SMTC Corp. moves to profit in 4th quarter
SMTC Corp. on Thursday said it moved to a quarterly profit, which sent shares of the electronics manufacturing services provider higher.
Shares of the small-capitalization stock rose 79 cents, or 48 percent, to $2.44 in afternoon trading. The stock has traded between 32 cents and $2.04 in the past 52 weeks.
The company earned $2.2 million, or 14 cents per share, in the quarter ended Jan. 3. In the comparable year-ago period, it lost $137,000, or 1 cent per share. Earnings from continuing operations improved to $2.4 million, or 16 cents per share, from $963,000, or 7 cents per share.
Sales fell 7.3 percent to $51.2 million.
In the full year, the company lost $3.6 million, or 25 cents per share, compared with a loss of $5.9 million, or 40 cents per share, in 2008.
Sales fell 13 percent to $179.5 million. The company cited an "extremely challenging economic environment" for the drop.
In a prepared statement, Chief Executive John Caldwell said the company is seeing signs of economic recovery as customers rebuild inventories. That has translated into strong orders from old and new customers, he said.
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