TORONTO - Celestica today announced revenue of $1.71 billion, up 12% year-over-year for the third quarter ended Sept. 30.

Net income fell 75% to $8.6 million. Operating margin (non-IFRS) was 3.3%.

The EMS firm previously guided for sales of $1.65 billion to $1.75 billion,

Advanced Technology Solutions segment revenue increased 17% from a year ago and represented 33% of total revenue, compared to 31% of total revenue in 2017. ATS segment margin was 4.6%, compared to 5.1% for the third quarter 2017. ATS includes aerospace and defense, industrial, smart energy, healthtech, and capital equipment.

Connectivity & Cloud Solutions revenue increased 9% and made up 67% of total revenue. The segment margin was 2.7%, down 30 basis points. CCS includes enterprise communications, telecommunications, servers and storage.

Free cash flow was $24.6 million, compared to -$44.1 million last year.

“Celestica delivered solid revenue growth in both our ATS and CCS segments in the third quarter, as well as continued sequential expansion of our consolidated margin,” said Rob Mionis, president and CEO. “We were particularly pleased with the performance of our CCS business, which delivered steady margin improvements each quarter this year.”

“As we finish 2018, we are excited with the progress we are making on our strategy launched three years ago to diversify our revenue mix and deliver better overall financial performance. While we recognize there is still more work to do, we believe that our progress to date is encouraging, and positions us to enter 2019 with improving financial results, a more efficient global network, and resources that are focused on end market opportunities better aligned to our strengths and strategy.”