SMTC Corp. (SMTX, Financial) filed Quarterly Report for the period ended 2010-04-04.
Smtc Corp. has a market cap of $51 million; its shares were traded at around $3.66 with a P/E ratio of 10.1 and P/S ratio of 0.3. SMTX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Revenue increased $16.5 million, or 36.7%, from $44.9 million for the first quarter of 2009 to $61.4 million for the first quarter of 2010 as substantially all of SMTCs long standing customers end markets were favourably impacted by increased demand and inventory rebuilding. In addition, newer customers including those announced in the past several months and introduced in 2009, have contributed $3 million in increased revenue over the same period last year and customers for which we gained greater share have contributed $7 million year over year. This has been somewhat offset by reductions from certain other long standing customers.
customers represented 89.1% of revenue during the first quarter of 2010, compared to 91.7% in the first quarter of 2009. Revenue from our four largest customers during the first quarter of 2010 were $13.3 million, $9.9 million, $7.1 million and $6.9 million representing 21.7%, 16.1%, 11.5% and 11.2% of total revenue for the first quarter of 2010, respectively. This compares with revenue of $9.7 million, $8.5 million, $6.8 million and $6.1 million, representing 21.7%, 18.8%, 15.2% and 13.5% of total revenue from continuing operations for our four largest customers for the first quarter of 2009, respectively. No other customers represented more than 10% of revenue in either period.
Selling, general and administrative expenses increased by $0.2 million, or 5.7%, during the first quarter of 2010 to $3.7 million, from $3.5 million in the first quarter of 2009. As a percent of revenues, expenses decreased to 6.1% from 7.8% The increase in absolute dollars is largely due to a $0.6 million charge for non-cash stock based compensation costs, a $0.3 million charge for variable based employee compensation, offset by reduced legal and other professional fees compared to the first quarter of 2009 and the impact of foreign exchange on the strengthening Canadian dollar.
Interest expense increased from $0.3 million in the first quarter of 2009 to $0.5 million for the first quarter of 2010, an increase of $0.2 million resulting from higher debt levels, increased interest rates due to market rate increases and a recovery of interest from prior periods recorded in the first quarter of 2009. Interest expense in both the first quarter of 2010 and 2009 included the amortization of deferred financing fees of $0.1 million. The weighted average interest rates with respect to the debt were 5.6% and 4.8% for each of the first quarters of 2010 and 2009, respectively.
At January 3, 2010, the Company had total net operating loss carry forwards of $113.1 million, of which $10.3 million will expire in 2010, $1.3 million will expire in 2012, $4.2 million will expire in 2014, $1.8 million will expire in 2015, $1.1 million will expire in 2018, $0.1 million will expire in 2019 and 2020, $19.2 million will expire in 2021, $16.2 million will expire in 2022, $27.3 million will expire in 2023, and the remainder will expire between 2025 and 2029.
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Smtc Corp. has a market cap of $51 million; its shares were traded at around $3.66 with a P/E ratio of 10.1 and P/S ratio of 0.3. SMTX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
For the quarter, the Company recorded net income of $2.1 million which includes a $574 thousand charge for non-cash stock based compensation. Excluding this charge, net income would be $2.6 million. The Company generated $3.7 million in cash from operations, of which $3.3 million was generated from earnings and $0.4 million from working capital despite continuing higher inventory levels resulting from component shortages and increased demand that drive higher inventory levels and revenue backlog. Net bank debt levels were reduced by approximately $3 million to $21.3 million.Revenue increased $16.5 million, or 36.7%, from $44.9 million for the first quarter of 2009 to $61.4 million for the first quarter of 2010 as substantially all of SMTCs long standing customers end markets were favourably impacted by increased demand and inventory rebuilding. In addition, newer customers including those announced in the past several months and introduced in 2009, have contributed $3 million in increased revenue over the same period last year and customers for which we gained greater share have contributed $7 million year over year. This has been somewhat offset by reductions from certain other long standing customers.
customers represented 89.1% of revenue during the first quarter of 2010, compared to 91.7% in the first quarter of 2009. Revenue from our four largest customers during the first quarter of 2010 were $13.3 million, $9.9 million, $7.1 million and $6.9 million representing 21.7%, 16.1%, 11.5% and 11.2% of total revenue for the first quarter of 2010, respectively. This compares with revenue of $9.7 million, $8.5 million, $6.8 million and $6.1 million, representing 21.7%, 18.8%, 15.2% and 13.5% of total revenue from continuing operations for our four largest customers for the first quarter of 2009, respectively. No other customers represented more than 10% of revenue in either period.
Selling, general and administrative expenses increased by $0.2 million, or 5.7%, during the first quarter of 2010 to $3.7 million, from $3.5 million in the first quarter of 2009. As a percent of revenues, expenses decreased to 6.1% from 7.8% The increase in absolute dollars is largely due to a $0.6 million charge for non-cash stock based compensation costs, a $0.3 million charge for variable based employee compensation, offset by reduced legal and other professional fees compared to the first quarter of 2009 and the impact of foreign exchange on the strengthening Canadian dollar.
Interest expense increased from $0.3 million in the first quarter of 2009 to $0.5 million for the first quarter of 2010, an increase of $0.2 million resulting from higher debt levels, increased interest rates due to market rate increases and a recovery of interest from prior periods recorded in the first quarter of 2009. Interest expense in both the first quarter of 2010 and 2009 included the amortization of deferred financing fees of $0.1 million. The weighted average interest rates with respect to the debt were 5.6% and 4.8% for each of the first quarters of 2010 and 2009, respectively.
At January 3, 2010, the Company had total net operating loss carry forwards of $113.1 million, of which $10.3 million will expire in 2010, $1.3 million will expire in 2012, $4.2 million will expire in 2014, $1.8 million will expire in 2015, $1.1 million will expire in 2018, $0.1 million will expire in 2019 and 2020, $19.2 million will expire in 2021, $16.2 million will expire in 2022, $27.3 million will expire in 2023, and the remainder will expire between 2025 and 2029.
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