By midafternoon, shares had taken off 20.9% to $1.55.
The Canada-based business recorded a 7.5% quarter-on-quarter drop in revenue to $67.4 million, a decrease due to a reduction in revenue from one contract.
Full-year revenue tumbled 8.6% to $270.7 million, a fall attributed to decreased volumes with three long-standing customers in addition to two customer disengagements.
TheStreet Ratings team rates SMTC CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SMTC CORP (SMTX) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."
- You can view the full analysis from the report here: SMTX Ratings Report