Exhibit 99.1
SigmaTron International, Inc. Reports First Fiscal Quarter 2005 Results
ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Sept. 9, 2004--SigmaTron
International, Inc. (Nasdaq:SGMA) today reported revenues and earnings
for the quarter ended July 31, 2004. Revenues were $25,078,167
resulting in a 1% increase from the prior year first quarter revenues
of $24,833,796. Net profit decreased 18% for the first quarter of
fiscal 2005 to $1,036,969 compared to $1,269,979 for fiscal 2004.
Fully diluted earnings per share for the first quarter of fiscal 2005
were $ 0.27 compared to $0.37 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 2005. While our profits are down from the first
quarter of fiscal 2004, which was a record for the first quarter, our
results in the short term will be negatively impacted by our
investment in China. If you add to that planned expense the escalating
insurance costs and regulatory costs imposed by Sarbanes-Oxley, we
believe we have held our own reasonably well.
"During the quarter our production continued to slowly ramp up in
China. As we go thru fiscal 2005 we expect the revenue to continue to
grow, which should put China in a positive operating position later in
fiscal 2005. The reaction to our China operation from customers and
potential customers has been favorable to date.
"During the first quarter our Las Vegas operation was slow, which
is not atypical for the gaming market at this time of the year. We
believe that the gaming market will continue to prosper in the long
term and expect our operation in Las Vegas to benefit.
"Our Mexican operation continues to be busy. We have also seen
renewed interest in Mexico as opposed to China which we believe will
help us long term. Elk Grove Village remains busy as well and is
looking at several new niche markets as new opportunities. As we have
already announced, during the second quarter we acquired the balance
of our affiliate, SMT Unlimited L.P. We believe this acquisition will
better position us with customers and investors.
"We will be launching our first significant advertising campaign
in September, which is exciting. We are working with several new
customers that we believe will help us grow during calendar 2005. We
remain optimistic about the future and our opportunities and as
always, appreciate the support we receive 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 a subsidiary,
SMT Unlimited L.P., that provides electronic manufacturing services in
Fremont, California.
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;
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.
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*T
CONSOLIDATED STATEMENTS OF OPERATION
Three Months Ended
July 31, July 31,
2004 2003
------------- -------------
Net sales $25,078,167 $24,833,796
Cost of products sold 20,452,469 20,119,854
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Gross profit 4,625,698 4,713,942
Operating expenses 2,712,075 2,507,924
------------- -------------
Operating income 1,913,623 2,206,018
Other deductions-net 66,683 80,066
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Income before income tax expense and
minority interest in affiliate 1,846,940 2,125,952
Income tax expense 686,291 785,362
------------- -------------
Income before minority interest in
affiliate 1,160,649 1,340,590
Minority interest in affiliate 123,680 70,611
------------- -------------
Net income $1,036,969 $1,269,979
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Net income per common share - assuming
dilution $0.27 $0.37
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Weighted average number of common
equivalent shares outstanding -
assuming dilution 3,787,597 3,425,499
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CONSOLIDATED BALANCE SHEET
July 31, April 30,
2004 2004
------------- -------------
Current assets $38,478,910 $35,973,957
Property, machinery and equipment-net 25,418,839 25,707,901
Other assets 1,205,442 1,316,814
------------- -------------
Total assets 65,103,191 62,998,672
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Liabilities and shareholders' equity
Current liabilities 14,014,790 13,086,206
Long-term obligations 8,278,776 8,269,923
Minority interest in affiliate 563,469 439,787
Stockholders' equity 42,246,156 41,202,756
------------- -------------
Total liabilities and stockholders'
equity $65,103,191 $62,998,672
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CONTACT: SigmaTron International, Inc.
Linda K. Blake, 800-700-9095