SigmaTron announces Q2 - income up 59%

SigmaTron International, Inc. (NASDAQ:SGMA) 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.Source: PCBnewsline