.68 in after-market trade. (Reporting by Gowri Jayakumar in Bangalore; Editing by Roshni Menon)

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