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SMTEK International, Inc. Expands Asian Presence; Signs Agreement to Purchase Thailand Facility; Begins Construction to Double Capacity
MOORPARK, Calif. --(Business Wire)-- May 6, 2004 -- SMTEK International, Inc. (Nasdaq:SMTI) signed an agreement to purchase the manufacturing facility in Thailand that it currently occupies. Additionally, the Company has begun construction to double the current production capacity of existing operations in that facility. The real estate purchase, the related expansion costs, and the estimated working capital needs will be financed by a new credit line of approximately $1.7 million agreed to between the Company's Thai subsidiary and BankThai Public Company Limited.
The additional capacity, complemented by recently purchased equipment, is expected to be operational beginning in October 2004, and no down-time is expected for existing production in the facility.
SMTEK President and Chief Executive Officer Edward Smith commented: "Production in our Thailand facility has been growing strongly, and I am pleased to see our overseas strategic objectives continuing to be implemented with the signing of these agreements. Offshore production demand is continuing at a high level, and many of our existing customers and potentially new customers are continuing to seek a low-cost, high-quality manufacturing alternative overseas.
"Furthermore, with ISO 9001/ISO 13485 (medical devices) certification expected in the near future, our Thailand facility will be able to accommodate rising demand from our medical equipment OEM customers," Smith continued. "Therefore, this undertaking marks an important step in the Company's strategy to further grow revenues and profits in 2005."
About SMTEK International, Inc.
SMTEK is an electronics manufacturing services (EMS) provider serving original equipment manufacturers (OEMs) in the medical, industrial instrumentation, telecommunications, security, financial services automation, aerospace and defense industries, including integrated solutions across the entire product life cycle, from design to manufacturing to end-of-life services, for the worldwide high-criticality, high-reliability, high-complexity segment of the EMS industry. The Company's four facilities are located in Moorpark and Santa Clara, Calif.; Marlborough, Mass.; and the Ayuttya Province in Thailand.
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are made in reliance upon the protections provided by such acts for forward-looking statements. These forward-looking statements (such as when we describe what "will," "may" or "should" occur, what we "plan," "intend," "estimate," "believe," "expect" or "anticipate" will occur, and other similar statements) include, but are not limited to, statements regarding future sales and operating results, future prospects, anticipated benefits of proposed (or future) acquisitions and new facilities, growth, the capabilities and capacities of business operations, any financial or other guidance and all statements that are not based on historical fact, but rather reflect our current expectations concerning future results and events. We make certain assumptions when making forward-looking statements, any of which could prove inaccurate, including, but not limited to, statements about our future operating results and business plans. The ultimate correctness of these forward-looking statements is dependent upon a number of known and unknown risks and events, and is subject to various uncertainties and other factors that may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements.
The following important factors, among others, could affect future results and events, causing those results and events to differ materially from those expressed or implied in our forward-looking statements: business conditions and growth in our customers' industries, the electronic manufacturing services industry and the general economy, variability of operating results, our dependence on a limited number of major customers, the potential consolidation of our customer base, availability of components, dependence on certain industries, seasonality, variability of customer requirements, our ability to successfully negotiate definitive agreements and consummate acquisitions, and to integrate operations following consummation of acquisitions, our ability to take advantage of our restructuring to improve utilization and realize savings, other economic, business and competitive factors affecting our customers, our industry and business generally and other factors that we may not have currently identified or quantified. Readers are referred to the documents filed by SMTEK International, Inc. with the SEC, including our most recent Reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time, for a more complete description of important risk factors, factors that may affect our results and other information with respect to risks and uncertainties relating to the materials in this press release, as well as to other aspects of our business and financial condition.
All forward-looking statements included in this press release are made only as of the date hereof, and we do not intend undertake publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or which we hereafter become aware of. You should read this document and the documents, if any, that we reference herein completely and with the understanding that our actual future results may be materially different from what we expect. We may not update these forward-looking statements, even if our situation changes in the future. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.
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