Reading time ( words)
SMTC Corporation, a global electronics manufacturing services provider, today announced second quarter 2015 unaudited results.
- Reports revenue of $57.7 million, compared to $58.0 million in the prior year and an increase of 19% vs. the first quarter of 2015.
- Reports gross profit of 9.4% compared to 10.1% in the prior year. When excluding the effects of the unrealized portion of foreign exchange on derivative financial instruments, adjusted gross profit was 8.0% compared to 8.6% in the prior year. Also included in gross profit was a realized foreign exchange loss on derivative instruments of $1.0 million compared to a loss of $0.3 million in the prior year
- Reports net earnings of $1.0 million compared to net earnings of $0.1 million in the prior year, reflecting continued operating improvement.
- Reports $1.8 million or 3.1% in adjusted EBITDA, a 16.9% increase compared to prior year of $1.5 million or 2.6%.
- EPS of $0.06 compared to $0.01 in the prior year.
- Positive cash flow from operations of $0.2 million compared to negative cash flow of $1.2 million in the prior year.
- Debt, net of cash of $17.2 million, compared to $21.2 million in the second quarter of 2014; a reduction of $4 million.
Chief Executive Officer Sushil Dhiman stated, "As mentioned in previous earnings calls, the business has experienced a transition in volume away from two previously large customers. I am pleased with our second quarter revenues, which reflect continued growth from current customers and the addition of significant new customers. Our sales funnel is strong and we are continuing to attract new customers, which are expected to position us for growth in 2016."
Net earnings during the quarter increased to $1.0 million compared to $0.1 million in the prior year. Earnings per share for the quarter were $0.06, compared to $0.01 in the prior year.
Chief Financial Officer Jim Currie stated, "Continued focus on our working capital and cost structure has allowed us to produce improved bottom line results, at comparable revenues to the prior year. The business is now positioned for operating leverage with the achievement of revenue growth."
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 facilities span a broad footprint in the United States, Mexico, and China, with approximately 1,285 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 original equipment manufacturers (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. For further information on SMTC Corporation, please visit our website at www.smtc.com