Exhibit 99.1
SigmaTron International, Inc. Reports Year End Results
ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--July 14, 2003--SigmaTron
International, Inc. (NASDAQ:SGMA) today reported revenues and earnings
for the fiscal year ended April 30, 2003. Revenues were $93,165,149 a
9.9% increase from the prior fiscal year revenues of $84,770,921. Net
income for fiscal 2003 was $5,385,716 compared to $1,542,056 for
fiscal 2002. Diluted earnings per share for fiscal 2003 were $1.61
compared to $0.52 in the prior year.
Diluted earnings per share for the fourth quarter 2003 were $0.58
per share as compared to $0.09 per share for the fourth quarter of
fiscal 2002. Revenues increased to $25,844,543 for the fourth quarter
of fiscal 2003 compared to $19,445,675 for the same quarter in the
prior year.
Gary R. Fairhead, SigmaTron's President and Chief Executive
Officer, observed: "SigmaTron is pleased to report profitable results
for our fourth quarter as well as for fiscal 2003. The results for the
fourth quarter are somewhat surprising in that our fourth quarter has
historically been one of our slower quarters. However, demand remained
strong for many of our customers, several new customers started jobs
with us, our productivity remained high and we kept an eye on our
costs. The fourth quarter's results helped us to achieve exceptional
results for the year.
"During fiscal 2003, SigmaTron was able to achieve several key
objectives. We were successful in decreasing our working capital
requirements, which coupled with our operating results has resulted in
our lowest debt level since 1994 when we went public. We have
increased our technical support staff, allowing us to increase the
services we can offer our new and prospective customers. And we have
made considerable progress in China towards our objective of having
our wholly owned plant.
"Our Mexican plant remained very busy during the year,
successfully meeting challenges from existing and new customers. Las
Vegas had an excellent year as well, as the gaming industry grew as
expected. Elk Grove Village made considerable progress in reducing its
cost structure, and is aggressively pursuing new business. Our
affiliate SMT Unlimited again managed to make a nominal profit in
spite of Silicon Valley's troubles related to the telecom industry.
Given the uncertainty of the business climate and significant
costs and issues relating to compliance with the Sarbanes Oxley Act,
the Company has decided to make no comment about financial prospects
for the future. In spite of the above, we remain cautiously optimistic
going forward, and we will continue to work to control costs and grow
the Company.
"We appreciate the continued support from all of our stockholders,
our customers, banks, vendors and employees. We remain focused on
creating long term value for our stockholders, and believe our plans
for fiscal 2004 will continue to do that."
Headquartered in Elk Grove Village, IL, SigmaTron International,
Inc. is an electronic manufacturing services company that provides
components, printed circuit board assemblies and turnkey (completely
assembled) electronic products. SigmaTron International, Inc. operates
manufacturing facilities in Elk Grove Village, Illinois, Las Vegas,
Nevada, and Acuna, Mexico. SigmaTron International, Inc. maintains
engineering and materials sourcing offices in Elk Grove Village,
Illinois and Taipei, Taiwan. The Company provides engineering support
services in Acuna, Mexico and warehousing services in Del Rio, Texas.
In addition, SigmaTron International, Inc. has an affiliate, SMT
Unlimited L.P., that provides electronic manufacturing services in
Fremont and Hollister, California. SigmaTron is currently expanding
its operations to include a manufacturing facility in China.
Detailed results follow.
Note: To the extent any statements in this year end statement may
be deemed to be forward looking, 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; 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 availability and cost of necessary components;
the continued availability and sufficiency of the Company's credit
arrangements; changes in U.S. or Mexican regulations affecting the
Company's business; the continued stability of the Mexican economic,
labor and political conditions and the ability of the Company to
manage its growth; including expansion into China and securing
financing for the operation in China. These and other factors which
may affect the Company's future business and results of operations are
identified throughout the Annual Report on Form 10-K, 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 this Report and the Company undertakes no obligation to update
such statements in light of future events or otherwise.
CONSOLIDATED STATEMENTS OF OPERATION
Year Ended
April 30, April 30,
2003 2002
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Net sales 93,165,149 $84,770,921
Cost of products sold 75,732,616 74,662,397
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Gross profit 17,432,533 10,108,524
Operating expenses 8,581,932 6,775,308
-------------- ------------
Operating income 8,850,601 3,333,216
Other deductions-net 213,334 847,557
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Income before income tax expense 8,637,267 2,485,659
Income tax expense 3,251,551 943,603
-------------- ------------
Net income 5,385,716 1,542,056
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Net income per common share - assuming
dilution $1.61 $0.52
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Weighted- average number of common equivalent
shares outstanding - assuming dilution 3,355,076 2,967,258
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CONSOLIDATED BALANCE SHEET
April 30, April 30,
2003 2002
-------------- ------------
Current assets 26,592,708 22,870,606
Machinery and equipment-net 13,626,187 12,581,595
Other assets 4,887,099 5,398,794
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Total assets 45,105,994 40,850,995
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Liabilities and shareholders' equity
Current liabilities 13,943,059 8,713,436
Long-term obligations 5,199,473 11,684,128
Stockholders' equity 25,963,462 20,453,431
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Total liabilities and stockholders' equity 45,105,994 40,850,995
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CONTACT: SigmaTron International, Inc.
Linda K. Blake, 1-800-700-9095