Electronics manufacturer SigmaTron International in Elk Grove Village reported revenues were down 11 percent in the third quarter due to slowing economic conditions.
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While third quarter revenues increased to $46.8 million from $38.1 million during the same quarter in the prior year, net income decreased to a net loss of $216,776 during the quarter, compared to net income of $85,656 for the same period last year.
"SigmaTron's financial results for the third quarter are disappointing and a direct reflection of what we perceive as a slowing economy," said President and Chief Executive Officer Gary R. Fairhead, noting third quarter revenue dropped 11.2 percent from the second quarter's revenue of $52.7 million.
"As has been widely reported, the growth rate of the U.S. economy slowed dramatically during the fourth quarter of calendar year 2012 and our revenue reflects the slowdown. Customers were cautious regarding inventory levels for calendar year-end, which coupled with the slowing economy and fiscal cliff drama, led to the sharply reduced revenue and resultant loss," Fairhead added..
Basic and diluted loss per share were both 6 cents for the third quarter, compared to basic and diluted earnings per share of 2 cents for the same quarter last year.
For the nine month period ending January 31, revenues increased to $147.1 million, compared to $116.9 million for the same period last year. Net income for the period $172,914, compared to $484,884 for the same period in 2012.
"During the quarter and going forward, we did not lose any customers or specific programs. Orders were either pushed out or reduced and unfortunately we anticipate that reduced demand will continue short-term," Fairhead said. "However, on a positive note, we have been awarded new programs from current customers that are finally launching at four of our five offshore locations, and new customers have been landed at most locations. The new customers are not anticipated to impact our fourth quarter of fiscal 2013 significantly, but should help us battle what we anticipate to be a stagnant U.S. economy during fiscal 2014."