SigmaTron International 3Q revenue up, but income decreases
ELK GROVE VILLAGE - SigmaTron International said revenues for the third quarter of fiscal 2016 were up front he same period in 2015, but net income decreased slightly.
Revenues for the quarter were $59.2 million, an increase from $53.7 million for the same quarter in fiscal 2015. Net income decreased to $218,728 in the third fiscal quarter compared to $564,080 for the same period in the prior year. Basic and diluted earnings per share were each 5 cents for the quarter, compared to basic and diluted earnings per share each 14 cents for the same quarter in fiscal 2015.
For the nine month period ending January 31, revenues increased to $193.2 million, compared to $170.2 million for the same period in the prior year. Net income for the period ended January 31 was $2 million, compared to net income of $727,319 for the same period in the prior year. Basic and diluted earnings per share for the nine months ended January 31, 2016, were 49 cents and 48 cents respectively, compared to basic and diluted earnings per share each 18 cents for the nine months ended January 31, 2015.
"The results are a mixed bag," said Gary R. Fairhead, President, Chief Executive Officer and Chairman of the Board for SigmaTron International. "When comparing our third quarter of this year versus the third quarter of 2015, our pretax income decreased even though revenue was up a little over 10 period.
Fairhead said part of the income decrease is attributable to seasonality, since the quarter covered the December holidays and Lunar New Year, He also pointed to a slowing economy as a factor in the decrease.
"We have not lost any customers and new customers and new projects with current customers are continuing and moving forward, but the overall demand across all markets we serve is generally softer than projected," Fairhead said. "We see that trend continuing into the beginning of the fourth quarter and we will manage the Company accordingly. We do not believe this is an indication of a midterm or long term trend, but certainly there is some short term softness.
SigmaTron International is an electronic manufacturing services company that provides printed circuit board assemblies and completely assembled electronic products.