SigmaTron revenues grow with supply costs

ELK GROVE VILLAGE - SigmaTron International Inc. said revenues increased $30.6 million, or 44%, to $100.2 million in the second quarter of fiscal year 2022, up from $69.6 million for the same quarter in the prior year.

Net income for the second quarter ended Oct. 31 was $3.2 million, compared to $626,858 for the same period last year.

The revenue line, as well as the cost of products sold, are inflated due to significant premiums paid for raw material by SigmaTron customers, which are close to a pass through in terms of margin, the company said.

"Unfortunately, the volatility of the electronic component marketplace remains with us and from our perspective, is getting worse and not better. We do not see any end in sight for the shortages," said Gary R. Fairhead, SigmaTron chief executive officer and chairman of the board.

"I'm also pleased to announce that we have reached a new three-year labor agreement with our Elk Grove Village production union, with which we have always enjoyed an excellent working relationship," he said.

Regarding the pending acquisition of Wagz, a maker of GPS-tracking dog collars and other pet technologies, both companies currently anticipate closing the transaction by the end of the year, SigmaTron said.