Tue, Sep 3, 8:10 PM (133 days ago)
For the fiscal year ending April 30, 2024, SigmaTron International, Inc. reported a revenue decline of 9.8% to approximately $373,884,000, primarily due to decreased demand in consumer electronics and industrial sectors. The company experienced a pre-tax loss of approximately $2,800,000 from continuing operations, contrasting sharply with a net income of $14,194,424 in the previous year. Operating expenses remained stable at about $26,392,000, but rising costs led to a gross profit margin decrease to 9.0% from 12.4%. The company’s financial condition was impacted by higher interest expenses and inflation, resulting in a net loss of $2,486,157. Strategically, SigmaTron has streamlined operations by exiting the Pet Tech segment, selling the majority stake in Wagz, and focusing solely on its electronic manufacturing services (EMS). Backlog remains strong at approximately $289,900,000. However, the company faces risks from supply chain disruptions, fluctuating raw material costs, and compliance with financial covenants under its credit agreements, leading to potential liquidity challenges. The company has engaged in amendments with lenders to address covenant defaults, indicating ongoing financial management efforts amid challenging market conditions.