Exhibit 99.1
SigmaTron International, Inc. Reports First-Quarter
Financial Results for Fiscal 2008
ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Sept. 12,
2007--SigmaTron International, Inc. (NASDAQ:SGMA), an electronic
manufacturing services company, today reported revenues and earnings
for the fiscal quarter ended July 31, 2007.
Revenues increased to $39.8 million in first-quarter fiscal 2008
from $36.9 million for the same quarter in the prior year. Net income
increased to $826,984 for the period ended July 31, 2007 compared to
$258,670 for the same period in the prior year. Basic earnings per
share and diluted earnings per share from operations for the quarter
ended July 31, 2007, were $0.22 and $0.21, respectively, compared to
$0.07 for both for the same quarter in fiscal 2007.
Commenting on SigmaTron's first-quarter fiscal 2008 results, Gary
R. Fairhead, President and Chief Executive Officer, said, "When
comparing our revenue and earnings per share for the first quarter of
fiscal 2008 to the first quarter of fiscal 2007, there is a 7.8%
increase in revenues yet a 200% increase in fully diluted earnings per
share. This is the nature of our business as it is dependent on
revenue volume, assuming that our fixed costs are relatively constant.
When comparing the first quarter of fiscal 2008 to the fourth quarter
of fiscal 2007, revenue increased less than 1%, yet fully diluted
earnings per share increased 23%, from $0.17 per share to $0.21 per
share. This increase in profitability was related to the mix of
products sold more than anything else.
"During the first quarter, we saw small increases in sales to
several markets which were offset by small declines in others. I
believe that these results reflect our objective of having a further
diversified customer base in terms of markets served. We are currently
pursuing several new opportunities that if successful would further
diversify our markets served, which is a continuing objective of
SigmaTron.
"During the quarter, positive progress continued at our Tijuana,
Mexico facility. We continue to believe that Tijuana will become a
positive contributor to our success and that the Tijuana location will
continue to be an important manufacturing location for our North
American operations. Each of our other locations had a satisfactory
quarter."
Mr. Fairhead concluded, "I am pleased to report modest financial
progress for the quarter. Pricing pressures continue at all locations,
yet current and potential customers continue to see the supply chain
benefits of our international footprint."
Headquartered in Elk Grove Village, IL, SigmaTron International,
Inc. is an electronic manufacturing services company that provides
printed circuit board assemblies and completely assembled electronic
products. SigmaTron International, Inc. operates manufacturing
facilities in Elk Grove Village, Illinois, Acuna and Tijuana, Mexico,
Hayward, California and Suzhou-Wujiang, China. SigmaTron
International, Inc. maintains engineering and materials sourcing
offices in Taipei, Taiwan.
Note: This press release contains forward-looking statements.
Words such as "continue," "anticipate," "will," "expects," "believe,"
"plans," and similar expressions identify forward-looking statements.
These forward-looking statements are based on the current expectations
of SigmaTron (including its subsidiaries). Because these
forward-looking statements involve risks and uncertainties, the
Company's plans, actions and actual results could differ materially.
Such statements should be evaluated in the context of the risks and
uncertainties inherent in the Company's business including our
continued dependence on certain significant customers; the continued
market acceptance of products and services offered by the Company and
its customers; pricing pressures from our customers, suppliers and the
market; the activities of competitors, some of which may have greater
financial or other resources than the Company; the variability of our
operating results; the results of goodwill impairment testing; the
variability of our customers' requirements; the availability and cost
of necessary components and materials; the ability of the Company and
our customers to keep current with technological changes within our
industries; regulatory compliance; the continued availability and
sufficiency of our credit arrangements; changes in U.S., Mexican,
Chinese or Taiwanese regulations affecting the Company's business; the
continued stability of the U.S., Mexican, Chinese and Taiwanese
economic systems, labor and political conditions; and the ability of
the Company to manage its growth, including its expansion into China.
These and other factors which may affect the Company's future business
and results of operations are identified throughout the Company's
Annual Report on Form 10-K and risk factors 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 press
release and the Company undertakes no obligation to update such
statements in light of future events or otherwise.
Financial tables to follow...
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Three Months
Ended Ended
July 31, July 31,
2007 2006
--------------- ---------------
Net sales $39,843,813 $36,959,865
Cost of products sold 34,627,152 33,101,216
--------------- ---------------
Gross profit 5,216,661 3,858,649
Selling and administrative expenses 3,217,370 3,017,953
--------------- ---------------
Operating income 1,999,291 840,696
Other expense 723,195 459,610
--------------- ---------------
Income from operations before income
tax and interest of affiliate 1,276,096 381,086
Income tax expense 449,112 122,416
--------------- ---------------
Net income $826,984 $258,670
=============== ===============
Net income per common share - basic $0.22 $0.07
=============== ===============
Net income per common share - assuming
dilution $0.21 $0.07
=============== ===============
Weighted average number of common
equivalent shares outstanding -
assuming dilution 3,889,274 3,866,783
=============== ===============
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, April 30,
2007 2007
--------------- ---------------
Assets
- --------------------------------------
Current assets $67,160,560 $66,663,956
Machinery and equipment-net 30,361,709 30,971,107
Intangible assets 1,309,078 1,461,772
Goodwill 9,298,945 9,298,945
Other assets 995,113 1,006,126
--------------- ---------------
Total assets $109,125,405 $109,401,906
=============== ===============
Liabilities and shareholders' equity
- --------------------------------------
Current liabilities 22,467,480 23,790,708
Long-term obligations 36,239,467 35,870,177
Stockholders' equity 50,418,458 49,741,021
--------------- ---------------
Total liabilities and stockholders'
equity $109,125,405 $109,401,906
=============== ===============
CONTACT: SigmaTron International, Inc.
Linda K. Blake, 1-800-700-9095