ELK GROVE VILLAGE, IL – SigmaTron International reported fiscal first quarter revenue of $74 million, up 3.6% year-over-year.
Net income for the fiscal quarter ended July 31 was $361,025, compared to a net loss of $526,607 for the same period in the prior year.
“I’m pleased to report profitable results for our first quarter of fiscal 2020,” said Gary R. Fairhead, president, CEO and chairman of the board. “This follows our profitable fourth quarter of fiscal 2019 and is another indication we are heading in the right direction. Our financial results are primarily driven by an increased revenue level, combined with improved pricing and productivity.
“Based on our current backlog, we expect this trend to continue going into the second quarter of fiscal 2020, which historically has been a good quarter for the company. However, as you have read consistently in our press releases, uncertainty and volatility continue in our industry. While there are many factors driving this uncertainty, the trade wars remain the primary factor and the trade war with China the primary driver. We continue to closely manage inventory levels, with a focus on accuracy of customers’ forecasts and lead-times for components.
“As mentioned in our last press release, our projection for current customer sales remains positive, which we believe will result in continued growth. Additionally, the company is launching products with new customers during our second quarter, which should provide significant growth for calendar 2020. All of these positive developments support our cautious optimism for fiscal 2020, understanding conditions can change quickly and currently are difficult to forecast.”