TORONTO – SMTC reported third quarter revenue of $99.5 million, up 12.3% year-over-year and 10.1% sequentially.

Net income was $1.2 million compared to a net loss of $5.7 million the prior year, up 20% sequentially. EBITDA was $5.3 million, up 19.1% year-over-year and 17.2% sequentially.

During the third quarter, the company had $46 million in awards and orders from new and existing customers.

All facilities remain open, in operation and in compliance with applicable Covid-19 health and safety measures.

“Our sales organization continues to gain market share and expand our sales funnel, including $46 million in new awards and bookings during the third quarter, from five new customers and one existing customer,” said Ed Smith, SMTC president and CEO. “I am pleased we are beginning to see an acceleration of customer programs moving through the customer certification process into the new product introduction phase and entering production that will continue to ramp in 2021.

“Our focus on expanding our market share in key markets that play to our strengths, such as the industrial IoT market, the highly complex, regulated medical markets, and the defense and aerospace industry, continues to provide a stable and solid base to profitably grow our business during the ongoing Covid-19 pandemic. We also benefited from a rebound by our semiconductor customers.

“Rich Fitzgerald, SMTC’s chief operating officer, has decided for personal reasons to pursue other opportunities. Rich will continue in his current role during the search for his successor, which is expected to be completed by the end of the first quarter of 2021.”

For the three months ended Sept. 27, cash used by operations was $200,000 and capital expenditures were $1.1 million. During the third quarter, the company amended its credit facilities to provide increased covenant flexibility as it navigates through Covid-19.

As of Sept. 27, subject to debt covenants, SMTC had $30.5 million available for borrowing under its asset-based lending facility.

“Based on our current demand and supply chain visibility, and assuming our facilities continue to operate at currently planned levels, we are reaffirming at the higher end of our prior guidance issued on August 5. We now expect revenue to range between $195 million and $205 million and adjusted-EBITDA to range between $14 million and $15 million for the second half.

“As we embark on our next-phase of growth, with our ongoing sales momentum, recent customer awards, strong bookings-backlog, and planned operating efficiencies, we currently expect revenue for 2021 to range between $430 million and $450 million and adjusted EBITDA to range between $33 million and $37 million, with revenue growth and adjusted EBITDA margins consistent with our long-term financial model targets.”

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