SMTC's Q4 Profits Up 110%
TORONTO -- SMTC reported fourth-quarter net income rose 110% year-over-year to $4.5 million for the period ended Dec. 31.
Net income included a favorable $2.8 million income tax adjustment related to the expected future usage of certain income tax loss carry-forwards.
The electronics manufacturing services provider said revenue was up 26.2% to $64.6 million. Revenue slipped $900,000 from the third quarter. Gross profit for the quarter was $6.9 million or 10.7% of revenue compared with $7.9 million sequentially and $5.9 million for the fourth quarter 2009.
For the year, revenue increased 46.3% to $262.6 million, while net income increased more than 400% to $12.4 million. Gross profit also increased to 11.2% from 9.8% of revenues.
In a press release, president and chief executive John Caldwell said, "We rebounded from 2009 to achieve strong revenue and earnings growth and significant debt reduction in 2010. Although we see 2010's strong tailwinds moderating somewhat in 2011, we expect to remain solidly profitable and continue to generate strong free cash flow and further reduce debt."
The EMS firm finished 2010 with company-low net bank debt of $9.9 million, and will attempt to be close to debt-free by year-end.
