SINGAPORE – SMT Holdings' fiscal second-quarter sales fell more than 50% to HK$292.9 million ($73.7 million) as the company's corporate restructuring took its toll.

The net loss grew 67% to HK$23.1 million on restructuring charges of HK$10.6 million for the period ended Sept. 30.

Sequentially, the net loss improved 10% despite a 29% drop in revenue on change in product mix and downsizing. Gross margin rose 660 basis points to 18.1%.

Industrial controls remains the contract printed circuit board assembly company's largest end-market, at 31%, followed by LED lighting (24%) and computer peripherals  (17%). Japanese customers make up 56% of the EMS company's revenue.

Headcount was reduced by 1,000 in the quarter to 3,900, and the company is in exclusive negotiations with a potential buyer for its Suzhou factory.

The company said demand for electronics products has slowed generally, and specifically in the TV and PC markets. “The business environment continues to be difficult. However, we are making steady progress in our  restructuring and downsizing efforts. Our determination to return to a sustainable operating level remains”,
said Professor Chan Kei Biu, chairman and senior managing director.

Ed: 1 HKD = 0.128671 USD

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