SMTC reports fourth quarter and full year 2006 results
Mar 14, 2007
Reports double digit growth in revenues and record earnings
SMTC Corporation (Nasdaq: SMTX, TSX: SMX) ("SMTC"), a global electronics manufacturing services provider, announced today its results for the fourth quarter and year ended December 31, 2006 which are expressed in US dollars.
Fourth quarter and full year highlights
- Growth in fourth quarter revenue to $76.1 million, a 31% increase
over fourth quarter 2005.
- Net income of $2.1 million for the fourth quarter, an increase of 49%
compared to the fourth quarter of 2005.
- EBITDA(x) of $5.3 million in the quarter, representing a 66% increase
over the fourth quarter of 2005.
- Growth led by strengthening diversified customer base of both
long-standing and new customers.
- Full year revenue of $262.8 million, an increase of $34.0 million, or
15% over 2005.
- Record net income for the full year 2006 of $10.5 million, including
one-time items of $5.0 million compared with a loss of $0.1 million
- EBITDA(x) of $16.0 million for the full year 2006, representing a 78%
increase over 2005. The full year EBITDA(x) for 2006 excludes the
impact of one-time items.
SMTC Corporation reported revenue of $76.1 million and net income of $2.1 million, or $0.14 per share, for the fourth quarter ended December 31, 2006, compared with revenue of $58.1 million and net income of $1.4 million, or $0.10 per share, for the fourth quarter of 2005. Revenue for the year ended December 31, 2006 was $262.8 million and net income was $10.5 million, or $0.71 per share compared with revenue of $228.8 million and net loss of $0.1 million, or $0.01 per share for 2005.
Gross profit was $7.7 million, or 10.1% of revenue, and $26.4 million, or 10.1%, for the fourth quarter of 2006 and year ended December 31, 2006, respectively. This compared with $4.9 million, or 8.4% of revenue, and $17.1 million, or 7.5% of revenue, for the fourth quarter and year ended December 31, 2005, respectively.
"Our strong fourth quarter results cap a very successful year for SMTC. For the first time since the year 2000, the Company grew year over year revenue reflecting a combination of growth from long-standing customers and the effect of new customer additions in 2005 and 2006", stated John Caldwell, President and Chief Executive Officer. "As important, SMTC produced seven consecutive quarters of profitability culminating in record net income for 2006."