Sigmatron Reports Financial Results for Q2 of Fiscal 2024

Estimated reading time: 2 minutes

SigmaTron International, Inc., an electronic manufacturing services company, reported revenues and earnings for the fiscal quarter ended October 31, 2023.

Revenues from continuing operations decreased $9.5 million, or 9 percent, to $98.7 million in the second quarter of fiscal 2024, compared to $108.2 million for the same quarter in the prior year. Net income from continuing operations for the second quarter ended October 31, 2023, was breakeven, compared to net income of $3.1 million for the same quarter in the prior year. Diluted income per share from continuing operations for the quarter ended October 31, 2023 was zero, compared to $0.51 income per share for the same quarter in the prior year.

For the six months ended October 31, 2023, revenues from continuing operations decreased $16.6 million, or 8 percent, to $196.8 million, compared to $213.4 million for the same period in the prior year. Net income from continuing operations for the six months ended October 31, 2023, was $0.3 million, compared to net income of $6.2 million for the same period in the prior year. Diluted income per share from continuing operations for the six months ended October 31, 2023 was $0.05, compared to $1.01 income per share for the same period in the prior year.

As previously reported, the Company sold a majority position of its wholly owned subsidiary, Wagz, Inc. (“Wagz”), effective April 1, 2023. As a result, the Company has reported results from Wagz for fiscal 2023 as discontinued operations. For the second quarter ended October 31, 2022, net loss from discontinued operations was $2.2 million. For the six months ended October 31, 2022, net loss from discontinued operations was $4.0 million. Diluted net loss per share from discontinued operations for the second quarter ended October 31, 2022 was $0.37 and was $0.65 for the six month period ending October 31, 2022.

Commenting on SigmaTron’s second quarter, fiscal 2024 results, Gary R. Fairhead, Chief Executive Officer and Chairman of the Board, said “I’m pleased to report a pre-tax profit of $371,928 for a difficult quarter. Revenues were 9% below the second quarter of fiscal 2023, as the weaker general economy continued to affect our customer base. Our revenues were essentially flat from the first quarter of fiscal 2024 and yet we managed to increase our pre-tax profit, up from $107,964 for the first quarter. We continue to make progress in reducing our on-hand inventory, which is a clear objective for the Company.

“As we head into our third quarter, our short-term backlog remains soft as our customers evaluate their inventory levels starting the new calendar year. We expect the third quarter to be difficult and believe revenue levels will start to increase during our fourth quarter. Putting aside the short-term softness, we are excited about our prospects for the first part of fiscal 2025. We have recently been awarded several new contracts with significant upside and the backlog for our current business should start to increase at the same time.

“Regarding the electronic component marketplace, we have seen some modest improvements. However, several semiconductor components remain on allocation or with lead times beyond 52 weeks. We expect supply chain metrics to continue to relax, resulting in shorter lead times. Significant uncertainty remains as we are eleven months out from an election, and geopolitical problems in Ukraine and the Middle East are definitely creating volatility. On balance, we remain positive about the prospects for the Company.”