SMTEK Loss Increases Despite Higher Revenues

SMTEK International in Thousand Oaks, a provider of electronics manufacturing services, said revenues for the three months ended March 31 grew 57% to $19.2 million, from $12.2 million in the comparable quarter of fiscal 1999.

Despite the increase in sales, the company incurred a loss from continuing operations of $235,000 or 10 cents per share, compared with a loss of $26,000 or 1 cent per share in the third quarter of last year. Company officials blamed the loss on “part shortages and other supply-chain inefficiencies” in a “difficult industry environment.”

The company said profits for the most recent quarter were adversely affected by losses at its European subsidiary. The European operation was unprofitable due to higher costs related to the ramp-up of production capability for several new customer orders, officials said.

Those problems have been overcome, the company said.

SMTEK provides electronics services for original equipment manufacturers in the computer, telecommunications, instrumentation, medical, industrial and aerospace industries.