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SMTC Corporation, a global electronics manufacturing services provider, today announced fourth quarter 2017 and fiscal year 2017 results.
Fourth Quarter Fiscal 2017 Results Summary:
- Revenue of $38.6 million
- Gross Profit of $2.9 million or 7.5%
- Net Loss of ($0.9) million
- Adjusted EBITDA of $1.2 million
Fiscal Year 2017 Results Summary:
- Revenue of $139.2 million
- Gross Profit of $10.9 million or 7.8%
- Net Loss of ($7.9) million
- Adjusted EBITDA of ($1.6) million
- Debt, net of cash of $14.9 million
Revenue for the fourth quarter was $38.6 million compared to $39.7 million in the fourth quarter of 2016. Sequentially, revenue increased 12.2% from $34.4 million in the third quarter of 2017. The increase from the prior quarter is due to revenue opportunities from both existing customers and new customers increasing production during the quarter.
Gross profit for the fourth quarter of 2017 was $2.9 million or 7.5% of revenue compared with $3.4 million or 8.6% of revenue for the same period in 2016. Adjusted gross profit, which excludes the impact of unrealized foreign exchange gains or losses, was $3.4 million or 8.9% as a percentage of revenue in the fourth quarter of 2017 compared to $3.6 million or 9.0% in the same period of the prior year. Gross profit in the third quarter of 2017 was $3.0 million or 8.6% and adjusted gross profit was $3.1 million or 9.0%. The increase in adjusted gross profit in the fourth quarter of 2017 compared to the prior quarter was primarily due to the increase in revenues.
Net loss was $(0.9) million for the fourth quarter of 2017 compared to a net loss of $(0.6) million in the fourth quarter of 2016 and the third quarter of 2017. Adjusted EBITDA was $1.2 million in the fourth quarter of 2017 compared to $1.1 million for both the fourth quarter of 2016 and the third quarter of 2017. The increase in the fourth quarter of 2017 compared to the prior quarter is due to the improvement in adjusted gross profit from higher revenue, partially offset by additional selling, general and administrative expenses to support the revenue growth.
Chief Financial Officer Roger Dunfield stated, “While our net loss has fluctuated in part due to swings in unrealized foreign exchange gains and losses, we have stabilized our Adjusted EBITDA and improved over the prior quarter. We will continue to focus on incremental improvements and the need to drive down our working capital, specifically with respect to collections of accounts receivable, which in turn will reduce our net debt.”
Chief Executive Officer Edward Smith stated, “There is momentum building with our company as we have ended the year strong with two quarters of incremental revenue growth. While I do expect revenue to decrease in the first quarter of 2018 from the fourth quarter of 2017 due to seasonality, I am excited about our 2018 Plan.”
About SMTC Corporation
SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC manufacturing facilities span a broad footprint in the United States, China and Mexico. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, networking and computing, power and energy and medical market segments. SMTC is a public company incorporated in Delaware with its shares traded
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