ELK GROVE VILLAGE, IL -- SigmaTron International reported revenues rose 29% to $44.9 million in the October quarter over the prior year. Net income dropped 42% to $708,011.


For the six months ended Oct. 31, revenues increased to $81.8 million compared to $56.2 million last year.

Net income for the 2006 period was $966,681, compared to $1,386,399 for the same period last year.

In a statement, president and chief executive Gary R. Fairhead said, "During the second quarter, we continued to see significant increases in revenue with only nominal increases in profits. While profits were up significantly from the first quarter, we expected higher profits from the type of revenue increases we saw in the second quarter. A substantial portion of the increase was unforecasted demand from several markets, which led to operating inefficiencies during the period. We are working to correct those.

The company said its plants in Elk Groe Village, IL; Acuna, Mexico and Wujiang, China are performing well. It's plants in Hayward, CA, and Tijuana, Mexico are not. "Our plan remains to transfer a significant portion of our revenue from Hayward to Tijuana due to pricing pressures," Fairhead said.

"Pricing pressures, have not abated. Commodity prices continue to cause material costs to go up and the transition from leaded assemblies to RoHS-compliant assemblies for some of our customers has created working capital challenges, primarily with inventory," he said.

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