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SigmaTron International, Inc., an electronic manufacturing services company, reported revenues and earnings for the fiscal quarter and fiscal year ended April 30, 2023.
As previously reported, the Company sold a majority position of its wholly owned subsidiary, Wagz, Inc., effective April 1, 2023. As a result, the Company will report results from Wagz for fiscal 2023 and 2022 as discontinued operations.
Revenues from continuing operations increased $36.1 million, or 10 percent, to $414.4 million for fiscal 2023 compared to $378.3 million for fiscal 2022. Net income from continuing operations for fiscal 2023 was $14.2 million, compared to net income of $18.4 million for fiscal 2022. Basic income per share from continuing operations for fiscal 2023 was $2.34, compared to $3.81 income per share for fiscal 2022. Diluted income per share from continuing operations for fiscal 2023 was $2.34, compared to $3.58 income per share for fiscal 2022.
For fiscal 2023 and fiscal 2022, net loss from discontinued operations was $34.8 million and $8.5 million, respectively. Net loss per share from discontinued operations for fiscal 2023 and fiscal 2022 was $5.73 and $1.77, respectively.
For the three months ended April 30, 2023, revenues from continuing operations increased $9.4 million, or 10 percent, to $108.3 million compared to $98.9 million for the same period in the prior year. Net income from continuing operations for the three-month period ended April 30, 2023, was $5.3 million compared to $2.3 million for the same period in the prior year. Basic income per share from continuing operations for the three months ended April 30, 2023 was $0.87, compared to $0.39 income per share for the same period last year. Diluted income per share from continuing operations for the three months ended April 30, 2023 was $0.87, compared to $0.37 income per share for the same period last year.
For the three months ended April 30, 2023 and April 30, 2022, net loss from discontinued operations was $5.0 million and $1.7 million, respectively. Net loss per share from discontinued operations for the three months ended April 30, 2023 and April 30, 2022 was $0.82 and $0.28, respectively.
Commenting on SigmaTron’s results for both the fourth quarter and fiscal year ended April 30, 2023, Gary R. Fairhead, Chief Executive Officer and Chairman of the Board said, “As previously announced, SigmaTron sold a majority position in our wholly owned subsidiary, Wagz, Inc. (Wagz) effective April 1, 2023 and completed any financial commitments regarding Wagz, and took additional significant write-offs during the fourth quarter as it concluded the Wagz transaction. It was determined under GAAP that the proper treatment for the sale of the majority position of Wagz would be to treat it as a discontinued operation, which you will see in the financial statements attached to the press release, as well as the 10-K. Accordingly, at the end of fiscal 2023, SigmaTron only operated in one segment, which is electronic manufacturing services (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 $5.0 million. 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.
“While we are disappointed with the outcome of the Wagz business, we are pleased with the continued strength we have maintained in the EMS business and we will continue to focus on growing that business with what we believe remains a unique and desirable footprint for an EMS company our size. As always, I want to thank our customers, supply chain, our banks, JPMorgan Chase and TCW, our Board of Directors and our dedicated employees, who have remained focused on providing the best possible EMS solution to our customers. We look forward to fiscal 2024.”
