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SigmaTron Posts 29% Revenue Growth in Fiscal 4Q10
July 14, 2010 | Globe NewswireEstimated reading time: 3 minutes
SigmaTron International, Inc., an EMS company, today reported revenues and earnings for the fiscal year ended April 30, 2010. Revenues decreased 8.4% to $122.5 million in fiscal year 2010 from $133.7 million in the prior year. Net income increased to $2.24 million in fiscal year 2010 compared to $1.95 million in fiscal 2009. Diluted earnings per share for the fiscal year ended April 30, 2010 were $0.58 compared to $0.51 in fiscal 2009.
For the fourth quarter of fiscal year 2010, revenues increased to $35 million compared to $27.2 million for the same quarter in the prior year. Diluted earnings per share for the fiscal year 2010 fourth quarter were $0.44 per share compared to $0.04 per share for the same period of fiscal 2009.
Commenting on SigmaTron's results, Gary R. Fairhead, President and Chief Executive Officer, said, "I am pleased to report our third consecutive profitable quarter and perhaps even more significant, a quarter in which our revenue grew nicely from the levels in quarters two and three. While I have repeatedly pointed out that revenue levels are not always good indicators of financial performance in our industry because of the various types of services we offer and products we assemble, our increased revenue in the fourth quarter was generally across our entire customer base and I believe was indicative of improved levels of economic activity. If that trend continues, it should point to better days ahead for the company as the U.S. and worldwide economies hopefully recover and grow.
"Our results for both the fourth quarter and fiscal 2010, were positively impacted by a gain recorded as required under Generally Accepted Accounting Principles (GAAP) for an insurance settlement made during the year. That gain was recorded as 'other income' on the condensed consolidated statements of operations attached to the press release. Regardless, the fourth quarter pre-tax income was $1,284,899 excluding the results of the settlement.
"Similarly, the fiscal year 2010 results were positive when compared to fiscal 2009, aided in part by the gain from the insurance settlement which resulted in nominally higher net income and earnings per share this fiscal year. However, I believe that the primary point is that the revenue and earnings trend has been upward and positive for two quarters, and we have continuing momentum heading into the first quarter of fiscal 2011.
"The increased revenue levels during our fourth quarter have not been without some challenges to our business. Increased demands for components have significantly increased lead-times for many parts. Some vendors have been reluctant to increase capacity in the short term as the economic outlook remains too uncertain to justify the expense. In addition, increased commodity prices have also negatively affected our margins. The increasing demand and tight capacity have resulted in upward price pressure from our supply chain. Our ability to work with our customers and supply chain to manage this environment will be a big short term challenge.
"As previously mentioned, we are heading into the first quarter of fiscal 2011 with some positive momentum. Short-term demand remains volatile, but, in general, it appears that our existing customer base has recovered to a higher revenue level. Equally important, we see more new product launches from our existing customers as they compete in their respective markets, which is always a positive sign.
"In addition, we have several new customers that are ramping up and have entered the aviation and medical markets through two of the new customers. Diversification of markets served is a constant objective. Finally, we remain engaged with several potential new customers in additional new markets, which could positively contribute to our results late in fiscal 2011 if we are awarded their business.
"In closing, the entire SigmaTron team takes satisfaction in reporting positive results for the fourth quarter and fiscal year after the difficult times we encountered the second half of fiscal 2009 and at the beginning of fiscal 2010. I want to thank our customers, supply chain, banks, our employees and our Board of Directors for their support and efforts during this difficult period."
About SigmaTron International
Headquartered in Elk Grove Village, Illinois, SigmaTron International, Inc. is an electronic EMS company that provides PCB 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. For more information, visit www.sigmatronintl.com.