TORONTO – SMTC reported third-quarter revenue of $75.6 million, up 71% year-over-year, and up slightly sequentially.

Net income for the September period was $1.3 million, up from a loss of $1.28 million a year ago. Adjusted EBITDA was $2.6 million, up 271.4% compared to the third quarter of 2011, and down 40% sequentially.

The electronics manufacturing services firm said its third-quarter results included $429,000 in nonrecurring costs in China related to the acquisition of assets from Alco Electronics. The results also include $303,000 in severances and terminations incurred in response to reduced revenue levels in its Canadian manufacturing operation.

Bank debt levels increased to $28.9 million, from $25.4 million in the second quarter, the firm says.

“Overall, the third quarter was weaker than expected. We have initiated Lean manufacturing initiatives in our Mexican operation in order to improve quality, consistency and planning. We are also reviewing our Canadian operations in order to improve profitability,” said co-CEO Alex Walker.

SMTC tightened its 2012 EBITDA guidance to $14 million to $15 million, at the lower end of its previous range, due to a record number of new program introductions and an expected $500,000 in restructuring charges. It guided for fourth-quarter sales of $70 million to $77 million in revenue.

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