ELK GROVE VILLAGE, IL -- SigmaTron International today reported net sales grew 36% year-over-year but earnings dropped 79% for quarter ended Jan. 31.

The electronic manufacturing services company posted net income of $300,000 on net revenues of $34.1 million. "While our overall third quarter results were disappointing, we continue to believe that we have laid the foundation for continued growth and long-term success," president and chief executive Gary Fairhead said.

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.

Fairhead saif the sites in Suzhou-Wujiang operation and Elk Grove Village grew and added new customers.