News
TORONTO, Nov. 8 - SMTC Corp. today reported third-quarter net earnings of $2.9 million on revenue of $60.8 million.
Last year the electronics manufacturing services provider reported net earnings of $2.6 million on $77 million in sales.
Sequentially, net earnings were up from $1 million, although sales dropped from $66.3 million.
SMTC settled two legal disputes during the quarter. In a claim for obsolete inventory previously written down, the company recovered $1.8 million, which was recorded in cost of sales. And the company adjusted by $1.7 million an earlier restructuring charge taken for early termination of a lease.
SMTC took restructuring charges of $1 million during the quarter.
Gross profit was $7.3 million, or 12.1% of revenue, compared with $8.1 million (10.6% of revenue) last year and $7.3 million (11.1%) in the second quarter. Cash from operations was $3.9 million; as a result the company's outstanding revolving credit facility dropped to $9.7 million from $13.3 million. The company reported no cash balance on its balance sheet. Debt was reduced by $4 million during the quarter.
Through Oct. 3 SMTC posted revenue of $196.6 million, down from $229.2 million in 2003. Net earnings were $3.8 million, compared with a net loss of $37.2 million.
SMTC was recently notified by Nasdaq that it has regained compliance with the minimum bid price requirement of $1 per share.
ST. LOUIS, Nov. 4 -- LaBarge Inc. today reported first-quarter 2005 revenues rose 47% year-on-year, the best quarter in the company's history.
For the quarter ended Oct. 3, LaBarge posted net sales of $43.6 million, up from $29.7 million a year ago. Net earnings from continuing operations rose 68% to $2.3 million, versus $1.4 million last year. Total net earnings grew 81%; fiscal 2004 first-quarter earnings included a net loss from discontinued operations of $102,000. The first-quarter 2005 results include net sales of $12.9 million and earnings from the company's Pittsburgh operation, acquired in February 2004.
Gross margin remained 23%. Selling and administrative expense declined as a percentage of sales to 13%, from 16% in 2004. Total debt rose to $41 million, up from $37.7 million sequentially.
The company said bookings of new business -- particularly from the defense, government systems and natural resources market sectors -- were strong during the quarter. Order backlogs were down 5% sequentially to $149.5 million.
Defense customers made up 42% of sales, industrial 20%, natural resources 19%. The remaining 19% came from commercial aerospace and government systems, among other sectors.
The company guided for second-quarter sales and earnings substantially higher than last year and slightly higher than the first quarter.
Manufacturing grew for the 17th consecutive month, ISM said, based on its monthly poll of the supply chain. ISM said that while growth remains strong, inflation worries are rampant.
"Strong growth continues, but at a slower rate than in September," said ISM chairman Norbert Ore. "However, energy prices and commodity price inflation are major concerns for manufacturing buyers."
The PMI measure of economic activity fell 1.7 points to 56.8%, but remained above the benchmark 50% level for the 17th straight month.
New orders rose 0.2 points and production declined 6.8 points. "Manufacturing experienced three quarters of strong growth this year [and] the decline in order backlogs is an indication that manufacturing has peaked," said Ore.
Trends in pricing (higher) and customer inventories (lower) continued. Order backlogs dropped in October, yet imports and exports rose.
Electronic Components and Equipment, and Industrial and Commercial Equipment and Computers were among the sectors reporting growth.
June July August Sept. Oct.
PMI 61.1 62.0 59.0 58.5 56.8
New orders 60.0 64.7 61.2 58.1 58.3
Production 63.2 66.1 59.5 61.6 54.8
Inventories 51.1 49.9 51.7 51.0 48.2
Customer inventories 39.0 37.5 45.5 41.4 43.5
Backlogs 58.5 58.0 55.0 55.0 49.0
Source: Institute for Supply Management, November 2004
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