SMTC reports Q3 results

Revenue for the quarter was $44.1 US million, in line with guidance, the company said, but down YoY from $65.3 US million. Revenues declined as demand reductions and end of life programs from certain customers in Q3 resulted in what is expected to be SMTC’s lowest revenue and profit quarter of 2011. During the quarter, the new management team continued its restructuring plan, and has eliminated 11 corporate positions simultaneous with an increase in direct labor headcount by 550 employees (to 1,750) in order to meet increased demand in Q4 and beyond. One-time charges of $1.1 million in the third quarter included severance costs, the write-off of financing costs related to the previous credit facility, and foreign exchange forward losses. Costs related to the third quarter increase in direct labor headcount were expensed in the quarter and excluded from one-time charges. © SMTC