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SMTC Reports Second Quarter Results

Stocks in this article: SMTX

  • $75.1 million in revenue, up 54% over second quarter 2011 revenue.
  • $2.8 million net income and $4.3 million in adjusted EBITDA.
  • Maintains guidance for fiscal 2012 of $14-$16 million adjusted EBITDA, increases revenue guidance from $250-$270 million revenues to $270-$290 million revenues.

TORONTO, Aug. 9, 2012 (GLOBE NEWSWIRE) -- SMTC Corporation (Nasdaq:SMTX) ("SMTC"), a recognized global electronics manufacturing services provider, announces today 2012 second quarter unaudited results.

Revenue for the quarter was $75.1 million, a 54% increase over the second quarter of 2011, and a slight increase over first quarter 2012 revenue. Gross margins were $7.3 million or 9.7% including unrealized losses from foreign currency forward contracts of $455 thousand. Bank debt levels decreased from the prior quarter by $2.4 million. Net income for the quarter was $2.8 million, an improvement compared to a loss of $1.0 million in the second quarter of 2011. Adjusted EBITDA was consistent with the first quarter of 2012 at $4.3 million and up from $1.9 million in the second quarter 2011. However, when removing the impact of unrealized foreign exchange gains and losses the adjusted EBITDA for the quarter would be $4.8 million compared to $3.8 million in the first quarter of 2012.

Co-Chief Executive Officer Claude Germain stated, "Revenue for the quarter was at its highest level since the fourth quarter of 2006. Going forward into the second half of the year, we anticipate revenues to level off from significant first half growth rates, but we expect to continue to achieve solid profitability coupled with improved free cash generation and debt reduction."

"Although we have not fully optimized our business to take advantage of our significant revenue growth, we have made progress in improving operating efficiencies this quarter. Our focus continues to be on improving gross margins, effectively managing working capital, and reducing our debt through free cash generation. We are pleased to have successfully integrated our ZF acquisition and we will continue to look for opportunistic accretive acquisitions," stated Co-Chief Executive Officer, Alex Walker. 

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