ELK GROVE VILLAGE, Ill., Dec. 11, 2019 (GLOBE NEWSWIRE) -- SigmaTron International, Inc. (NASDAQ:SGMA), an electronic manufacturing services company, today reported revenues and earnings for the quarter ended October 31, 2019.
Revenues decreased to $74.9 million for the second quarter of fiscal 2020 from $77 million for the same quarter in the prior year. Net income increased to $661,183 in the second fiscal quarter compared to a net loss of $723,941 for the same period in the prior year. Basic and diluted earnings per share were $0.16 and $0.15, respectively, for the quarter ended October 31, 2019 compared to basic and diluted loss per share of each $0.17 for the same quarter in fiscal 2019.
For the six months ended October 31, 2019, revenues increased to $148.8 million compared to $148.4 million for the same period ended October 31, 2018. Net income for the six-month period ended October 31, 2019 was $1,022,208 compared to a net loss of $1,250,548 for the same period in the prior year. Basic and diluted earnings per share for the six months ended October 31, 2019, were each $0.24 compared to basic and diluted loss per share of each $0.30 for the six months ended October 31, 2018.
Commenting on SigmaTron's second quarter, fiscal 2020 results, Gary R. Fairhead, President, Chief Executive Officer and Chairman of the Board, said, "I am pleased to report that SigmaTron had a solid second quarter for fiscal 2020. We posted a pre-tax profit of $977,289 on revenue of $74,855,312. For the first six months we posted a pre-tax profit of $1,585,429 on revenue of $148,865,263. This compares favorably to the second quarter and six-month numbers from the prior fiscal years shown above. As stated in our press release for the first quarter of fiscal 2020, we anticipated these results based on the trend going into the second quarter.
"These results were driven by higher gross margins, lower operating costs and reduced interest expense resulting from significant reductions in inventory. The inventory reduction also improved our liquidity provided under our bank line of credit. These positive factors were offset in part by continuing increases in cost of labor and some significant misses in projections by several key customers.
"We find ourselves heading into the third quarter of fiscal 2020 with less optimism and some negative trends for the first part of the quarter. There is no doubt that the China trade war is negatively affecting revenue and operations as the uncertainty and volatility caused by this trade war continues to impact customer sentiment regarding the overall economy. That, coupled with the usual holiday slowdown and customers trying to manage year-end inventory levels, leads us to expect a slower than anticipated November and December. However, we believe our business will bounce back positively in January and continue at a good level for the balance of the fiscal year. While that's good news, the continuing overall volatility could change those forecasts quickly. Helping the positive trend from January forward are several new programs and customers that will be starting up right after the first of the year. We are looking forward to that new business coming to fruition.
Financial tables to follow…
For Further Information Contact:
SigmaTron International, Inc.
Linda K. Frauendorfer
1-800-700-9095
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