ELK GROVE VILLAGE, IL – SigmaTron International reported fiscal third quarter revenues of $68.8 million, up 4.7% year-over-year.

Net loss for the period ended Jan. 31 was $595,526, compared to net income of $31,338 for the same period in the prior year.

For the nine months ended Jan. 31, revenues were $217.3 million, an increase of 3.5% year-over-year. Net loss was $1.8 million, compared to net income of $1.2 million during the same period the prior year.

“Our disappointing results continued in the third quarter of fiscal 2019, tied directly to the issues noted in our second quarter fiscal 2019 press release,” said president and CEO Gary R. Fairhead. “The trade dispute between the United States and China has continued with all of the negative issues attached to it. Customers continue to miss projections, with many of them linking their reduced requirements to the trade dispute and associated tariffs. The tariffs impact cash flow, increase overhead costs and continue to drive customers to look at alternative supply chain solutions, which creates inefficiencies.  Finally, the trade war has created significant uncertainty regarding short-term plans with our customers on items such as new program launches.

“In conjunction with the issues associated with the trade war with China, the new Mexican administration did increase the nationwide compensation structure/minimum wage effective Jan. 1, 2019. This change created some short-term increased costs and will continue to have a negative effect on our cost structure going forward.

“We have addressed these issues and required price increases where necessary with customers.  Some discussions are completed, and others are expected to be complete in the fourth quarter.

“Regarding the component marketplace availability lead times, deliveries and price increases continue, but they are fewer and farther between. In fact, for some component classes, lead times have shortened.”

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