SigmaTron International, Inc. Reports Second Quarter Financial Results for Fiscal 2012
December 12 2011 - 9:00AM
SigmaTron International, Inc. (Nasdaq:SGMA), an electronic
manufacturing services company, today reported revenues and
earnings for the second quarter ended October 31, 2011.
Revenues increased to $39.9 million for the second quarter
fiscal 2012 from $38.2 million for the same quarter in the prior
year. Net income decreased to $158,267 in the fiscal 2012 period
compared to $586,050 for the same period in the prior year. Basic
and diluted earnings per share were $0.04 for the quarter ended
October 31, 2011, compared to $0.15 for the same quarter in fiscal
2011.
For the six months ended October 31, 2011, revenues increased to
$78.8 million compared to $76.3 million for the same period ended
October 31, 2010. Net income for the same period in fiscal 2012 was
$399,228, compared to $1,444,039 for the same period in the prior
year. Basic and diluted earnings per share for the six months ended
October 31, 2011, were $0.10 compared to $0.37 for the six months
ended October 31, 2010.
Commenting on SigmaTron's second quarter and six month results,
Gary R. Fairhead, President and Chief Executive Officer, said,
"Given the continuing margin pressures in our industry, I am
pleased to report that SigmaTron remains profitable for the second
quarter of fiscal 2012. As I have been reporting for some time, we
are experiencing level revenue with pricing pressures from both our
customers and vendors. I believe that this is generally a
product of what we see as a stagnant general economy, and I
currently see this trend continuing for the balance of our fiscal
year.
"As in our recent past quarters, we have continued to attract
new opportunities from both existing and first time customers, but
these product launches are generally slow and have often been
delayed as customers remain cautious regarding the short-term
future. During the second quarter we took steps to reduce both
fixed and variable expenses given our outlook for the short-
term. I do believe that we are well positioned to capitalize
on a growing general economy when that happens, but at this time we
do not see it taking place for the balance of fiscal 2012.
"During the quarter we have continued to see a trend of Chinese
costs increasing, thereby making Mexico a more competitive
manufacturing location to service North America. Indications
are that this trend will continue.
"In an effort to facilitate the growth of our China operation,
we recently established a new Chinese entity that will allow us to
provide our services to the domestic market in China
competitively. Our new company will allow us, among other
things, to conduct business with both customers and vendors with
Chinese currency.
"Because of SigmaTron's international footprint, our customers
have the flexibility within SigmaTron to manufacture in China or
Mexico, or both, as they desire. This strategy has continued
to serve us well during these difficult economic times as our
customers continuously evaluate their supply chain strategy.
"While I am not optimistic for the balance of fiscal 2012, I do
believe that we have managed this difficult period well given the
margin pressures, and I continue to believe that when the general
economy does pick up we will be well positioned to handle the
growth and grow our profits."
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; Union City, 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, 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
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 turmoil in the global economy and financial
markets; the stability of the U.S., Mexican, Chinese 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 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.
Financial tables to follow…
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October
31, 2011 |
Three Months Ended October 31,
2010 |
Six Months Ended October 31,
2011 |
Six Months Ended October 31,
2010 |
|
|
|
|
|
Net sales |
$39,902,653 |
$38,195,193 |
$78,794,664 |
$76,256,566 |
|
|
|
|
|
Cost of products sold |
36,331,246 |
33,969,173 |
71,680,749 |
67,372,392 |
|
|
|
|
|
Gross profit |
3,571,407 |
4,226,020 |
7,113,915 |
8,884,174 |
|
|
|
|
|
Selling and administrative expenses |
3,032,310 |
2,989,832 |
5,941,446 |
6,043,018 |
|
|
|
|
|
Operating income |
539,097 |
1,236,188 |
1,172,469 |
2,841,156 |
|
|
|
|
|
Other expense (income) |
287,969 |
305,667 |
538,854 |
548,965 |
|
|
|
|
|
Income from operations before income tax |
251,128 |
930,521 |
633,615 |
2,292,191 |
|
|
|
|
|
Income tax expense |
92,861 |
344,471 |
234,387 |
848,152 |
|
|
|
|
|
Net income |
$158,267 |
$586,050 |
$399,228 |
$1,444,039 |
|
|
|
|
|
|
|
|
|
|
Net income per common share
-- basic |
$0.04 |
$0.15 |
$0.10 |
$0.37 |
|
|
|
|
|
Net income per common share -- assuming
dilution |
$0.04 |
$0.15 |
$0.10 |
$0.37 |
|
|
|
|
|
Weighted average number of common
equivalent shares outstanding - assuming dilution |
3,883,683 |
3,881,139 |
3,887,380 |
3,879,342 |
|
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
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|
|
October 31,
2011 |
April 30, 2011 |
|
|
|
Assets: |
|
|
|
|
|
Current assets |
$74,221,677 |
$75,832,722 |
|
|
|
Machinery and equipment-net |
25,633,307 |
26,189,150 |
|
|
|
Customer relationships |
139,479 |
199,675 |
Miscellaneous |
561,240 |
645,864 |
|
|
|
Total assets |
$100,555,703 |
$102,867,411 |
|
|
|
Liabilities and stockholders' equity: |
|
|
|
|
|
Current liabilities |
$17,142,565 |
$24,255,850 |
|
|
|
Long-term obligations |
33,258,609 |
28,867,984 |
|
|
|
Stockholders' equity |
50,154,529 |
49,743,577 |
|
|
|
Total liabilities and stockholders'
equity |
$100,555,703 |
$102,867,411 |
CONTACT: SigmaTron International, Inc.
Linda K. Frauendorfer
1-800-700-9095
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