SigmaTron International Inc. (SGMA, Financial) filed Quarterly Report for the period ended 2008-10-31.
Sigmatron International Inc. is an independent provider of electronic manufacturing services which includes printed circuit board assemblies and completely assembled electronic products. Included among the wide range of services the company offers its customers are automatic and manual assembly and testing of products material sourcing and procurement design manufacturing and test engineering support warehousing and shipment services and assistance in obtaining product approvals from governmental and other regulatory bodies. SigmaTron International Inc. has a market cap of $8.49 million; its shares were traded at around $2.4 with a P/E ratio of 3.83 and P/S ratio of 0.05.
Gross profit increased during the three month period ended October 31, 2008 to $5,911,379 or 14.4% of net sales, compared to $4,458,135 or 10.4% of net sales for the same period in the prior fiscal year. Gross profit increased for the six month period ended October 31, 2008 to $10,560,577 or 13.3% of net sales compared to $9,674,796 or 11.7% of net sales for the same period in the prior fiscal year. The increase in the Companys gross margin for the three and six month periods is due to the mix of products shipped to various customers and continuing efforts to control costs. There can be no assurance that gross margins will not decrease in future quarters. Pricing pressures continue at all locations.
Interest expense for bank debt and capital lease obligations for the three month period ended October 31, 2008 was $485,864 compared to $708,429 for the same period in the prior year. Interest expense for the six month period ended October 31, 2008 was $1,007,475 compared to $1,421,487 for the same period in the prior year. These changes were attributable to the Companys decreased borrowings under its revolving credit facility, term loan, capital leases, and decreasing interest rates.
Net income from operations increased to $1,505,316 for the three month period ended October 31, 2008 compared to $693,274 for the same period in the prior year. Net income from operations increased to $2,084,640 for the six months ended October 31, 2008 compared to $1,520,258 in the same period last year. Basic and diluted earnings per share for the second fiscal quarter of 2009 were $0.39, compared to basic and diluted earnings per share of $0.18 for the same period in the prior year. Basic and dilutive earnings per share for the six months ended October 31, 2008 were $0.55 and $0.54, respectively, compared to basic and dilutive earnings per share of $0.40 and $0.39, respectively for the same period in the prior year.
On November 19, 2003, the Company purchased the property that serves as the Companys corporate headquarters and its Midwestern manufacturing facility. The Company executed a note and mortgage with LaSalle Bank N.A. in the amount of $3,600,000. The Company refinanced the property on April 30, 2008. The new note bears a fixed interest rate of 5.59% and is payable in sixty monthly installments. A final payment of approximately $2,115,438 is due on or before April 30, 2013. At October 31, 2008, $2,731,562 and at October 31, 2007, $2,895,000 was outstanding on this note.
The Company paid $500,000 under its term loan obligation and borrowed an additional $1,012,407 under its revolving credit facility during the first six months of fiscal year 2009. The balance as of October 31, 2008 under the term loan obligation and revolving credit facility was $2,500,000 and $26,888,662, respectively. The balance at October 31, 2007 under the term loan obligation and revolving credit facility was $3,500,000 and $26,571,381, respectively.
Read the The complete Report
More on SGMA:
Gurus buys and sells of SGMA
10-year financial history of SGMA.
Insider buys/sells of SGMA.
Sigmatron International Inc. is an independent provider of electronic manufacturing services which includes printed circuit board assemblies and completely assembled electronic products. Included among the wide range of services the company offers its customers are automatic and manual assembly and testing of products material sourcing and procurement design manufacturing and test engineering support warehousing and shipment services and assistance in obtaining product approvals from governmental and other regulatory bodies. SigmaTron International Inc. has a market cap of $8.49 million; its shares were traded at around $2.4 with a P/E ratio of 3.83 and P/S ratio of 0.05.
Highlight of Business Operations:
Net sales decreased for the three month period ended October 31, 2008 to $41,132,728 from $42,815,107 for the three month period ended October 31, 2007. Net sales decreased for the six months ended October 31, 2008 to $79,610,846 from $82,658,920 for the same period in the prior fiscal year. Sales volume decreased for the three and six month periods ended October 31, 2008 as compared to the same period in the prior year in the industrial electronics, gaming and life sciences marketplaces. The decrease in sales for these marketplaces was partially offset by an increase in sales in the fitness marketplace. The decrease in revenue for the three and six month periods ended October 31, 2008 is a result of our customers decreased demand for product based on their forecast, which we believe is attributable to a slowing economy.Gross profit increased during the three month period ended October 31, 2008 to $5,911,379 or 14.4% of net sales, compared to $4,458,135 or 10.4% of net sales for the same period in the prior fiscal year. Gross profit increased for the six month period ended October 31, 2008 to $10,560,577 or 13.3% of net sales compared to $9,674,796 or 11.7% of net sales for the same period in the prior fiscal year. The increase in the Companys gross margin for the three and six month periods is due to the mix of products shipped to various customers and continuing efforts to control costs. There can be no assurance that gross margins will not decrease in future quarters. Pricing pressures continue at all locations.
Interest expense for bank debt and capital lease obligations for the three month period ended October 31, 2008 was $485,864 compared to $708,429 for the same period in the prior year. Interest expense for the six month period ended October 31, 2008 was $1,007,475 compared to $1,421,487 for the same period in the prior year. These changes were attributable to the Companys decreased borrowings under its revolving credit facility, term loan, capital leases, and decreasing interest rates.
Net income from operations increased to $1,505,316 for the three month period ended October 31, 2008 compared to $693,274 for the same period in the prior year. Net income from operations increased to $2,084,640 for the six months ended October 31, 2008 compared to $1,520,258 in the same period last year. Basic and diluted earnings per share for the second fiscal quarter of 2009 were $0.39, compared to basic and diluted earnings per share of $0.18 for the same period in the prior year. Basic and dilutive earnings per share for the six months ended October 31, 2008 were $0.55 and $0.54, respectively, compared to basic and dilutive earnings per share of $0.40 and $0.39, respectively for the same period in the prior year.
On November 19, 2003, the Company purchased the property that serves as the Companys corporate headquarters and its Midwestern manufacturing facility. The Company executed a note and mortgage with LaSalle Bank N.A. in the amount of $3,600,000. The Company refinanced the property on April 30, 2008. The new note bears a fixed interest rate of 5.59% and is payable in sixty monthly installments. A final payment of approximately $2,115,438 is due on or before April 30, 2013. At October 31, 2008, $2,731,562 and at October 31, 2007, $2,895,000 was outstanding on this note.
The Company paid $500,000 under its term loan obligation and borrowed an additional $1,012,407 under its revolving credit facility during the first six months of fiscal year 2009. The balance as of October 31, 2008 under the term loan obligation and revolving credit facility was $2,500,000 and $26,888,662, respectively. The balance at October 31, 2007 under the term loan obligation and revolving credit facility was $3,500,000 and $26,571,381, respectively.
Read the The complete Report
More on SGMA:
Gurus buys and sells of SGMA
10-year financial history of SGMA.
Insider buys/sells of SGMA.
