SMTC Corporation (SMTX)
SMTC Corporation is an Innovative Company
SMTC Corporation (SMTX), founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC manufacturing facilities span a broad footprint in the United States, China and Mexico, with approximately 1,170 employees.
SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, computing and communication market segments. SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX.
The company experienced lower revenue in the latest quarter due to product ramp delays with some of customers in addition to the transfer of one customer to a consignment model. The company is pleased with the sequential revenue growth over the first quarter of 2016 and remain confident that revenue will continue to increase quarter over quarter for the remainder the year.
Cash flow from operations was $3.1 million in the second quarter compared to $0.2 million in the second quarter of the prior year due to continued improved working capital management.
Debt, net of cash was $10.6 million in the second quarter compared to $17.2 million for the second quarter of the prior year.
The company continue to strengthen its balance sheet as its actively improve cash cycle days resulting in the generation of cash flow from operations during the quarter and the pay down of debt. The company is well positioned to support additional growth for the remainder of the year.”