ELK GROVE VILLAGE, IL – EMS firm SigmaTron International reported fiscal 2009 first-quarter revenues of $38.5 million, down 3.3% year-over-year.
 
Net income was $579,324, down nearly 30% compared to the same period last year.
 
The company said that while backlogs have remained steady, customer inventory levels are dipping in response to uncertainty over the economy.
 
“While our first quarter has historically been one of our softer quarters in terms of revenue,” said Gary R. Fairhead, SigmaTron president and CEO, “I believe the drop in revenue indicates the concern our customer base has regarding the economy. As the economy slows, inventory levels are a significant concern, and I believe the lower revenues are reflective of our customers making a modest adjustment to their inventory levels for the balance of calendar 2008.”
 
He said that given the uncertainty regarding the economy, the second quarter revenue is expected to ramp slower and lower than in prior years.
 
During the quarter, SigmaTron laid off personnel at its factories in Elk Grove Village, IL, and Mexico.