TORONTO – SMTC reported first quarter revenue of $102.6 million, up 177% year-over-year and 27% sequentially.

On a proforma basis, assuming MC Assembly had been part of SMTC in the first quarter of 2018, revenue increased 45.2% from $70.7 million in the first quarter of 2018.

Approximately $3.8 million of the revenues reported in the first quarter of 2019 was due to the impact of the revenue accounting standard ASC 606, compared to $1.7 million of revenues in the same period in the prior year.

Net income was $1.2 million, compared to net income of $800,000 in the first quarter of 2018 and a net loss of $1.2 million in the fourth quarter of 2018.

Adjusted EBITDA was $5.5 million, up 494% year-over-year and 2.9% sequentially.

Net debt at the end of the first quarter was $95.9 million, compared to $92.3 million at the end of 2018.

“With the strong start to 2019 and a growing funnel of business opportunities from existing and new customers in key markets, we anticipate another year of solid revenue growth,” said Ed Smith, SMTC’s president and CEO. “We expect to complete the integration of MC Assembly during the second quarter and have implemented steps to attain additional synergies we believe will increase production efficiencies and improve our operating results.

“Our priorities over the next several quarters are to continue to grow the top line, become more efficient, make progress toward achieving our long-term gross margin targets of 12% to 14%, and strengthen our balance sheet through working capital improvements and debt reduction.”

SMTC expects 2019 revenue between $393 million and $408 million.