TORONTO -- SMTC swung to a first-quarter profit despite a 14% drop in revenue.

First-quarter revenue of $41.9 million was down from $48.7 million a year ago on lower volumes and program delays.

Gross profit was $4.9 million, up from $3.63 million.

Net income was $1 million for the quarter compared to a net loss of $400,000 the prior year. The results include an unrealized foreign exchange gain of $1 million, making the net income otherwise $0.

Chief executive Sushil Dhiman said the drop in revenue was expected. “As I stated in the prior earnings call, we anticipated a reduction in revenue this quarter as a result of seasonality and new product ramp delays. While we anticipate sequential growth in revenue from our first quarter results, our full year 2016 revenue could decrease 3% to 6% from 2015 revenue levels. With continued improvements in efficiencies and cost controls, we expect annual adjusted EBITDA to increase year over year.”

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