SMTC Corporation (SMTX) swung to a net loss for the quarter ended Jan. 01, 2017. The company has made a net loss of $0.58 million, or $ 0.03 a share in the quarter, against a net profit of $0.79 million, or $0.05 a share in the last year period. Revenue during the quarter plunged 34.72 percent to $39.65 million from $60.74 million in the previous year period. Gross margin for the quarter contracted 49 basis points over the previous year period to 8.64 percent. Operating margin for the quarter stood at negative 0.51 percent as compared to a positive 2.21 percent for the previous year period.
Operating loss for the quarter was $0.20 million, compared with an operating income of $1.34 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.08 million compared with $1.55 million in the prior year period. At the same time, adjusted EBITDA margin improved 19 basis points in the quarter to 2.74 percent from 2.55 percent in the last year period.
Interim chief executive officer Edward Smith stated "I am encouraged by the current results and look forward to continuing to improve SMTC to a best in class EMS provider."
Operating cash flow drops significantly
SMTC Corporation has generated cash of $6.86 million from operating activities during the year, down 36.93 percent or $4.02 million, when compared with the last year. The company has spent $1.29 million cash to meet investing activities during the year as against cash outgo of $3.48 million in the last year. It has incurred net capital expenditure of $2.10 million on net basis during the year, down 21.56 percent or $0.58 million from year ago.
The company has spent $3.16 million cash to carry out financing activities during the year as against cash outgo of $6.74 million in the last year period.
Cash and cash equivalents stood at $8.50 million as on Jan. 01, 2017, up 39.42 percent or $2.40 million from $6.10 million on Jan. 03, 2016.
Working capital increases sharply
SMTC Corporation has recorded an increase in the working capital over the last year. It stood at $20.25 million as at Jan. 01, 2017, up 44.56 percent or $6.24 million from $14.01 million on Jan. 03, 2016. Current ratio was at 1.59 as on Jan. 01, 2017, up from 1.27 on Jan. 03, 2016.
Debt comes down
SMTC Corporation has recorded a decline in total debt over the last one year. It stood at $13.39 million as on Jan. 01, 2017, down 18.76 percent or $3.09 million from $16.48 million on Jan. 03, 2016. Total debt was 19.40 percent of total assets as on Jan. 01, 2017, compared with 20.11 percent on Jan. 03, 2016. Debt to equity ratio was at 0.51 as on Jan. 01, 2017, down from 0.63 as on Jan. 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: editor@irisindia.net
