SigmaTron International, Inc. Reports First Quarter Financial Results for Fiscal 2018
September 12 2017 - 9:30AM
SigmaTron International, Inc. (NASDAQ:SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the fiscal quarter ended July 31, 2017.
Revenues increased to $71.2 million in the first quarter of
fiscal 2018 from $59.2 million for the same quarter in the prior
year. Net income was $382,882 for the quarter ended July 31,
2017 compared to net income of $146,597 for the same period in the
prior year. Basic and diluted earnings per share for the
quarter ended July 31, 2017, were each $0.09, compared to basic and
diluted earnings per share of $0.04 and $0.03, respectively, for
the same quarter ended July 31, 2016.
Commenting on SigmaTron’s first quarter fiscal 2018 results,
Gary R. Fairhead, President, Chief Executive Officer and Chairman
of the Board, said, “I’m pleased to report that SigmaTron was
profitable during the first quarter of fiscal 2018. The
quarter itself exhibited some short term volatility that was a bit
of a surprise. Both May and June were strong months as
expected. The surprise was that revenue in July was much
lower than anticipated. In fact, as of late June we expected
July revenue levels to mirror the higher levels experienced in May
and June. We saw several customers shut down in July for a
week or more and others push out orders several weeks. Why
this happened we aren’t certain, but we believe that they were
adjusting inventory levels after a strong first half of the
year. While July was disappointing, resulting in lower
profits than expected, the strong revenue trend has resurfaced in
August and at this time we anticipate that we will have a stronger
second quarter in fiscal year 2018.
“As reported in our last press release, we have been
encountering shortages in the component marketplace. During
the first fiscal quarter those shortages have increased and they
have affected our ability to meet some customer requirements.
Our customers continue to work with us on these situations but at
this time there is no visibility as to when this will end and, in
fact, the situation could continue to deteriorate. The
shortages that impact us the most are in the semiconductor
marketplace. Most of those suppliers tell us that they will
have additional capacity online by early next calendar year and we
are hopeful that they are correct.
“While we continue to experience the margin pressures that have
become customary we also continue to see more new opportunities
than we have seen in the past. Many of them are attractive
and we continue to work towards diversifying our customer base and
the markets we serve. If the general economy stays on its
current path, we anticipate that we will continue to add new
customers and business during this fiscal year. Finally, as I
also reported in the last press release, we have entered into a new
banking relationship with US Bank N.A. We believe that this
relationship will provide us the working capital necessary to
support the projected growth.”
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,
Chihuahua, and Tijuana Mexico; Union City, California; Suzhou,
China, and Ho Chi Minh City, Vietnam. SigmaTron
International, Inc. maintains engineering and materials sourcing
offices in Elgin, Illinois and 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, but not necessarily limited to,
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
the Company’s 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 the Company’s
operating results; the results of long-lived assets and goodwill
impairment testing; the variability of the Company’s customers’
requirements; the availability and cost of necessary components and
materials; the ability of the Company and its customers to keep
current with technological changes within its industries;
regulatory compliance, including conflict minerals; the continued
availability and sufficiency of the Company’s credit arrangements;
changes in U.S., Mexican, Chinese, Vietnamese or Taiwanese
regulations affecting the Company’s business; the turmoil in the
global economy and financial markets; the stability of the U.S.,
Mexican, Chinese, Vietnamese and Taiwanese economic, labor and
political systems and 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, 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.
Financial tables to follow…
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
Ended |
|
Ended |
|
|
|
|
July 31, |
|
July 31, |
|
|
|
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
71,224,293 |
|
$ |
59,184,975 |
|
|
|
|
|
|
|
|
|
Cost of products
sold |
|
|
64,467,239 |
|
|
53,414,741 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
6,757,054 |
|
|
5,770,234 |
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses |
|
|
5,912,146 |
|
|
5,359,535 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
844,908 |
|
|
410,699 |
|
|
|
|
|
|
|
|
|
Other
expense |
|
|
264,063 |
|
|
183,841 |
|
|
|
|
|
|
|
|
|
Income from operations
before income tax |
|
|
580,845 |
|
|
226,858 |
|
|
|
|
|
|
|
|
|
Income tax
expense |
|
|
197,963 |
|
|
80,261 |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
382,882 |
|
$ |
146,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share - basic |
|
$ |
0.09 |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
Net income per common
share - assuming dilution |
|
$ |
0.09 |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common equivalent |
|
|
|
|
|
|
shares
outstanding - assuming dilution |
|
|
4,269,501 |
|
|
4,214,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, |
|
April 30, |
|
|
|
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
$ |
113,945,481 |
|
$ |
109,031,913 |
|
|
|
|
|
|
|
|
|
Machinery and
equipment-net |
|
|
36,210,595 |
|
|
33,008,714 |
|
|
|
|
|
|
|
|
|
Deferred income
taxes |
|
|
236,087 |
|
|
236,087 |
|
|
Intangibles |
|
|
4,100,644 |
|
|
4,213,235 |
|
|
Goodwill |
|
|
3,222,899 |
|
|
3,222,899 |
|
|
Other assets |
|
|
1,094,283 |
|
|
1,472,816 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
158,809,989 |
|
$ |
151,185,664 |
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
$ |
60,450,477 |
|
$ |
55,611,214 |
|
|
|
|
|
|
|
|
|
Long-term
obligations |
|
|
35,995,284 |
|
|
33,702,305 |
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
62,364,228 |
|
|
61,872,145 |
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
158,809,989 |
|
$ |
151,185,664 |
|
|
|
|
|
|
|
|
For Further Information Contact:SigmaTron International,
Inc.Linda K. Frauendorfer1-800-700-9095
Sigmatron (NASDAQ:SGMA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sigmatron (NASDAQ:SGMA)
Historical Stock Chart
From Sep 2023 to Sep 2024