EXHIBIT 99.1
SigmaTron International, Inc. Reports Record First Fiscal Quarter 2004 Results
ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Sept. 8, 2003--SigmaTron
International, Inc. (NASDAQ:SGMA) today reported record revenues and earnings
for the quarter ended July 31, 2003. Revenues were $22,115,372 resulting in a
15% increase from the prior year first quarter revenues of $19,236,716. Net
profit increased 112% for the first quarter of fiscal 2004 to $1,307,497
compared to $616,201 for fiscal 2003. Fully diluted earnings per share for the
first quarter of fiscal 2004 were $ 0.38 compared to $0.19 in the prior year.
Gary R. Fairhead, SigmaTron's President and Chief Executive Officer,
commented: "We are pleased to report a profitable first quarter for fiscal 2004,
with our first quarter fully diluted earnings per share up significantly from
the prior year. Our trailing twelve month's fully diluted earnings per share are
$1.80, which is a record for any twelve month period for SigmaTron.
"During the quarter, several significant events took place. The first is
that we broke ground for our new facility in Wujiang, China. Current
expectations are that the plant will be ready for use during our third fiscal
quarter which ends January 31, 2004 and that production will start in our fourth
fiscal quarter. We remain excited about the opportunities that we believe the
China plant will afford us.
"Also during the first quarter we entered into a new lease for a 27,000 sq.
ft. building next to the plant in Mexico that we own. Our plan is to consolidate
our Mexican operations, currently in two plants six miles apart, into one
location over the next twelve months. We believe that the consolidation will
ultimately lead to lower overhead costs and increased efficiencies. While some
of our business currently in Mexico will move to our China facility when it is
ready, we believe that Mexico will remain an important part of SigmaTron's
future and that it will continue to grow.
"During the first quarter our Las Vegas operation remained busy with the
continuing strong gaming marketplace. Mexico posted a strong quarter as it has
been doing for the past two years. Our Elk Grove Village operation continued to
make progress, posting a positive contribution margin for the quarter for the
first time in several quarters, and our 42.5% owned affiliate, SMTU Unlimited,
continued to be profitable as it navigates the volatile marketplace of Silicon
Valley.
"Our focus for the short term, aside from getting China up and running, is
adding new customers and growing with existing customers. We plan to launch our
first significant marketing campaign later this year, which we hope will bring
us more opportunities and allow us to continue to diversify our customer base
and markets served.
"We appreciate the continued support from everyone involved in the Company,
and we remain focused on creating long term value for our stockholders."
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 a 42.5% owned 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 press release 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., Mexican or Chinese regulations affecting the Company's
business; the continued stability of the Mexican and Chinese 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 OPERATIONS
Three Months Ended
July 31, July 31,
2003 2002
------------ ------------
Net sales $22,115,372 $19,236,716
Cost of products sold 17,959,775 16,418,547
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Gross profit 4,155,597 2,818,169
Operating expenses 2,135,716 1,753,812
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Operating income 2,019,881 1,064,357
Other deductions-net (72,978) 54,192
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Income before income tax expense 2,092,859 1,010,165
Income tax expense 785,362 393,964
------------ ------------
Net Income 1,307,497 616,201
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Net income per common share - Basic $0.44 $0.21
============ ============
Net income per common share -
Assuming dilution $0.38 $0.19
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Weighted average shares of common
stock outstanding - Basic 2,961,515 2,881,227
============ ============
Weighted average shares of common stock
outstanding - Assuming dilution 3,425,499 3,275,227
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CONSOLIDATED BALANCE SHEETS
July 31, April 30,
2003 2003
------------ ------------
Current assets $23,514,531 $26,592,708
Property, machinery and equipment-net 13,454,000 13,626,187
Other assets 4,794,309 4,887,099
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Total assets 41,762,840 45,105,994
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Liabilities and stockholders' equity
Current liabilities 10,112,385 13,943,059
Long-term obligations 3,408,895 5,199,473
Stockholders' equity 28,241,560 25,963,462
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Total liabilities and stockholders'
equity $41,762,840 $45,105,994
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CONTACT: SigmaTron International, Inc.
Linda K. Blake, 1-800-700-9095