Circuits Assembly Online Magazine - SMTC Reports Q4 Revenue Up 12%

TORONTO – SMTC reported fourth quarter revenue of $101.3 million, up 12.3% year-over-year and 1.7% sequentially.

Net Loss was $3.6 million, compared to net income of $1 million during the fourth quarter of 2019 and $1.2 million in the third quarter of 2020. EBITDA was $600,000, down 91% year-over-year.

For the full year, revenue was $386.5 million, up 3.8% compared to 2019. Net loss for 2020 was $600,000, compared to a net loss of $6 million in the prior year. EBITDA was $17.9 million, down 6.3%.

The test and measurement segment reported 2020 revenue of $35.4 million, 9.2% of revenue, down 27.3% compared to the prior year.

“I am proud that our organization did an outstanding job supporting our customers and employee wellness during the pandemic, and we were able to successfully navigate through the challenges presented by the Covid-19 pandemic during the year,” said Ed Smith, SMTC’s president and CEO. “We finished 2020 on a strong note with sales up 12.2% compared to the same quarter in the prior year and are looking forward to opportunities ahead for SMTC.

“We saw a strong rebound and expansion in our semiconductor business in 2020, and our focus on the Industrial IoT market and our growth in the defense and aerospace industry enabled us to provide a stable and solid base to grow our business.”

The company initiated its previously announced Mexican consolidation, incurring $3.6 million in restructuring charges in the fourth quarter. The company also generated $3.3 million in changes in working-capital from operations in the fourth quarter, and capital expenditures were $2.4 million. During the fourth quarter, the company amended its credit facilities to provide increased covenant flexibility as it navigates through the Covid-19 pandemic.

As of the end of the 2020, subject to borrowing base conditions, SMTC had $28.4 million available for borrowing under its asset-based lending facility.

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