For the nine months ended Jan. 31, net revenues were
$90.3 million compared to $71.2 million. Net income was $1.7 million,
down from $3.9 million.
Sales increases were seen in appliances,
fitness, industrial electronics, life sciences and semiconductor gear.
However, pricing concessions,
higher component and manufacturing materials costs, and costs related to
RoHS compliance hurt results.
Last July's acquisition of Able Electronics has shown mixed results to date. Fairhead said, "While the results from the Able Electronics acquisition have not generated positive bottom line results to date, we remain optimistic and excited about the opportunities this operation can provide to SigmaTron. We have already realized incremental business opportunities from Able's existing customer base and fully expect revenues from the Able operations will continue to grow, enhanced by SigmaTron's international footprint. We believe we will see the full benefit from this acquisition in fiscal 2007.
"Able diversifies the markets we serve, diversifies our customer base and expands the range of services we offer."
The company is consolidating its plants in Fremont and Hayward, CA, into the Hayward site, a move expected to be completed as
scheduled before this fiscal year-end. Some products will be moved to Tijuana as well.