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SMTC's First Quarter Revenue Up 37% YoY
May 12, 2010 | PR NewswireEstimated reading time: 2 minutes
SMTC Corporation, a global electronics manufacturing services provider, today reported 2010 first quarter results. Revenue for the first quarter was $61.4 million, increasing sequentially by $10.2 million or 20% and $16.5 million or 37% higher than the first quarter of 2009. Net income for the quarter, adjusted to exclude the $.6 million non-cash stock based compensation charge, was $2.6 million, or $0.18 per share. This compared to net income of $1.7 million or $0.12 per share in the fourth quarter of 2009 when adjusted to exclude a $0.5 million tax recovery. The net loss of the comparable period last year was $2.5 million and included restructuring charges and losses from discontinued operations approximating the net loss reported. Gross profit for the first quarter at $6.4 million compares with $5.9 million in the previous quarter and $3.9 million for the first quarter of 2009. Expressed as a percentage of revenue, gross margin remained strong and well ahead of the comparable period last year.
"As expected, SMTC produced strong first quarter results with revenue increasing 20% sequentially, the result of increased orders for most of SMTC's longstanding customers combined with five newer customers ramping production. This was our third consecutive quarter of robust revenue growth," stated John Caldwell, President and Chief Executive Officer. "We converted this increased revenue into more than a 50% sequential increase in net income adjusted for stock based compensation and income tax recoveries through leveraging our current manufacturing capacity and efficient cost structure."
"Despite continuing higher inventory levels to support continuing quarterly growth, SMTC generated $3.7 million in cash during the quarter with most being applied to reduce debt," stated Jane Todd, Senior Vice President, Finance, and Chief Financial Officer.
"We continue to see signs of economic recovery. We experienced wide spread increased customer orders in the first quarter and, thus far, in the second quarter. With this strong order intake combined with a large opening order backlog, we expect continued sequential second quarter revenue growth. Although we have less visibility beyond the second quarter, at this point we expect aggregate revenue in the last two quarters at least to attain the first half level," stated Caldwell.
About SMTC Corporation
SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end 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 facilities span a broad footprint in the United States, Canada, Mexico and China, with more than 1,000 full time employees. 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 OEMs and emerging technology companies primarily within industrial, computing and communication market segments.
SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX and on the Toronto Stock Exchange under the symbol SMX. For further information, visit http://www.smtc.com/.