SMTC: "2013 was a year of transition"

The decrease was mainly due to decreased volumes with three long standing customers in addition to two customer disengagements as a result of the Markham production facility closure at the end of the second quarter. For the full-year 2013, SMTC's revenue amounted to USD 270.7 million, a decrease of 8.6 percent from 2012. Net loss for the full year was USD 11.9 million. Gross margin was 5.7%, however when removing the effects of the inventory adjustment, unrealised foreign exchange on derivatives and the negative gross margin from the closed Markham manufacturing facility, gross margin was 8.2%. Revenue for the fourth quarter was USD 67.4 million, a 7.5% decrease sequentially from the third quarter. Net loss was USD 7.7 million. The decrease was mainly due to a reduction in revenue from one customer. Gross margin was 2.0%; however when removing the effects of the inventory adjustments the gross margin was 7.3%. Executive Chairman Clarke Bailey stated, "2013 was a year of transition with the goal of rectifying the legacy issues that existed and positioning the company for growth and improved profitability. A very important step in that direction was the hiring of Sushil Dhiman as Chief Executive Officer. Sushil joins SMTC with extensive experience and a successful career in the EMS industry. We are cautiously optimistic that the major issues are behind SMTC and that the foundation is now in place for a bright future under the leadership of Sushil." Chief Executive Officer Sushil Dhiman stated, "I am delighted to have the opportunity to lead SMTC and return the company to growth and improved profitability. We have a strong customer base, dedicated executive team and talented workforce. I am encouraged by the early results of the many changes that have been implemented, particularly in our Mexican operations. I also want to thank PNC, our lender, for their support during this important phase."