TORONTO – EMS provider SMTC Corp. today reported second-quarter revenue was $39.1 million, down nearly 28% year-over-year, and down 12.9% sequentially.

Net loss for the quarter was $3.4 million, compared to a net loss of $2.5 million in the previous quarter, and a $6.3 million loss for the comparable period last year.

The second quarter loss includes a $3.8 million net loss from discontinued operations as a result of the closure of the company's Boston facility.

“As expected, our second quarter performance was adversely affected by the global recession, as customers reduced demand levels in response to end market softness and made significant inventory corrections,” said John Caldwell, president and CEO.

“The decision to close the Boston facility and transition enclosure and system integration capability to our Chihuahua, Mexico site was driven by both overcapacity and a broader strategy to offer customers high-quality manufacturing services from low cost locales. The company will not be providing specific financial guidance for the remainder of the year. While the economy may show some improvement in the second half of 2009, we expect continuing volatility quarter to quarter,” he said.

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