SigmaTron International, Inc. Reports Year End Financial Results for Fiscal Year 2011
13 July 2011 - 11:15PM
SigmaTron International, Inc. (Nasdaq:SGMA), an
electronic manufacturing services company, today reported revenues
and earnings for the fiscal year ended April 30, 2011. Revenues
increased 23.9% to $151.7 million in fiscal year 2011 from $122.5
million in the prior year. Net income decreased to $1.98 million in
fiscal year 2011 compared to $2.24 million in fiscal 2010. Diluted
earnings per share for the fiscal year ended April 30, 2011 were
$0.51 compared to $0.58 in fiscal 2010.
For the fourth quarter of fiscal year 2011, revenues increased
to $38.5 million compared to $35.0 million for the same quarter in
the prior year. Diluted earnings per share for the fiscal year
2011 fourth quarter were $0.07 per share compared to $0.44 per
share for the same period of fiscal 2010.
Commenting on SigmaTron's results, Gary R. Fairhead, President
and Chief Executive Officer, said, "While I am pleased to report a
profit for the fourth quarter of fiscal 2011, I must also report
that the current income trend for the Company is not what we would
like to see. While our revenue for the fourth quarter versus
the third quarter was modestly up, fully diluted earnings were
flat. As I have mentioned in prior press releases, we have
seen pricing pressures from both customers and vendors that have
continued to squeeze our margins. Our fourth quarter results
are continuing evidence of those pressures that we expect to see
for at least the balance of this calendar year.
"The results for fiscal 2011 compare favorably to fiscal 2010
after elimination of the gain recorded in 2010 for an insurance
settlement. However, our sequential performance dipped from
the first six months of this year to the second half of fiscal 2011
with fully diluted earnings at $0.37 and $0.14, respectively, due
to the margin pressures described above.
"During the year we achieved several objectives that are worth
repeating. We successfully relocated our California operation
from Hayward to Union City. The relocation was done
efficiently and without any disruption in support of our
customers. The new plant layout has increased our productivity
and has assisted in attracting interest from many new customers
including some in the aviation, defense, and medical
markets. These markets continue to be target markets for the
Company going forward.
"We have gained new customers at all locations and in most
cases, we have started production for them. Most production
launches were later than expected, but all show great promise and
we currently believe that they will help us in terms of increasing
revenue and profits in fiscal 2012. We are continuing to work
on methods to reduce our inventory levels and we expect to start
seeing positive results from that in the second quarter of fiscal
2012.
"While the recent income trend is disappointing, I do believe
that SigmaTron has continued to make progress at all of its
operations and remains well positioned when the economy ultimately
recovers. Once again, I want to thank our customers, supply
chain, banks, our employees and our Board of Directors for their
support and efforts during fiscal 2011."
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 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; the expenses and savings from the relocation
of our Hayward, California facility to Union City, California; 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 April
30, 2011 |
Three Months Ended April 30,
2010 |
Twelve Months Ended April
30, 2011 |
Twelve Months Ended April 30,
2010 |
|
|
|
|
|
Net sales |
$38,536,536 |
$34,982,520 |
$151,728,084 |
$122,476,340 |
|
|
|
|
|
Cost of products sold |
35,048,550 |
30,148,223 |
135,940,878 |
108,719,103 |
|
|
|
|
|
Gross profit |
3,487,986 |
4,834,297 |
15,787,206 |
13,757,237 |
|
|
|
|
|
Selling and administrative expenses |
2,726,430 |
3,378,059 |
11,460,908 |
10,826,880 |
|
|
|
|
|
Operating income |
761,556 |
1,456,238 |
4,326,298 |
2,930,357 |
|
|
|
|
|
Other expense (income) |
276,802 |
(1,062,491) |
1,144,750 |
(434,972) |
|
|
|
|
|
Income from operations before income tax |
484,754 |
2,518,729 |
3,181,548 |
3,365,329 |
|
|
|
|
|
Income tax expense |
205,577 |
804,477 |
1,203,514 |
1,120,786 |
|
|
|
|
|
Net income |
$279,177 |
$1,714,252 |
$1,978,034 |
$2,244,543 |
|
|
|
|
|
|
|
|
|
|
Net income per common share - basic |
$0.08 |
$0.45 |
$0.52 |
$0.59 |
|
|
|
|
|
Net income per common share - assuming
dilution |
$0.07 |
$0.44 |
$0.51 |
$0.58 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
equivalent shares outstanding - assuming dilution |
3,916,903 |
3,883,645 |
3,890,949 |
3,863,505 |
|
|
CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
April 30, 2011 |
April 30, 2010 |
|
|
|
Assets: |
|
|
|
|
|
Current assets |
$75,832,722 |
$69,332,932 |
|
|
|
Machinery and equipment-net |
26,189,150 |
25,176,664 |
|
|
|
Customer relationships |
199,675 |
363,671 |
Miscellaneous |
645,864 |
822,341 |
|
|
|
Total assets |
$102,867,411 |
$95,695,608 |
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
Current liabilities |
$24,255,850 |
$27,165,130 |
|
|
|
Long-term obligations |
28,867,984 |
20,867,271 |
|
|
|
Stockholders' equity |
49,743,577 |
47,663,207 |
|
|
|
Total liabilities and stockholders'
equity |
$102,867,411 |
$95,695,608 |
CONTACT: SigmaTron International, Inc.
Linda K. Frauendorfer
1-800-700-9095
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