TORONTO, ONTARIO -- Coretec today reported second-quarter sales fell 8% year-over-year to $17.9 million on a broad slowdown in electronics demand.

For the period ended June 30, the net loss was $2.4 million, down 167%. The printed circuit board company recorded gross profit of $1.2 million (7% of sales), down 54% from last year. Sales were down 11% sequentially.

The quarter included $500,000 worth of foreign exchange losses, $300,000 of termination and severance costs and $100,000 of unusual professional fees.

During the quarter, Coretec consolidated its plant in Toronto-Ellesmere to its Sheppard site, work that is now 95% complete. In July the firm implemented significant reductions in hourly and salaried staff levels as a result of migrating from four to three shift operations in Toronto, and negotiated supply contracts that will reduce the annual spend on materials and supplies, equipment and IT maintenance by more than $6 million annually.

As of June 30, Coretec was in breach of certain covenants on its revolver and term debt facilities, but has received waivers and established revised covenants.