TORONTO, Nov. 03, 2016 (GLOBE NEWSWIRE) -- SMTC Corporation (Nasdaq:SMTX), a global electronics manufacturing services provider, today announced third quarter 2016 results. Third Quarter Fiscal 2016 Results Summary:
Revenue of $42.7 million
Gross Profit of $3.6 million
Net loss of $0.02 million
Adjusted EBITDA of $1.3 million
Cash flow from operations of $5.1 million
Debt, net of cash of $6.0 million
Revenue for the third quarter was $42.7 million compared to $53.4 million in the third quarter of the prior year. The decrease was primarily the result of two customers that exited over the last year as previously disclosed and reduced demand from another customer. The decreases were partially offset by new customer revenue, specifically two new customers which represented $6.1 million of additional revenue during the quarter. Gross profit was $3.6 million or 8.5% for the third quarter compared to $3.1 million or 5.8% for the same period in the prior year. Adjusted gross profit was $3.6 million or 8.5% for the third quarter compared to $3.9 million or 7.3% for the third quarter of the prior year. While revenues decreased by 20% in the third quarter of 2016 compared to the same period in prior year; the Company improved gross profit percentage. The increase in gross margin was due to a higher margin product mix, reduced manufacturing expenses and significantly reduced labor as a result of headcount reductions. Net loss was $0.02 million for the third quarter of 2016 compared to a net loss of $1.3 million for the same period in the prior year; the net loss in both of these quarters included unrealized foreign exchange losses of $0.0 and $0.8 million, respectively on unsettled forward exchange contracts. Despite the reduction in revenue, adjusted EBITDA increased to $1.3 million in the third quarter of 2016 up from $1.0 million for the same period in the prior year mainly due to reduced selling, general and administrative expenses.