SMTEK Reports Net Loss Despite Revenue Increases

SMTEK International in Thousand Oaks, an electronics manufacturer, announced increases in revenues, but a net loss for the second quarter ended Dec. 31.

Second-quarter revenues were $14.4 million, an increase of 5% from $13.8 million in the corresponding period a year earlier.

Excluding a $661,000 loss on the sale of discontinued operations, the company experienced a loss for the quarter of $41,000 or 2 cents per share, compared with net income in the like period of the prior year of $207,000 or 12 cents per share. With the loss on the sale of discontinued operations, the loss for the quarter was $702,000 or 31 cents per share.

In the second quarter, the company sold its Northern Ireland printed circuit-board fabrication plant, Irlandus Circuits Ltd., for about $4.5 million in cash. It said the transaction, which divested SMTEK of its remaining printed circuit-board operation, strengthened the balance sheet, improved the debt-to-equity ratio and is expected to reduce future interest expense.

At the time of sale, Irlandus had an accumulated foreign currency translation loss of $756,000. This loss had to be included in the accounting for the transaction, which was the primary reason for the $661,000 loss on the sale.

SMTEK provides electronics manufacturing for the computer, telecommunications, instrumentation, medical, industrial and aerospace industries.