SMTC Corporation Announces Over $31 Million in New Business from Avionics, Aerospace and Defense Customers
January 08 2020 - 9:15AM
SMTC Corporation (Nasdaq:SMTX), a global electronics manufacturing
solutions provider and winner of the Frost & Sullivan’s 2019
Best Practices Award for Customer Value Leadership in the
Electronics Manufacturing Services Industry, today announced it has
been awarded in excess of $31 million in new business from three
leading global avionics, aerospace and defense technology
companies. Initial production is expected to begin in mid-2020.
“The awards from three different multibillion dollar a year
sales companies validate our ability to expand our avionics,
aerospace and defense business, which has been a priority
end-market since our acquisition of MC Assembly in late 2018. This
exciting growth market sector has expanded for us from $5.1 million
or 2.3% of total sales in 2018 to $17 million or 6% of sales
through the first nine months of 2019,” said Ed Smith, SMTC
President and Chief Executive Officer.
“Our avionics, aerospace and defense customers’ need for
products with the highest level of reliability, security,
compliance and key requisite certifications were critical in their
selection of SMTC. The newly awarded customers’ orders will be
built at our Melbourne, Florida facility. The selection of SMTC by
our customers to supply critical-to-quality PCBA, box level
integration and test development, further represents our ability to
provide best-in-class service and solutions to leading avionics,
aerospace and defense companies,” noted Smith.
SMTC has extensive experience manufacturing, engineering,
testing and supporting airborne, ground and sea-based systems and
sub-systems and can provide in-house environmental testing to
support HASS, MIL-STF-810G and MIL-STD-461. SMTC is ITAR/EAR
registered and controlled, has diverse capabilities, and maintains
the highest certified quality standards that include AS9100,
IPC-610 Class 2 and Class 3 and J-STD-001F and J-STD-001FS. SMTC
also supports avionics, aerospace and defense requirements by
providing FAA-PMA for both original equipment and depot/repair
services. For more information about SMTC’s capabilities in this
market sector, please see
https://www.smtc.com/markets/defense-aerospace.
“We are excited by these opportunities that we see for us in
2020 with our existing customers and our prospects for winning
additional new customers,” added Smith.
Forward-Looking Statements
The statements contained in this release that are not purely
historical are forward-looking statements, which involve risk and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. These
statements may be identified by their use of forward looking
terminology such as “anticipates,” “believes,” “can,” “continue,”
“could,” “estimates,” “expects,” “intends,” “may,” “plans,”
“potential,” “predicts,” “should,” or “will” or the negative of
these terms or other and similar words, and include, but are not
limited to, statements regarding the expected timing, duration and
location of manufacturing for, and the anticipated financial
results related to, the customer contracts referenced above, SMTC’s
ability to continue or maintain in-house environmental testing, its
ITAR/EAR registration, and its noted certified quality standards,
and SMTC’s ability to secure additional opportunities from new and
existing customers. The company cautions that actual performance
will be affected by a number of factors, many of which are beyond
the company's control, and that future events and results may vary
substantially from what the company currently foresees. For these
statements, the company claims the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. There are many factors, risks and
uncertainties that could cause actual results to differ materially
from those predicted or projected in forward-looking statements,
such as modification or termination of the applicable customer
orders, the success and timing of ramping, availability and timing
and receipt of critical parts or components, demand from ultimate
customers, as well as other risks and uncertainties detailed from
time to time in the company's various SEC filings, including its
annual report on Form 10-K, Form 10-Q and on subsequent reports on
Form 8-K. The forward-looking statements contained in this release
are made as of the date hereof and SMTC assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ materially from those projected in the
forward-looking statements.
About SMTC
SMTC Corporation was founded in 1985 and acquired MC Assembly
Holdings, Inc. in November 2018. SMTC has more than 50
manufacturing and assembly lines in United States, China and Mexico
which creates a powerful low-to-medium volume, high-mix, end-to-end
global electronics manufacturing services (EMS) provider. With
local support and expanded manufacturing capabilities globally,
including fully integrated contract manufacturing services with a
focus on global original equipment manufacturers and emerging
technology companies, including those in the Avionics, Aerospace,
and Defense, Industrial, Power and Clean Technology, Medical and
Safety, Retail and Payment Systems, Semiconductors and Telecom,
Networking and Communications; and Test and Measurement industries.
As a mid-size provider of end-to-end EMS, SMTC provides printed
circuit boards assemblies production, systems integration and
comprehensive testing services, enclosure fabrication, as well as
product design, sustaining engineering and supply chain management
services. SMTC services extend over the entire electronic product
life cycle from the development and introduction of new products
through to the growth, maturity and end-of-life phases. For further
information on SMTC Corporation, please visit our website at
www.smtc.com.
Investor Relations Contact
Peter SeltzbergManaging DirectorDarrow Associates,
Inc.516-419-9915pseltzberg@darrowir.com
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