Smart slashes spend on kapp promotion amid weak sales prospects
Rumours surrounding a possible sale of Smart Technologies are building after concerns regarding weak kapp sales and the hiring of Evercore Partners as a financial advisor.
Evercore was employed by the manufacturer of collaboration technologies after Smart revised its financial outlook in a move attributed to slower than expected sales of its recently released Smart Kapp product.
InAVate had tipped the product, which recently scooped a UK AV industry award, as a technology to watch in the future. However, with uptake limited, it appears it has not been demanded by end users in the volumes expected by the manufacturer.
Therefore, Smart Technologies has updated its financial outlook to reflect weaker than anticipated sales and embarked on a strategic review of the company.
Management has pledged to significantly reduce expenses, primarily relating to kapp sales and marketing activities and related R&D spend, while protecting core education and enterprise business operations and associated R&D activities.
In a statement Smart said it would “consider alternatives to improve value for all shareholders” with possible initiatives including the sale of the company.