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SMTC Swings to Q2 Net Loss on Restructuring Charges |
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Written by Chelsey Drysdale
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Tuesday, 12 August 2008 |
TORONTO – EMS provider SMTC Corp. recorded a second-quarter net loss of $6.3 million after a $5.7 million restructuring charge. This compares to a net income of $100,000 for the same period last year. In the first quarter, SMTC reported net income of $400,000.
Second-quarter revenue was $66.3 million, up 0.3% year-over-year, and up almost 17% sequentially.
"Second-quarter
results reflect 20% sequential growth, as seven of our 10 largest
customers increased order levels over the previous quarter, and two
newer customers began to ramp production levels," said John Caldwell,
president and CEO.
During the quarter, SMTC brought its new
site in China online. As a result, the company moved production to the
facility and reduced staff levels at its plants in Chihuahua, Mexico;
Boston, and elsewhere. SMTC took $800,000 in charges related to
severance, plus a $4.9 million charge to write down leasehold
improvements at the Boston site.
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