SigmaTron International, Inc.(Nasdaq:SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the third quarter ended January 31, 2010.
Revenues increased to $30.6 million for the third quarter of
fiscal year 2010 from $27.0 million for the same quarter in the
prior year. Net income increased to a profit of $415,468 in the
third quarter of fiscal year 2010 compared to a loss of ($265,458)
for the same period in the prior year. Basic and diluted
earnings per share for the quarter ended January 31, 2010, were
$0.11 compared to a loss of ($0.07) for both the same quarter in
fiscal 2009.
For the nine months ended January 31, 2010, revenues decreased
to $87.5 million compared to $106.6 million for the same period
ended January 31, 2009. Net income for the 2010 period was
$530,291 compared to $1,819,182 for the same period in the prior
year. Basic and diluted earnings per share for the nine months
ended January 31, 2010 were $0.14 and $0.13, respectively, compared
to $0.48 and $0.47, respectively, for the nine months ending
January 31, 2009.
Commenting on SigmaTron's third quarter and nine month results,
Gary R. Fairhead, President and Chief Executive Officer, said, "I
am pleased to report a solid profit for our third quarter of fiscal
2010, which is one year after we saw our revenue drop precipitously
in response to the global economic downturn. Our quarterly
results were negatively impacted by expenses related to our
changing banks during the quarter but otherwise operationally
consistent with our second quarter results. Just like the
second quarter, each month during the third quarter was
profitable. Historically, our second and third quarters have
been nominally stronger than our first and fourth quarters.
"Heading into our fourth quarter, we see many customers
adjusting inventory levels short term. My current expectation
is that revenue during the fourth quarter will be lower than that
of the third quarter. However, I also believe that the second
half of calendar 2010 will be stronger than the same period of
2009.
"The basis for my optimism for later this calendar year is that
several new programs from both existing and new customers are
scheduled to launch mid-year. Barring a short term economic
downturn, I have every reason to believe most of these programs
will go to market.
"As previously announced in our press release on January 11,
2010, we successfully changed our bank to Wells Fargo / HSBC Trade
Bank during the quarter. We believe our new banking
arrangement will provide greater financial support and flexibility
as the economy recovers. Clearly this transition was an
important milestone for SigmaTron, and we look forward to a long
term relationship with our new bank.
"While all of this news is positive, uncertainty and volatility
in the global economy clearly remains. Our cost reductions
remain in place and we continue to monitor both our cost structure
as well as our revenue levels. There is reason to be
optimistic compared to twelve months ago, but we will remain
cautious."
Headquartered in Elk Grove Village, IL, SigmaTron International,
Inc. is an electronic manufacturing services company that provides
printed circuit board assemblies and completely assembled
electronic products. SigmaTron International, Inc. operates
manufacturing facilities in Elk Grove Village, Illinois, Acuna and
Tijuana, Mexico, Hayward, California and Suzhou-Wujiang,
China. SigmaTron International, Inc. maintains engineering and
materials sourcing offices in Taipei, Taiwan.
Note: This press release contains forward-looking
statements. Words such as "continue," "anticipate," "will,"
"expect," "believe," "plan," and similar expressions identify
forward-looking statements. These forward-looking statements
are based on the current expectations of the Company. Because
these forward-looking statements involve risks and uncertainties,
the Company's plans, actions and actual results could differ
materially. Such statements should be evaluated in the context
of the risks and uncertainties inherent in the Company's business
including the Company's continued dependence on certain significant
customers; the continued market acceptance of products and services
offered by the Company and its customers; pricing pressures from
our customers, suppliers and the market; the activities of
competitors, some of which may have greater financial or other
resources than the Company; the variability of our operating
results; the results of long-lived assets impairment testing; the
variability of our customers' requirements; the availability and
cost of necessary components and materials; the ability of the
Company and our customers to keep current with technological
changes within our industries; regulatory compliance; the continued
availability and sufficiency of our credit arrangements; changes in
U.S., Mexican, Chinese or Taiwanese regulations affecting the
Company's business; the current turmoil in the global economy and
financial markets; the stability of the U.S., Mexican, Chinese and
Taiwanese economic systems, labor and political conditions;
currency exchange fluctuations; and the ability of the Company to
manage its growth. These and other factors which may affect
the Company's future business and results of operations are
identified throughout the Company's Annual Report on Form 10-K and
as risk factors and may be detailed from time to time in the
Company's filings with the Securities and Exchange
Commission. These statements speak as of the date of such
filings, and the Company undertakes no obligation to update such
statements in light of future events or otherwise unless otherwise
required by law.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months
Three Months
Nine Months
Nine Months
Ended
Ended
Ended
Ended
January 31, 2010
January 31, 2009
January 31, 2010
January 31, 2009
Net sales
$30,599,499
$26,970,927
$87,493,820
$106,581,773
Cost of products sold
27,219,708
24,218,696
78,570,880
93,268,965
Gross profit
3,379,791
2,752,231
8,922,940
13,312,808
Selling and administrative expenses
2,503,571
2,666,375
7,448,821
9,328,834
Operating income
876,220
85,856
1,474,119
3,983,974
Other expense
211,860
246,441
627,519
1,096,267
Income (loss) from operations before income tax
664,360
(160,585)
846,600
2,887,707
Income tax expense
248,892
104,873
316,309
1,068,525
Net income (loss)
$415,468
($265,458)
$530,291
$1,819,182
Net income (loss) per common share -- basic
$0.11
($0.07)
$0.14
$0.48
Net income (loss) per common share -- assuming dilution
$0.11
($0.07)
$0.13
$0.47
Weighted average number of common equivalent
shares outstanding - assuming dilution
3,873,531
3,822,556
3,853,902
3,869,394
CONDENSED CONSOLIDATED BALANCE SHEETS
January 31, 2010
April 30, 2009
Assets:
Current assets
$61,561,244
$59,622,532
Machinery and equipment-net
25,298,583
26,200,578
Intangible assets
420,965
608,887
Other assets
618,613
699,379
Total assets
$87,899,405
$87,131,376
Liabilities and shareholders' equity:
Current liabilities
$20,568,227
$16,055,185
Long-term obligations
21,384,637
25,674,306
Stockholders' equity
45,946,541
45,401,885
Total liabilities and stockholders' equity
$87,899,405
$87,131,376
CONTACT: SigmaTron International, Inc.
Linda K. Frauendorfer
1-800-700-9095
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