News
TORONTO – SMTC Corp. reported revenue of $61.1 million and net income of $1.3 million, or $0.09 per share, for the second quarter ended July 2, up from revenue of $57 million and net income of $0.3 million from Q2 2005. The results are also up from the first quarter of 2006, when the company reported revenue of $59.9 million and net income of $1.0 million, or $0.06 per share.
Gross profit for the quarter was $6.8 million, or 11.2% of revenue, compared with $6.1 million, or 10.1%, for the previous quarter and $4.7 million, or 8.3% of revenue for Q2 2005.
John Caldwell, president and chief executive, said in a statement, “Strengthening revenue resulted from increased orders from both long standing and newer customers while improved margins in part reflect favorable customer and product mix.”
“The company again affirms annual guidance provided at the beginning of the year indicating that 2006 is expected to be a year of growth in both revenues and earnings,” stated Caldwell. “We expect continuing revenue growth in the last half of the year and increased net income.”
On July 21, SMTC was notified of the approval of a U.S. income tax refund of $2.7 million plus interest relating primarily to fiscal years 1999 and 2000. It is anticipated that the refund will be received in Q3 2006. Separately, on July 31, redundant land located in Texas was sold for net proceeds of approximately $1 million. Both transactions are expected to be recorded in the third quarter of 2006 and proceeds of approximately $4 million applied to reduce indebtedness.
Gross profit for the quarter was $6.8 million, or 11.2% of revenue, compared with $6.1 million, or 10.1%, for the previous quarter and $4.7 million, or 8.3% of revenue for Q2 2005.
John Caldwell, president and chief executive, said in a statement, “Strengthening revenue resulted from increased orders from both long standing and newer customers while improved margins in part reflect favorable customer and product mix.”
“The company again affirms annual guidance provided at the beginning of the year indicating that 2006 is expected to be a year of growth in both revenues and earnings,” stated Caldwell. “We expect continuing revenue growth in the last half of the year and increased net income.”
On July 21, SMTC was notified of the approval of a U.S. income tax refund of $2.7 million plus interest relating primarily to fiscal years 1999 and 2000. It is anticipated that the refund will be received in Q3 2006. Separately, on July 31, redundant land located in Texas was sold for net proceeds of approximately $1 million. Both transactions are expected to be recorded in the third quarter of 2006 and proceeds of approximately $4 million applied to reduce indebtedness.
TAIPEI -- Recent aggressive moves by EMS providers, including Flextronics and Hon Hai, will step up competition in the digital still camera (DSC) manufacturing industry. Taiwanese contract makers are expected to come under more pressure, market watchers told the Taipei Times.
"Manufacturing digital cameras is a growing industry with higher margins, and EMS players want to have a share," said Ken Yu, an analyst with SinoPac Securities Corp.
"Manufacturing digital cameras is a growing industry with higher margins, and EMS players want to have a share," said Ken Yu, an analyst with SinoPac Securities Corp.
San Jose -- The world’s third largest computer maker, Lenovo Group Ltd., is rolling out a new line of desktop PCs with chips from Advanced Micro Devices, another sign that AMD is making inroads against rival Intel Corp.
Lenovo has long offered PCs with AMD chips in its home market of China, but not until February did Lenovo launch AMD-based PCs elsewhere, with a line of computers for small and medium-sized businesses. Now, AMD chips will be available in Lenovo's new ThinkCenter A60 PCs, which are targeted at big business customers.The systems are expected to be announced later this week.
Lenovo has long offered PCs with AMD chips in its home market of China, but not until February did Lenovo launch AMD-based PCs elsewhere, with a line of computers for small and medium-sized businesses. Now, AMD chips will be available in Lenovo's new ThinkCenter A60 PCs, which are targeted at big business customers.The systems are expected to be announced later this week.
Even while locked in an intense price war with AMD, Intel sells about 80% of the world's microprocessors. But AMD has eaten up about 5 percentage points of Intel's market share in the past year with better performing chips.
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