ELK GROVE VILLAGE, IL -- SigmaTron International today reported fiscal second quarter revenues increased 10.3% year-over-year to $73 million.
For the period ended Oct. 31, the electronics manufacturing services company said net income increased to $736,115 compared to $33,295 a year ago. Operating income rose 455% to $1.46 million.
Gary R. Fairhead, president, chief executive and chairman said: “I’m pleased to report that SigmaTron had a good quarter in terms of both revenue growth and bottom line growth. Revenues increased modestly, but net income increased significantly from the first quarter of fiscal 2018. As reported in previous press releases we continue to encounter shortages in the component marketplace, primarily with semiconductor products. These shortages negatively affected our revenue in the second quarter and at this point it appears that shortages will continue during the third quarter. Shortages have not only negatively impacted our ability to assemble and ship finished goods, but in some cases there were price increases which required customer approval and slowed down production.
“The component shortages are a direct result of the stronger economic activity we have seen for the past 12 months. We continue to see positive signs that the economy will continue to grow and opportunities for SigmaTron should increase. We are heading into what has historically been a slower quarter, driven by the calendar year end, holidays, and customers adjusting inventory for their fiscal year-end. While the third quarter may reflect some slowing short term, we have landed several new significant customers and their business is projected to start during our fourth quarter. Several of these programs are quite exciting and we are looking forward to expanding our customer base while establishing long term relationships that should provide for future growth. In summary, we continue to see positive trends going forward and are optimistic for the balance of this fiscal year.”