SMTC (SMTX) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jul. 03, 2016	Jul. 29, 2016
Document Information [Line Items]
Entity Registrant Name	SMTC CORP
Entity Central Index Key	1,108,320
Trading Symbol	smtx
Current Fiscal Year End Date	--01-01
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)		16,510,180
Document Type	10-Q
Document Period End Date	Jul. 3, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false

Interim Consolidated Balance Sh

Interim Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jul. 03, 2016	Jan. 03, 2016
Current assets:
Cash	$ 3,850	$ 6,099
Restricted cash	531	805
Accounts receivable — net (note 3)	26,499	29,885
Inventories (note 3)	24,752	25,877
Prepaid expenses and other assets	1,897	1,983
Derivative assets (note 9)	139
Income taxes receivable	329	461
Deferred income taxes — net	367	352
	58,364	65,462
Property, plant and equipment—net	15,634	16,443
Deferred financing costs — net	51	68
	74,049	81,973
Current liabilities:
Accounts payable	26,687	31,045
Accrued liabilities (note 3)	4,444	5,562
Derivative liabilities (note 9)	1,227	2,087
Income tax payable	319	502
Revolving credit facility (note 4)	8,972	10,721
Current portion of long-term debt (note 4)	1,000	1,000
Current portion of capital lease obligations	660	538
	43,309	51,455
Long-term debt (note 4)	3,500	4,000
Capital lease obligations	357	222
Shareholders’ equity:
Capital stock (note 5)	391	391
Additional paid-in capital	264,729	264,505
Deficit	(238,237)	(238,600)
	26,883	26,296
	$ 74,049	$ 81,973

Interim Consolidated Statements

Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Revenue	$ 43,615,000	$ 57,741,000	$ 85,535,000	$ 106,455,000
Cost of sales (note 9)	40,526,000	52,311,000	77,566,000	97,397,000
Gross profit	3,089,000	5,430,000	7,969,000	9,058,000
Selling, general and administrative expenses	3,360,000	3,961,000	6,913,000	7,626,000
Loss (gain) on disposal of property, plant and equipment		3,000	(5,000)	3,000
Restructuring charges (note 10)	0		176,000
Operating earnings (loss)	(271,000)	1,466,000	885,000	1,429,000
Interest expense (notes 3 & 4)	203,000	304,000	434,000	614,000
Earnings (loss) before income taxes	(474,000)	1,162,000	451,000	815,000
Current	99,000	157,000	103,000	329,000
Deferred	31,000	36,000	(15,000)	(59,000)
	130,000	193,000	88,000	270,000
Net earnings (loss) and comprehensive income (loss)	$ (604,000)	$ 969,000	$ 363,000	$ 545,000
Earnings (loss) per share of common stock: Basic
Basic (in dollars per share)	$ (0.04)	$ 0.06	$ 0.02	$ 0.03
Diluted (in dollars per share)	$ (0.04)	$ 0.06	$ 0.02	$ 0.03
Weighted average number of shares outstanding (note 7):
Basic (in shares)	16,510,180	16,417,276	16,498,032	16,417,276
Diluted (in shares)	16,510,180	16,417,276	17,546,778	16,417,276

Interim Consolidated Statement4

Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - 6 months ended Jul. 03, 2016 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Jan. 03, 2016	$ 391	$ 264,505	$ (238,600)	$ 26,296
Stock-based compensation		224		224
Net earnings			363	363
Balance at Jul. 03, 2016	$ 391	$ 264,729	$ (238,237)	$ 26,883

Interim Consolidated Statement5

Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015
Operations:
Net earnings	$ 363	$ 545
Items not involving cash:
Depreciation	2,021	1,995
Unrealized foreign exchange gain on unsettled forward exchange contracts	(999)	(471)
Loss (gain) on disposal of property, plant and equipment	(5)	3
Deferred income taxes	(15)	(59)
Amortization of deferred financing fees	17	15
Stock-based compensation	224	218
Change in non-cash operating working capital:
Accounts receivable	3,386	(327)
Inventories	1,125	(2,526)
Prepaid expenses and other assets	86	(7)
Income taxes receivable/payable	(51)	(27)
Accounts payable	(4,303)	2,222
Accrued liabilities	(1,086)	384
	763	1,965
Financing:
Net (repayment) advances of revolving credit facility	(1,749)	710
Repayment of long-term debt	(500)
Principal payment of capital lease obligations	(252)	(635)
Proceeds from sales leaseback	509
Deferred financing fees		(10)
	(1,992)	65
Investing:
Change in restricted cash	274
Purchase of property, plant and equipment	(1,363)	(1,378)
Proceeds from sale of property, plant and equipment	69	3
	(1,020)	(1,375)
Increase (decrease) in cash	(2,249)	655
Cash, beginning of period	6,099	5,447
Cash, end of the period	3,850	6,102
Supplemental Information
Property, plant and equipment acquired that was included in accounts payable and accrued liabilities	$ 160	$ 208

Note 1 - Nature of the Business

Note 1 - Nature of the Business	6 Months Ended
	Jul. 03, 2016
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 January 3, 2016, (“Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 17, 2016. 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 January 3, 2016 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 - Recently Adopted Accou

Note 2 - Recently Adopted Accounting Pronouncements	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	2. Recent Adopted Accounting Pronouncements 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 adoption of ASU 2014-12 had no impact on our consolidated financial statements. 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 adoption of ASU 2015-03 had no impact on our consolidated financial statements as our current debt issuance costs relate to a revolving credit facility. 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. The adoption of ASU 2015-04 had no impact on our consolidated financial statements. 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 Company continues to evaluate the impact of this accounting standard. 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 Company continues to evaluate the impact of this accounting standard. 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. In November 2015, the FASB published ASU 2015-17: Income Taxes (Topic 740). The amendment requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company continues to evaluate the impact of this accounting standard. In January 2016, the FASB published ASU 2016-01: Financial Instruments - Overall (Topic 825-10). The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial assets and liabilities. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The impact of adoption of the standard has not yet been determined. In February 2016, the FASB published ASU 2016-02: Leases (Topic 842). The amendment proposes that all lessees should recognize the assets and liabilities that arise from leases. Elections may be available for those leases with terms of 12 months or less. The amendment still retains the distinction between finance leases and operating leases. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The impact of adoption of the standard has not yet been determined. In March 2016, the FASB published ASU 2016-09: Compensation – Stock Compensation (Topic 718). The amendment simplifies several aspects of accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and accounting for forfeitures. Some of the areas for simplification apply only to nonpublic entities. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The impact of adoption of the standard has not yet been determined. In March 2016, the FASB published ASU 2016-08: Revenue from Contracts with Customers (Topic 606). The amendment clarifies the implementation guidance on principal versus agent considerations. The amendments of this update do not change the core principles of the guidance. The amendment of this ASU 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 Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined. In April 2016, the FASB published ASU 2016-10 Topic 606: Revenue from Contracts with Customers, which clarified application of the standard in identifying performance obligations and licensing arrangements. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The amendment 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 Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined. In May 2016, the FASB published ASU 2016-12 Topic 606: Revenue from Contracts with Customers, which included narrow-scope improvements and practical expedients. Specifically the update addresses application of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The amendment 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 Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined. In May 2016, the FASB published ASU 2016-13 Financial Instruments – Credit losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update r eplace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective for years beginning after December 15, 2019 including interim periods with those years. Early adoption is permitted only for those annual reporting periods beginning on or after December 15, 2018. The Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined.

Note 3 - Interim Consolidated F

Note 3 - Interim Consolidated Financial Statement Details	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Condensed Financial Statements [Text Block]	3 . 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 Restricted cash: July 3, 2016 January 3, 2016 Restricted cash $ 531 $ 805 Restricted cash pertains to deposits which have been guaranteed to a government agency pertaining to estimated value added taxes (VAT) on imported raw materials inventory in Suzhou, China. Cash is generally restricted for a contractual term of 12 months or less and is released when the finished goods are exported or the expected imported raw materials are cancelled. Accounts receivable – net: July 3, 2016 January 3, 2016 Trade accounts receivable $ 26,150 $ 28,797 Other receivables 586 1,347 Allowance for doubtful accounts (237 ) (259 ) Accounts receivable—net $ 26,499 $ 29,885 Inventories: July 3, 2016 January 3, 2016 Raw materials $ 17,711 $ 19,385 Work in process 3,919 1,416 Finished goods 2,547 4,400 Parts 576 676 Inventories $ 24,752 $ 25,877 Inventories are recorded net of a provision for obsolescence as at July 3, 2016 and January 3, 2016 of $363 and $673 respectively. The decrease in the provision for obsolescence was due primarily to the write down of inventory for two customers that was previously provided for. Property, plant and equipment – net: July 3, 2016 January 3, 2016 Cost: Land $ 1,648 $ 1,648 Buildings 9,852 9,852 Machinery and equipment (a) (c) 31,444 30,707 Office furniture and equipment 643 599 Computer hardware and software (b) 3,582 3,447 Leasehold improvements 3,435 3,232 50,604 49,485 Less accumulated depreciation: Land — — Buildings (7,949 ) (7,719 ) Machinery and equipment (a) (c) (21,502 ) (20,347 ) Office furniture and equipment (520 ) (496 ) Computer hardware and software (b) (2,624 ) (2,284 ) Leasehold improvements (2,375 ) (2,196 ) (34,970 ) (33,042 ) Property, plant and equipment—net $ 15,634 $ 16,443 (a) Included within machinery and equipment were assets under capital leases with costs of $2,193 and $2,528 and associated accumulated depreciation of $516 and $865 as of July 3, 2016 and January 3, 2016, respectively. The related depreciation expense for the three months ended July 3, 2016 and June 28, 2015 was $74 and $124, respectively. The related depreciation expense for the six months ended July 3, 2016 and June 28, 2015 was $154 and $237, respectively. (b) Included within computer hardware and software are assets under capital leases with costs of $119 as at July 3, 2016 and January 3, 2016 and associated accumulated depreciation of $106 and $86 as at July 3, 2016 and January 3, 2016, respectively. The related depreciation expense for the three months ended July 3, 2016 and June 28, 2015 was $10 and $19, respectively. The related depreciation expense for the six months ended July 3, 2016 and June 28, 2015 was $20 and $29, respectively. (c) On June 24, 2016 we sold certain equipment for $509. Concurrent with the sale, we leased the equipment back for a period of 35 months. The monthly lease payments are $15 and includes a purchase option at the end of the lease term equivalent to one month’s rent. The net book value of the leased equipment was $487 million at July 3, 2016 and is included within machinery and equipment. Additionally, we have recorded the proceeds of $509 received from the transaction as a financing obligation at July 3, 2016 net of initial deposits made. The capital lease obligation related to this sale leaseback is $492 as at July 3, 2016. Accrued liabilities: July 3, 2016 January 3, 2016 Customer related $ 977 $ 1,852 Payroll 2,228 2,649 Professional services 300 367 Restructuring (note 10) 113 — Vendor related 547 383 Other 279 311 Accrued liabilities $ 4,444 $ 5,562 Interim consolidated statements of operations and comprehensive income (loss) Interest expense: Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Revolving credit facility $ 124 $ 270 $ 290 $ 530 Long-term debt 54 — 93 — Amortization of deferred financing fees 8 7 17 15 Obligations under capital leases 17 27 34 69 Interest expense $ 203 $ 304 $ 434 $ 614

Note 4 - Debt

Note 4 - Debt	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	4 . Debt (a) Revolving credit facility The Company borrows money under a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”) which governs the PNC Revolving Credit Facility and the PNC Long-Term Debt Facility (collectively the “PNC Facilities”) with a term to January 2, 2018. Advances made under the PNC Revolving Credit Facility bear interest at the U.S. base rate, which should approximate prime rate, plus 0.50%. The applicable interest rate for the PNC Long-Term Debt Facility is U.S. base rate plus 1.00%. The maximum amount of funds available under the PNC Revolving Credit Facility is $35,000. Availability under the PNC Revolving Credit 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 Revolving Credit Facility, whereby remittances from customers are swept daily to reduce the borrowings under this facility. The PNC Long-Term Debt Facility of $5,000 matures on January 2, 2018 with quarterly principal payments of $250. At July 3, 2016, $8,972 (January 3, 2016 - $10,721) was outstanding under the PNC Revolving Credit Facility and is classified as a current liability based on the requirement to hold a “lock-box” under the terms of the PNC Revolving Credit Facility. At July 3, 2016, $4,500 (January 3, 2016 – $5,000) was outstanding under the PNC Long-Term Debt Facility. The PNC Facilities are a joint and several obligations of the Company and its subsidiaries that are borrowers under the facilities and are jointly and severally guaranteed by other subsidiaries of the Company. Repayment under the PNC Facilities is collateralized by the assets of the Company and each of its subsidiaries. (b) Covenants The PNC Facilities agreement contains certain financial and non-financial covenants. The financial covenants require the Company to maintain minimum consolidated fixed charge coverage ratio and limit unfunded capital expenditures (all as defined in the credit agreement governing the PNC Facilities). The financial covenant relating to a minimum consolidated fixed charge coverage ratio is in effect for the twelve months ended July 3, 2016 and thereafter on a rolling twelve month basis until January 2, 2018. The Company is in compliance with the financial covenants included in the PNC Facilities as of July 3, 2016.

Note 5 - Capital Stock

Note 5 - Capital Stock	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	5 . 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 $ Balance at January 3, 2016 16,417,276 $ 391 Share issuance 25,125 — Balance at July 3, 2016 16,510,180 391 Stock Options For more detailed 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 January 3, 2016. Stock options of 155,403 were granted during the six month period ended July 3, 2016. A summary of stock option activity for the six month period ended July 3, 2016 is as follows: Number of options Weighted Aggregate Weighted (years) Outstanding at January 3, 2016 655,114 $ 1.98 — 6.5 Options granted 155,403 $ 1.34 Expired (61,757 ) 3.46 Forfeited (18,603 ) $ 3.14 Outstanding at July 3, 2016 730,157 $ 1.76 $ 16 7.1 Exercisable at July 3, 2016 365,673 $ 1.92 $ — 5.3 During the three month periods ended July 3, 2016 and June 28, 2015, the Company recorded stock-based compensation expense and a corresponding increase in additional paid-in capital of $21 and $44, respectively. During the six month periods ended July 3, 2016 and June 28, 2015, the Company recorded stock-based compensation expense and a corresponding increase in additional paid-in capital of $42 and $77, respectively. Restricted Stock Units Outstanding Weighted Weighted Outstanding balance at January 3, 2016 479,564 $ 1.88 0.7 RSU granted 595,339 ) $ 0.68 RSU forfeited (11,111 ) $ 1.80 RSU vested and issued in shares (25,125 ) 1.99 Outstanding balance at April 3, 2016 1,038,669 $ 1.15 1.3 Certain RSUs granted during 2014 and 2016 have a market condition such that the awards are vested and issuable only if the market price of the Company’s stock meets or exceeds a specified target during the vesting period. If the market condition is not met, the RSUs will not vest and will be forfeited. Stock based compensation recognized during the three month period ended July 3, 2016 and June 28, 2015 related to the restricted stock units was $107 and $84. Stock based compensation recognized during the six month period ended July 3, 2016 and June 28, 2015 related to the restricted stock units was $182 and $141.

Note 6 - Income Taxes

Note 6 - Income Taxes	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	6 . Income taxes During the three months ended July 3, 2016 and June 28, 2015, the Company recorded current income tax expenses of $99 and $157, respectively on minimum taxes and taxes on profits in certain foreign jurisdictions. For the three months ended July 3, 2016 and June 28, 2015, deferred tax expense of $31 and 36, respectively was recorded on temporary differences related to the Mexican operations. During the six months ended July 3, 2016 and June 28, 2015, the Company recorded current income tax expenses of $103 and $329, respectively on minimum taxes and taxes on profits in certain foreign jurisdictions. Current income taxes were partially offset for the six months ended July 3, 2016 by tax recoveries of $66. For the six months ended July 3, 2016 and June 28, 2015 deferred tax recoveries of $15 and $59 was recorded on temporary differences related to the Mexican operations. 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. The U.S., Canadian and Asian jurisdictions continue to have a full valuation allowance recorded against the deferred tax assets.

Note 7 - Earnings (loss) Per Co

Note 7 - Earnings (loss) Per Common Share	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	7 . 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 Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Basic weighted average shares outstanding 16,510,180 16,417,276 16,498,032 16,417,273 Dilutive stock awards (1) (a) (b) — — 1,048,746 — Diluted weighted average shares outstanding 16,510,180 16,417,276 17,546,778 16,417,273 (1) Dilutive stock awards include outstanding restricted stock units and in-the money stock options determined using the treasury stock method (a) Dilutive options were determined using the treasury stock method, using an average price of $1.54 per share for three months ended July 3, 2016. As a result of the net loss for the three months ended July 3, 2016, 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. Had there been net income for the three months ended July 3, 2016, dilutive stock awards would have been calculated as 1,058,824. For the six months ended July 3, 2016, dilutive options were determined using the treasury stock method, using an average price of $1.44 per share. Total dilutive stock awards were calculated as 1,048,746. (b) As a result of the net earnings for the three and six months ended June 28, 2015, dilutive options were determined using the treasury stock method, using an average price of $1.62 and 1.61, respectively per share. No diluted stock awards were calculated as there were no outstanding options that were considered in-the-money.

Note 8 - Segmented Information

Note 8 - Segmented Information	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	8 . Segmented information General description The Company is operated and managed geographically and has production facilities in the United States, Mexico and China. The Company utilizes reportable segment’s site contribution (site revenues minus operating expenses, excluding unrealized foreign exchange gain (loss) on unsettled forward exchange contracts, corporate allocations and restructuring expenses) to monitor reportable segment performance. Site contribution is utilized by 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. 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 ships the product to the customer, irrespective of the product’s destination. Information about the reportable segments is as follows: Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Revenues Mexico $ 25,672 $ 39,155 $ 52,464 $ 74,762 China 15,100 12,150 26,757 21,492 U.S. 4,722 9,008 10,680 15,586 Total $ 45,494 $ 60,313 $ 89,901 $ 111,840 Intersegment revenue Mexico $ (139 ) $ (105 ) $ (255 ) $ (210 ) China (1,535 ) (2,426 ) (3,844 ) (5,090 ) U.S. (205 ) (41 ) (267 ) (85 ) Total $ (1,879 ) $ (2,572 ) $ (4,366 ) $ (5,385 ) Net external revenue Mexico $ 25,533 $ 39,050 $ 52,209 $ 74,552 China 13,565 9,724 22,913 16,402 U.S. 4,517 8,967 10,413 15,501 Total segment revenue (which also equals consolidated revenue) $ 43,615 $ 57,741 $ 85,535 $ 106,455 Site Contribution Mexico $ 2,343 $ 2,779 $ 4,871 $ 5,675 China 550 664 1,165 969 U.S. (472 ) 491 (440 ) 485 Total $ 2,421 $ 3,934 $ 5,596 $ 7,129 Corporate allocations 2,645 3,257 5,534 6,171 Unrealized foreign exchange gain (loss) on unsettled forward exchange contracts 47 (789 ) (999 ) (471 ) Interest 203 304 434 614 Restructuring charges — — 176 — Earnings (loss) before income taxes $ (474 ) $ 1,162 $ 451 $ 815 Additions to property, plant and equipment The following table contains additions to property, plant and equipment including those acquired through capital leases for the three and six months ended July 3, 2016 and June 28, 2015: Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Mexico $ 153 $ 313 $ 334 $ 396 China 321 252 480 627 U.S. 54 379 291 385 Segment total 528 944 1,105 1,408 Corporate and other 115 13 171 39 Total $ 643 $ 957 $ 1,276 $ 1,447 Property, plant and equipment (a) July 3, 2016 January 3, 2016 Mexico $ 9,505 $ 10,674 China 3,290 2,217 U.S 2,469 3,255 Corporate and other 370 297 Segment assets $ 15,634 $ 16,443 (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 product shipment destination, for the three and six months ended July 3, 2016 and June 28, 2015: Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 U.S. $ 25,194 $ 40,807 $ 54,378 $ 86,393 Canada 14,736 6,164 23,700 11,757 Europe 114 5,641 905 2,361 China 1,541 818 2,652 1,550 Africa 2,030 4,311 3,900 4,394 Total $ 43,615 $ 57,741 $ 85,535 $ 106,455 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 July 3, 2016, two customers exceeded 10% of total revenues representing 22.1% and 17.6% respectively (June 28, 2015 – two customers represented 17.1% and 11.3%) of total revenue for the second quarter of 2016. During the six months ended July 3, 2016 two customers individually comprised 18.2% and 15.8% (June 28, 2015 – two customers individually comprised 19.1% and 14.2% ) of total revenue for the six months ended July 3, 2016. As of July 3, 2016, these two customers represented 28.7% and 5.1% respectively, (January 3, 2016, 16.8% and 3.8% respectively) of the Company’s accounts receivable.

Note 9 - Derivative Financial I

Note 9 - Derivative Financial Instruments	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	9 . 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 six remaining months of fiscal 2016 and first six months of fiscal 2017. 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 cost of sales in the consolidated statement of operations and comprehensive income (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 July 3, 2016: Currency Buy/Sell Foreign Currency Amount Notional Contract Value in USD Canadian Dollar Buy CAD 7,020 $ 5,300 Mexican Peso Buy MXN 231,939 $ 13,635 The unrealized loss recognized in earnings for the three month period as a result of revaluing the outstanding instruments to fair value on July 3, 2016 was $47 (June 28, 2015 – unrealized gain $789), and the unrealized gain for the six month period ended July 3, 2016 was $999 (June 28, 2015 – unrealized gain $471), 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 July 3, 2016 was $647 (June 28, 2015 – realized loss $1,028), and the realized loss for the six month period ended July 3, 2016 was $1,578 (June 28, 2015 – realized loss $1,882), which is 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”). July 3, 2016 January 3, 2016 Average USD:CAD contract rate 1.32 1.26 Average USD:CAD mark-to-market rate 1.29 1.38 Average USD:PESO contract rate 17.01 15.88 Average USD:PESO mark-to-market rate 18.69 17.47 The derivative asset as at July 3, 2016 was $139 ($Nil as at January 3, 2016) and derivative liability as at July 3, 2016 was $1,227 ($2,087 as at January 3, 2016) which reflected the fair market value of the unsettled forward foreign exchange contracts.

Note 10 - Restructuring Charges

Note 10 - Restructuring Charges	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	10. Restructuring charges During the first quarter of 2016, one employee was terminated in the Markham facility which resulted in severance charges of $176 based on the termination payments which will be paid monthly until the first quarter of 2017. No restructuring charges were incurred for the three months ended July 3, 2016. Severance Balance as at January 3, 2016 $ — Charges 176 Payments (63 ) Balance as at July 3, 2016 $ 113

Note 11 - Commitments

Note 11 - Commitments	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	11. Commitments Purchase obligations not recorded on the balance sheet as at July 3, 2016 consist of open non-cancellable purchase orders for raw materials for $13,230 (June 28, 2015 - $17,853), which are expected to be received within 12 months of the PO issue date.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 03, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	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 adoption of ASU 2014-12 had no impact on our consolidated financial statements. 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 adoption of ASU 2015-03 had no impact on our consolidated financial statements as our current debt issuance costs relate to a revolving credit facility. 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. The adoption of ASU 2015-04 had no impact on our consolidated financial statements. 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 Company continues to evaluate the impact of this accounting standard. 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 Company continues to evaluate the impact of this accounting standard. 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. In November 2015, the FASB published ASU 2015-17: Income Taxes (Topic 740). The amendment requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company continues to evaluate the impact of this accounting standard. In January 2016, the FASB published ASU 2016-01: Financial Instruments - Overall (Topic 825-10). The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial assets and liabilities. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The impact of adoption of the standard has not yet been determined. In February 2016, the FASB published ASU 2016-02: Leases (Topic 842). The amendment proposes that all lessees should recognize the assets and liabilities that arise from leases. Elections may be available for those leases with terms of 12 months or less. The amendment still retains the distinction between finance leases and operating leases. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The impact of adoption of the standard has not yet been determined. In March 2016, the FASB published ASU 2016-09: Compensation – Stock Compensation (Topic 718). The amendment simplifies several aspects of accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and accounting for forfeitures. Some of the areas for simplification apply only to nonpublic entities. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The impact of adoption of the standard has not yet been determined. In March 2016, the FASB published ASU 2016-08: Revenue from Contracts with Customers (Topic 606). The amendment clarifies the implementation guidance on principal versus agent considerations. The amendments of this update do not change the core principles of the guidance. The amendment of this ASU 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 Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined. In April 2016, the FASB published ASU 2016-10 Topic 606: Revenue from Contracts with Customers, which clarified application of the standard in identifying performance obligations and licensing arrangements. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The amendment 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 Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined. In May 2016, the FASB published ASU 2016-12 Topic 606: Revenue from Contracts with Customers, which included narrow-scope improvements and practical expedients. Specifically the update addresses application of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The amendments in this Update affect the guidance in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The amendment 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 Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined. In May 2016, the FASB published ASU 2016-13 Financial Instruments – Credit losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update r eplace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective for years beginning after December 15, 2019 including interim periods with those years. Early adoption is permitted only for those annual reporting periods beginning on or after December 15, 2018. The Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has not yet been determined.

Note 3 - Interim Consolidated18

Note 3 - Interim Consolidated Financial Statement Details (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Condensed Financial Statements [Table Text Block]	July 3, 2016 January 3, 2016 Restricted cash $ 531 $ 805 July 3, 2016 January 3, 2016 Trade accounts receivable $ 26,150 $ 28,797 Other receivables 586 1,347 Allowance for doubtful accounts (237 ) (259 ) Accounts receivable—net $ 26,499 $ 29,885 July 3, 2016 January 3, 2016 Raw materials $ 17,711 $ 19,385 Work in process 3,919 1,416 Finished goods 2,547 4,400 Parts 576 676 Inventories $ 24,752 $ 25,877 July 3, 2016 January 3, 2016 Cost: Land $ 1,648 $ 1,648 Buildings 9,852 9,852 Machinery and equipment (a) (c) 31,444 30,707 Office furniture and equipment 643 599 Computer hardware and software (b) 3,582 3,447 Leasehold improvements 3,435 3,232 50,604 49,485 Less accumulated depreciation: Land — — Buildings (7,949 ) (7,719 ) Machinery and equipment (a) (c) (21,502 ) (20,347 ) Office furniture and equipment (520 ) (496 ) Computer hardware and software (b) (2,624 ) (2,284 ) Leasehold improvements (2,375 ) (2,196 ) (34,970 ) (33,042 ) Property, plant and equipment—net $ 15,634 $ 16,443 July 3, 2016 January 3, 2016 Customer related $ 977 $ 1,852 Payroll 2,228 2,649 Professional services 300 367 Restructuring (note 10) 113 — Vendor related 547 383 Other 279 311 Accrued liabilities $ 4,444 $ 5,562
Condensed Income Statement [Table Text Block]	Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Revolving credit facility $ 124 $ 270 $ 290 $ 530 Long-term debt 54 — 93 — Amortization of deferred financing fees 8 7 17 15 Obligations under capital leases 17 27 34 69 Interest expense $ 203 $ 304 $ 434 $ 614

Note 5 - Capital Stock (Tables)

Note 5 - Capital Stock (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Common Stock Outstanding Roll Forward [Table Text Block]	Number of shares $ Balance at January 3, 2016 16,417,276 $ 391 Share issuance 25,125 — Balance at July 3, 2016 16,510,180 391
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of options Weighted Aggregate Weighted (years) Outstanding at January 3, 2016 655,114 $ 1.98 — 6.5 Options granted 155,403 $ 1.34 Expired (61,757 ) 3.46 Forfeited (18,603 ) $ 3.14 Outstanding at July 3, 2016 730,157 $ 1.76 $ 16 7.1 Exercisable at July 3, 2016 365,673 $ 1.92 $ — 5.3
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	Outstanding Weighted Weighted Outstanding balance at January 3, 2016 479,564 $ 1.88 0.7 RSU granted 595,339 ) $ 0.68 RSU forfeited (11,111 ) $ 1.80 RSU vested and issued in shares (25,125 ) 1.99 Outstanding balance at April 3, 2016 1,038,669 $ 1.15 1.3

Note 7 - Earnings (loss) Per 20

Note 7 - Earnings (loss) Per Common Share (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Basic weighted average shares outstanding 16,510,180 16,417,276 16,498,032 16,417,273 Dilutive stock awards (1) (a) (b) — — 1,048,746 — Diluted weighted average shares outstanding 16,510,180 16,417,276 17,546,778 16,417,273

Note 8 - Segmented Information

Note 8 - Segmented Information (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Revenues Mexico $ 25,672 $ 39,155 $ 52,464 $ 74,762 China 15,100 12,150 26,757 21,492 U.S. 4,722 9,008 10,680 15,586 Total $ 45,494 $ 60,313 $ 89,901 $ 111,840 Intersegment revenue Mexico $ (139 ) $ (105 ) $ (255 ) $ (210 ) China (1,535 ) (2,426 ) (3,844 ) (5,090 ) U.S. (205 ) (41 ) (267 ) (85 ) Total $ (1,879 ) $ (2,572 ) $ (4,366 ) $ (5,385 ) Net external revenue Mexico $ 25,533 $ 39,050 $ 52,209 $ 74,552 China 13,565 9,724 22,913 16,402 U.S. 4,517 8,967 10,413 15,501 Total segment revenue (which also equals consolidated revenue) $ 43,615 $ 57,741 $ 85,535 $ 106,455 Site Contribution Mexico $ 2,343 $ 2,779 $ 4,871 $ 5,675 China 550 664 1,165 969 U.S. (472 ) 491 (440 ) 485 Total $ 2,421 $ 3,934 $ 5,596 $ 7,129 Corporate allocations 2,645 3,257 5,534 6,171 Unrealized foreign exchange gain (loss) on unsettled forward exchange contracts 47 (789 ) (999 ) (471 ) Interest 203 304 434 614 Restructuring charges — — 176 — Earnings (loss) before income taxes $ (474 ) $ 1,162 $ 451 $ 815 Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 Mexico $ 153 $ 313 $ 334 $ 396 China 321 252 480 627 U.S. 54 379 291 385 Segment total 528 944 1,105 1,408 Corporate and other 115 13 171 39 Total $ 643 $ 957 $ 1,276 $ 1,447 Three months ended Six months ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 U.S. $ 25,194 $ 40,807 $ 54,378 $ 86,393 Canada 14,736 6,164 23,700 11,757 Europe 114 5,641 905 2,361 China 1,541 818 2,652 1,550 Africa 2,030 4,311 3,900 4,394 Total $ 43,615 $ 57,741 $ 85,535 $ 106,455
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]	July 3, 2016 January 3, 2016 Mexico $ 9,505 $ 10,674 China 3,290 2,217 U.S 2,469 3,255 Corporate and other 370 297 Segment assets $ 15,634 $ 16,443

Note 9 - Derivative Financial22

Note 9 - Derivative Financial Instruments (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Derivative Instruments [Table Text Block]	Currency Buy/Sell Foreign Currency Amount Notional Contract Value in USD Canadian Dollar Buy CAD 7,020 $ 5,300 Mexican Peso Buy MXN 231,939 $ 13,635
Schedule of Derivative Rates at Fair Value [Table Text Block]	July 3, 2016 January 3, 2016 Average USD:CAD contract rate 1.32 1.26 Average USD:CAD mark-to-market rate 1.29 1.38 Average USD:PESO contract rate 17.01 15.88 Average USD:PESO mark-to-market rate 18.69 17.47

Note 10 - Restructuring Charg23

Note 10 - Restructuring Charges (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]	Severance Balance as at January 3, 2016 $ — Charges 176 Payments (63 ) Balance as at July 3, 2016 $ 113

Note 3 - Interim Consolidated24

Note 3 - Interim Consolidated Financial Statement Details (Details Textual)	Jul. 03, 2016USD ($)	Jun. 24, 2016USD ($)	Jul. 03, 2016USD ($)	Apr. 03, 2016	Jun. 28, 2015USD ($)	Jul. 03, 2016USD ($)	Jun. 28, 2015USD ($)	Jan. 03, 2016USD ($)
Machinery and Equipment [Member] | Assets Under Capital Lease [Member]
Depreciation			$ 74,000		$ 124,000	$ 154,000	$ 237,000
Machinery and Equipment [Member]
Capital Leased Assets, Gross	$ 2,193,000		2,193,000			2,193,000		$ 2,528,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	516,000		516,000			516,000		865,000
Computer Equipment [Member] | Assets Under Capital Lease [Member]
Depreciation			10,000		$ 19	20,000	29,000
Computer Equipment [Member]
Capital Leased Assets, Gross	119,000		119,000			119,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	106,000		106,000			106,000		86,000
Equipment [Member] | Equipment Sale Back [Member]
Sale Leaseback Contract, Period		2 years 330 days
Sale Leaseback Transaction, Monthly Rental Payments		$ 15,000
Sale Leaseback Transaction, Net Book Value	487,000,000		487,000,000			487,000,000
Sale Leaseback Transaction, Net Proceeds, Financing Activities	509,000
Capital Lease Obligations	$ 492,000		$ 492,000			492,000
Equipment [Member]
Property, Plant and Equipment, Disposals		$ 509,000
Restricted Cash, Contractual Term				1 year
Inventory Write-down						$ 363,000		$ 673,000
Number of Major Customers						2
Depreciation						$ 2,021,000	1,995,000
Sale Leaseback Transaction, Net Proceeds, Financing Activities						$ 509,000

Note 3 - Consolidated Balance S

Note 3 - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands		Jul. 03, 2016	Jan. 03, 2016
Customer Related [Member]
Cost:
Other accrued liabilities		$ 977	$ 1,852
Vendor Related [Member]
Cost:
Other accrued liabilities		547	383
Other Accrued Liabilities [Member]
Cost:
Other accrued liabilities		279	311
Land [Member]
Cost:
Property, plant and equipment		1,648	1,648
Accumulated depreciation, property, plant and equipment
Building [Member]
Cost:
Property, plant and equipment		9,852	9,852
Accumulated depreciation, property, plant and equipment		(7,949)	(7,719)
Machinery and Equipment [Member]
Cost:
Property, plant and equipment	[1],[2]	31,444	30,707
Accumulated depreciation, property, plant and equipment	[1],[2]	(21,502)	(20,347)
Furniture and Fixtures [Member]
Cost:
Property, plant and equipment		643	599
Accumulated depreciation, property, plant and equipment		(520)	(496)
Computer Equipment [Member]
Cost:
Property, plant and equipment	[3]	3,582	3,447
Accumulated depreciation, property, plant and equipment	[3]	(2,624)	(2,284)
Leasehold Improvements [Member]
Cost:
Property, plant and equipment		3,435	3,232
Accumulated depreciation, property, plant and equipment		(2,375)	(2,196)
Restructuring [Member]
Cost:
Other accrued liabilities		113
Restricted cash		531	805
Trade accounts receivable		26,150	28,797
Other receivables		586	1,347
Allowance for doubtful accounts		(237)	(259)
Accounts receivable—net		26,499	29,885
Raw materials		17,711	19,385
Work in process		3,919	1,416
Finished goods		2,547	4,400
Parts		576	676
Inventories		24,752	25,877
Property, plant and equipment		50,604	49,485
Accumulated depreciation, property, plant and equipment		(34,970)	(33,042)
Property, plant and equipment—net		15,634	16,443
Payroll		2,228	2,649
Professional services		300	367
Accrued liabilities		$ 4,444	$ 5,562
[1]	Included within machinery and equipment were assets under capital leases with costs of $2,193 and $2,528 and associated accumulated depreciation of $516 and $865 as of July 3, 2016 and January 3, 2016, respectively. The related depreciation expense for the three months ended July 3, 2016 and June 28, 2015 was $74 and $124, respectively. The related depreciation expense for the six months ended July 3, 2016 and June 28, 2015 was $154 and $237, respectively.
[2]	On June 24, 2016 we sold certain equipment for $509. Concurrent with the sale, we leased the equipment back for a period of 35 months. The monthly lease payments are $15 and includes a purchase option at the end of the lease term equivalent to one month’s rent. The net book value of the leased equipment was $487 million at July 3, 2016 and is included within machinery and equipment. Additionally, we have recorded the proceeds of $509 received from the transaction as a financing obligation at July 3, 2016 net of initial deposits made. The capital lease obligation related to this sale leaseback is $492 as at July 3, 2016.
[3]	Included within computer hardware and software are assets under capital leases with costs of $119 as at July 3, 2016 and January 3, 2016 and associated accumulated depreciation of $106 and $86 as at July 3, 2016 and January 3, 2016, respectively. The related depreciation expense for the three months ended July 3, 2016 and June 28, 2015 was $10 and $19, respectively. The related depreciation expense for the six months ended July 3, 2016 and June 28, 2015 was $20 and $29, respectively.

Note 3 - Consolidated Statement

Note 3 - Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Revolving credit facility	$ 124	$ 270	$ 290	$ 530
Long-term debt	54		93
Amortization of deferred financing fees	8	7	17	15
Obligations under capital leases	17	27	34	69
Interest expense	$ 203	$ 304	$ 434	$ 614

Note 4 - Debt (Details Textual)

Note 4 - Debt (Details Textual) - PNC Bank [Member] - USD ($) $ in Thousands	Feb. 09, 2016	Jul. 03, 2016	Jan. 03, 2016
Base Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 35,000
Long-term Line of Credit		8,972	$ 10,721
Debt Instrument, Face Amount	$ 5,000
Line of Credit Facility, Periodic Payment		250
Long-term Line of Credit		$ 4,500	$ 5,000

Note 5 - Capital Stock (Details

Note 5 - Capital Stock (Details Textual) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 03, 2016	Apr. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015	Jun. 28, 2015
Employee Stock Option [Member]
Allocated Share-based Compensation Expense	$ 21		$ 44	$ 42		$ 77
Restricted Stock Units (RSUs) [Member]
Allocated Share-based Compensation Expense	$ 107		$ 84	$ 182	$ 141
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				595,339
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		155,403		155,403

Note 5 - Common Shares Issued a

Note 5 - Common Shares Issued and Outstanding (Details) $ in Thousands	6 Months Ended
	Jul. 03, 2016USD ($)shares
Exchangeable Shares [Member]
Balance (in shares)	16,417,276
Balance | $	$ 391
Common Shares [Member]
Balance (in shares)	16,510,180
Balance | $	$ 391
Share issuance (in shares)	25,125

Note 5 - Stock Option Activity

Note 5 - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Apr. 03, 2016	Jul. 03, 2016	Jan. 03, 2016
Balance, options outstanding (in shares)	655,114	655,114
Balance, outstanding weighted average exercise price (in dollars per share)	$ 1.98	$ 1.98
Balance, outstanding weighted average remaining contractual term		7 years 36 days	6 years 182 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	155,403	155,403
Options granted (in dollars per share)		$ 1.34
Expired (in shares)		(61,757)
Expired (in dollars per share)		$ 3.46
Forfeited (in shares)		(18,603)
Forfeited (in dollars per share)		$ 3.14
Balance, options outstanding (in shares)		730,157	655,114
Balance, outstanding weighted average exercise price (in dollars per share)		$ 1.76	$ 1.98
Balance, aggregate intrinsic value		$ 16
Exercisable at July 3, 2016 (in shares)		365,673
Exercisable at July 3, 2016 (in dollars per share)		$ 1.92
Balance, exercisable weighted average remaining contractual term		5 years 109 days

Note 5 - Restricted Stock Units

Note 5 - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jul. 03, 2016	Jan. 03, 2016
Balance, outstanding options (in shares)	479,564
Balance, outstanding weighted average stock price (in dollars per share)	$ 1.88
Balance, outstanding weighted average remaining contractual term	1 year 109 days	255 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	595,339
RSU granted (in dollars per share)	$ 0.68
RSU forfeited (in shares)	(11,111)
RSU forfeited (in dollars per share)	$ 1.80
RSU vested and issued in shares (in shares)	(25,125)
RSU vested and issued in shares (in dollars per share)	$ 1.99
Balance, outstanding options (in shares)	1,038,669	479,564
Balance, outstanding weighted average stock price (in dollars per share)	$ 1.15	$ 1.88

Note 6 - Income Taxes (Details

Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jul. 01, 2016	Jun. 28, 2015
Foreign Tax Authority [Member] | Mexican Tax Authority [Member]
Deferred Income Tax Expense (Benefit)	$ 31	$ 36	$ (15)		$ (59)
Foreign Tax Authority [Member]
Current Income Tax Expense (Benefit)	99	157		$ 103	329
Domestic Tax Authority [Member]
Current Income Tax Expense (Benefit)			(66)
Current Income Tax Expense (Benefit)	99	157	103		329
Deferred Income Tax Expense (Benefit)	$ 31	$ 36	$ (15)		$ (59)

Note 7 - Earnings (loss) Per 33

Note 7 - Earnings (loss) Per Common Share (Details Textual) - $ / shares		3 Months Ended		6 Months Ended
		Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants				0
Options Outstanding Considered in the Money				0
Treasury Stock Method Dilutive Options Average Share Price Used		$ 1.54	$ 1.62	$ 1.44	$ 1.61
Weighted Average Number Diluted Shares Outstanding Adjustment If there had Been Net Income		1,058,824
Weighted Average Number Diluted Shares Outstanding Adjustment	[1],[2],[3]			1,048,746
[1]	As a result of the net earnings for the three and six months ended June 28, 2015, dilutive options were determined using the treasury stock method, using an average price of $1.62 and 1.61, respectively per share. No diluted stock awards were calculated as there were no outstanding options that were considered in-the-money.
[2]	Dilutive options were determined using the treasury stock method, using an average price of $1.54 per share for three months ended July 3, 2016. As a result of the net loss for the three months ended July 3, 2016, 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. Had there been net income for the three months ended July 3, 2016, dilutive stock awards would have been calculated as 1,058,824. For the six months ended July 3, 2016, dilutive options were determined using the treasury stock method, using an average price of $1.44 per share. Total dilutive stock awards were calculated as 1,048,746.
[3]	Dilutive stock awards include outstanding restricted stock units and in-the money stock options determined using the treasury stock method

Note 7 - Common Shares Outstand

Note 7 - Common Shares Outstanding for Basic and Diluted Earnings Per Share (Details) - shares		3 Months Ended		6 Months Ended
		Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Basic weighted average shares outstanding (in shares)		16,510,180	16,417,276	16,498,032	16,417,276
Weighted Average Number Diluted Shares Outstanding Adjustment	[1],[2],[3]			1,048,746
Diluted weighted average shares outstanding (in shares)		16,510,180	16,417,276	17,546,778	16,417,276
[1]	As a result of the net earnings for the three and six months ended June 28, 2015, dilutive options were determined using the treasury stock method, using an average price of $1.62 and 1.61, respectively per share. No diluted stock awards were calculated as there were no outstanding options that were considered in-the-money.
[2]	Dilutive options were determined using the treasury stock method, using an average price of $1.54 per share for three months ended July 3, 2016. As a result of the net loss for the three months ended July 3, 2016, 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. Had there been net income for the three months ended July 3, 2016, dilutive stock awards would have been calculated as 1,058,824. For the six months ended July 3, 2016, dilutive options were determined using the treasury stock method, using an average price of $1.44 per share. Total dilutive stock awards were calculated as 1,048,746.
[3]	Dilutive stock awards include outstanding restricted stock units and in-the money stock options determined using the treasury stock method

Note 8 - Segmented Informatio35

Note 8 - Segmented Information (Details Textual)	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer1 [Member]
Concentration Risk, Percentage	22.10%	17.10%	18.20%	19.10%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Major Customer2 [Member]
Concentration Risk, Percentage	17.60%	11.30%	15.80%	14.20%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Number of Major Customers	2	2	2
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer1 [Member]
Concentration Risk, Percentage			28.70%		16.80%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer2 [Member]
Concentration Risk, Percentage			5.10%		3.80%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Number of Major Customers			2
Number of Major Customers			2

Note 8 - Segment Reporting Info

Note 8 - Segment Reporting Information, by Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Reportable Geographical Components [Member] | MEXICO
Revenues	$ 25,672,000	$ 39,155,000	$ 52,464,000	$ 74,762,000
Site Contribution	2,343,000	2,779,000	4,871,000	5,675,000
Additions and Disposals to PP&E	153,000	313,000	334,000	396,000
Reportable Geographical Components [Member] | UNITED STATES
Revenues	4,722,000	9,008,000	10,680,000	15,586,000
Site Contribution	(472,000)	491,000	(440,000)	485,000
Additions and Disposals to PP&E	54,000	379,000	291,000	385,000
Reportable Geographical Components [Member] | CHINA
Revenues	15,100,000	12,150,000	26,757,000	21,492,000
Site Contribution	550,000	664,000	1,165,000	969,000
Additions and Disposals to PP&E	321,000	252,000	480,000	627,000
Reportable Geographical Components [Member]
Revenues	45,494,000	60,313,000	89,901,000	111,840,000
Site Contribution	2,421,000	3,934,000	5,596,000	7,129,000
Additions and Disposals to PP&E	528,000	944,000	1,105,000	1,408,000
Product Shipment Destination [Member] | UNITED STATES
Revenues	25,194,000	40,807,000	54,378,000	86,393,000
Product Shipment Destination [Member] | CHINA
Revenues	1,541,000	818,000	2,652,000	1,550,000
Product Shipment Destination [Member] | CANADA
Revenues	14,736,000	6,164,000	23,700,000	11,757,000
Product Shipment Destination [Member] | Europe [Member]
Revenues	114,000	5,641,000	905,000	2,361,000
Product Shipment Destination [Member] | Africa [Member]
Revenues	2,030,000	4,311,000	3,900,000	4,394,000
Product Shipment Destination [Member]
Revenues	43,615,000	57,741,000	85,535,000	106,455,000
Corporate, Non-Segment [Member]
Additions and Disposals to PP&E	115,000	13,000	171,000	39,000
Geography Eliminations [Member] | MEXICO
Revenues	(139,000)	(105,000)	(255,000)	(210,000)
Geography Eliminations [Member] | UNITED STATES
Revenues	(205,000)	(41,000)	(267,000)	(85,000)
Geography Eliminations [Member] | CHINA
Revenues	(1,535,000)	(2,426,000)	(3,844,000)	(5,090,000)
Geography Eliminations [Member]
Revenues	(1,879,000)	(2,572,000)	(4,366,000)	(5,385,000)
MEXICO
Revenues	25,533,000	39,050,000	52,209,000	74,552,000
UNITED STATES
Revenues	4,517,000	8,967,000	10,413,000	15,501,000
CHINA
Revenues	13,565,000	9,724,000	22,913,000	16,402,000
Revenues	43,615,000	57,741,000	85,535,000	106,455,000
Site Contribution	3,089,000	5,430,000	7,969,000	9,058,000
Corporate allocations	2,645,000	3,257,000	5,534,000	6,171,000
Unrealized foreign exchange gain (loss) on unsettled forward exchange contracts	47,000	(789,000)	(999,000)	(471,000)
Interest expense (notes 3 & 4)	203,000	304,000	434,000	614,000
Restructuring charges	0		176,000
Earnings (loss) before income taxes	(474,000)	1,162,000	451,000	815,000
Additions and Disposals to PP&E	$ 643,000	$ 957,000	$ 1,276,000	$ 1,447,000

Note 8 - Long-lived Assets in I

Note 8 - Long-lived Assets in Individual Geographic Areas (Details) - USD ($) $ in Thousands		Jul. 03, 2016	Jan. 03, 2016
MEXICO | Reportable Geographical Components [Member]
Long-lived assets	[1]	$ 9,505	$ 10,674
CHINA | Reportable Geographical Components [Member]
Long-lived assets	[1]	3,290	2,217
UNITED STATES | Reportable Geographical Components [Member]
Long-lived assets	[1]	2,469	3,255
Reportable Geographical Components [Member]
Long-lived assets	[1]	15,634	16,443
Corporate, Non-Segment [Member]
Long-lived assets	[1]	$ 370	$ 297
[1]	Property, plant and equipment information is based on the principal location of the asset.

Note 9 - Derivative Financial38

Note 9 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016
Derivative Asset, Current	$ 139		$ 139
Unrealized Gain (Loss) on Derivatives	47	$ 789	999	$ 471
Gain (Loss) on Sale of Derivatives	(647)	$ (1,028)	(1,578)	$ (1,882)
Derivative Liability, Current	$ 1,227		$ 1,227		$ 2,087

Note 9 - Outstanding Foreign Cu

Note 9 - Outstanding Foreign Currency Forward Contracts (Details) - 6 months ended Jul. 03, 2016 MXN in Thousands, CAD in Thousands, $ in Thousands	CAD	USD ($)	MXN
Canada, Dollars
Buy/Sell	Buy
Foreign Currency Amount | CAD	CAD 7,020
Notional Contract Value in USD		$ 5,300
Buy/Sell	Buy
Foreign Currency Amount | MXN			MXN 231,939
Notional Contract Value in USD		$ 13,635

Note 9 - Average USD Fair Value

Note 9 - Average USD Fair Value Measurements for Contracts Rates (Details)	Jul. 03, 2016	Jan. 03, 2016
Canada, Dollars
Average contract rate	1.32%	1.26%
Average mark-to-market rate	1.29%	1.38%
Average contract rate	17.01%	15.88%
Average mark-to-market rate	18.69%	17.47%

Note 10 - Restructuring Charg41

Note 10 - Restructuring Charges (Details Textual)	3 Months Ended		6 Months Ended
	Jul. 03, 2016USD ($)	Apr. 03, 2016USD ($)	Jul. 03, 2016USD ($)
Employee Severance [Member]
Restructuring and Related Cost, Number of Positions Eliminated		1
Restructuring Charges		$ 176,000	$ 176,000
Restructuring Charges	$ 0		$ 176,000

Note 10 - Schedule of Restructu

Note 10 - Schedule of Restructuring Charges (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Apr. 03, 2016	Jul. 03, 2016
Employee Severance [Member]
Balance as at January 3, 2016
Restructuring charges (note 10)		$ 176,000	176,000
Payments			(63,000)
Balance as at July 3, 2016	$ 113,000		113,000
Restructuring charges (note 10)	$ 0		$ 176,000

Note 11 - Commitments (Details

Note 11 - Commitments (Details Textual) - USD ($) $ in Thousands	Jul. 03, 2016	Jun. 28, 2015
Purchase Obligation, Due in Next Twelve Months	$ 13,230	$ 17,853