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SMTC Appoints Permanent Co-CEOs

TORONTO — SMTC Corporation (Nasdaq:SMTX) (TSX:SMX), a global electronics manufacturing services (EMS) provider, today announced that the Board of Directors has unanimously appointed Claude Germain and Alex Walker as permanent Co-CEOs, effective immediately. Alex Walker will remain on the Board of Directors but will resign as Chairman of the Board; David Sandberg will assume the role of Chairman of the Board of Directors.

David Sandberg stated, “Over the past several months, the Board of Directors followed a rigorous process, carefully evaluating many strong candidates. We are confident in our selection of Alex and Claude as permanent Co-CEOs and believe that the probability of success under this structure increases exponentially given their complementary skill sets. Claude and Alex have successfully worked together for years and bring expertise in sales leadership, operations, finance, M&A, logistics, and contract manufacturing experience. Claude's role will be to focus on growing the top line at SMTC as well as organizational renewal, while Alex will focus on Operations, Finance and M&A. The Board believes that under their leadership, more responsive, effective, and transparent business decisions will be made. With the CEO selection process complete, we can now turn our attention towards executing our strategic plan.”

“Over the last 2 months, we have seen tremendous opportunities to grow this business profitably,” stated Claude Germain. “We intend to deliver more disciplined execution through a more entrepreneurial and customer centric culture at SMTC. Our focus at present is on driving increased sales growth, rightsizing our cost structure and creating a leaner and more flexible organization. In the short timeframe we have been involved at SMTC, we already see benefits of this focus and are looking forward to announcing new customer wins shortly.”

Alex Walker added, “This company has not reached its full potential with respect to its ability to operate profitably. We intend to focus on increasing the bottom line and ROI through improved processes and better decision making. We will also be actively pursuing opportunistic M&A transactions in order to accelerate the growth of this business. We are looking forward to working with the Board to provide increased transparency, more consistent earnings performance and ultimately better financial returns to our shareholders. We remain committed to sharply reducing working capital levels and costs in this business, and expect to see solid reductions in both areas in the current quarter.”

{complink 12834|SMTC Corp.}

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