Circuits Assembly Online Magazine - SigmaTron Reports Fiscal Q4 Net Loss of $4.4 Million, with Revenues Up 3.5%

ELK GROVE VILLAGE, IL – SigmaTron International reported fiscal fourth quarter revenues were $68.2 million, up 3.5% year-over-year.

For the quarter ended Apr. 30, the electronics manufacturer posted a net loss of $4.4 million, compared to net income of $1.3 million in the prior-year quarter. Operating loss was $5.5 million, compared to operating income of $2.3 million in the same period of 2017.

Fiscal 2018 revenues increased 9.7% year-over-year to $278.1 million. The firm posted a fiscal 2018 net loss of $3.2 million, compared to net income of $1.4 million in fiscal year 2017. Operating loss was $3 million for fiscal 2018, while operating income was $3.3 million in fiscal 2017.

“Unfortunately, SigmaTron posted a significant loss in the fourth quarter, which created a significant loss for the company for fiscal 2018,” said Gary R. Fairhead, president and CEO. “This loss was created by two events that were recorded in the fourth quarter. Absent these two situations, SigmaTron posted a pre-tax profit of $503,680 for the fourth quarter and $2,120,107 for the year and is heading into fiscal 2019 with good momentum and projected revenue growth.

“The first significant event was the write-off of intangible assets of $3,913,006, which included goodwill that was created when we acquired Spitfire Controls in May of 2012. These items are subject to yearly testing in the fourth fiscal quarter. The entire write off is a non-cash expense and will not affect our operations going forward.

“The second significant event was the purchase and subsequent sale of Petzila’s assets. Subsequent to foreclosure, as previously reported, the assets were sold to Wagz. The accounting of this transaction resulted in a loss of $2,509,423, which was recorded at the end of the fourth quarter.

“Several new customers that were added during fiscal year 2018 are starting to ramp up during the first quarter of fiscal 2019, and we believe this growth will continue through the fiscal year.”

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