TORONTO – EMS provider SMTC Corp. reported revenue of $54 million in the third quarter, down nearly 18% year-over-year, and down 18.3% sequentially.
The company recorded a net loss of $1.2 million, compared to a net income of $6.1 million in the third quarter last year.
The net loss includes a $1 million gain for stock-based compensation, the result of marked-to-market deferred stock liabilities offset in part by approximately $600,000 arising from restructuring charges and the write off of certain deferred financing costs.
Gross profit for the third quarter was $3.4 million, a decrease of 42.3% sequentially and year-over-year.
The third quarter was “particularly difficult … as almost all of our customers reduced orders due to lower end customer demand or to adjust inventory levels. We believe the changes in end customer demand is not systemic, nor the result of macro economic factors. We took action early in the quarter to lower expenses, balancing the requirement to adjust costs while retaining capability to support sequential growth expected in the fourth quarter," stated John Caldwell, president and CEO.
"For the fourth quarter, we expect to substantially increase sequential revenue, although we are unlikely to attain the record level in the fourth quarter of 2006. We also expect to return to satisfactory margin and profitability levels," said Caldwell.
Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedInPrint Article