Circuits Assembly Online Magazine - SigmaTron Reports 10% Revenue Growth for Fiscal 2023

ELK GROVE VILLAGE, IL – SigmaTron announced revenue of $414.4 million in continuing operations for its fiscal year, an increase of 10% from the $378.3 million in revenue for the previous year.

For the quarter, revenues from continuing operations increased $9.4 million, or 10%, to $108.3 million compared to $98.9 million for the same period in the prior year.

SigmaTron sold a majority position of its subsidiary, Wagz, in April, and will report results from Wagz for fiscal 2023 and 2022 as discontinued operations.

For fiscal 2023 and fiscal 2022, net loss from the company's discontinued operations was $34.8 million and $8.5 million, respectively.

After selling its position in Wagz, SigmaTron only operated in one segment: EMS.

"I am pleased to report that our EMS business remained strong for the fourth quarter. It recorded revenue of $108.3 million and net income of $5 million," said CEO Gary R. Fairhead. "As previously announced, our EMS business remained strong for the entire year, with $414.4 million in revenue and net income of $14.2 million. On the attached financials, you can see the EMS results and the losses created by the discontinued operations of Wagz, which together contributed to our results for fiscal 2023.

"As we enter fiscal 2024, our customer requirements range from increased orders and pull-ins to push-outs. We continue to see mixed signals and uncertain signs in general. It is difficult to determine if the economy is slowing or starting to grow again. On balance, the backlog remains strong and we see modestly more favorable conditions despite the uncertainty. The other issue remains the volatile marketplace for electronic components, which is our raw material. We have seen some improvements in terms of deliveries on time and shorter lead times but other components are still out 18 months in terms of lead time and pricing remains volatile for some other parts. It’s hard to know how this is going to sort itself out short term but we remain optimistic long term regarding the upside for some of our longer-term customers, especially those involved in infrastructure related industries."