SGMA reports a surprise profit for Q1, EPS of $0.09 .... glad I covered my short ahead of the report.
ELK GROVE VILLAGE, Ill., Sept. 11, 2019 (GLOBE NEWSWIRE) -- SigmaTron International, Inc. (NASDAQ: SGMA), an electronic manufacturing services company, today reported revenues and earnings for the fiscal quarter ended July 31, 2019.
Revenues increased to $74.0 million in the first quarter of fiscal 2020 from $71.4 million for the same quarter in the prior year. Net income increased to $361,025 for the quarter ended July 31, 2019 compared to a net loss of $526,607 for the same period in the prior year. Basic and diluted earnings per share for the quarter ended July 31, 2019, were each $0.09, compared to basic and diluted loss per share of $0.12 each for the same quarter ended July 31, 2018.
Commenting on SigmaTron’s first quarter fiscal 2020 results, Gary R. Fairhead, President, Chief Executive Officer and Chairman of the Board, said, “I’m pleased to report profitable results for our first quarter of fiscal 2020. This follows our profitable fourth quarter of fiscal 2019 and is another indication that 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 that conditions can change quickly and currently are difficult to forecast.”