SMTC saw revenues decrease 15.6% in 2014

Revenue for the fourth quarter was USD 57.0 million. Gross profit was USD 3.9 million or 6.8% and adjusted EBITDA was USD 2.2 million. Revenue for the year was USD 228.6 million, a 15.6% decrease from 2013. The majority of the decrease in revenue was due to reduced volumes with two customers. The gross profit percentage for 2014 was 8.3%, compared to 5.6% in the prior year, as a result of cost cutting and improvements in manufacturing efficiencies. Adjusted EBITDA for the year was USD 6.8 million as compared to USD 0.8 million in 2013. During the fourth quarter, our continued focus on working capital helped us to generate USD 3.7 million in cash flow from operations. In fiscal 2014 we generated USD 4.9 million in cash flow from operations and average debt decreased by approximately USD 7.0 million compared to prior year. Chief Executive Officer Sushil Dhiman stated “I am encouraged by the results of the many improvements that have been implemented, particularly in our Mexican operations. These efforts allowed us to strengthen our relationship with PNC and to secure a three year extension to our revolving credit facility with them. Our new customer acquisitions remain healthy and revenues from these new customers have helped offset some of the revenue loss from two long standing customers. Among the metrics we are proud of are inventory turns improving to 6.6 turns in 2014 compared to 5.7 turns in the prior year and site contribution increasing 59% year over year. With an expectation for continued improvements in our financial strength and operational execution, we are poised to accelerate new customer growth in 2015.”