SMT’s Q1 Revenue Drops 36% YoY
HONG KONG – Surface Mount Technology (Holdings) Ltd. reported revenue for the first quarter ended June 30 of $53.2 million, down 36.2% year-over-year.
The electronics manufacturing services provider posted a loss attributable to shareholders of $3.3 million, compared to $847,000 in the same period of 2010.
The revenue decrease was mainly attributed to operation downsizing. Revenue dropped for LED backlight for the LCD-TV business. Demand for computer peripherals and automotive electronics products weakened. These were partly compensated by an increase in demand for industrial controls from European customers, the firm says.
The company has reduced its employees from 7,200 at the end of March to 4,900 at the end of June.
The Suzhou factory will cease operations by the end of September.
The global economic outlook is getting more uncertain with the recent downgrading of the US government credit rating, SMT says. The sovereign debt crisis in Europe is causing more volatility in the market. In China, the high inflation rate persists, and exports are slowing down. The overall outlook for the company’s business has become “even more challenging,” the firm notes.
