SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549
                                 FORM 10 - Q


(Mark One)

 [X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the quarterly period ended:      DECEMBER 31, 2001
                                          ------------------

 [ ] Transition report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the transition period from            to
                                    -----------   ------------


                        Commission File Number:  1-8101


Exact Name of Registrant as
  Specified in Its Charter:     SMTEK INTERNATIONAL, INC.
                                -------------------------


            DELAWARE                               33-0213512
------------------------------                 ------------------
State or Other Jurisdiction of                 I.R.S. Employer
Incorporation or Organization:                 Identification No.



Address of Principal Executive Offices:        2151 Anchor Court
                                               Thousand Oaks, CA 91320

Registrant's Telephone Number:                 (805) 376-2595



Indicate by check mark whether the registrant:  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.          Yes [X]  No [ ]



The registrant had 2,284,343 shares of Common Stock outstanding as of
February 8, 2002.


PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
                       SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                         (In thousands except share amounts)
<TABLE>
<CAPTION>
                                                           December 31,     June 30,
                                                                2001          2001
                                                           -------------    ---------
<S>                                                        <C>              <C>
             ASSETS
Current assets:
   Cash and cash equivalents                                   $  1,129     $    224
   Assets held for sale                                             117          -
   Accounts receivable, less allowance for doubtful
     accounts of $397 and $407, as of December 31,
     2001 and June 30, 2001, respectively                        12,836       11,905
   Costs and estimated earnings in excess
     of billings on uncompleted contracts                         4,273        7,965
   Inventories, net                                               8,279        6,833
   Prepaid expenses                                               1,048          745
                                                               --------     --------
          Total current assets                                   27,682       27,672
                                                               --------     --------
Property, equipment and improvements, net of
   accumulated depreciation and amortization                      8,903        7,319
Other assets                                                        932          941
                                                               --------     --------
                                                               $ 37,517     $ 35,932
                                                               ========     ========
    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current portion of bank lines of credit payable             $  2,797     $  1,468
   Current portion of long-term debt                              2,519        2,109
   Accounts payable                                               7,096        6,161
   Other accrued liabilities                                      4,166        4,556
                                                               --------     --------
          Total current liabilities                              16,578       14,294
                                                               --------     --------
Long-term liabilities:
   Long-term bank lines of credit payable                         3,311        4,638
   Long-term debt                                                 7,089        5,780
                                                               --------     --------
          Total long-term liabilities                            10,400       10,418
                                                               --------     --------
Commitments and contingencies

Stockholders' equity:
   Preferred stock, $1 par value;  1,000,000 shares
    authorized; no shares issued or outstanding                     -            -
   Common Stock, $.01 par value; 3,750,000 shares
    authorized; 2,284,343 and 2,282,339 shares
    issued and outstanding at December 31, 2001 and
    June 30, 2001, respectively                                      23           23
   Additional paid-in capital                                    37,028       37,018
   Accumulated deficit                                          (26,367)     (25,632)
   Accumulated other comprehensive loss                            (145)        (189)
                                                               --------     --------
          Total stockholders' equity                             10,539       11,220
                                                               --------     --------
                                                               $ 37,517     $ 35,932
                                                               ========     ========
</TABLE>
See accompanying notes to unaudited condensed consolidated financial statements.



                  SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               AND OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited)
                   (In thousands except per share amounts)


<TABLE>
<CAPTION>
                                         Three Months Ended       Six Months Ended
                                             December 31,            December 31,
                                         -------------------     -------------------
                                           2001        2000        2001        2000
                                         -------     -------     -------     -------
<S>                                      <C>         <C>         <C>         <C>
Revenues                                 $19,594     $24,148     $39,228     $45,072
Cost of goods sold                        17,632      21,395      35,262      39,767
                                         -------     -------     -------     -------
Gross profit                               1,962       2,753       3,966       5,305
                                         -------     -------     -------     -------
Operating expenses:
  Administrative and selling               2,438       1,656       4,146       3,199
  Goodwill amortization                        9         326          19         652
                                         -------     -------     -------     -------
Total operating expenses                   2,447       1,982       4,165       3,851
                                         -------     -------     -------     -------
Operating income (loss)                     (485)        771        (199)      1,454
                                         -------     -------     -------     -------
Non-operating income (expense):
  Interest expense, net                     (291)       (485)       (563)       (801)
  Other income (expense), net                 26          (5)         54         (37)
                                         -------     -------     -------     -------
Total non-operating expense, net            (265)       (490)       (509)       (838)
                                         -------     -------     -------     -------
Income (loss) before income taxes           (750)        281        (708)        616
Income tax provision (benefit)                12        (138)         27        (118)
                                         -------     -------     -------     -------
Net income (loss)                        $  (762)    $   419     $  (735)   $    734

Other comprehensive income (loss):
    Foreign currency
      translation adjustments                  2          22          44          (4)
                                         -------     -------     -------     -------
Comprehensive income (loss)              $  (760)    $   441     $  (691)    $   730
                                         =======     =======     =======     =======

Basic and diluted
  earnings (loss) per share              $ (0.33)    $  0.18     $ (0.32)    $  0.32
                                         =======     =======     =======     =======

Shares used in computing basic and
  diluted earnings (loss) per share:
    Basic                                  2,284       2,276       2,284       2,275
                                         =======     =======     =======     =======
    Diluted                                2,284       2,350       2,284       2,328
                                         =======     =======     =======     =======

</TABLE>







See accompanying notes to unaudited condensed consolidated financial statements.

                  SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                (In thousands)

                                                         Six Months Ended
                                                           December 31,
                                                      ---------------------
                                                       2001          2000
                                                      -------       -------
Cash flows from operating activities:
  Net income (loss)                                   $  (735)      $   734
  Adjustments to reconcile net income (loss)
   to net cash provided by (used in)
   operating activities:
    Depreciation and amortization                       1,215         1,636
    Increase in accounts receivable                      (469)       (1,117)
    Decrease (increase) in costs and estimated
      earnings in excess of billings on
      uncompleted contracts                             3,692        (1,090)
    Increase in inventories                            (1,045)       (3,665)
    Increase in accounts payable                          515         1,814
    Decrease in other accrued liabilities                (510)         (208)
    Other, net                                           (518)           68
                                                      -------       -------
Net cash provided by (used in) operating activities     2,145        (1,828)
                                                      -------       -------

Cash flows from investing activities:
  Capital expenditures                                 (2,717)       (1,974)
  Purchase of Century Thailand, net of cash received     (129)          -
  Proceeds from sale of assets                            -               2
                                                      -------       -------
Net cash used in investing activities                  (2,846)       (1,972)
                                                      -------       -------

Cash flows from financing activities:
  Proceeds from (payments of) bank lines of credit        (60)        2,519
  Proceeds of long-term debt                            2,452         1,663
  Payments of long-term debt                             (798)         (705)
  Proceeds from the exercise of stock options               7           -
                                                      -------       -------
Net cash provided by financing activities               1,601         3,477
                                                      -------       -------

Effect of exchange rate changes on cash                     5            (5)
                                                      -------       -------
Increase (decrease) in cash and cash equivalents          905          (328)

Cash and cash equivalents at beginning of period          224           532
                                                      -------       -------
Cash and cash equivalents at end of period            $ 1,129       $   204
                                                      =======       =======

Supplemental cash flow information:
  Interest paid                                       $   426       $   588
  Income taxes paid                                        40            47
Non-cash investing activities:
  Other obligations                                         2            22


See accompanying notes to unaudited condensed consolidated financial statements

                  SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
        NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                Six months Ended December 31, 2001 and 2000


NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

     SMTEK International, Inc. (the "Company," "we," "us" or "our") is an
electronics manufacturing services ("EMS") provider to original equipment
manufacturers ("OEMs") primarily in the industrial and instrumentation,
medical, telecommunications, financial services automation and aerospace and
defense industries.  We provide integrated solutions to OEMs across the entire
product life cycle, from design to manufacturing to end-of-life services, for
the worldwide low-to-medium volume, high complexity segment of the EMS
industry.

     At December 31, 2001 we had seven wholly owned subsidiaries:  SMTEK, Inc.
(dba SMTEK Thousand Oaks), located in Thousand Oaks, California; Technetics,
Inc. (dba SMTEK San Diego), located in San Diego, California; Jolt Technology,
Inc. (aka SMTEK Fort Lauderdale), located in Fort Lauderdale, Florida; SMTEK
Europe Limited, located in Craigavon, Northern Ireland; SMTEK New England,
located in Marlborough, Massachusetts; SMTEK Santa Clara, located in Santa
Clara, California; and SMTEK International Thailand Limited, located in
Ayutthya, Thailand.

     All significant intercompany transactions and accounts have been
eliminated in consolidation.  In the opinion of the Company's management, the
accompanying condensed consolidated financial statements reflect all
adjustments (consisting of normal recurring accruals) necessary to present
fairly our financial position, results of operations and cash flows as of and
for the periods presented.

     We utilize a 52-53 week fiscal year ending on the Friday closest to June
30, which for fiscal year 2001 fell on June 29, 2001.  In the accompanying
condensed consolidated financial statements, the 2001 fiscal year end is shown
as June 30 and the interim period end for both years is shown as December 31
for clarity of presentation.  The actual interim periods ended on December 28,
2001 and December 29, 2000.

     Certain notes and other information are condensed or omitted from the
interim financial statements presented in this Quarterly Report on Form 10-Q.
Therefore, these condensed financial statements should be read in conjunction
with our 2001 Annual Report on Form 10-K as filed with the Securities and
Exchange Commission on September 26, 2001.

     Certain reclassifications have been made to the interim fiscal 2001
financial statements to conform with the interim fiscal 2002 financial
statement presentation.  Such reclassifications had no effect on our results
of operations or stockholders' equity.


NOTE 2 - ACQUISITION OF THE ASSETS OF CENTURY ELECTRONICS
         MANUFACTURING, INC.

     On October 24, 2001, we completed a transaction to purchase out of
bankruptcy certain assets, but not assume any liabilities, of Century
Electronics Manufacturing, Inc. ("Century"), an EMS company.  As part of this
transaction, we also purchased substantially all of the common stock of
Century's subsidiary in Thailand.  The aggregate purchase price of this
transaction was approximately $3.2 million in cash and was funded by our
existing long-term bank lines of credit.

     Specifically, we purchased from Century certain equipment and machinery
for approximately $1.4 million and inventory for approximately $900,000.  We
will use some of the purchased assets at our other locations.  We negotiated
new facility leases in Marlborough, Massachusetts and Santa Clara, California
and began operations in Marlborough and Santa Clara in connection with the
purchase of these assets.

     As part of the Century agreement we purchased the common stock of the
Century subsidiary in Thailand for approximately $900,000.  The acquisition of
the Thailand subsidiary provides us with a low cost manufacturing facility in
Southeast Asia.  The acquisition of Century Thailand was accounted for using
the purchase method of accounting and, accordingly, the statements of
condensed consolidated operations include the results of the Thailand
subsidiary from the date of acquisition.  The assets acquired and liabilities
assumed were recorded at fair value as determined by us based on information
currently available.  A summary of the assets acquired and the liabilities
assumed in the acquisition is as follows (dollars in thousands):

     Estimated fair values:
       Assets acquired                   $1,392
       Liabilities assumed                  476

     Purchase price                      $  916
     Less cash received                     787
                                         ------
     Net cash paid                       $  129
                                         ======

     Pro forma results of operations for the three and six months ended
December 31, 2001 and 2000, as if the acquisition of the Thailand subsidiary
had occurred at the beginning of the period reported, follow (dollars in
thousands).  The pro forma results are not necessarily indicative of the
results which would have occurred if the business combination had occurred on
the date indicated.:

                             Three months ended      Six months ended
                                December 31,           December 31,
                             -------------------    -------------------
                               2001       2000        2001        2000
                             -------     -------    -------     -------

Revenue                      $19,608     $26,034    $40,548     $49,739
                             =======     =======    =======     =======

Net income (loss)            $  (788)    $   471    $  (672)    $   883
                             =======     =======    =======     =======

Earnings (loss) per share:
  Basic                      $ (0.35)    $  0.21    $ (0.29)    $  0.39
                             =======     =======    =======     =======
  Diluted                    $ (0.35)    $  0.20    $ (0.29)    $  0.38
                             =======     =======    =======     =======


NOTE 3 - EARNINGS PER SHARE

     Basic earnings per share is computed by dividing net income (loss) by the
weighted average number of common shares outstanding during the period.
Diluted earnings per share reflects the potential dilution that could occur if
securities or other contracts to issue Common Stock were exercised or
converted into Common Stock or resulted in the issuance of Common Stock that
then shared in our earnings.

     Common stock equivalents used in the determination of diluted earnings
per share include the effect, when such effect is dilutive, of our outstanding
employee stock options, the 7% Convertible Subordinated Debentures (which were
convertible into 8,075 shares of Common Stock at $40.00 per share of Common
Stock), and the 8-1/2% Convertible Subordinated Debentures (which are
convertible into 7,435 shares of Common Stock at $212.50 per share of Common
Stock).  The following is a summary of the calculation of basic and diluted
earnings (loss) per share (dollars in thousands, except per share data):
<TABLE>
<CAPTION>
                                    Three Months Ended          Six Months Ended
                                       December 31,               December 31,
                                  ----------------------     ----------------------
                                    2001         2000           2001         2000
                                  ---------    ---------     ---------    ---------
<S>                               <C>          <C>           <C>          <C>
Net income (loss)                 $    (762)   $     419     $    (735)   $     734
                                  =========    =========     =========    =========

Weighted average shares:
  Basic weighted average
    number of common
    shares outstanding            2,284,343    2,275,833     2,283,693    2,275,467
  Dilutive effect of
    outstanding common
    stock equivalents                   -         74,535           -         53,004
                                  ---------    ---------     ---------    ---------
      Diluted weighed average
        number of common
        shares outstanding        2,284,343    2,350,368     2,283,693    2,328,471
                                  =========    =========     =========    =========

Earnings (loss) per share:
  Basic and diluted               $   (0.33)   $    0.18     $   (0.32)   $    0.32
                                  =========    =========     =========    =========
</TABLE>
     Because we had a net loss for the three and six months ended December 31,
2001, there were no common stock equivalents which had a dilutive effect on
earnings per share for such period.  However, if we had reported net income
rather than a loss for the three and six months ended December 31, 2001, the
dilutive effect of outstanding common stock equivalents would have been 87,213
and 132,497 for the three and six months ended December 31, 2001,
respectively, and options to purchase approximately 157,800 shares of Common
Stock at prices ranging from $5.80 to $10.00 which were outstanding at
December 31, 2001, would not have been included in the computation of diluted
earnings per share for the three and six months ended December 31, 2001,
because the exercise price of these options were greater than the average
market price of the Common Stock.  Options and warrants to purchase
approximately 177,300 shares of Common Stock at prices ranging from $5.75 to
$30.20 were outstanding at December 31, 2000, but were not included in the
computation of diluted earnings per share for the three and six months ended
December 31, 2000, because the exercise price of these options and warrants
were greater than the average market price of the Common Stock.

     Convertible subordinated debentures aggregating $1,580,000, due in 2008
and convertible at a price of $212.50 per share at any time prior to maturity
and convertible subordinated debentures aggregating $323,000, due on May 15,
2001 and convertible at a price of $40.00 per share at any time prior to
maturity, were outstanding during the three months ended December 31, 2001 and
2000, but were not included in the computation of diluted earnings per share
because the effect would be antidilutive.



NOTE 4 - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED
         CONTRACTS

     We recognize revenues and cost of sales upon shipment of products except
at our Thousand Oaks subsidiary which uses the percentage of completion method
to recognize revenues and cost of sales on certain of its long-term contracts
with suppliers of electronic components and products.  Percentage of
completion is determined on the basis of costs incurred to total estimated
costs.  Contract costs include direct material and direct labor costs and
those indirect costs related to the assembly process, such as indirect labor,
supplies, tools, repairs and depreciation costs.  Selling and administrative
costs are charged to expense as incurred.  In the period in which it is
determined that a loss will result from the performance of a contract, the
entire amount of the estimated loss is charged to cost of goods sold.  Other
changes in contract price and estimates of costs and profits at completion are
recognized prospectively.  The asset "costs and estimated earnings in excess
of billings on uncompleted contracts" represents revenues recognized in excess
of amounts billed.

     Costs and estimated earnings in excess of billings on uncompleted
contracts consists of revenue recognized under electronics assembly contracts,
which amounts were not billable at the balance sheet date.  Substantially all
of the unbilled amount is expected to be billed and collected within 180 days
of the balance sheet date.  The components of costs and estimated earnings in
excess of billings on uncompleted contracts are as follows (in thousands):

                                                December 31,       June 30,
                                                   2001              2001
                                               -------------       --------
  Costs incurred to date on
    uncompleted contracts                        $ 78,885          $ 82,929
  Estimated earnings based on
    percentage of completion                        8,583            10,643
                                                 --------          --------
                                                   87,468            93,572
  Less:  Billings to date                         (83,195)          (85,607)
                                                 --------          --------
    Total costs and estimated
      earnings in excess of billings
      on uncompleted contracts                   $  4,273          $  7,965
                                                 ========          ========


NOTE 5 - INVENTORIES

     Inventories consist of the following (in thousands):

                                                  December 31,     June 30,
                                                      2001           2001
                                                 -------------     --------
  Raw materials                                     $5,908          $3,929
  Work in process                                    2,026           2,700
  Finished goods                                       345             204
                                                    ------          ------
                                                    $8,279          $6,833
     Total inventories                              ======          ======



Note 6 - PROPERTY, EQUIPMENT AND IMPROVEMENTS

     Property, equipment and improvements consist of the following (in
thousands):

                                                  December 31,     June 30,
                                                      2001           2001
                                                 -------------     --------
Buildings and improvements                         $  3,138        $  2,827
Plant equipment                                      15,755          13,691
Office and other equipment                            2,852           2,614
Less accumulated depreciation and amortization      (12,842)        (11,813)
                                                   --------        --------
    Total property, equipment and improvements     $  8,903        $  7,319
                                                   ========        ========

NOTE 7 - BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

     We operate in a single business segment - the EMS industry.  Our revenues
and long-lived assets, net of accumulated depreciation, by geographic area are
as follows (in thousands):

                                  Three Months Ended       Six Months Ended
                                     December 31,            December 31,
                                  -------------------     -------------------
                                   2001        2000        2001        2000
                                  -------     -------     -------     -------

Revenues:
  United States                   $16,590     $18,868     $34,532     $34,750
  Northern Ireland                  2,655       5,280       4,347      10,322
  Thailand                            349         -           349         -
                                  -------     -------     -------     -------
     Total revenues               $19,594     $24,148     $39,228     $45,072
                                  =======     =======     =======     =======

                                 December 31,     June 30,
                                    2001            2001
                                -------------     --------
Long-lived assets:
  United States                    $7,694          $5,997
  Northern Ireland                  1,647           1,779
                                   ------          ------
     Total long-lived assets       $9,341          $7,776
                                   ======          ======


NOTE 8 - COMMITMENTS AND CONTINGENCIES - ENVIRONMENTAL MATTERS

     Since the early 1990s, we continue to be involved in certain remediation
and investigative studies regarding soil and groundwater contamination at the
site of a former printed circuit board manufacturing plant in Anaheim,
California.  One of our former subsidiaries, Aeroscientific Corp., leased the
Anaheim facility.  Under the terms of a cost sharing agreement entered into
several years ago, the remaining remediation costs are currently being shared
on a 50-50 basis with the landlord.  There is no environmental insurance
coverage for this remediation.  At December 31, 2001, we had a reserve of
$431,000 for future remediation costs.  Management, based in part on
consultations with outside environmental engineers and scientists, believes
that this reserve is adequate to cover its share of future remediation costs
at this site.  However, the future actual remediation costs could differ
significantly from the estimates.  Further, our portion could potentially
exceed the amount of our reserve.  Our liability for remediation in excess of
our reserve could have a material adverse impact on our business, financial
condition and results of operations.


NOTE 9 - FOREIGN CURRENCY FORWARD CONTACTS

     It is our policy not to enter into derivative financial instruments for
speculative purposes.  We may, from time to time, enter into foreign currency
forward exchange contracts in an effort to protect us from adverse currency
rate fluctuations on foreign currency commitments entered into in the ordinary
course of business.  These commitments are generally for terms of less than
one year.  The foreign currency forward exchange contracts are executed with
banks believed to be creditworthy and are denominated in currencies of major
industrial countries.  In accordance with Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities," derivative financial instruments are recorded at fair value at
each quarter end with realized and unrealized gains and losses reflected in
current income.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS


     THIS QUARTERLY REPORT ON FORM 10-Q (THE "REPORT"), INCLUDING THE
DISCLOSURES BELOW, CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE
SUBSTANTIAL RISKS AND UNCERTAINTIES.  WHEN USED HEREIN, THE TERMS
"ANTICIPATES," "EXPECTS," "ESTIMATES," "BELIEVES" AND SIMILAR EXPRESSIONS, AS
THEY RELATE TO US OR OUR MANAGEMENT, ARE INTENDED TO IDENTIFY SUCH FORWARD-
LOOKING STATEMENTS.  FORWARD-LOOKING STATEMENTS IN THIS REPORT OR HEREAFTER
INCLUDED IN OTHER PUBLICLY AVAILABLE DOCUMENTS FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION ("SEC"), REPORTS TO THE STOCKHOLDERS OF SMTEK
INTERNATIONAL, INC., A DELAWARE CORPORATION (THE "COMPANY," "WE," "US" OR
"OUR") AND OTHER PUBLICLY AVAILABLE STATEMENTS ISSUED OR RELEASED BY US
INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH COULD
CAUSE OUR ACTUAL RESULTS, PERFORMANCE (FINANCIAL OR OPERATING) OR ACHIEVEMENTS
TO DIFFER FROM THE FUTURE RESULTS, PERFORMANCE (FINANCIAL OR OPERATING) OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.  SUCH
FUTURE RESULTS ARE BASED UPON MANAGEMENT'S BEST ESTIMATES BASED UPON CURRENT
CONDITIONS AND THE MOST RECENT RESULTS OF OPERATIONS.  THESE RISKS INCLUDE,
BUT ARE NOT LIMITED TO, THE RISKS SET FORTH HEREIN AND IN SUCH OTHER DOCUMENTS
WITH THE SEC, EACH OF WHICH COULD ADVERSELY AFFECT OUR BUSINESS AND THE
ACCURACY OF THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN.  OUR ACTUAL
RESULTS, PERFORMANCE OR ACHIEVEMENTS MAY DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.

     THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ IN CONJUNCTION WITH
THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES INCLUDED
ELSEWHERE IN THIS REPORT.


DESCRIPTION OF THE BUSINESS

     SMTEK International, Inc. (the "Company," "we," "us" or "our") is an
electronics manufacturing services ("EMS") provider to original equipment
manufacturers ("OEMs") primarily in the industrial and instrumentation,
medical, telecommunications, financial services automation and aerospace and
defense industries.  We provide integrated solutions to OEMs across the entire
product life cycle, from design to manufacturing to end-of-life services, for
the worldwide low-to-medium volume, high complexity segment of the EMS
industry.

     At December 31, 2001 we had seven wholly owned subsidiaries:  SMTEK, Inc.
(dba SMTEK Thousand Oaks), located in Thousand Oaks, California; Technetics,
Inc. (dba SMTEK San Diego), located in San Diego, California; Jolt Technology,
Inc. (aka SMTEK Fort Lauderdale), located in Fort Lauderdale, Florida; SMTEK
Europe Limited, located in Craigavon, Northern Ireland; SMTEK New England,
located in Marlborough, Massachusetts; SMTEK Santa Clara, located in Santa
Clara, California; and SMTEK International Thailand Limited, located in
Ayutthya, Thailand.


RESULTS OF OPERATIONS

     We utilize a 52-53 week fiscal year ending on the Friday closest to June
30, which for fiscal year 2001 fell on June 29, 2001.  In the accompanying
condensed consolidated financial statements, the 2001 fiscal year end is shown
as June 30 and the interim period end for both years is shown as December 31
for clarity of presentation. The actual interim periods ended on December 29,
2001 and December 29, 2000.

     Consolidated revenues for the three and six months ended December 31,
2001 were $19.6 million and $39.2 million, respectively, compared to $24.1
million and $45.1 million, respectively, for the three and six months ended
December 31, 2000.  The decreases in revenues of 19% and 13% for the three and
six months ended December 31, 2001, respectively, compared to the same periods
of the prior year, were primarily due to the current downward economic trends,
partially offset by the revenues generated from our newly opened facilities.
Our Thousand Oaks facility is entering into sales contracts consistent with
our other locations, and as such is recognizing revenue on these new
arrangements upon shipment of products rather than on the percentage of
completion method.  We expect revenues to be negatively impacted during the
next six to twelve months as a result of this change in business practice.
Starting in the third quarter of fiscal 2001, existing customers began to
defer shipments, and some have, more recently, cancelled orders.  In addition,
several of our customers have been impacted by the September 11th terrorist
attacks.  We have been adversely affected by the current economic trends and
the terrorists attacks and may continue to be throughout the remainder of
fiscal 2002 and beyond. Although we continue to book business, we have not and
may not grow as fast as we did during the prior fiscal year.

     Consolidated gross profit for the three and six months ended December 31,
2001 was $2.0 million (10.0% of sales) and $4.0 million (10.1% of sales),
respectively, compared to $2.8 million (11.4% of sales) and $5.3 million
(11.8% of sales) for the three and six months ended December 31, 2000,
respectively.  Gross profit for the three and six months ended December 31,
2001 was positively impacted by the benefit received from inventory used
during the period that was purchased at a discount from Century Electronics
Manufacturing, Inc. ("Century").  Excluding the positive impact from these
reduced inventory costs, we estimate that the consolidated gross profit for
the three and six months ended December 31, 2001 would have been approximately
$1.2 million (6.1% of sales) and $3.2 million (8.2% of sales), respectively.
We expect this benefit to continue for the next six months, although the
amount and impact of the benefit recognized may be less in future periods.
The decrease in gross profit and gross profit margin, excluding the purchase
benefit, was due to revenues declining at a faster rate than the decline in
cost of sales, as fixed costs were spread over a smaller volume of production.

     Administrative and selling expenses for the three months and six months
ended December 31, 2001 were $2.4 million and $4.1 million, respectively,
compared to $1.7 million and $3.2 million for the three and six months ended
December 31, 2000, respectively.  The increase was due to selling and
administrative expenses incurred in our new facilities and to the expansion of
our managerial and administrative staff during fiscal 2001 caused by our
growth during the past fiscal year and relocation expenses relating to our San
Diego facility.

     Goodwill amortization decreased to $9,000 and $19,000 during the three
and six months ended December 31, 2001, respectively, from $326,000 and
$652,000 for the three and six months ended December 31, 2000, respectively.
The reduction occurred because we had fully amortized, as of December 31,
2000, the goodwill of $6.3 million, which arose from our acquisition of our
Thousand Oaks subsidiary in January 1996.

     Total non-operating expense was $265,000 and $509,000 for the three and
six months ended December 31, 2001, respectively, compared to $490,000 and
$838,000, respectively, for the three and six months ended December 31, 2000.
The primary reason for this decrease was due to the decrease in interest
expense as a result of lower average interest rates and lower levels of debt
outstanding during the three and six months ended December 31, 2001 as
compared to the three and six months ended December 31, 2000.

     We had income tax expense of $12,000 and $27,000 for the three and six
months ended December 31, 2001, respectively, as compared to income tax
benefits of $138,000 and $118,000 for the three and six months ended December
31, 2000, respectively.  The three and six months ended December 31, 2000
amounts reflect a $154,000 income tax benefit resulting from a reduction of a
recorded liability for a federal tax assessment related to prior years, as
discussed in Note 6 of our 2001 Annual Report on Form 10-K.  Without this
$154,000 tax benefit, we would have reported income tax provisions of $16,000
and $36,000 in the three and six months ended December 31, 2000, respectively.
Our tax rate is lower than the statutory income tax rates due to the
utilization of federal and state net operating loss carryforwards.  We had
utilized a majority of our California state net operating loss carryforwards
during fiscal year 2001.  Based on the level of historical losses, management
believes that it does not have the basis to conclude that it is more likely
than not that the deferred tax assets will be realized, and therefore, has
recorded a 100% valuation allowance to offset the net deferred assets.

     Net loss for the three and six months ended December 31, 2001, was
$762,000 and $735,000, respectively, or $0.33 and $0.32 loss per diluted
share, respectively, compared to net income of $419,000 and $734,000 for the
three and six months ended December 31, 2000, or $0.18 and $0.32 per diluted
share.  This decrease is primarily due to lower revenues and higher
administrative and selling expenses, slightly offset by lower cost of sales,
goodwill amortization and non-operating expense.


RECENT ACCOUNTING PRONOUNCEMENTS

     In July 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 141, "Business
Combinations."  SFAS No. 141 requires that the purchase method of accounting
be used for all business combinations initiated after June 30, 2001, as well
as for all purchase method business combinations completed after June 30,
2001.  In addition, SFAS No. 141 specifies the criteria for intangible assets
acquired in a purchase method business combination to be recognized and
reported apart from goodwill.  We have adopted SFAS No. 141.

     In July 2001, the FASB issued SFAS No. 142, "Goodwill and Other
Intangible Assets."  SFAS No. 142 will require that goodwill and intangible
assets with indefinite useful lives no longer be amortized, but instead tested
for impairment, at least annually, in accordance with the provisions of SFAS
No. 142.  SFAS No. 142 will also require that intangible assets with definite
useful lives be amortized over their respective estimated useful lives to
their estimated residual values, and reviewed for impairment in accordance
with SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of."  SFAS No. 142 must be adopted as of the
beginning of fiscal years beginning after December 15, 2001.  Companies with
fiscal years beginning after March 15, 2001, may adopt early provided that
first quarter financial statement have not been issued.  We are assessing the
impact of SFAS No. 142.

     In October 2001 the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets."  SFAS No. 144 replaces SFAS No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of."  The primary objectives of SFAS No. 144 were to
develop one accounting model, based on the framework established in SFAS No.
121, for long-lived assets to be disposed of by sale and to address other
significant implementation issues.  While SFAS No. 144 supersedes SFAS No.
121, it retains many of the fundamental provisions of SFAS No. 121.  SFAS No.
144 is effective for financial statements issued for fiscal years beginning
after December 15, 2001.  We are assessing the impact of SFAS No. 144.


LIQUIDITY AND CAPITAL RESOURCES

     Our primary sources of liquidity are our cash and cash equivalents, which
amounted to $1.1 million at December 31, 2001, and amounts available under our
bank lines of credit.   During the six months ended December 31, 2001, cash
and cash equivalents increased by $905,000.  This increase resulted from cash
provided by operations of $2.1 million, offset by purchases of equipment of
$2.7 million and net proceeds from debt of $1.6 million.

     Net cash provided by operating activities of $2.1 million for the six
months ended December 31, 2001 was attributable primarily to income before
depreciation and amortization of $480,000 and a decrease of $3.7 million in
costs and estimated earnings in excess of billings on uncompleted contracts,
offset slightly by an increase of $1.0 million in inventory.  Substantially
all of the costs and estimated earnings in excess of billings on uncompleted
contracts at December 31, 2001 are expected to be billed and collected within
180 days of that date.

     Net cash used in investing activities was $2.8 million for the six months
ended December 31, 2001 compared to net cash used in investing activities of
$2.0 million for the six months ended December 31, 2000.  We utilized cash of
$2.7 million and $2.0 million for capital expenditures for the six months
ended December 31, 2001 and 2000, respectively. Amounts financed by notes
payable were approximately $2.5 million and $1.7 million for the six months
ended December 31, 2001 and 2000, respectively.  In the six months ended
December 31, 2001 we also utilized cash of $129,000 to purchase the common
stock of Century's subsidiary in Thailand.  Our subsidiaries require
continuing investment in plant and equipment to remain competitive as
technology evolves and to increase production capacity to accommodate
potential business growth and expansion.

     We anticipate that additional expenditures of as much as $1.6 million may
be incurred during the remainder of fiscal 2002, primarily to improve
production efficiency at our Thousand Oaks and San Diego subsidiaries.  This
includes an amount for leasehold improvements at our new Moorpark building.  A
substantial portion of these capital expenditures is expected to be financed
by our $16.0 million line of credit and $3.6 million equipment line of credit.

     Net cash provided by financing activities was $1.6 million for the six
months ended December 31, 2001 compared to net cash provided by financing
activities of $3.5 million for the six months ended December 31, 2000.  As
discussed further in Note 5 to the notes to the consolidated financial
statements in our June 30, 2001 Form 10-K, we have bank lines of credit to
finance the working capital requirements of our domestic and foreign
operations.  At December 31, 2001, we had approximately $4.6 million available
to borrow under our revolving bank lines of credit.

     We have a credit facility for our domestic subsidiaries which consists of
a $16 million working capital line secured by accounts receivable, inventory
and equipment.  Borrowings under the credit agreement bear interest at either
the bank's prime rate (4.75% at December 31, 2001) or a Eurodollar-base rate
(2.11% at December 31, 2001) plus 1.75%.  At December 31, 2001, borrowings
under this credit facility amounted to $3.3 million.  Our available borrowing
capacity as of December 31, 2001 was approximately $4.6 million.  This credit
facility matures on September 25, 2003.  The line of credit contains certain
financial covenants with which we were not in compliance at December 31, 2001,
specifically we had incurred a year-to-date loss greater than $500,000.  Given
the current general economic situation, we may be out of compliance with bank
covenants in the future.  We have received a waiver from our bank waiving
these covenants for the next year.

     In addition, we also have a $3.6 million equipment line of credit to
finance our capital expenditures, of which there was approximately $2.0
million in available borrowing capacity at December 31, 2001.  Each advance
under the equipment line will have a five year term at either the bank's prime
rate, a fixed rate at closing, or at a Eurodollar-base rate plus 1.75%.

     We also have a credit facility agreement with Ulster Bank Markets for our
Northern Ireland subsidiary.  This agreement consists of an accounts
receivable revolver, with maximum borrowings equal to the lesser of 70% of
eligible receivables or 2,250,000 British pounds sterling (approximately $3.3
million at December 31, 2001), and bears interest at the bank's base rate
(4.00% at December 31, 2001) plus 2.00%.  At December 31, 2001, borrowings
outstanding under this credit facility amounted to approximately $2.8 million
and had nominal available borrowing capacity.  This line of credit matured on
November 30, 2001 and we are currently negotiating a renewal and extension of
this credit facility under the same terms with Ulster Bank for an additional
12 months.


     At December 31, 2001, the ratio of current assets to current liabilities
was 1.7 to 1.0 compared to 1.9 to 1.0 at June 30, 2001.  The decrease in the
working capital ratio is due to a decrease in our cost and estimated earnings
in excess of billings balance and due to the operations of our new
subsidiaries as there were increases in our accounts receivable, inventory,
current debt and accounts payable balances.  At December 31, 2001, we had
$11.1 million of working capital.  At December 31, 2001, we had long-term
borrowings of $10.4 million which was comparable to the balance at June 30,
2001.

     SMTEK San Diego moved into a new leased facility in Poway, California,
near the city of San Diego, on July 16, 2001.  The new facility is
approximately 45,000 square feet.  The former facility was located in El
Cajon, another city near San Diego.  The former facility was approximately
20,000 square feet.  On October 8, 2001, the landlord for the El Cajon
facility released SMTEK San Diego from its lease for that facility.

     As a result of the acquisition of Century assets, we entered into a seven
year lease of a 69,400 square foot facility in Marlborough, Massachusetts and
we also entered into a seven month lease, subject to an option for a long-term
extension, of a 44,700 square foot facility in Santa Clara, California.  The
current month rents are approximately $33,000 and $32,000 for Marlborough and
Santa Clara, respectively.

     SMTEK Thousand Oaks is planning to move in March 2002 to a remodeled
facility in Moorpark, California, which is near Thousand Oaks.  The new
facility is approximately 115,500 square feet.  The current facility is
approximately 45,000 square feet.  The current facility lease is being
marketed for a subtenant.  The lease does not expire until May 31, 2004.  We
currently expect to sublease the Thousand Oaks facility.  If we are unable to
find a subtenant, we will be responsible for cost and expenses associated with
holding a vacant building in addition to amounts under the lease agreements.
Monthly rent is approximately $35,000.

     As more fully described in Note 6 to the notes to our consolidated
financial statements in our June 30, 2001 Form 10-K, at December 31, 2001, we
have a federal tax assessment liability of approximately $1.1 million and a
related accrued interest liability of approximately $1.0 million, which
reflect the results of a settlement with the IRS Appeals Division in December
2001.  We are currently seeking an installment payment plan with the IRS.

     On October 24, 2001, we completed a transaction to purchase out of
bankruptcy certain assets, but did not assume liabilities, of Century, an EMS
company.  As part of this transaction, we also purchased substantially all of
the common stock of Century's subsidiary in Thailand.  The aggregate purchase
price was approximately $3.2 million in cash and was funded by our bank lines
of credit.  Approximately $1.5 million was funded by our $16 million domestic
working capital line of credit and approximately $1.6 million was funded by
our $3.6 million equipment line of credit.

     Specifically, we purchased from Century certain equipment and machinery
for approximately $1.4 million and inventory for approximately $900,000.  We
will use some of the purchased assets at our other locations.  We negotiated
new facility leases in Marlborough, Massachusetts and Santa Clara, California.
and began operations in Marlborough and Santa Clara in connection with the
purchase of these assets.  Also, as part of the Century agreement we purchased
the common stock of the Century subsidiary in Thailand for approximately
$900,000.

     There can be no assurance that the equipment, machinery and inventory
purchased will be productive or useful to us.  If we have to sell such
equipment, machinery or inventory, we can give no assurance that there will be
sufficient value received by us.  There also can be no assurance that the
common stock of the Thailand operation will have significant value if the
foreign operation is not profitable in the future.

     We may not be able to successfully integrate the new facilities and
operations into our overall business.  We may not secure sufficient business
in the facilities being opened in New England, Silicon Valley and Thailand.
Also our debt-to-equity ratio may be adversely affected if the new facilities
are not profitable or cash flow positive.  If any adverse event related to
these additional risk factors arising out of the Century transaction, or the
concurrent development of our facilities, occurs, either alone, in conjunction
with each other or in conjunction with one or more of the risk factors
identified in our other filings with the SEC, there could be an adverse result
in our operations or financial condition.

     Management believes that our cash resources and borrowing capacity on our
working capital lines of credit are sufficient to fund operations for at least
the next 12 months.



ENVIRONMENTAL MATTERS

     Since the early 1990s, we continue to be involved in certain remediation
and investigative studies regarding soil and groundwater contamination at the
site of a former printed circuit board manufacturing plant in Anaheim,
California.  One of our former subsidiaries, Aeroscientific Corp., leased the
Anaheim facility.  Under the terms of a cost sharing agreement entered into
several years ago, the remaining remediation costs are currently being shared
on a 50-50 basis with the landlord.  There is no environmental insurance
coverage for this remediation.  At December 31, 2001, we had a reserve of
$431,000 for future remediation costs.  Management, based in part on
consultations with outside environmental engineers and scientists, believes
that this reserve is adequate to cover its share of future remediation costs
at this site.  However, the future actual remediation costs could differ
significantly from the estimates.  Further, our portion could potentially
exceed the amount of our reserve.  Our liability for remediation in excess of
our reserve could have a material adverse impact on our business, financial
condition and results of operations.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Our financial instruments include cash and cash equivalents, accounts
receivable and short-term and long-term debt.  At December 31, 2001, the
carrying amount of long-term debt (including current portion thereof but
excluding bank lines of credit) was $9.6 million and the fair value was $9.1
million.  The carrying values of our other financial instruments approximated
their fair values.  The fair value of our financial instruments is estimated
based on quoted market prices for the same or similar issues.  A change in
interest rates of one percent would result in an annual impact on interest
expense of approximately $95,000.

     It is our policy not to enter into derivative financial instruments for
speculative purposes.  We may, from time to time, enter into foreign currency
forward exchange contracts in an effort to protect us from adverse currency
rate fluctuations on foreign currency commitments entered into in the ordinary
course of business.  These commitments are generally for terms of less than
one year.  The foreign currency forward exchange contracts are executed with
banks believed to be creditworthy and are denominated in currencies of major
industrial countries.  Derivative financial instruments are recorded at fair
value at each quarter end with realized and unrealized gains and losses
reflected in current income.  At December 31, 2001 we had a forward foreign
currency contract to sell $60,000 for approximately 43,000 British pounds
sterling between March 1, 2002 and March 29, 2002.  The U.S. dollar to British
pounds sterling exchange rate at December 31, 2001 was 1.45, which resulted in
the forward contract having a current market value of $62,350.

     A portion of our operations consists of investments in foreign
subsidiaries.  As a result, our financial results have been and may continue
to be affected by changes in foreign currency exchange rates.


PART II.  OTHER INFORMATION


ITEM 1.   LEGAL PROCEEDINGS

     In the ordinary course of business, we experience various types of claims
which sometimes result in litigation or other legal proceedings.  We do not
anticipate that any of these claims or proceedings that are currently pending
will have a material adverse effect on us.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIY HOLDERS


     At the 2001 Annual Meeting of Stockholders, held on November 15, 2001,
Clay M. Biddinger and Oscar B. Marx, III were elected as Class III directors.
Directors whose terms of office continued after the meeting were James P.
Burgess and Gregory L. Horton.  There were 2,283,839 shares of Common Stock
outstanding and entitled to vote at this meeting.  Following is a summary of
the results of voting:

                                                                    Votes
                                                                  Against or
                                                    Votes For      Withheld
                                                    ---------     ----------

Election of Clay M. Biddinger as director           2,148,531        5,939

Election of Oscar B. Marx, III as director          2,148,531        5,939


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

a.  Reports on Form 8-K:

         The Company did not file any reports on Form 8-K during the quarter
    ended December 31, 2001.

b.  Exhibits:

10.1     Lease between SMTEK New England and Cedar Marlboro Realty Corporation
dated November 1, 2001 (including Guaranty).



                                   SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



        February 11, 2002                      /s/ Kirk A. Waldron
---------------------------------        -----------------------------------
            Date                                Kirk A. Waldron
                                                Vice President - Finance
                                                  and Administration, Chief
                                                  Accounting Officer and
                                                  Treasurer (Principal
                                                  Financial Officer)

7