Exhibit 99.1
SigmaTron International, Inc. Announces Second Fiscal Quarter 2004 Results
ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Dec. 8, 2003--SigmaTron
International, Inc. (NASDAQ:SGMA) today reported revenues and earnings
for the quarter ended October 31, 2003.
For the three months ended October 31, 2003, SigmaTron reported
net revenues of $23,769,901 compared to net revenues of $22,584,664
for the three month period ended October 31, 2002, which is a 5%
increase from the prior year. Net income for the second quarter was
$1,812,736 compared to $1,137,368 for the second quarter of fiscal
2002, which is an increase of 59%. Diluted earnings per share for the
quarter are $0.52, compared to $0.34 for the same period in the prior
fiscal year.
For the six months ended October 31, 2003, net revenues were
$45,885,273 compared to net revenues of $41,821,380 for the six months
ended October 31, 2002, an increase of 10%. Net income for the six
months ended October 31, 2003 was $3,120,233, compared to net income
of $1,753,569 for the six months ended October 31, 2002, an increase
of 78%. Diluted earnings per share for the six months ended October
31, 2003 were $0.92 compared to $0.53 for the six months ending
October 31, 2002.
Commenting on SigmaTron's second quarter results, Gary R.
Fairhead, President and Chief Executive Officer, observed: "We are
pleased to report a profitable second quarter for fiscal 2004, with
results that are up significantly from the comparable period of the
prior year.
"As previously reported, we find our Company in a strong cash
position as we expand into China. We have no working capital debt with
our bank and have lines of credit available in both the United States
and China. Our expansion into China remains on the schedule previously
announced. The plant should be finished in January and we expect
production to start in our fiscal fourth quarter. While we will
continue to incur start-up expenses for the short term, we remain
excited about the opportunities that having a wholly-owned operation
in China will provide the Company.
"I am pleased to report continued progress at our Elk Grove
Village operation. Revenue started to increase during the second
fiscal quarter of 2004, and several new customers have awarded us
business. I am also pleased to report that we have reached an
agreement for three years effective December 1, 2003 with our Union in
Elk Grove. The Union has agreed to tie a portion of employee
compensation over the period to profitable operating results, which I
feel is significant and positive for us. We appreciate their support.
"While the revenue at our Las Vegas operation has been down
slightly during fiscal 2004, the operation continues to perform well.
Several new customers have awarded us business there as well. Our
Mexico operation continues to operate at strong levels and is on
schedule to consolidate its operations into one location by fiscal
year end. Finally, our affiliate, SMT Unlimited L.P., continues to
make progress and remains profitable.
"We appreciate the continued support we have received, and want to
wish everyone an enjoyable Holiday Season."
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
Unaudited
Three Months Ended Six Months Ended
October 31, October 31, October 31, October 31,
2003 2002 2003 2002
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Net sales $23,769,901 $22,584,664 $45,885,273 $41,821,380
Cost of products
sold 18,731,527 18,752,758 36,691,302 35,171,305
---------------------------------------------------
Gross profit 5,038,374 3,831,906 9,193,971 6,650,075
Operating expenses 2,154,470 1,902,057 4,290,186 3,655,869
---------------------------------------------------
Operating income 2,883,904 1,929,849 4,903,785 2,994,206
Other (income)
deductions-net (86,592) 55,501 (159,570) 109,693
---------------------------------------------------
Income before
income tax expense 2,970,496 1,874,348 5,063,355 2,884,513
Income tax expense 1,157,760 736,980 1,943,122 1,130,944
---------------------------------------------------
Net income 1,812,736 1,137,368 3,120,233 1,753,569
===================================================
Net income (loss)
per common share -
assuming dilution $0.52 $0.34 $0.92 $0.53
===================================================
Weighted average
number of common
equivalent shares
outstanding -
assuming dilution 3,478,249 3,327,727 3,403,659 3,301,477
===================================================
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited
October 31, April 30,
2003 2003
--------------------------
Current assets $31,824,815 $26,592,708
Machinery and
equipment-net 13,608,319 13,626,187
Other assets 4,848,107 4,887,099
--------------------------
Total assets $50,281,241 $45,105,994
==========================
Liabilities and
shareholders'
equity
Current liabilities $11,016,633 $13,943,059
Long-term
obligations 3,111,814 5,199,473
Stockholders'
equity 36,152,794 25,963,462
--------------------------
Total liabilities
and stockholders'
equity $50,281,241 $45,105,994
==========================
CONTACT: SigmaTron International, Inc.
Linda K. Blake, 800-700-9095