ELK GROVE VILLAGE, IL -- Electronics manufacturing services company SigmaTron today said second-quarter net income fell 73% to $158,267 due to the lingering stagnant economy.

For the period ended ended Oct. 31, revenues increased 4.5% year-over-year to $39.9 million.

For the six months ended Oct. 31, sales are up 3.3% from a year ago to $78.8 million.

"Given the continuing margin pressures in our industry, I am pleased to report that SigmaTron remains profitable," president and chief executive Gary R. Fairhead said in a press release  "We are experiencing level revenue with pricing pressures from both our customers and vendors. I believe that this is generally a product of what we see as a stagnant general economy, and I currently see this trend continuing for the balance of our fiscal year.

"During the quarter we have continued to see a trend of Chinese costs increasing, thereby making Mexico a more competitive manufacturing location to service North America. Indications are that this trend will continue.

"In an effort to facilitate the growth of our China operation, we recently established a new Chinese entity that will allow us to provide our services to the domestic market in China competitively. Our new company will allow us, among other things, to conduct business with both customers and vendors with Chinese currency."