TORONTO -- The decline at SMTC continued in the second quarter as the electronics manufacturing services provider swung to a net loss of $6 million, down from a profit of $2.8 million a year ago. Revenue in the June period slipped 13.6% year-over-year and 1% sequentially to $64.9 million.

The EMS firm was hurt by a decrease in sales to one longstanding customer and the closure of its plant in Markham (outside Toronto), which result in an undisclosed number of lost programs.

Gross margin was 1.9%, down from 10.6% in the prior quarter and 9.7% in the second quarter 2012. Excluding the effects of unrealized foreign exchange on derivatives, the negative gross margin from the shuttered Markham facility and one-time expenses, gross margin was 9.1% in the quarter compared to 8.4% in the prior quarter and 10.2% in 2012.

Adjusted EBITDA was $2.3 million in the quarter.

"The second quarter was very challenging, but we feel that we have addressed many issues," said interim president and chief executive Larry Silber. "In addition, we are making numerous improvements to the operations that should lead to margin improvement in the future. Our order book remains strong and we believe profitability should improve in the third and fourth quarters."

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