SMTC is a global Electronics Manufacturing Services (EMS) provider focused on supporting the growth of its customers through competition, improved margins, and increased market share.
By offering a full range of services, the company’s solutions are applicable to a wide customer base that includes industrial, computing, communications, consumer, medical, and renewable energy markets. SMTC’s industry experience spans every base of leading-edge manufacturing, covering the entire life cycle of electric products, from development and introduction to growth and maturity and end-of-life phases.
Customer loyalty and retention are a must in this competitive industry, and it’s worth noting that most of the company’s customers have stuck around for more than seven years, and some for more than fifteen. Also notable, nine of its Top 10 customers are No. 1 in their respective markets.
After coming out of the third quarter, the company’s expertise and market reach seem to be paying off.
Per guidance issued in October 2011, the company is expected to announce improved financial performance for the fourth quarter based on new customers, cost reduction initiatives, and its recent acquisition of ZF Array Technology Inc. in September 2011.
SMTC significantly raised its fourth-quarter guidance to $4.0 million EBITDA on revenues of $69 million compared to previous guidance of $3.0 million.
“As recently appointed CEOs, we are cautious about providing new guidance, but our increased forecast reflects the strengthening of the business. In order to meet higher Q4 orders, we added to labor and increased working capital in late Q3. However, we continue to expect to generate positive operating cash flow for the year, and to generate strong free cash flow in 2012,” Alex Walker, co-CEO stated in the press release.
SMTC is slated to announce its fourth-quarter and full-year results March 7.
For more information visit www.smtc.com
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