SMTC (SMTX) 10-Q 28 Oct 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 27, 2015	Oct. 26, 2015
Entity Registrant Name	SMTC CORP
Entity Central Index Key	1,108,320
Trading Symbol	smtx
Current Fiscal Year End Date	--01-03
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		16,417,276
Document Type	10-Q
Document Period End Date	Sep. 27, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false

Interim Consolidated Balance Sh

Interim Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 27, 2015	Dec. 28, 2014
Current assets:
Cash	$ 4,872	$ 5,447
Accounts receivable — net (note 4)	27,917	31,024
Inventories (note 4)	30,466	31,590
Prepaid expenses and other assets	1,834	2,135
Income taxes receivable	287	359
Deferred income taxes — net	514	428
	65,890	70,983
Property, plant and equipment—net	16,561	17,590
Deferred financing costs — net	76	90
	82,527	88,663
Current liabilities:
Accounts payable	29,046	29,425
Accrued liabilities (note 4)	7,124	7,080
Derivative liabilities (note 10)	3,037	2,703
Income taxes payable	350	449
Revolving credit facility (note 5)	16,650	21,370
Current portion of capital lease obligations	626	980
	56,833	62,007
Capital lease obligations	358	866
Shareholders’ equity:
Capital stock (note 6)	390	390
Additional paid-in capital	264,340	263,996
Deficit	(239,394)	(238,596)
	25,336	25,790
	$ 82,527	$ 88,663

Interim Consolidated Statements

Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Revenue	$ 53,425,000	$ 55,528,000	$ 159,880,000	$ 171,535,000
Cost of sales (note 10)	50,309,000	50,964,000	147,706,000	156,427,000
Gross profit	3,116,000	4,564,000	12,174,000	15,108,000
Selling, general and administrative expenses	4,035,000	4,479,000	11,661,000	13,226,000
(Gain) loss on sale of property, plant and equipment	$ (1,000)	23,000	$ 2,000	23,000
Restructuring charges		187,000		1,366,000
Operating earnings (loss)	$ (918,000)	(125,000)	$ 511,000	493,000
Interest expense (note 4)	300,000	470,000	914,000	1,337,000
Loss before income taxes	(1,218,000)	(595,000)	(403,000)	(844,000)
Income tax expense (recovery)
Current	152,000	129,000	481,000	574,000
Deferred	(27,000)	34,000	(86,000)	32,000
	125,000	163,000	395,000	606,000
Net loss, and comprehensive loss	$ (1,343,000)	$ (758,000)	$ (798,000)	$ (1,450,000)	[1]
Loss per share of common stock:
Basic (in dollars per share)	$ (0.08)	$ (0.05)	$ (0.05)	$ (0.09)
Diluted (in dollars per share)	$ (0.08)	$ (0.05)	$ (0.05)	$ (0.09)
Weighted average number of shares outstanding (note 7):
Basic (in shares)	16,417,276	16,417,276	16,417,276	16,417,274
Diluted (in shares)	16,417,276	16,417,276	16,417,276	16,417,274
[1]	Revised net loss and deficit to adjust for prior period errors. Refer to Note 2 for further details.

Interim Consolidated Statement4

Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands		Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at beginning of period at Dec. 29, 2013	[1]	$ 390	$ 263,732	$ (234,718)	$ 29,404
Stock-based compensation			168		168
Net loss	[1]			(1,450)	(1,450)
Balance at end of period at Sep. 28, 2014		390	263,900	(236,168)	28,122
Net loss	[1]			(1,450)	(1,450)
Balance at beginning of period at Dec. 28, 2014		390	263,996	(238,596)	25,790
Stock-based compensation			344		344
Net loss				(798)	(798)
Balance at end of period at Sep. 27, 2015		$ 390	$ 264,340	(239,394)	25,336
Net loss				$ (798)	$ (798)
[1]	Revised net loss and deficit to adjust for prior period errors. Refer to Note 2 for further details.

Interim Consolidated Statement5

Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Operations:
Net loss	$ (798)	$ (1,450)	[1]
Items not involving cash:
Depreciation	2,976	2,960
Unrealized (gain) loss on derivative financial instrument (note 10)	334	(171)
Loss on sale of property, plant and equipment	2	23
Deferred income taxes	(86)	32
Amortization of deferred financing fees	24	377
Stock-based compensation	344	168
Change in non-cash operating working capital:
Accounts receivable	3,107	2,477
Inventories	1,124	(465)
Prepaid expenses	301	567
Income taxes receivable/payable	(27)	(343)
Accounts payable (4)	(487)	(3,065)	[2]
Accrued liabilities (4)	(106)	(32)	[2]
	6,708	1,078
Financing:
Advances (net repayment) in revolving debt	(4,720)	1,525
Principal payment of capital lease obligations	(862)	(1,574)
Payment of financing fees	(10)	(200)
	(5,592)	(249)
Investing:
Purchase of property, plant and equipment	(1,697)	(1,314)
Proceeds from sale of property, plant and equipment	6	30
	(1,691)	(1,284)	[2]
Decrease in cash	(575)	(455)
Cash, beginning of period	5,447	3,295
Cash, end of the period	4,872	2,840
Supplemental Information
Property, plant and equipment acquired that was included in accounts payable and accrued liabilities	$ 359	315
Property, plant and equipment acquired through capital lease		$ 1,703
[1]	Revised net loss and deficit to adjust for prior period errors. Refer to Note 2 for further details.
[2]	The net change of $133 related to purchases of property, plant and equipment that were unpaid in cash as at September 28, 2014 and therefore reflect decreases to accounts payable and accrued liabilities, respectively and a corresponding reduction in cash used by investing.

Note 1 - Nature of the Business

Note 1 - Nature of the Business	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. Nature of the business SMTC Corporation (the “Company”) is a worldwide provider of advanced electronics manufacturing services to original equipment manufacturers. The Company services its customers through manufacturing and technology centers located in the United States, Mexico and China. All facilities provide a full suite of integrated manufacturing services including assembly, testing, box build, final product integration, and expanded supply chain capabilities. In addition, the Company operates an international sourcing and procurement office in Hong Kong. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with the accounting principles and methods of application disclosed in the audited consolidated financial statements within the Company’s Form 10-K for the fiscal period ended December 28, 2014, (“Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2015. The accompanying unaudited interim consolidated financial statements include adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of the consolidated financial statements under generally accepted accounting principles in the United States (“U.S. GAAP”). These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Form 10-K. The consolidated balance sheet at December 28, 2014 was derived from the audited annual consolidated financial statements, but does not contain all of the footnote disclosures from the annual consolidated financial statements.

Note 2 - Revisions of Previousl

Note 2 - Revisions of Previously Issued Financial Statements	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Accounting Changes and Error Corrections [Text Block]	2. Revisions of Previously Issued Financial Statements In connection with the preparation of the consolidated financial statements of the Company for the year ended December 28, 2014, the Company identified certain errors in its previously issued consolidated financial statements for the periods ended December 29, 2013, December 30, 2012 and opening January 2, 2012. The errors related to (i) an understatement of amortization expense due to an error uncovered in the Company’s amortization schedule; (ii) an understatement of unrealized losses related to the mark to market revaluation of outstanding derivative forward contracts; (iii) an understatement of employee benefit obligations related to seniority premiums earned by Mexican employees; (iv) overstatement of deferred tax assets associated with temporary differences on certain benefit obligations in Mexico; and (v) an overstatement of cash used in investing activities related to unpaid purchases of property, plant and equipment and a corresponding understatement of accounts payable and accrued liabilities impacting cash flow from operations and (vi) reclassification of previously reported gross revenues and intersegment revenue elimination between Mexico and China. The following table summarizes the selected line items from the Company’s unaudited interim consolidated financial statements illustrating the effect of these adjustments to the comparative quarter and period year to date. Impact on the Unaudited Interim Consolidated Statements of Operations and Comprehensive Loss In thousands, except per share data Three months ended September 28, 2014 As previously filed Adjustment Three months ended September 28, 2014 As adjusted Cost of sales – unrealized loss on derivative instruments (2) $ 753 $ 170 $ 923 Gross profit 4,734 (170 ) 4,564 Operating earnings (loss) 45 (170 ) (125 ) Net loss and comprehensive loss $ (588 ) $ (170 ) $ (758 ) Basic and diluted loss per share $ (0.04 ) $ (0.05 ) Impact on the Unaudited Interim Consolidated Statements of Operations and Comprehensive Loss In thousands, except per share data Nine months ended September 28, 2014 As previously filed Adjustment Nine months ended September 28, 2014 As adjusted Cost of sales – unrealized gain on derivative instruments (2) $ (136 ) $ (35 ) $ (171 ) Cost of sales – depreciation (1) 3,135 (175 ) 2,960 Gross profit 14,898 210 15,108 Operating earnings 283 210 493 Net loss and comprehensive loss $ (1,660 ) $ 210 $ (1,450 ) Basic and diluted loss per share $ (0.10 ) $ (0.09 ) Impact on the Unaudited Interim Consolidated Statement of Changes in Shareholders’ Equity In thousands September 28, 2014 As previously filed Adjustment September 28, 2014 As adjusted Shareholders’ equity – deficit (3) $ (234,660 ) $ (1,508 ) $ (236,168 ) Impact on the Unaudited Interim Consolidated Statement of Cash Flow In thousands Nine months ended September 28, 2014 As previously filed Adjustment Nine months ended September 28, 2014 As adjusted Net loss $ (1,660 ) $ 210 $ (1,450 ) Items not involving cash: Depreciation 3,135 (175 ) 2,960 Unrealized gain on derivative instruments (136 ) (35 ) (171 ) Accounts payable (4) (3,077 ) 12 (3,065 ) Accrued liabilities (4) (153 ) 121 (32 ) Cash flow provided by operations $ 945 $ 133 $ 1,078 Cash flow used in investing (4) $ (1,151 ) $ (133 ) $ (1,284 ) (1) Cost of sales has been reduced by $175 for the nine months ended September 28, 2014 on the unaudited interim consolidated statement of operations and comprehensive loss related to a reduction to depreciation of $175 due to an error. There was no impact on the three months ended September 28, 2014 as the error occurred in the three months ended March 30, 2014. (2) Cost of sales has been increased by $170 and decreased by $35 for the three and nine months ended September 28, 2014 respectively, related to the revaluation of the outstanding derivative forward contracts. (3) The total net change of ($1,508) to the deficit was the result of the opening, fiscal 2014 cumulative understatement of expenses of ($1,718) related to the prior period errors, which was offset by the decrease to cost of sales of $210 for the nine months ended September 28, 2014 as described above. (4) The net change of $133 related to purchases of property, plant and equipment that were unpaid in cash as at September 28, 2014 and therefore reflect decreases to accounts payable and accrued liabilities, respectively and a corresponding reduction in cash used by investing.

Note 3 - Recently Adopted Accou

Note 3 - Recently Adopted Accounting Pronouncements	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	3. Recent Accounting Pronouncements In May 2014, the FASB published ASU 2014-09 Topic 606: Revenue from Contracts with Customers, which supersedes (i) revenue recognition requirements in Topic 605 and most related industry-specific guidance, and (ii) cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts, and amends existing requirements for recognition of a gain/loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles—Goodwill and Other) to be consistent with the new requirements. In August 2015, the FASB published ASU 2015-14 Topic 606 which effectively postponed the effective adoption requirement by one year such that the standard is effective for years beginning after December 15, 2017 including interim periods with those years. Early adoption is permitted only for those annual reporting periods beginning on or after December 15, 2016. The impact of adoption of the standard has not yet been determined. In June 2014, the FASB published ASU 2014-12 Topic 718: Compensation – Stock Compensation. The standard is amended to require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The standard is effective for all entities for years, and interim periods within those years, beginning after December 15, 2015. The impact of adoption of the standard has not yet been determined. In August 2014, the FASB published ASU 2014-15 Topics 205-40: Presentation of Financial Statements – Going Concern. The standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. Effective for years ending after December 15, 2016 and for years and interim periods thereafter. The impact of adoption of the standard has not yet been determined. In April 2015, the FASB published ASU 2015-03 Topics 835-30: Presentation of Debt Issuance Costs. The standard provides guidance about simplifying the presentation of debt issuance costs. Under this ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. Effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. The impact of adoption of the standard has not yet been determined. In April 2015, the FASB published ASU 2015-04: Retirement Benefits (Topic 715). The amendments intend to reduce complexity by providing a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. The impact of adoption of the standard has not yet been determined. In July 2015, the FASB published ASU 2015-11: Simplifying the Measurement of Inventory (Topic 330). The amendments in this Update more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The Board has amended some of the other guidance in Topic 330 to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the Board does not intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update, there are no other substantive changes to the guidance on measurement of inventory. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this Update. The impact of adoption of the standard has not yet been determined.

Note 4 - Interim Consolidated F

Note 4 - Interim Consolidated Financial Statement Details	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Condensed Financial Statements [Text Block]	4. Interim Consolidated financial statement details The following consolidated financial statement details are presented as of the period ended for the consolidated balance sheets and for the periods ended for each of the consolidated statements of operations and comprehensive income (loss). Consolidated balance sheets Accounts receivable – net: September 27, 2015 December 28, 2014 Accounts receivable $ 28,186 $ 31,354 Allowance for doubtful accounts (269 ) (330 ) Accounts receivable—net $ 27,917 $ 31,024 Inventories: September 27, 2015 December 28, 2014 Raw materials $ 21,740 $ 25,973 Work in process 4,940 2,099 Finished goods 3,073 2,743 Supplies 713 775 Inventories $ 30,466 $ 31,590 Inventories are recorded net of a provision for obsolescence as at September 27, 2015 and December 28, 2014 of $625 and $475 respectively. Property, plant and equipment – net: September 27, 2015 December 28, 2014 Cost (d): Land $ 1,648 $ 1,648 Buildings 9,852 9,878 Machinery and equipment (a) 30,322 31,592 Office furniture and equipment 580 1,690 Computer hardware and software (b) 3,179 5,930 Leasehold improvements (c) 3,035 2,456 48,616 53,194 Less accumulated depreciation (d): Land — — Buildings (7,603 ) (7,275 ) Machinery and equipment (a) (19,736 ) (20,545 ) Office furniture and equipment (488 ) (1,513 ) Computer hardware and software (b) (2,111 ) (4,774 ) Leasehold improvements (c) (2,117 ) (1,497 ) (32,055 ) (35,604 ) Property, plant and equipment—net $ 16,561 $ 17,590 (a) Included within machinery and equipment were assets under capital leases with costs of $2,528 and $3,495 as at September 27, 2015, and December 28, 2014, respectively and associated accumulated depreciation of $775 and $916 as of September 27, 2015 and December 28, 2014, respectively. The related depreciation expense for the three months ended September 27, 2015 and September 28, 2014 were $92 and $197, respectively. The related depreciation expense for the nine months ended September 27, 2015 and September 28, 2014 was $327 and $537, respectively. (b) Included within computer hardware and software were assets under capital leases with costs of $119 and $524 as at September 27, 2015 and December 28, 2014, respectively and associated accumulated depreciation of $77 and $350 as at September 27, 2015, and December 28, 2014, respectively. The related depreciation expense for the three months ended September 27, 2015 and September 28, 2014 was $10 and $35, respectively. The related depreciation for the nine months ended September 27, 2015 and September 28, 2014 was $34 and $119, respectively. (c) Included within leasehold improvements were assets under capital leases with costs of $nil as at September 27, 2015 and $73 as at December 28, 2014, and associated accumulated depreciation of $nil and $42 as at September 27, 2015, and December 28, 2014, respectively. The related depreciation expense for the three months ended September 27, 2015 and September 28, 2014 was $nil and $4, respectively. The related depreciation for the nine months ended September 27, 2015 and September 28, 2014 was $2 and $11, respectively. (d) During the quarter ended June 28, 2015, the Company wrote off fully depreciated assets that were no longer in use with a cost and accumulated depreciation value of $6,522. Accrued liabilities : September 27, 2015 December 28, 2014 Customer related $ 3,274 $ 2,074 Payroll 2,637 4,014 Professional services 597 395 Vendor related 314 29 Other 302 568 Accrued liabilities $ 7,124 $ 7,080 Consolidated statements of operations and comprehensive loss Interest expense: Three months ended Nine months ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Revolving credit facility 267 282 795 834 Amortization of deferred financing fees 7 137 24 377 Obligations under capital leases 26 51 95 126 Interest expense $ 300 $ 470 $ 914 $ 1,337

Note 5 - Debt

Note 5 - Debt	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	5. Debt (a) Revolving credit facility The Company borrows money under a Revolving Credit and Security Agreement (the “PNC Facility”) with PNC Bank, National Association (“PNC”). On September 24, 2014, an amendment to the PNC Facility was signed and the term of the PNC Facility was extended to January 2, 2018. Advances made under the PNC Facility bear interest at the U.S. base rate plus 1.25%. Depending on the Company’s consolidated fixed charge coverage ratio, there is an opportunity to reduce the interest rate to U.S. base rate plus 0.75%. The base commercial lending rate should approximate prime rate. The effective weighted average interest rate for the three and nine months ended September 27, 2015 was 4.2% and 4.4%, respectively compared to 5.0% and 4.6%, respectively for the three and nine months ended September 28, 2014. At September 27, 2015, $16,650 was outstanding under the PNC Facility, compared to $21,370 as at December 28, 2014 and is classified as a current liability based on the terms of the PNC Facility. The maximum amount of funds available under the PNC Facility is $40,000. Availability under the PNC Facility is subject to certain conditions, including borrowing base conditions based on eligible inventory and accounts receivable, and certain conditions as determined by the lender. The Company is required to use a “lock-box” arrangement for the PNC Facility, whereby remittances from customers are swept daily to reduce the borrowings under this facility. The PNC Facility is a joint and several obligations of the Company and its subsidiaries that are borrowers under the facility and is jointly and severally guaranteed. Repayment under the PNC Facility is secured by the assets of the Company and each of its subsidiaries. (b) Covenants The PNC Facility agreement contains certain financial and non-financial covenants. The financial covenants require the Company to maintain minimum fixed charge coverage ratio and limit unfunded capital expenditures (all as defined in the credit agreement governing the PNC Facility). The financial covenant relating to a minimum fixed charge coverage ratio is in effect for the twelve months ended September 27, 2015 and thereafter on a rolling twelve month basis until December 31, 2017. Market conditions are difficult to predict and there is no assurance that the Company will meet these covenants. A failure to comply with the covenants could result in an event of default. If an event of default occurs and is not cured or waived, it could result in all amounts outstanding, together with accrued interest, becoming immediately due and payable unless the Company obtains a waiver from the lender. The Company is in compliance with the financial covenants included in the PNC Facility as of September 27, 2015.

Note 6 - Capital Stock

Note 6 - Capital Stock	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	6. Capital stock Common shares Issued and outstanding: The issued and outstanding number of common shares included in shareholders’ equity consisted of the following: Number of shares $ Balances at December 28, 2014 and September 27, 2015 16,417,276 $ 390 Stock Options For information regarding the Company’s stock option arrangements, see Note 6 of the consolidated financial statements within the Company’s Form 10-K for the fiscal period ended December 28, 2014. There were no stock options granted during the three and nine month period ended September 27, 2015. A summary of stock option activity for the nine month period ended September 27, 2015 is as follows: Number of options Weighted Aggregate Weighted Outstanding at December 28, 2014 817,212 $ 2.07 $ — 7.3 Expired (66,667 ) 3.11 Forfeited (95,431 ) 2.03 Outstanding 655,114 1.97 — 6.8 Exercisable at September 27, 2015 198,335 $ 2.34 $ — 2.5 During the three month periods ended September 27, 2015 and September 28, 2014, the Company recorded stock-based compensation expense and a corresponding increase in additional paid-in capital of $45 and $28, respectively. During the nine month periods ended September 27, 2015 and September 28, 2014, the Company recorded stock-based compensation expense and a corresponding increase in additional paid-in capital of $122 and $82, respectively. Restricted Stock Units For information regarding the Company’s Restricted Stock Units (“RSU”) arrangements, see Note 6 of the consolidated financial statements within the Company’s Form 10-K for the fiscal period ended December 28, 2014. A summary of the RSU activity for the nine month period ended September 27, 2015 is as follows: Outstanding Weighted Weighted Outstanding balance at December 28, 2014 520,433 $ 1.94 2.5 RSU granted 91,818 1.47 RSU forfeited (64,908 ) 1.89 Outstanding balance at September 27, 2015 547,343 $ 1.87 1.59 Stock based compensation recognized during the three month period ended September 27, 2015 and September 28, 2014 related to the restricted stock units was $81 and $35. Stock based compensation recognized during the nine month period ended September 27, 2015 and September 28, 2014 related to the restricted stock units was $222 and $86, respectively.

Note 7 - Income Taxes

Note 7 - Income Taxes	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	7 . Income taxes During the three months ended September 27, 2015 and September 28, 2014, respectively, the Company recorded an income tax expense of $125 and $163, primarily related to minimum taxes and taxes on profits in certain jurisdictions, combined with foreign exchange revaluation and temporary differences on deferred tax assets in Mexico. During the nine months ended September 27, 2015 and September 28, 2014, respectively, the Company recorded a net income tax expense of $395 and $606, primarily related to minimum taxes and taxes on profits in certain jurisdictions, combined with foreign exchange revaluation exchange revaluation and temporary differences on deferred tax assets in Mexico. Tax years 2010 to 2014 remain open for review by the tax authorities in Canada, U.S., Mexico and China. Tax years 2008 to 2014 remain open for Hong Kong. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of its U.S. deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, change of control limitations, projected future taxable income and tax planning strategies in making this assessment. Guidance under ASC 740, Income Taxes, (“ASC 740”) states that forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years in the jurisdictions to which the deferred tax assets relate. In years 2010 through to 2012, it was determined by management that it was more likely than not that certain deferred tax assets associated with the U.S. jurisdiction would be realized and as such, no valuation allowance was recorded against these deferred tax assets. In 2013, it was determined by management that a partial valuation allowance was required to be recorded against certain deferred tax assets associated with the U.S. jurisdiction as it was not more likely than not to be realized. In 2014, it was determined by management that a full valuation allowance was required to be recorded against the remaining deferred tax assets associated with the U.S. jurisdiction as it was not likely to be realized. For nine months ended 2015, the Canadian and U.S. jurisdictions continue to have a full valuation allowance recorded against the deferred tax assets.

Note 8 - Earnings (Loss) Per Co

Note 8 - Earnings (Loss) Per Common Share	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	8. Earnings (loss) per common share The following table details the weighted average number of common shares outstanding for the purposes of computing basic and diluted earnings per common share for the following periods: Three months ended Nine months ended (Number of common shares) September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Basic weighted average shares outstanding 16,417,276 16,417,276 16,417,276 16,417,274 Dilutive stock options (a) — — — — Diluted weighted average shares outstanding 16,417,276 16,417,276 16,417,276 16,417,274 (a) For the three months and nine months ended September 27, 2015 and September 28, 2014, as a result of the net loss, diluted earnings per share was calculated using the basic weighted average shares outstanding as the effect of potential common shares would have been anti-dilutive.

Note 9 - Segmented Information

Note 9 - Segmented Information	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	9. Segmented information General description The Company is operated and managed geographically and has production facilities in the United States, Mexico and China. Commencing in the fourth quarter of 2014, the Company changed the measure it utilizes to monitor reportable segment performance from adjusted EBITDA, (which was defined as earnings before restructuring charges, interest, taxes, depreciation, amortization and unrealized foreign exchange gains and losses on unsettled forward contracts) to each reportable segment’s site contribution (which is calculated by management based on site revenues minus operating expenses, excluding unrealized foreign exchange, corporate allocations and restructuring expenses). Comparative periods reflect the change in the Company’s measure of segment performance. Site contribution is utilized by the CEO who is defined as the chief operating decision-maker as the indicator of reportable segment performance, as it reflects costs which our operating site management is directly responsible for, and by which the chief operating decision maker makes decisions about resources to be allocated to its operating segments. Intersegment adjustments reflect intersegment sales that are generally recorded at prices that approximate arm’s-length transactions. In assessing the performance of the reportable segments, management attributes site revenue to the reportable segment that originates the shipment of product to the end customer, irrespective of the product’s destination. Information about the reportable segments is as follows: Three months ended Nine months ended September 27 , 2015 September 28 , 2014 (As Revised – See Note 2) September 27 , 2015 September 28 , 2014 (As Revised – See Note 2 ) Revenues Mexico $ 34,753 $ 37,122 $ 109,515 $ 114,824 China 12,055 14,120 33,547 44,809 U.S. 9,218 12,132 24,804 38,673 Total $ 56,026 $ 63,374 $ 167,866 $ 198,306 Intersegment revenue Mexico $ (126 ) $ (112 ) $ (336 ) $ (619 ) China (2,361 ) (2,648 ) (7,451 ) (9,672 ) U.S. (114 ) (5,086 ) (199 ) (16,480 ) Total $ (2,601 ) $ (7,846 ) $ (7,986 ) $ (26,771 ) Net external revenue Mexico $ 34,627 $ 37,010 $ 109,179 $ 114,205 China 9,694 11,472 26,096 35,137 U.S. 9,104 7,046 24,605 22,193 Total segment revenue (which also equals consolidated revenue) $ 53,425 $ 55,528 $ 159,880 $ 171,535 Site Contribution Mexico $ 2,007 $ 2,721 $ 7,682 $ 6,210 China 804 1,050 1,773 3,631 U.S. 243 598 728 2,438 Total $ 3,054 $ 4,369 $ 10,183 $ 12,279 Corporate allocations 3,167 3,384 9,338 10,591 Unrealized loss (gain) on derivative financial instruments 805 923 334 (171 ) Interest 300 470 914 1,337 Restructuring charges — 187 — 1,366 Loss before income taxes $ (1,218 ) $ (595 ) $ (403 ) $ (844 ) Additions to property, plant and equipment The following table contains additions including those acquired through capital leases, to property, plant and equipment for the three and nine months ended September 27, 2015 and September 28, 2014: Three months ended Nine months ended September 27 , 2015 September 28 , 2014 September 27 , 2015 September 28 , 2014 Mexico $ 107 $ 393 $ 503 $ 2,675 China 150 27 777 56 U.S. 221 174 606 286 Segment total 478 594 1,886 3,017 Corporate and other 30 23 69 135 Total $ 508 $ 617 $ 1,955 $ 3,152 Property, plant and equipment (a) September 27 , 2015 December 28, 2014 Mexico $ 11,017 $ 12,556 China 3,185 3,001 U.S. 2,137 1,776 Segment total 16,339 17,333 Corporate and other 222 257 Total assets $ 16,561 $ 17,590 (a) Property, plant and equipment information is based on the principal location of the asset. Geographic revenues The following table contains geographic revenues based on the customer location, for the three and nine months ended September 27, 2015 and September 28, 2014: Three months ended Nine months ended September 27 , 2015 September 28 , 2014 September 27 , 2015 September 28 , 2014 U.S. $ 46,994 $ 45,924 $ 127,238 $ 149,255 Canada 6,057 7,729 31,068 17,462 Europe — — — 284 China 374 1,875 1,574 4,530 Mexico — — — 4 Total $ 53,425 $ 55,528 $ 159,880 $ 171,535 Significant customers and concentration of credit risk: Sales of the Company’s products are concentrated in certain cases among specific customers in the same industry. The Company is subject to concentrations of credit risk in trade receivables. The Company considers concentrations of credit risk in establishing the allowance for doubtful accounts and believes the recorded allowances are adequate. The Company expects to continue to depend upon a relatively small number of customers for a significant percentage of its revenue. In addition to having a limited number of customers, the Company manufactures a limited number of products for each customer. If the Company loses any of its larger customers or any product line manufactured for one of its larger customers, it could experience a significant reduction in revenue. Also, the insolvency of one or more of its larger customers or the inability of one or more of its larger customers to pay for its orders could decrease revenue. As many costs and operating expenses are relatively fixed, a reduction in net revenue can decrease profit margins and adversely affect the business, financial condition and results of operations. During the three months ended September 27, 2015, two customers individually comprised 15.9% and 11.6% (September 28, 2014 – three customers individually comprised 27.8%, 13.8% and 10.6%) of total revenue across all geographic segments. During the nine months ended September 27, 2015 two customers individually comprised 14.5% and 11.6% (September 28, 2014 – three customers individually comprised 31.3%, 13.4% and 10.3%) of total revenue across all geographic segments. No other customers represented more than 10% of revenue. The two customers with revenues in excess of 10% for nine months ended 2015 represented 12.0% and 4.2%, respectively as at September 27, 2015, (as of December 28, 2014, these customers represented 14.3% and 20.8%, respectively) of the Company’s accounts receivable.

Note 10 - Derivative Financial

Note 10 - Derivative Financial Instruments	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	10. Derivative financial instruments The Company enters into forward foreign exchange contracts to reduce its exposure to foreign exchange currency rate fluctuations related to forecasted Canadian dollar and Mexican Peso denominated payroll, rent and utility cash flows for the three remaining months of fiscal 2015 and first nine months of fiscal 2016. These contracts are effective economic hedges but do not qualify for hedge accounting under ASC 815 “Derivatives and Hedging”. Accordingly, changes in the fair value of these derivative contracts are recognized into net earnings in the consolidated statement of operations and comprehensive loss. The Company does not enter into forward foreign exchange contracts for trading or speculative purposes. The following table presents a summary of the outstanding foreign currency forward contracts as at September 27, 2015: Currency Buy/Sell Foreign Currency Amount Notional Contract Value in USD Canadian Dollar Buy CAD 6,800 $ 5,566 Mexican Peso Buy MXN 289,525 $ 19,392 The unrealized loss recognized in earnings for the three month period as a result of revaluing the outstanding instruments to fair value on September 27, 2015 was $805 (September 28, 2014 – unrealized loss $923), and the unrealized loss for the nine month period ended September 27, 2015 was $334 (September 28, 2014 – unrealized gain $171), which was included in cost of sales in the consolidated statement of operations and comprehensive income (loss). The realized loss on the settled contracts for the three months period ended September 27, 2015 was $1,237 (September 28, 2014 – realized loss $90), and the realized loss for the nine month period ended September 27, 2015 was $3,119 (September 28, 2014 – realized loss $863), and is also included in cost of sales, in the consolidated statement of operations and comprehensive income (loss). Fair value was determined using the market approach with valuation based on market observables (Level 2 quantitative inputs in the hierarchy set forth under ASC 820 “Fair Value Measurements”). The derivative liability as at September 27, 2015 was $3,037 (December 28, 2014 - $2,703) which reflected the fair market value of the unsettled forward foreign exchange contracts.

Note 11 - Commitments

Note 11 - Commitments	9 Months Ended
	Sep. 27, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	11. Commitments Purchase obligations not recorded on the balance sheet as at September 27, 2015 consist of open non-cancellable purchase orders for raw materials for $18,538 (December 28, 2014 - $12,043), which are expected to be received within 12 months of the PO issue date.

Note 2 - Revisions of Previou17

Note 2 - Revisions of Previously Issued Financial Statements (Tables)	9 Months Ended
	Sep. 27, 2015
Consolidated Statements of Cash Flows [Member]
Notes Tables
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	Impact on the Unaudited Interim Consolidated Statement of Cash Flow In thousands Nine months ended September 28, 2014 As previously filed Adjustment Nine months ended September 28, 2014 As adjusted Net loss $ (1,660 ) $ 210 $ (1,450 ) Items not involving cash: Depreciation 3,135 (175 ) 2,960 Unrealized gain on derivative instruments (136 ) (35 ) (171 ) Accounts payable (4) (3,077 ) 12 (3,065 ) Accrued liabilities (4) (153 ) 121 (32 ) Cash flow provided by operations $ 945 $ 133 $ 1,078 Cash flow used in investing (4) $ (1,151 ) $ (133 ) $ (1,284 )
Consolidated Statement of Changes in Shareholders Equity [Member]
Notes Tables
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	Impact on the Unaudited Interim Consolidated Statement of Changes in Shareholders’ Equity In thousands September 28, 2014 As previously filed Adjustment September 28, 2014 As adjusted Shareholders’ equity – deficit (3) $ (234,660 ) $ (1,508 ) $ (236,168 )
Consolidated Statements of Operations and Comprehensive Income [Member]
Notes Tables
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	Impact on the Unaudited Interim Consolidated Statements of Operations and Comprehensive Loss In thousands, except per share data Three months ended September 28, 2014 As previously filed Adjustment Three months ended September 28, 2014 As adjusted Cost of sales – unrealized loss on derivative instruments (2) $ 753 $ 170 $ 923 Gross profit 4,734 (170 ) 4,564 Operating earnings (loss) 45 (170 ) (125 ) Net loss and comprehensive loss $ (588 ) $ (170 ) $ (758 ) Basic and diluted loss per share $ (0.04 ) $ (0.05 ) Impact on the Unaudited Interim Consolidated Statements of Operations and Comprehensive Loss In thousands, except per share data Nine months ended September 28, 2014 As previously filed Adjustment Nine months ended September 28, 2014 As adjusted Cost of sales – unrealized gain on derivative instruments (2) $ (136 ) $ (35 ) $ (171 ) Cost of sales – depreciation (1) 3,135 (175 ) 2,960 Gross profit 14,898 210 15,108 Operating earnings 283 210 493 Net loss and comprehensive loss $ (1,660 ) $ 210 $ (1,450 ) Basic and diluted loss per share $ (0.10 ) $ (0.09 )

Note 4 - Interim Consolidated18

Note 4 - Interim Consolidated Financial Statement Details (Tables)	9 Months Ended
	Sep. 27, 2015
Notes Tables
Condensed Balance Sheet [Table Text Block]	September 27, 2015 December 28, 2014 Accounts receivable $ 28,186 $ 31,354 Allowance for doubtful accounts (269 ) (330 ) Accounts receivable—net $ 27,917 $ 31,024 September 27, 2015 December 28, 2014 Raw materials $ 21,740 $ 25,973 Work in process 4,940 2,099 Finished goods 3,073 2,743 Supplies 713 775 Inventories $ 30,466 $ 31,590 September 27, 2015 December 28, 2014 Cost (d): Land $ 1,648 $ 1,648 Buildings 9,852 9,878 Machinery and equipment (a) 30,322 31,592 Office furniture and equipment 580 1,690 Computer hardware and software (b) 3,179 5,930 Leasehold improvements (c) 3,035 2,456 48,616 53,194 Less accumulated depreciation (d): Land — — Buildings (7,603 ) (7,275 ) Machinery and equipment (a) (19,736 ) (20,545 ) Office furniture and equipment (488 ) (1,513 ) Computer hardware and software (b) (2,111 ) (4,774 ) Leasehold improvements (c) (2,117 ) (1,497 ) (32,055 ) (35,604 ) Property, plant and equipment—net $ 16,561 $ 17,590 September 27, 2015 December 28, 2014 Customer related $ 3,274 $ 2,074 Payroll 2,637 4,014 Professional services 597 395 Vendor related 314 29 Other 302 568 Accrued liabilities $ 7,124 $ 7,080
Condensed Income Statement [Table Text Block]	Three months ended Nine months ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Revolving credit facility 267 282 795 834 Amortization of deferred financing fees 7 137 24 377 Obligations under capital leases 26 51 95 126 Interest expense $ 300 $ 470 $ 914 $ 1,337

Note 6 - Capital Stock (Tables)

Note 6 - Capital Stock (Tables)	9 Months Ended
	Sep. 27, 2015
Notes Tables
Schedule of Common Stock Outstanding Roll Forward [Table Text Block]	Number of shares $ Balances at December 28, 2014 and September 27, 2015 16,417,276 $ 390
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of options Weighted Aggregate Weighted Outstanding at December 28, 2014 817,212 $ 2.07 $ — 7.3 Expired (66,667 ) 3.11 Forfeited (95,431 ) 2.03 Outstanding 655,114 1.97 — 6.8 Exercisable at September 27, 2015 198,335 $ 2.34 $ — 2.5
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	Outstanding Weighted Weighted Outstanding balance at December 28, 2014 520,433 $ 1.94 2.5 RSU granted 91,818 1.47 RSU forfeited (64,908 ) 1.89 Outstanding balance at September 27, 2015 547,343 $ 1.87 1.59

Note 8 - Earnings (Loss) Per 20

Note 8 - Earnings (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 27, 2015
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three months ended Nine months ended (Number of common shares) September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Basic weighted average shares outstanding 16,417,276 16,417,276 16,417,276 16,417,274 Dilutive stock options (a) — — — — Diluted weighted average shares outstanding 16,417,276 16,417,276 16,417,276 16,417,274

Note 9 - Segmented Information

Note 9 - Segmented Information (Tables)	9 Months Ended
	Sep. 27, 2015
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three months ended Nine months ended September 27 , 2015 September 28 , 2014 (As Revised – See Note 2) September 27 , 2015 September 28 , 2014 (As Revised – See Note 2 ) Revenues Mexico $ 34,753 $ 37,122 $ 109,515 $ 114,824 China 12,055 14,120 33,547 44,809 U.S. 9,218 12,132 24,804 38,673 Total $ 56,026 $ 63,374 $ 167,866 $ 198,306 Intersegment revenue Mexico $ (126 ) $ (112 ) $ (336 ) $ (619 ) China (2,361 ) (2,648 ) (7,451 ) (9,672 ) U.S. (114 ) (5,086 ) (199 ) (16,480 ) Total $ (2,601 ) $ (7,846 ) $ (7,986 ) $ (26,771 ) Net external revenue Mexico $ 34,627 $ 37,010 $ 109,179 $ 114,205 China 9,694 11,472 26,096 35,137 U.S. 9,104 7,046 24,605 22,193 Total segment revenue (which also equals consolidated revenue) $ 53,425 $ 55,528 $ 159,880 $ 171,535 Site Contribution Mexico $ 2,007 $ 2,721 $ 7,682 $ 6,210 China 804 1,050 1,773 3,631 U.S. 243 598 728 2,438 Total $ 3,054 $ 4,369 $ 10,183 $ 12,279 Corporate allocations 3,167 3,384 9,338 10,591 Unrealized loss (gain) on derivative financial instruments 805 923 334 (171 ) Interest 300 470 914 1,337 Restructuring charges — 187 — 1,366 Loss before income taxes $ (1,218 ) $ (595 ) $ (403 ) $ (844 ) Three months ended Nine months ended September 27 , 2015 September 28 , 2014 September 27 , 2015 September 28 , 2014 Mexico $ 107 $ 393 $ 503 $ 2,675 China 150 27 777 56 U.S. 221 174 606 286 Segment total 478 594 1,886 3,017 Corporate and other 30 23 69 135 Total $ 508 $ 617 $ 1,955 $ 3,152 Three months ended Nine months ended September 27 , 2015 September 28 , 2014 September 27 , 2015 September 28 , 2014 U.S. $ 46,994 $ 45,924 $ 127,238 $ 149,255 Canada 6,057 7,729 31,068 17,462 Europe — — — 284 China 374 1,875 1,574 4,530 Mexico — — — 4 Total $ 53,425 $ 55,528 $ 159,880 $ 171,535
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]	September 27 , 2015 December 28, 2014 Mexico $ 11,017 $ 12,556 China 3,185 3,001 U.S. 2,137 1,776 Segment total 16,339 17,333 Corporate and other 222 257 Total assets $ 16,561 $ 17,590

Note 10 - Derivative Financia22

Note 10 - Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 27, 2015
Notes Tables
Schedule of Derivative Instruments [Table Text Block]	Currency Buy/Sell Foreign Currency Amount Notional Contract Value in USD Canadian Dollar Buy CAD 6,800 $ 5,566 Mexican Peso Buy MXN 289,525 $ 19,392

Note 2 - Revisions of Previou23

Note 2 - Revisions of Previously Issued Financial Statements (Details Textual) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended			12 Months Ended
		Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014		Dec. 28, 2014
Reduction to Amortization [Member] | Restatement Adjustment [Member] | Cost of Sales [Member]
Prior Period Reclassification Adjustment				$ (175)
Reduction to Amortization [Member] | Restatement Adjustment [Member]
Prior Period Reclassification Adjustment				(175)
Revaluation of Derivative Forward Contracts [Member] | Restatement Adjustment [Member] | Cost of Sales [Member]
Prior Period Reclassification Adjustment		$ 170		(35)
Understatement of Expenses [Member] | Restatement Adjustment [Member]
Prior Period Reclassification Adjustment						$ 1,718
Restatement Adjustment [Member] | Cost of Sales [Member]
Prior Period Reclassification Adjustment				(210)
Restatement Adjustment [Member]
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	[1]			(133)
Impact of Restatement on Opening Retained Earnings, Net of Tax		$ 1,508		1,508
Net Cash Provided by (Used in) Investing Activities, Continuing Operations			$ (1,691)	$ (1,284)	[1]
[1]	The net change of $133 related to purchases of property, plant and equipment that were unpaid in cash as at September 28, 2014 and therefore reflect decreases to accounts payable and accrued liabilities, respectively and a corresponding reduction in cash used by investing.

Note 2 - Impact on the Interim

Note 2 - Impact on the Interim Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 28, 2014	Sep. 28, 2014
Scenario, Previously Reported [Member] | Revaluation of Derivative Forward Contracts [Member]
Cost of sales	[1]	$ 753	$ (136)
Scenario, Previously Reported [Member] | Reduction to Amortization [Member]
Cost of sales	[2]		3,135
Scenario, Previously Reported [Member]
Gross profit		4,734	14,898
Operating earnings (loss)		45	283
Net loss and comprehensive loss		$ (588)	$ (1,660)
Basic and diluted loss per share (in dollars per share)		$ (0.04)	$ (0.10)
Restatement Adjustment [Member] | Revaluation of Derivative Forward Contracts [Member]
Cost of sales	[1]	$ 170	$ (35)
Restatement Adjustment [Member] | Reduction to Amortization [Member]
Cost of sales	[2]		(175)
Restatement Adjustment [Member]
Gross profit		(170)	210
Operating earnings (loss)		(170)	210
Net loss and comprehensive loss		$ (170)	$ 210
Basic and diluted loss per share (in dollars per share)
Revaluation of Derivative Forward Contracts [Member]
Cost of sales	[1]	$ 923	$ (171)
Reduction to Amortization [Member]
Cost of sales	[2]		2,960
Cost of sales		50,964	156,427
Gross profit		4,564	15,108
Operating earnings (loss)		(125)	493
Net loss and comprehensive loss		$ (758)	$ (1,450)	[3]
Basic and diluted loss per share (in dollars per share)		$ (0.05)	$ (0.09)
[1]	Cost of sales has been increased by $170 and decreased by $35 for the three and nine months ended September 28, 2014 respectively, related to the revaluation of the outstanding derivative forward contracts.
[2]	Cost of sales has been reduced by $175 for the nine months ended September 28, 2014 on the unaudited interim consolidated statement of operations and comprehensive loss related to a reduction to depreciation of $175 due to an error. There was no impact on the three months ended September 28, 2014 as the error occurred in the three months ended March 30, 2014.
[3]	Revised net loss and deficit to adjust for prior period errors. Refer to Note 2 for further details.

Note 2 - Impact on the Interi25

Note 2 - Impact on the Interim Consolidated Statement of Changes in Shareholders' Equity (Details) $ in Thousands	Sep. 28, 2014USD ($)	[1]
Scenario, Previously Reported [Member]
Shareholders’ equity – deficit (3)	$ (234,660)
Restatement Adjustment [Member]
Shareholders’ equity – deficit (3)	(1,508)
Shareholders’ equity – deficit (3)	$ (236,168)
[1]	The total net change of ($1,508) to the deficit was the result of the opening, fiscal 2014 cumulative understatement of expenses of ($1,718) related to the prior period errors, which was offset by the reductions to cost of sales of $210 for the nine months ended September 28, 2014 as described above.

Note 2 - Impact on the Interi26

Note 2 - Impact on the Interim Consolidated Statement of Cash Flow (Details) $ in Thousands	9 Months Ended
	Sep. 28, 2014USD ($)
Scenario, Previously Reported [Member]
Net loss and comprehensive loss	$ (1,660)
Depreciation	3,135
Unrealized gain on derivative instruments	(136)
Accounts payable (4)	(3,077)	[1]
Accrued liabilities (4)	(153)	[1]
Cash flow provided by operations	945
Cash flow used in investing (4)	(1,151)	[1]
Restatement Adjustment [Member]
Net loss and comprehensive loss	210
Depreciation	(175)
Unrealized gain on derivative instruments	(35)
Accounts payable (4)	12	[1]
Accrued liabilities (4)	121	[1]
Cash flow provided by operations	133
Cash flow used in investing (4)	(133)	[1]
Net loss and comprehensive loss	(1,450)	[2]
Depreciation	2,960
Unrealized gain on derivative instruments	(171)
Accounts payable (4)	(3,065)	[1]
Accrued liabilities (4)	(32)	[1]
Cash flow provided by operations	1,078
Cash flow used in investing (4)	$ (1,284)	[1]
[1]	The net change of $133 related to purchases of property, plant and equipment that were unpaid in cash as at September 28, 2014 and therefore reflect decreases to accounts payable and accrued liabilities, respectively and a corresponding reduction in cash used by investing.
[2]	Revised net loss and deficit to adjust for prior period errors. Refer to Note 2 for further details.

Note 4 - Interim Consolidated27

Note 4 - Interim Consolidated Financial Statement Details (Details Textual) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 27, 2015	Jun. 28, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Assets Under Capital Lease [Member] | Leasehold Improvements [Member]
Depreciation			$ 4	$ 2	$ 11
Assets Under Capital Lease [Member] | Machinery and Equipment [Member]
Depreciation	$ 92		197	327	537
Assets Under Capital Lease [Member] | Computer Equipment [Member]
Depreciation	$ 10		$ 35	$ 34	119
Leasehold Improvements [Member]
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation						$ 42
Capital Leased Assets, Gross						73
Machinery and Equipment [Member]
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	$ 775			$ 775		916
Capital Leased Assets, Gross	2,528			2,528		3,495
Computer Equipment [Member]
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	77			77		350
Capital Leased Assets, Gross	$ 119			119		524
Depreciation				2,976	$ 2,960
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment		$ 6,522
Inventory Write-down				$ 625		$ 475
Property, Plant and Equipment, Disposals		$ 6,522

Note 4 - Consolidated Balance S

Note 4 - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands		Sep. 27, 2015		Dec. 28, 2014
Customer Related [Member]
Other accrued liabilities		$ 3,274		$ 2,074
Vendor Related [Member]
Other accrued liabilities		314		29
Other Accrued Liabilities [Member]
Other accrued liabilities		302		568
Land [Member]
Property, plant and equipment		$ 1,648	[1]	$ 1,648
Accumulated depreciation, property, plant and equipment
Building [Member]
Property, plant and equipment		$ 9,852	[1]	$ 9,878
Accumulated depreciation, property, plant and equipment		(7,603)	[1]	(7,275)
Machinery and Equipment [Member]
Property, plant and equipment	[2]	30,322	[1]	31,592
Accumulated depreciation, property, plant and equipment	[2]	(19,736)	[1]	(20,545)
Furniture and Fixtures [Member]
Property, plant and equipment		580	[1]	1,690
Accumulated depreciation, property, plant and equipment		(488)	[1]	(1,513)
Computer Equipment [Member]
Property, plant and equipment	[3]	3,179	[1]	5,930
Accumulated depreciation, property, plant and equipment	[3]	(2,111)	[1]	(4,774)
Leasehold Improvements [Member]
Property, plant and equipment	[4]	3,035	[1]	2,456
Accumulated depreciation, property, plant and equipment	[4]	(2,117)	[1]	(1,497)
Accounts receivable		28,186		31,354
Allowance for doubtful accounts		(269)		(330)
Accounts receivable—net		27,917		31,024
Raw materials		21,740		25,973
Work in process		4,940		2,099
Finished goods		3,073		2,743
Supplies		713		775
Inventories		30,466		31,590
Property, plant and equipment		48,616	[1]	53,194
Accumulated depreciation, property, plant and equipment		(32,055)	[1]	(35,604)
Property, plant and equipment—net		16,561		17,590
Payroll		2,637		4,014
Professional services		597		395
Accrued liabilities		$ 7,124		$ 7,080
[1]	During the quarter ended June 28, 2015, the Company wrote off fully depreciated assets that were no longer in use with a cost and accumulated depreciation value of $6,522.
[2]	Included within machinery and equipment were assets under capital leases with costs of $2,528 and $3,495 as at September 27, 2015, and December 28, 2014, respectively and associated accumulated depreciation of $775 and $916 as of September 27, 2015 and December 28, 2014, respectively. The related depreciation expense for the three months ended September 27, 2015 and September 28, 2014 were $92 and $197, respectively. The related depreciation expense for the nine months ended September 27, 2015 and September 28, 2014 was $327 and $537, respectively.
[3]	Included within computer hardware and software were assets under capital leases with costs of $119 and $524 as at September 27, 2015 and December 28, 2014, respectively and associated accumulated depreciation of $77 and $350 as at September 27, 2015, and December 28, 2014, respectively. The related depreciation expense for the three months ended September 27, 2015 and September 28, 2014 was $10 and $35, respectively. The related depreciation for the nine months ended September 27, 2015 and September 28, 2014 was $34 and $119, respectively.
[4]	Included within leasehold improvements were assets under capital leases with costs of $nil as at September 27, 2015 and $73 as at December 28, 2014, and associated accumulated depreciation of $nil and $42 as at September 27, 2015, and December 28, 2014, respectively. The related depreciation expense for the three months ended September 27, 2015 and September 28, 2014 was $nil and $4, respectively. The related depreciation for the nine months ended September 27, 2015 and September 28, 2014 was $2 and $11, respectively.

Note 4 - Consolidated Statement

Note 4 - Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Revolving credit facility	$ 267	$ 282	$ 795	$ 834
Amortization of deferred financing fees	7	137	24	377
Obligations under capital leases	26	51	95	126
Interest expense	$ 300	$ 470	$ 914	$ 1,337

Note 5 - Debt (Details Textual)

Note 5 - Debt (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Base Rate [Member] | United States of America, Dollars | PNC Facility [Member] | Depending on Fixed Charge Coverage Ratio [Member]
Debt Instrument, Basis Spread on Variable Rate			0.75%
Base Rate [Member] | United States of America, Dollars | PNC Facility [Member]
Debt Instrument, Basis Spread on Variable Rate			1.25%
PNC Facility [Member] | Revolving Credit Facility [Member] | Weighted Average [Member]
Line of Credit Facility, Interest Rate During Period	4.20%	5.00%	4.40%	4.60%
PNC Bank [Member] | Revolving Credit Facility [Member]
Line of Credit, Current	$ 16,650		$ 16,650		$ 21,370
Line of Credit Facility, Maximum Borrowing Capacity	40,000		40,000
Line of Credit, Current	$ 16,650		$ 16,650		$ 21,370

Note 6 - Capital Stock (Details

Note 6 - Capital Stock (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Restricted Stock Units (RSUs) [Member]
Allocated Share-based Compensation Expense	$ 81	$ 35	$ 222	$ 86
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0		0
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	$ 45	$ 28	$ 122	$ 82

Note 6 - Common Shares Issued a

Note 6 - Common Shares Issued and Outstanding (Details) $ in Thousands	Sep. 27, 2015USD ($)shares
Balances at December 28, 2014 and September 27, 2015 (in shares)	16,417,276
Balances at December 28, 2014 and September 27, 2015 | $	$ 390

Note 6 - Stock Option Activity

Note 6 - Stock Option Activity (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 27, 2015	Dec. 28, 2014
Numberof options, Outstanding (in shares)	655,114	817,212
Outstanding, weighted average exercise price (in dollars per share)	$ 1.97	$ 2.07
Outstanding, weighted average instrinsic value	$ 0	$ 0
Outstanding, weighted average remaining contractual term (years)	6 years 292 days	7 years 109 days
Numberof options, Expired (in shares)	(66,667)
Expired, weighted average exercise price (in dollars per share)	$ 3.11
Numberof options,Forfeited (in shares)	(95,431)
Forfeited, weighted average exercise price (in dollars per share)	$ 2.03
Numberof options, Exercisable at June 28, 2015 (in shares)	198,335
Weighted average exercise price, Exercisable at June 28, 2015 (in dollars per share)	$ 2.34
Exercisable at June 28, 2015, weighted average instrinsic value	$ 0
Exercisable at June 28, 2015, weighted average remaining contractual term (years)	2 years 182 days

Note 6 - Restricted Stock Units

Note 6 - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 27, 2015	Dec. 28, 2014
Outstanding RSU (in shares)	547,343	520,433
Weighted average stock price (in dollars per share)	$ 1.87	$ 1.94
Weighted average remaining contractual term (years)	1 year 215 days	2 years 182 days
RSU granted (in shares)	91,818
RSU granted (in dollars per share)	$ 1.47
RSU forfeited (in shares)	(64,908)
RSU forfeited (in dollars per share)	$ 1.89

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 30, 2012	Jan. 01, 2012	Dec. 26, 2010
Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member]
Open Tax Year			2,010
Earliest Tax Year [Member] | Mexican Tax Authority [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,010
Earliest Tax Year [Member] | State Administration of Taxation, China [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,010
Earliest Tax Year [Member] | Canada [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,010
Earliest Tax Year [Member] | Inland Revenue, Hong Kong [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,008
Latest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member]
Open Tax Year			2,014
Latest Tax Year [Member] | Mexican Tax Authority [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,014
Latest Tax Year [Member] | State Administration of Taxation, China [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,014
Latest Tax Year [Member] | Canada [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,014
Latest Tax Year [Member] | Inland Revenue, Hong Kong [Member] | Foreign Tax Authority [Member]
Open Tax Year			2,014
Deferred Tax Assets, Valuation Allowance					$ 0	$ 0	$ 0
Income Tax Expense (Benefit)	$ 125,000	$ 163,000	$ 395,000	$ 606,000

Note 8 - Common Shares Outstand

Note 8 - Common Shares Outstanding for Basic and Diluted Earnings Per Share (Details) - shares	3 Months Ended			9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014		Sep. 27, 2015		Sep. 28, 2014
Basic (in shares)	16,417,276	16,417,276		16,417,276		16,417,274
Dilutive stock options (a) (in shares)			[1]		[1]		[1]
Diluted weighted average shares outstanding (in shares)	16,417,276	16,417,276		16,417,276		16,417,274
[1]	For the three months and nine months ended September 27, 2015 and September 28, 2014, as a result of the net loss, diluted earnings per share was calculated using the basic weighted average shares outstanding as the effect of potential common shares would have been anti-dilutive.

Note 9 - Segmented Informatio37

Note 9 - Segmented Information (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Sales Revenue, Net [Member] | Major Customer1 [Member]
Concentration Risk, Percentage	15.90%	27.80%	14.50%	31.30%
Sales Revenue, Net [Member] | Major Customer2 [Member]
Concentration Risk, Percentage	11.60%	13.80%	11.60%	13.40%
Sales Revenue, Net [Member] | Major Customer3 [Member]
Concentration Risk, Percentage		10.60%		10.30%
Sales Revenue, Net [Member]
Number of Major Customers	2	3	2	3
Accounts Receivable [Member] | Major Customer1 [Member]
Concentration Risk, Percentage			12.00%		14.30%
Accounts Receivable [Member] | Major Customer2 [Member]
Concentration Risk, Percentage			4.20%		20.80%
Accounts Receivable [Member]
Number of Major Customers			2

Note 9 - Segment Reporting Info

Note 9 - Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
MEXICO | Reportable Geographical Components [Member]
Revenue	$ 34,753	$ 37,122	$ 109,515	$ 114,824
Site Contribution	2,007	2,721	7,682	6,210
Additions and Disposals to PP&E	$ 107	$ 393	$ 503	2,675
MEXICO | Product Shipment Destination [Member]
Revenue				4
MEXICO | Geography Eliminations [Member]
Revenue	$ (126)	$ (112)	$ (336)	(619)
MEXICO
Revenue	34,627	37,010	109,179	114,205
UNITED STATES | Reportable Geographical Components [Member]
Revenue	9,218	12,132	24,804	38,673
Site Contribution	243	598	728	2,438
Additions and Disposals to PP&E	221	174	606	286
UNITED STATES | Product Shipment Destination [Member]
Revenue	46,994	45,924	127,238	149,255
UNITED STATES | Geography Eliminations [Member]
Revenue	(114)	(5,086)	(199)	(16,480)
UNITED STATES
Revenue	9,104	7,046	24,605	22,193
Asia [Member] | Reportable Geographical Components [Member]
Revenue	12,055	14,120	33,547	44,809
Site Contribution	804	1,050	1,773	3,631
Additions and Disposals to PP&E	150	27	777	56
Asia [Member] | Product Shipment Destination [Member]
Revenue	374	1,875	1,574	4,530
Asia [Member] | Geography Eliminations [Member]
Revenue	(2,361)	(2,648)	(7,451)	(9,672)
Asia [Member]
Revenue	9,694	11,472	26,096	35,137
CANADA | Product Shipment Destination [Member]
Revenue	$ 6,057	$ 7,729	$ 31,068	17,462
Europe [Member] | Product Shipment Destination [Member]
Revenue				284
Reportable Geographical Components [Member]
Revenue	$ 56,026	$ 63,374	$ 167,866	198,306
Site Contribution	3,054	4,369	10,183	12,279
Additions and Disposals to PP&E	478	594	1,886	3,017
Corporate, Non-Segment [Member]
Additions and Disposals to PP&E	30	23	69	135
Geography Eliminations [Member]
Revenue	(2,601)	(7,846)	(7,986)	(26,771)
Revenue	53,425	55,528	159,880	171,535
Site Contribution	3,116	4,564	12,174	15,108
Corporate allocations	3,167	3,384	9,338	10,591
Unrealized loss (gain) on derivative financial instruments	805	923	334	(171)
Interest	$ 300	470	$ 914	1,337
Restructuring charges		187		1,366
Loss before income taxes	$ (1,218)	(595)	$ (403)	(844)
Additions and Disposals to PP&E	$ 508	$ 617	$ 1,955	$ 3,152

Note 9 - Long-lived Assets in I

Note 9 - Long-lived Assets in Individual Geographic Areas (Details) - USD ($) $ in Thousands		Sep. 27, 2015	Dec. 28, 2014
Reportable Geographical Components [Member] | MEXICO
Long-lived assets	[1]	$ 11,017	$ 12,556
Reportable Geographical Components [Member] | Asia [Member]
Long-lived assets	[1]	3,185	3,001
Reportable Geographical Components [Member] | UNITED STATES
Long-lived assets	[1]	2,137	1,776
Reportable Geographical Components [Member]
Long-lived assets	[1]	16,339	17,333
Corporate, Non-Segment [Member]
Long-lived assets	[1]	222	257
Long-lived assets	[1]	$ 16,561	$ 17,590
[1]	Property, plant and equipment information is based on the principal location of the asset.

Note 10 - Derivative Financia40

Note 10 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Cost of Sales [Member]
Unrealized Gain (Loss) on Derivatives	$ 805	$ 923	$ 334	$ 171
Gain (Loss) on Sale of Derivatives	(1,237)	$ (90)	3,119	$ 863
Derivative Liability, Current	$ 3,037		$ 3,037		$ 2,703

Note 10 - Outstanding Foreign C

Note 10 - Outstanding Foreign Currency Forward Contracts (Details) - 9 months ended Sep. 27, 2015 MXN in Thousands, $ in Thousands, CAD in Millions	CAD	USD ($)	MXN
Canada, Dollars
Buy/Sell	Buy
Foreign Currency Amount | CAD	CAD 6.2
Notional Contract Value in USD		$ 5,566
Mexico, Pesos
Buy/Sell	Buy
Foreign Currency Amount | MXN			MXN 289,525
Notional Contract Value in USD		$ 19,392

Note 11 - Commitments (Details

Note 11 - Commitments (Details Textual) - USD ($) $ in Thousands	Sep. 27, 2015	Dec. 28, 2014
Purchase Obligation, Due in Next Twelve Months	$ 18,538	$ 12,043