HONG KONG -- SMT Holdings Ltd. reported a sharp decrease in fiscal third-quarter revenue as downsizing took its toll on the contract electronics assembly company.

For the period ended Dec. 31, the EMS company reported sales fell 49% year-over-year to HK$238.8 million ($30.8 million). Sequentially, revenue fell 18.5%. Gross margin for the quarter increased to 18.3% from 18.1% last year.

The net loss, which includes restructuring charges of HK$9 million, was HK$22.6 million, an improvement from a loss of HK$27.4 million last year.

Over the past year, SMT Holdings downsized its operations and changed its sales mix from turnkey to consigned component assembly for certain products.

Revenue contribution by products:

Revenue contribution by customers' country of origin:

In a financial statement, SMT Holdings said the downsizing continues, and as of the end of December, the number of employees was reduced to 2,800 from 3,900 at Oct. 31. The company also entered into a conditional sale and purchase agreement for its Suzhou factory.

Ed.: 1 HKD = 0.128965 USD

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