SigmaTron reports Q1 results
Sep 10, 2004
SigmaTron International, Inc. (Nasdaq:SGMA) 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."