Circuits Assembly Online Magazine - SigmaTron's Profits, Sales Narrow

ELK GROVE VILLAGE, IL -- SigmaTron International, an electronic manufacturing services company, today reported first-quarter earnings of $165,067 on revenues of $21.3 million. Both figures were down year-over-year. For the quarter ended July 31, revenues fell from $21.5 million and net income dropped from $1 million in the fiscal 2005 period.

During the quarter the company sold its Las Vegas operation to Grand Products, taking a loss of $24,731 after taxes. It also bought all outstanding stock of Able Electronics.

Gary R. Fairhead, president and chief executive, said, existing customer sales softened during the summer and margins remained under pressure.

"During the quarter production levels at our China facility continue[d] to grow," Fairhead said. "Our Elk Grove Village facility had a very weak quarter, as many of its customers lowered their inventory levels. Our Fremont [CA] operation had a good quarter, primarily driven by the resolution of a process problem for a new customer."

SigmaTron plans to integrate Able, including relocating its Fremont operation into the Hayward, CA, facility of Able, before the end of fiscal 2006.