TORONTO – SMTC reported second quarter revenue of $90.9 million, up 104.4% year-over-year.

Growth is attributed to the Test and Measurement, Industrial, Power and Clean Tech, and Aerospace and Defense segments.

The company’s net loss during the period was $2.5 million, compared to a net loss of $100,000 in the second quarter of 2018.

Adjusted EBITDA was $6.1 million, up 279.8%.

“During the second quarter, we completed the integration of MC Assembly and turned our attention toward executing our strategic growth plans,” said president and CEO Ed Smith. “We invested $1.3 million in capital improvement initiatives that are intended to improve operating efficiencies, enhance service to support our growing customer base, and create value for our shareholders in the second quarter.

“With tariff concerns high on the minds of our customers, we incurred additional costs in the second quarter as we shifted some customer production to Mexico. To address this growing customer concern about tariffs, we have expanded our North American capabilities and production capacity at two facilities acquired in the 2018 acquisition of MC Assembly. This quarter we are adding a new capability in our Billerica, United States location that provides our customers with world-class quick-turn manufacturing and should enable an accelerated launch timetable for our customers’ products with the flexibility to scale into a low-cost geography that is available from other SMTC sites. We also upgraded and expanded our capacity at the Fresnillo facility in Zacatecas, Mexico, enabling a 25% increase in capacity, which we started to ramp up during the third quarter.

“Customer concerns about the continuing impact of tariffs and macro-economic factors have caused, as we experienced in the second quarter, many customers to review and begin to revise where they outsource their manufacturing. While we believe SMTC is well positioned with our North American facilities, we expect customer demand may be impacted over the second half of the year, as customers continue to react and adjust to the ongoing geo-political impacts on global trade. As a result, our current expectation for revenue and Adjusted EBITDA for 2019 will more likely approach the lower end of our prior guidance of $393 to $408 million in revenue and $27 to $29 million for Adjusted EBITDA.”

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