ELK GROVE VILLAGE, IL -- SigmaTron International today reported fiscal first quarter revenues increased 23% to $105.5 million while net income dropped against last year, when the profits were boosted by PPP loan forgiveness.

For the first quarter ended July 31, net income was $1.38 million, versus $8.8 million a year ago, including $6.28 million from the forgiveness of the PPP loan. Pretax profit was $1.91 million including an expected pretax loss of $2.22 million Wagz, the firm's pet tech IoT start-up. The pretax profit for first quarter 2022 was $9.56 million, which included a one-time gain from the forgiveness of the PPP loan and before SigmaTron acquired Wagz.

“I’m pleased to report a solid quarter for the beginning of fiscal 2023," said Gary R. Fairhead, chief executive and chairman. Comparisons between the first quarter of fiscal 2022 and the first quarter of fiscal 2023 are difficult. The backlog for the EMS segment remains strong and growing. Despite continuing challenges in the electronic component marketplace, sales are running at record levels for the company.

We continue to see strength in the industrial marketplace. Existing customers are slowly launching new products and we have several new opportunities that look promising. Unfortunately, we see no end in sight to the supply chain challenges that we have been dealing with for at least 18 months and none of the semiconductor companies are suggesting otherwise. The challenges will certainly continue for the balance of fiscal 2023, based on what we know at this time. This of course causes our inventory to grow significantly and puts pressure on cash flow. It also leads to manufacturing inefficiencies due to the uncertainty of when parts will be received.”

“The Pet Tech Segment had a loss for the first quarter as anticipated. We continue to make progress with the performance of the Freedom Smart Dog Collar, as well as a new product that will be introduced early next year. We are also working on related products with several large OEMs, and interest in pet tech remains strong. We remain optimistic that this will be an important part of our future as our product line and capabilities grow in this IoT market.”

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