TORONTO – SMTC Corp. today reported third-quarter revenue of $44.2 million, up 13% sequentially. Revenue dropped 16.8% year-over-year.

Net income for the quarter was $200,000, compared to a net loss of $3.4 million in the prior quarter, and net income of $100,000 in the same quarter last year.
 
Net income includes a $300,000 net loss from the closure of the firm’s Boston facility in the second quarter.
 
“As expected, our third quarter results improved over the second quarter, thought to be the low point of the economic cycle,” said John Caldwell, president and CEO.

"Earlier in the year, we took aggressive cost reduction actions, including the closure of the Boston site, to significantly lower our cost structure. As evidenced by this quarter's results, we successfully reduced our breakeven cost position to remain profitable at a much lower revenue level.”
 
While stating sequential growth is expected as SMTC sees some early signs of modest improvement in the economy, Caldwell would not provide guidance for the fourth quarter. “We continue to expect volatility quarter to quarter. We expect sequential growth in the fourth quarter through improved demand from certain longstanding customers and modest revenue from new customers that are ramping to full production in 2010."