TORONTO – SMTC reported fourth quarter revenue of $90.2 million, an increase of 11.6% year-over-year.

Net income was $996,000, compared to net loss of $1.2 million in the fourth quarter of 2018.

For 2019, SMTC reported revenue of $372.5 million, up 72.4% year-over-year. Net loss for the year was $6 million, compared to net loss of $448,000 in 2018.

“In the fourth quarter we continued to expand our customer base with multi-year awards in excess of $31 million from three leading global avionics, aerospace and defense technology companies, which we announced on Jan. 8,” said Ed Smith, president and CEO. “Thus far in the first quarter of 2020, we have added four new customers and four programs from existing customers, with the potential revenue in excess of $20 million.

“Our successful integration of MC Assembly resulted in the ability to increase our scale and further improve our operational efficiencies. Our activities also resulted in our achieving best-in-class among our Tier III EMS peers for key performance measures, including gross profit percentage, adjusted EBITDA and adjusted EBITDA percentage, all of which increased even faster than our revenue growth.

“I am also pleased to report we have completed the closure of our Chinese manufacturing operations. Since choosing to not renew our lease in Dongguan, we have transitioned most of our customers from this China manufacturing site to our North American locations. We also remain on track to complete the move of our manufacturing equipment from Dongguan to our North American sites. Although we are exiting China from a manufacturing perspective, we are maintaining a small team in the Dongguan area to support our global engineering, supply chain, and supplier quality engineering activities, as well as a procurement and logistic group in Hong Kong, China.

“While we are becoming less dependent on our presence in China from a manufacturing perspective, we are carefully monitoring the impact of Covid-19 (coronavirus) and keeping our customers abreast of our efforts to mitigate its impact on our ability to meet their production requirements. Recognizing that customer demand can change due to additional supply chain interruptions, at this time we have seen low impact on our business as a result of the coronavirus.

“With the integration of MC Assembly completed, we are looking forward to another year of growth in 2020. We are reaffirming the guidance we previously provided on Sept. 19 for the full-year 2020, with expected revenue ranging between $390 million and $410 million.”

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