ELK GROVE VILLAGE, IL -- SigmaTron today reported revenues for the fiscal quarter ended Jul. 31 revenues increased 0.003% year-over-year to $71.4 million.
The electronics manufacturing services company swung to a net loss of $526,607 for the period, versus net income of $382,882 a year ago.
The company cited the trade war between the US and China and related currency swings, and ongoing component shortages for the showing.
In a press release, Gary R. Fairhead, president, chief executive and chairman, said, “During this quarter we experienced several issues that negatively impacted our results. The first issue and one that will continue to impact fiscal 2019, if it is not resolved soon, is the trade war between the United States and China that started in July 2018, with the imposition of punitive tariffs on various goods and commodities.
During the quarter SigmaTron took a foreign currency loss of approximately $300,000 due to the stronger US dollar. Fairhead said a resolution to the trade issues could reverse some or all of the foreign currency loss.
He also noted the "continuing volatile marketplace for electronic components," which has caused production delays even though orders have not been canceled.
Fairhead also said several major programs encountered design issues unrelated to SigmaTron that caused delays and resulted in pushed-out revenue. Most were resolved during the quarter and are back in production heading into the company's fiscal second quarter, he said.
“We fully expected the revenue for the first quarter to be higher than we are reporting. However, the quarter trended in a positive direction on a monthly basis and we have better momentum heading into the second quarter. The issues impacting our operating results during the first quarter will continue to impact the company going forward. However, our backlog remains strong, and if we are able to timely receive the required electronic components we should see positive revenue growth during the second quarter. Customers are discussing alternative supply chain solutions with us for their business if they had been or will be affected by the tariffs. On a positive note, our customers are exploring options within the SigmaTron global footprint.
“Even with these continuing issues, I remain optimistic. Our supply chain team has done an excellent job solving the problems this market has given us and I fully expect they will continue to do so. Demand from customers remains strong and we continue to win new programs from existing customers and land first-time customers. So while some problems will persist, I see greater opportunity and upside in the short term.”