Overcounted Inventory Latest Hurdle for SMTC PDF Print E-mail
Written by Mike Buetow   
Monday, 27 January 2014 12:09

TORONTO, CANADA -- SMTC will conduct a full physical count of its inventory at the request of its new management following the identification of an overstatement at its EMS operation in Chihuahua, Mexico. SMTC said its financial statements for 2012 and through the first three quarters of 2013 should no longer be relied upon.

The company has determined that the Mexico site has overcounted its inventory by an estimated $3.2 million, about $2 million of which was due to errors in valuation that took place period to April 3, 2011. The remainder

The valuation errors were the result of unapproved shop floor practices by workers at the site, the company said, a mistake discovered and ended during the September 2013 quarter.

The company will be adjust its inventory balance by $725,000 for the periods in and preceding 2012, and by $390,000, $410,000 and $350,000, respectively, for the first three periods of 2013. The remaining overstatement, valued at $1.33 million, will be recorded in the December 2013 period.

The errors will be immaterial to the company's 2011 results.

Just last month, SMTC named Sushil Dhiman president and chief executive, effective Jan. 6.

 

Columns

Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

Read more...
 
The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.

Read more...
 

Features

Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Read more...
 
Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.

Read more...
 

Search

Search

Login

CB Login

Language

Language

English French German Italian Portuguese Russian Spanish
 

Products

Panasonic Debuts PanaCIM Maintenance with Augmented Reality
PanaCIM Maintenance with Augmented Reality software provides instant communication and information to factory technicians -- when and where it is needed -- so they can respond to factory needs more...