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SMTC Corporation has announced revenue of $37.1 million for the first quarter of 2018, up by 11.9% compared to $33.2 million in the first quarter of 2017. Gross profit reached $3.9 million or 10.4%, representing an increase of $0.3 million reported in the first quarter of 2017.
"The improvement in our overall financial results represents solid progress that we’ve made in implementing change here at SMTC," said Ed Smith, SMTC president and chief executive officer. "I am pleased with the trust our customers have placed in us to expand their business with SMTC and the continued progress we made in the first quarter with improved execution throughout the organization."
“Demand in our served markets remains strong and our backlog gives us visibility for the second quarter revenue which we expect will exceed our first quarter 2018 results. By targeting higher-value-added business, with customers in markets of consequence, we believe we have multiple opportunities for margin expansion as we successfully execute our plan. Finally, we achieved positive cash flows from operations, and along with sales channel development, we are optimistic that the measures we’ve taken should enable higher levels of financial performance moving forward,” Smith added.
Revenue for the first quarter was $37.1 million, up 11.9% from $33.2 million in the first quarter of 2017. Sequentially, revenue decreased 3.9% from $38.6 million in the seasonally strong fourth quarter of 2017. The year-over-year increase from the first quarter of 2017 was the result of strong demand both from existing and new customers in 2018 and was well-diversified among the company’s target end-markets. $1.7 million of the increase of revenue in the first quarter was due to the impact of a new accounting recognition standard which was effective January 1, 2018.
Gross profit for the first quarter of 2018 was $3.9 million or 10.4% of revenue compared with $3.6 million or 10.7% of revenue for the same period in 2017. Adjusted gross profit, was $3.5 million or 9.5% as a percentage of revenue in the first quarter of 2018 compared to $2.3 million or 6.9% in the same period of the prior year. Gross profit in the fourth quarter of 2017 was $2.9 million or 7.5% and adjusted gross profit was $3.4 million or 8.9%.
Net profit was $8 thousand for the first quarter of 2018 compared to a net loss of $(377) thousand in the first quarter of 2017. The company reported a net loss of $(904) thousand in the fourth quarter of 2017.
Adjusted EBITDA was $0.9 million in the first quarter of 2018 compared to $(0.3) million for in the first quarter of 2017 and $1.2 million in the fourth quarter of 2017. The decrease in the first quarter of 2018 compared to the prior quarter is due to expected lower seasonal revenue in the first quarter.
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 on the Nasdaq National Market System under the symbol SMTX. For further information on SMTC Corporation, please click here.