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TORONTO SMTC Corporation released its second-quarter results, with revenue of $61.1 million and net income of $1.3 million reported, for the quarter ending July 2, 2006. This shows a rise from $57 million and a net income of $0.3 million for this quarter last year. In the first quarter of 2006, SMTC Corporation reported revenue of $59.9 million and a net income of $1 million. Gross profits for the second quarter of 2006 was $6.8 million, or 11.2% of revenue, compared with $6.1 million, or 10.1% of revenue, for the previous quarter and $4.7 million (8.3% of revenue) for the second quarter of 2005.
Second-quarter numbers met internal targets, notes SMTC. "The Company invested in working capital in the quarter largely due to increased inventory levels to support a strong order book for the third quarter and due to the effect of certain component shortages delaying planned production at the end of the second quarter," states Jane Todd, senior vice president and chief financial officer.
SMTC Corporation is a mid-size provider of end-to-end EMS services, including printed circuit board assembly (PCBA) production, systems integration, and comprehensive testing, as well as enclosure fabrication, product design, sustaining engineering, and supply-chain management services.