ELK GROVE VILLAGE, IL – SigmaTron International reported revenues of $85.7 million in the fiscal first quarter, up 41.8% year-over-year.
Net income for the period ended July 31 was $8.8 million, compared to a net loss of $900,666 for the same quarter in the prior year.
“I am pleased to report an excellent quarter to start fiscal 2022,” said Gary R. Fairhead, president and CEO, Sigmatron. “Our pre-tax profits were $9,553,661 and included the forgiveness of our small business administration paycheck protection program loan in the amount of $6,282,973 during the quarter, which was announced on July 13, 2021. Excluding the forgiveness of the PPP Loan, we recorded pre-tax profits of $3,270,688 and revenue of $85.7 million. The quarterly operating results and revenues are a record for SigmaTron.
“As previously reported, our backlog hit an all-time high, and these results are driven by the significant increase we have experienced in topline growth. Each of our customers was affected differently by the Covid pandemic. Some experienced significant and unanticipated increases in demand, while others are still recovering. However, it does seem the implementation of the vaccine program has unleashed some pent-up demand from the prior year, and our customers are benefitting. The ability to achieve this quarterly revenue number, given the electronic component marketplace and the continuing pandemic challenges, is a testimony to what an excellent job our operating teams were able to execute during the first quarter.
“While our backlog remains strong, we continue to face continuing challenges on the supply chain side. Semiconductor products, in particular, remain difficult to locate and often are purchased at a premium. We have seen several customers start to push out orders, but other customers continue to ramp up and push for more product. It’s difficult to predict how this will sort itself out going forward. The one thing that seems probable is the shortage of certain components will be with us through calendar 2022 and perhaps part or all of 2023. All of this, of course, is dependent upon a continuing strong economy, which we have experienced so far during calendar 2021. The continuing trade war with China also creates uncertainty, and it’s hard to predict how that will play itself out as well. On the customer side, several of our new customers have started to ramp up, and we see our revenue growing with them going forward, especially in the safety and renewable energy markets.
“Finally, on July 21, 2021, we signed a definitive agreement and plan of merger to acquire Wagz, a privately held pet technology company, in a merger transaction. On Sept. 8, 2021, a proxy statement was mailed to stockholders announcing a special meeting of stockholders to be held on Sept. 29, 2021, with regard to the transaction for submission to our stockholders and hope to close the transaction shortly thereafter. We continue to believe the upside is significant for the stockholders of SigmaTron.”