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Written by Mike Buetow
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Thursday, 06 November 2008 05:52 |
TORONTO -- SMTC Corp. bucked an industry trend, reporting upticks in third-quarter net income ($100,000) and revenue ($60.1 million).
Sales were up 11.3%, while earnings showed a big bump from the year-ago net loss of $1.2 million. However, sales were down 9% sequentially.
During the quarter, the top 50 electronics manufacturing services provider took a $600,000 writeoff for deferred financing costs. Gross profit was $4.8 million, or 8%
of revenue, compared with $4.5 million, or 6.8% of revenue sequentially and $3.4 million (6.3%) a year ago. The company generated $8.1 million in cash from operations, which it applied to its debt, reducing net debt to
its lowest level in 10 years."Third quarter results while positive, did not
meet our internal targets in large part due to production delays as we
transferred certain customer volumes from our Mexico to China site in
the quarter. However, we ended the quarter with a strong order
backlog," said John Caldwell, president and chief executive.
"We
expect fourth quarter revenue at or above the third quarter and higher
earnings in part due to a stronger US dollar," Caldwell said.
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