TORONTO -- SMTC reported a fourth-quarter net loss of $7.7 million on revenue of $67.4 million. Revenues were down 7.9% due to the loss of two customers brought about by the closing of its Markham manufacturing site and reduced volumes from three other customers.

A year ago, the contract assembler reported net income of $987,000 on revenue of $73.2 million.

The EMS company cut debt $6.8 million compared to the prior quarter mainly due to an $8.8 million reduction in accounts receivable and a $12.2 million reduction in inventories creating positive quarterly cash flow from operations. Gross margin was 2% for the period.

For the year ended Dec. 31, the EMS company had a net loss of 11.9 million on sales of $270.7 million.

In a statement, executive chairman Clarke Bailey said, “2013 was a year of transition with the goal of rectifying the legacy issues that existed and positioning the company for growth and improved profitability. A very important step in that direction was the hiring of Sushil Dhiman as chief executive officer. We are cautiously optimistic that the major issues are behind SMTC and that the foundation is now in place."

Separately, the firm named Jim Currie interim CFO.

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