EXHIBIT 99.1
SigmaTron International, Inc. Reports Year End Results
ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--July 12, 2004--SigmaTron
International, Inc. (NASDAQ:SGMA) today reported revenues and earnings
for the fiscal year ended April 30, 2004. Revenues were $100,494,122,
a 5.0% decrease from the prior fiscal year revenues of $105,824,257.
Net income for fiscal 2004 was $5,405,732 compared to $5,714,924 for
fiscal 2003. Diluted earnings per share for fiscal 2004 were $1.53
compared to $1.70 in the prior year.
Diluted earnings per share for the fourth quarter 2004 were $0.29
per share as compared to $0.69 per share for the fourth quarter of
fiscal 2003. Revenues decreased to $25,227,270 for the fourth quarter
of fiscal 2004 compared to $28,813,611 for the same quarter in the
prior year.
During fiscal 2004 SigmaTron was required to adopt Financial
Interpretation No. 46 ("FIN46R"), "Consolidation of Variable Interest
Entities" and as a result was required to consolidate the results of
its 42.5% owned affiliate, SMT Unlimited L.P. ("SMTU") for financial
reporting purposes. The consolidation has caused previously reported
periods to be restated for comparison purposes. Because of this
requirement, the usefulness of comparisons between results contained
herein and results published before the third quarter of fiscal 2004
is significantly reduced.
Gary R. Fairhead, SigmaTron's President and Chief Executive
Officer, observed: "SigmaTron is pleased to report excellent results
for another fiscal year. In fact our Income Before Taxes and Minority
Interest in our affiliate actually increased over our results for
fiscal 2003 in spite of increasing costs from many areas such as
insurance and regulatory requirements.
"During fiscal 2004 we were successful in completing the
construction of and opening a new plant in Wujiang, China. We have
started limited pilot and production runs and are in the middle of
gaining customer and agency approvals. We believe that the addition of
the China operation uniquely positions SigmaTron for a public company
our size by having wholly owned operations in China, Mexico and North
America plus an established international procurement office in Taiwan
and an affiliate in Silicon Valley. This affords us the ability to
offer customers a unique solution for volume requirements that are too
small for the larger companies in our industry.
"During the year our Mexican operations successfully consolidated
into one location and continued to perform well. Our Elk Grove Village
operation continued its turnaround, producing an operating profit for
the first time in several years while adding several new customers.
Las Vegas had a down year but remained profitable. Las Vegas is
growing its box-build capabilities and recently expanded its
operations in order to accommodate this effort. Our affiliate, SMTU,
remained profitable. It appears that the Silicon Valley economy
including the telecom segment is starting to recover and this is
encouraging for our affiliate.
"We face several significant issues going forward. The first is
the requirements put on public companies by the Sarbanes-Oxley Act.
The second is the requirement by Europe to move to a lead-free solder
process. Both issues will impose significant costs on SigmaTron.
However, we remain optimistic about our industry, and the
opportunities we feel we have. We appreciate the continued support
from our stockholders, customers, banks, vendors and employees."
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, Acuna, Mexico and Wujiang, China. 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, California.
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;
regulatory compliance; the continued availability and sufficiency of
the Company's credit arrangements; changes in U.S., Mexican, Chinese
or Taiwan regulations affecting the Company's business; the continued
stability of the Mexican and Chinese economies, labor and political
conditions; and the ability of the Company to manage its growth,
including its recent expansion into China. These and other factors
which may affect the Company's future business and results of
operations are identified and detailed from time to time in the
Company's filings with the Securities and Exchange Commission
including the Company's Annual Report on Form 10-K and risk factors
contained therein. 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,
2004 2003
------------- -------------
Net sales $100,494,122 $105,824,257
Cost of products sold 81,378,192 85,904,574
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Gross profit 19,115,930 19,919,683
Operating expenses 9,664,903 10,048,229
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Operating income 9,451,027 9,871,454
Other deductions-net 232,292 847,846
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Income before income tax expense
and minority interest in affiliate 9,218,735 9,023,608
Income tax expense 3,550,038 3,251,551
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Income before minority interest
in affiliate 5,668,697 5,772,057
Minority interest in affiliate 262,965 57,133
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Net income $5,405,732 $5,714,924
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Net income per common share -
assuming dilution $1.53 $1.70
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Weighted average number of
common equivalent shares outstanding -
assuming dilution 3,541,297 3,355,076
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CONSOLIDATED BALANCE SHEET
April 30, April 30,
2004 2003
------------- -------------
Current assets $35,973,957 $29,443,913
Machinery and equipment-net 25,707,901 19,096,970
Other assets 1,316,814 1,277,499
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Total assets 62,998,672 49,818,382
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Liabilities and shareholders' equity
Current liabilities 13,086,206 15,530,772
Long-term obligations 8,269,923 7,759,889
Minority interest in affiliate 439,787 235,051
Stockholders' equity 41,202,756 26,292,670
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Total liabilities and
stockholders' equity $62,998,672 $49,818,382
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CONTACT: SigmaTron International, Inc.
Linda K. Blake, 800-700-9095