SMTC Cites Loss of Customers for Lower Q2 Results
TORONTO -- SMTC swung to a second-quarter net loss on a 24.4% drop in revenue.
Sales for the period ended June 30 were $43.6 million, the result due to one former and one exiting customer and another customer’s product which reached end of life, partially offset by increases in new customer revenue and net volume increases with existing customers.
Gross profit was $3.1 million, compared to $5.4 million in the prior year.
The net loss was $600,000, versus net income of $1 million a year ago. Adjusted EBITDA was $900,000, down 50% from 2015. Cash flow from operations was $3.1 million, compared to $200,000 in the second quarter 2015.
Chief executive Sushil Dhiman said: “We experienced lower revenue in the quarter due to product ramp delays with some of our customers in addition to the transfer of one customer to a consignment model. I am pleased with the sequential revenue growth over the first quarter of 2016 and remain confident that revenue will continue to increase quarter over quarter for the remainder the year.”
Register now for PCB West, the Silicon Valley's largest trade show for the printed circuit industry, taking place Sept. 13-15 in Santa Clara: pcbwest.com
