SMTC Corporation (SMTX) swung to a net loss for the quarter ended Apr. 02, 2017. The company has made a net loss of $0.38 million, or $ 0.02 a share in the quarter, against a net profit of $0.97 million, or $0.06 a share in the last year period. Revenue during the quarter dropped 20.85 percent to $33.18 million from $41.92 million in the previous year period. Gross margin for the quarter contracted 92 basis points over the previous year period to 10.72 percent. Operating margin for the quarter stood at negative 0.62 percent as compared to a positive 2.76 percent for the previous year period.
Operating loss for the quarter was $0.20 million, compared with an operating income of $1.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.30 million compared with $1.38 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 0.89 percent for the quarter compared to 3.30 percent in the last year period.
Chief executive officer Ed Smith stated, "I am excited to be a part of this turnaround for the Company. I will also take this opportunity to welcome Rich to SMTC as the new Chief Operating Officer. I have worked closely with Rich in the past, and know him to be a proven and successful business leader. With this addition, we will focus on driving improved quality at our factories and continue to focus on achieving manufacturing efficiencies and supply chain cost reductions. We are becoming a leaner organization, and I believe we are now properly structured to improve our response time and flexibility for our customers."
Operating cash flow remains negativeSMTC Corporation has spent $5.79 million cash to meet operating activities during the quarter as against cash outgo of $2.30 million in the last year period. The company has spent $0.51 million cash to meet investing activities during the quarter as against cash outgo of $0.39 million in the last year period.
Cash flow from financing activities was $2.06 million for the quarter as against cash outgo of $1.33 million in the last year period.
Cash and cash equivalents stood at $4.26 million as on Apr. 02, 2017, up 105.35 percent or $2.19 million from $2.08 million on Apr. 03, 2016.
Working capital increases sharply
SMTC Corporation has recorded an increase in the working capital over the last year. It stood at $19.85 million as at Apr. 02, 2017, up 31.32 percent or $4.73 million from $15.12 million on Apr. 03, 2016. Current ratio was at 1.58 as on Apr. 02, 2017, up from 1.36 on Apr. 03, 2016.
Cash conversion cycle (CCC) has decreased to 30 days for the quarter from 56 days for the last year period. Days sales outstanding went up to 75 days for the quarter compared with 62 days for the same period last year.
Days inventory outstanding has decreased to 35 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding went up to 81 days for the quarter from 69 for the same period last year.
Debt moves up marginally
SMTC Corporation has witnessed an increase in total debt over the last one year. It stood at $15.45 million as on Apr. 02, 2017, up 1.96 percent or $0.30 million from $15.15 million on Apr. 03, 2016. Total debt was 22.65 percent of total assets as on Apr. 02, 2017, compared with 20.54 percent on Apr. 03, 2016. Debt to equity ratio was at 0.59 as on Apr. 02, 2017, up from 0.55 as on Apr. 03, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
