Revenue for the first quarter of 2001 was $200.9 million, up 62 percent from $124.3 million in first quarter 2000. Revenues for the first quarter, traditionally the slowest of the year for the Company, included approximately $11.5 million of sales of raw materials inventory to customers, which carry no margin. The increase in revenue is in part due to the acquisitions of Pensar Corporation and Qualtron Teoranta.
First quarter 2001 gross profit, excluding $6.9 million of the total restructuring charge, decreased 25 percent to $8.4 million versus $11.2 million in the same period last year. Operating loss, excluding the restructuring charge, for the three months was $3.7 million, compared to an operating profit of $2.3 million in first quarter of 2000. The first quarter operating results were negatively impacted by the costs associated with recently deployed and now underutilized capacity.
The combination of decelerating sales levels and underutilized capacity resulting from the slowing technology end markets resulted in a first quarter adjusted net loss of $2.9 million, excluding the after-tax impact of non-cash acquisition related amortization and restructuring charges, as compared to an adjusted net loss of $0.6 million in the same quarter one year ago. On a per share basis, SMTC reported an adjusted net loss of $0.10, compared to an adjusted net loss of $0.81 reported for the first quarter of 2000.
During the first quarter, in association with the previously announced work force reduction initiatives and closure of its Denver assembly facility, the Company recorded a pre-tax charge of $22.7 million. These initiatives are intended to quickly and more closely align the Company’s cost structure with the rapid end market deceleration being experienced by its customers since early in the year.
We warned earlier in the quarter that lower volumes driven by pushouts and cancellations of orders and general slowing by nearly all of our technology OEM customers, combined with the costs of recently deployed and now underutilized capacity, were expected to cause near term results to come under pressure, said Paul Walker, SMTC’s President and CEO. SMTC reacted quickly in response to the end market slowdown, reducing its operating cost and working capital levels over the course of the quarter, as well as implementing its previously announced facility rationalization initiative. At the same time, quote activity on new business has accelerated over the course of the first quarter, and we have grown our pipeline of new programs and customers forecasted to ramp up exiting fourth quarter 2001. We expect this new business will help offset the reduction in existing programs that we have experienced.
SOURCE: COMPANY PRESS RELEASE
