Email
Share
Digg!
Del.icio.usShares of SMTC Corp. (Nasdaq: SMTX) were up as much as 60 percent from Monday’s closing price in morning trading on Tuesday after the electronics manufacturing services provider raised its fourth quarter EBITDA guidance to $4 million, up from previous Q4 guidance of $3 million in EBITDA.
“We continue to expect Q3 to be our weakest quarter of the year, and anticipate generating $825,000 in EBITDA for the quarter,” said Claude Germain, Co-Chief Executive Officer in an October 25 press release. “However, due to new program wins from both current and new customers, recent cost reduction initiatives, and our recent acquisition, we now expect the business to generate $4.0 million in EBITDA in Q4, up from our prior guidance of $3.0 million.”
EBITDA is a non-GAAP measure. EBITDA is computed as Net income from continuing operations excluding depreciation, amortization, restructuring charges, interest and income tax expense.
Founded in 1985, SMTC Corp. is a mid-size provider of end-to-end electronics manufacturing services including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, product design, sustaining engineering and supply chain management services.
In addition to revising its fourth quarter guidance, SMTC Corp. also said it now expects 2012 EBITDA guidance of $13 million and $240 million in revenue.
“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,” said Alex Walker, Co-CEO of SMTC Corp. “We also expect our sizable tax loss carry-forwards to offset future taxable income and further increase earnings and cash flow.”
SMTC Corp.’s third quarter results conference call is scheduled to be held on Wednesday November 9, 2011 at 5 p.m. ET.
Tags: earnings guidance, nasdaq, SMTX, Technology Stocks