SMTC's Q4 Sales Up But Profit Slides on Charges PDF Print E-mail
Written by Mike Buetow   
Friday, 15 March 2013 11:00

TORONTO -- SMTC reported fourth-quarter net income of $987,000, including an unrealized loss of $536 thousand from foreign exchange contracts, down from $2.86 million a year ago.

Revenue for the quarter was $73.2 million, up 3% from the fourth quarter 2011 but down 3% sequentially. Gross margins were 8.6%, up from 6.5% in the third quarter.

The electronics manufacturing services provider is closing its plant in Markham, Ontario, and taking a $1.7 million charge.

For the year, revenue rose 35% increase over 2011 to $296 million. Adjusted EBITDA was $13 million, up 32%. Net profits rose to $7.54 million, up from $1.15 million in 2011.

"In 2013 our efforts will be focused on improving our gross margins through the lean transformation of our manufacturing plants, especially our Mexican plant, and we anticipate improvement in this area through the year. The closing of our Markham manufacturing operation, scheduled for the second quarter, will also help improve margins. We also had a strong quarter on working capital performance as evidenced by our lower debt levels. We will continue to focus on optimizing working capital levels throughout the year in combination with our gross margin improvement initiatives," said co-chief executive Alex Walker.

SMTC guided for 2013 revenue of $270 million to $285 million in revenue, and $14 million to $15 million in adjusted EBITDA. The guidance includes the Markham operations that are planned to cease operations in the second quarter, and excludes effects of unrealized foreign exchange gains or losses.

 

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