ELK GROVE VILLAGE, IL -- Electronics manufacturing services firm SigmaTron International reported revenues for its 2006 fiscal year ended April 30 increased 32.3% to $124.8 million. Net income fell 60% to $1.9 million for the year.

Fourth quarter revenues increased 52% to $34.5 million.

President and chief executive Gary R. Fairhead said, "Although we remained profitable in fiscal 2006, we were disappointed that our profits this year declined in comparison to the prior three-years' results. While the acquisition of Able Electronics in July of 2005 negatively impacted our fiscal 2006 results, we believe Able will strengthen our long-term position by diversifying our customer base, growing our international footprint and improving our operations."

During fiscal 2006, sales increased in industrial electronics, life sciences, semiconductor and appliances, primarily due to sales to new customers as a result of the Able acquisition. The increase in sales was partially offset by price reductions, and the company expects pricing pressures will continue in fiscal 2007. Sales in the gaming industry decreased during the year mainly due to the sale of the company's Las Vegas operation, in May 2005.

Selling and administrative expenses for the periods ended April 30, 2006 and 2005 were $10.9 million and $10.1 million, respectively. In fiscal 2006, selling and administrative expenses represented 8.8% of net sales compared to 10.7% of net sales in fiscal 2005.

Each of the company's operations is now certified to produce RoHS-compliant assemblies.

Fairhead said revenue grew at its Elk Grove Village site, and the company will study possible expansion of its Acuna, Mexico, location (already the firm's largest). The firm's Tijuana, Mexico, location was not profitable in fiscal 2006, but SigmaTron has added staff, increased operational space and is in the process of relocating several customers to that facility.

SAN JOSE -- Sanmina-SCI pre-announced its fiscal third quarter revenue to be $2.71 billion versus previouslguidance of $2.7 to $2.8 billion.

Sanmina said that excluding one-time items, it expects earnings of six to seven cents a share, down from previous guidance of eight to 10 cents.

The EMS provider blamed the shortfall on a less favorable product mix, less-than-expected profitability in computing, and slower than anticipated improvement in the enclosures.

Strength in communications infrastructure products is being offset by soft sales in military/aerospace and computing, wrote Deutsche Bank analyst Carter Shoop in a research note.

Chairman and chief executive Jure Sola said, "While we are disappointed that our financial results for the fiscal third quarter fell short of our expectations, we believe we have taken the steps necessary to improve on our execution. The market conditions continue to improve and we feel that our short and long-term business model remains intact."

The company also cited poor execution at its Asia PCB plants and restructuring inefficiencies at its facility in Toledo, Spain.

Absolute inventory dollars rose sequentially despite previous expectations of a decline. Shoop estimates third-quarter inventory turns fell from 8.6 times in the second quarter.

On a conference call, Sanmina management said that the fourth quarter will be "hopefully a little bit” better  sequentially.

LOS ANGELES -- P. Kay Metal Inc. has announced its initial distribution chain for the company's MS2 molten solder surfactant.

MS2 is sold through a combination of direct sales and sales representative companies in North America, and through stocking distributors in South America, Europe and Asia.

"To introduce our revolutionary dross elimination technology to the industry, we've chosen to partner with companies that are highly respected by their customers," said Larry Kay, president. "And in many cases, they also represent assembly technology and wave soldering machines such as Vitronics-Soltec, Electrovert and others."

Appointed were:

• OS-Tech: Texas, Oklahoma, Louisiana, Arkansas, Oregon and Washington.
• Electri-Rep Inc.: Iowa, Kansas, Missouri, Nebraska and Southern Illinois. B&L Technologies, Inc.: New York State.
• Phoenix United Associates: Long Island, Metro New York, New Jersey and Pennsylvania.
• Phoenix Marketing Representatives: Arizona, New Mexico, and Nogales, Mexico. Foresite, Inc.: Wisconsin, Indiana, Illinois, Ohio, Kentucky and Michigan.
• Mar-Tec: Alabama, Georgia, Mississippi and Tennessee.
• Wong's Kong King: Asia (Hong Kong, Philippines, China, Malaysia and Singapore).
• Hitech Electronica Industrial e Comercial: Brazil
• Adtool Corp.: Canada.

The company expects to announce additional distributors and representatives within the next two months.

HEREDIA, COSTA RICA -- Specialty Coating Systems has opened an 8,000-sq. ft. facility in Heredia, Costa Rica.

The company will make conformal coating at the plant, its tenth location worldwide.

The company called the site a natural choice as many international companies find attractive the country’s location, workforce and access to growing markets — including electronics and medical devices.

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