ELK GROVE VILLAGE, IL – SigmaTron International reported fiscal third quarter revenue of $71.5 million, up 6.1% year-over-year.

Net income for the period ended Jan. 31 was $249,268, compared to a net loss of $217,039 for the same period in the prior year.

For the nine months ended Jan. 31, revenue decreased 6.7% year-over-year to $201.7 million.

Net loss for the nine-month period was $24,540, compared to net income of $805,169 for the same period in the prior year.

“SigmaTron’s third quarter was both an interesting and successful quarter,” said Gary R. Fairhead, president, CEO and chairman of the board. “As previously announced, SigmaTron changed its primary lender from U.S. Bank to J.P. Morgan Chase on Jan. 29, 2021. We are excited about the new relationship and believe it will better position us for the opportunities we see in front of us, both with our electronic manufacturing services core business and our anticipated acquisition of Wagz.

“The change of banks resulted in a significant hit of approximately $360,000 to our third quarter pre-tax income. However, even with that expense, I’m pleased to report a pre-tax profit for the third quarter of fiscal 2021 and a pre-tax profit for the first nine months of fiscal 2021. After the horrendous first quarter we had, when our customers and the company were impacted by Covid and our revenue was significantly reduced, we are pleased to have reached this milestone.

“In addition, heading into the fourth quarter of fiscal 2021, the company finds itself with a record backlog going forward. With that record backlog, we find ourselves facing a new set of challenges that you may have heard about in the national media and I referred to in our press release dated Dec. 10, 2020. Tremendous demand for electronic components and, in particular, semiconductor products has accelerated beyond what we were seeing even then, and we find the marketplace, in terms of our supply chain, volatile. Some parts are on allocation. Many parts have had price increases. In some cases, suppliers missed their shipping commitments.

“Much has been made of the effect of this component marketplace on manufacturing, especially in the automobile industry, with factories being shut down due to the lack of supply. We are working closely with our supply chain and our customers when these situations occur, but at this time there is every indication this will continue through the balance of calendar 2021.

“Also, we were negatively affected in February by the winter storms that paralyzed Texas and parts of Mexico. Our largest operation in Acuna/Del Rio was shut down for a week and our operation in Chihuahua for two days. Both operations returned to normal later in the month.

“In addition to the record backlog, we have several new customers that we are starting to work with. We also have a record number of new opportunities going forward. Uncertainty remains regarding the future relationship between China and the United States, so we will have to wait and see how that plays out. We have continued to make progress on our proposed acquisition of Wagz and are even more excited about the opportunities we believe it will bring to both companies.

“While we still have many challenges in our industry, in general, we see several strong quarters ahead of us, and we should have good momentum closing out fiscal 2021 and heading into fiscal 2022.”

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