TORONTO -- SMTC reported fourth-quarter revenue of $51.2 million, down 7.4% year-over-year but up 16% sequentially.

For the quarter ended Dec. 31, the electronics manufacturing services provider reported net earnings from continuing operations of $2.4 million, up 380% from the third quarter and 140% from last year. Net earnings after discontinued operations were $2.2 million, up 1000% sequentially and reversing a loss of $100,000 in 2008. Net earnings included a $500,000 income tax recovery. 

Gross profit was $5.9 million (11.5% of revenue) compared with $3.7 million (8.5%) for the previous quarter and $4.8 million (8.6%) in 2008. Working capital, excluding cash, and net debt levels increased $5.4 million and $3.1 million, respectively.

Component shortages caused a substantially higher end-of-quarter order backlog. Revenue growth came from seven of SMTC's top 10 customers plus five new customers at the early stage of ramping production.

For the year, SMTC's revenue declined on a continuing business basis by 13.2% to $179.5 million. Including discontinued business, sales were down 26% year-over-year. Net earnings from continuing operations were $2.4 million, up 46% over 2008 results. Gross profit increased to 9.8%, up 90 basis points.

President and chief executive John Caldwell said there are signs of "some economic recovery and customer inventory rebuilding." He expects continued sequential revenue growth in the first quarter, and continuing strength through the first half.

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