ELK GROVE VILLAGE, IL -- SigmaTron International today reported fourth-quarter revenues fell 38.2% from a year ago to $27.2 million. 

The electronics manufacturing services company reported revenues and earnings for its fiscal year ended April 30 fell 20.3% to $133.7 million. The firm did swing to a net profit of $1.95 million, compared to a loss of $6.46 million in fiscal 2008.

The company took goodwill impairment charges of $9.3 million in the fourth quarter of fiscal 2008.

In a press release, president and chief executive Gary R. Fairhead said, "Our revenue dropped precipitously at the beginning of our third quarter and has remained depressed since. For the last six months, we have posted a net loss of $128,794, or we have essentially broken-even during a period when sales dropped 36.3%."

He did warn that the company, should it fail to to extend a loan agreement and renegotiate financial covenants for fiscal 2010, could be in violation of its revolving credit facility agreement as of July 31. "In the event we are unable to amend the required financial covenants or obtain alternative financing, we may be unable to access lines of credit and our debt obligations could be accelerated. These events would likely have a material adverse effect on our future results of operations, financial position and liquidity," he said.

Fairhead said the company sees demand continuing to soften and expects a loss for the coming quarter. "Backlog indicates a weak summer with demand slowly rising in the fall." The company has taken "additional cost reduction measures" at all its operations except China, which remains busy."

 

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