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SigmaTron International Inc., an electronic manufacturing services (EMS) company, today reported revenues and earnings for the second quarter ended October 31, 2016.
Revenues decreased to $65.8 million for the second quarter of fiscal 2017 from $69.7 million for the same quarter in the prior year. Net income decreased to $33,295 in the second fiscal quarter compared to $1,156,298 for the same period in the prior year. Basic and diluted earnings per share were each $0.01, respectively, for the quarter ended October 31, 2016 compared to basic and diluted earnings per share of $0.28 and $0.27, respectively, for the same quarter in fiscal 2016.
For the six months ended October 31, 2016, revenues decreased to $124.7 million compared to $133.9 million for the same period ended October 31, 2015. Net income for the period ended October 31, 2016 was $179,892 compared to $1,815,104 for the same period in the prior year. Basic and diluted earnings per share for the six months ended October 31, 2016, were each $0.04 compared to basic and diluted earnings per share of $0.44 and $0.43, respectively, for the six months ended October 31, 2015.
Commenting on SigmaTron's second quarter fiscal 2017 results, Gary R. Fairhead, President, Chief Executive Officer, and Chairman of the Board, said, "I'm pleased to report that SigmaTron remained profitable for the second quarter of fiscal 2017 but overall the results remain disappointing. We did see a sequential increase in sales from the first quarter, but not the increase that we initially thought would occur. Sales were down over 5% from the same period last year and sales for the first six months of fiscal 2017 are down 6.8% from the same period in fiscal 2016. During this period, customers continued to require lower volumes than forecasted and orders continued to be modestly pushed out. As previously reported, this activity was generally across the board for all markets we serve and we believe it continues to reflect a sluggish domestic economy.
"We may have a loss for the third quarter. This is primarily driven by the holidays and the related down time that we see during our third quarter and expectations are that customers will be re-evaluating inventory levels during December and January. On a positive note, the post-election activity with our customers has been positive and perhaps with some of the uncertainty tied to the election behind us, customers may be more optimistic heading into calendar 2017. We have seen some recent acceleration in orders which is good news, but it will take some time to bring in the material to support those orders. Hopefully, this will lead to a positive fourth quarter.
"Layered on the positive short term activity are several new significant customers that have awarded business to SigmaTron which should start in our fourth fiscal quarter of 2017 and grow from there. We believe that these new customers, as well as some new programs from our current customers, will provide for future revenue growth. We will monitor our customers' requirements as we go forward and manage accordingly."
About SigmaTron International Inc.
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, Chihuahua, and Tijuana Mexico; Union City, California; Suzhou, China, and Ho Chi Minh City, Vietnam. SigmaTron International Inc. maintains engineering and materials sourcing offices in Elgin, Illinois and Taipei, Taiwan.