SigmaTron International, Inc. Reports Third Quarter Financial Results for Fiscal 2013

SigmaTron International, Inc. Reports Third Quarter Financial Results for
Fiscal 2013

ELK GROVE VILLAGE, Ill., March 13, 2013 (GLOBE NEWSWIRE) -- SigmaTron
International, Inc. (Nasdaq:SGMA), an electronic manufacturing services
company, today reported revenues and earnings for the third quarter ended
January 31, 2013.

Revenues increased to $46.8 million for the third fiscal quarter 2013 from
$38.1 million for the same quarter in the prior year. Net income decreased to
a net loss of $216,776 in the third fiscal quarter 2013 compared to net income
of $85,656 for the same quarter in the prior year. Basic and diluted loss per
share were both $0.06 for the quarter ended January 31, 2013, compared to
basic and diluted earnings per share of $0.02 for the same quarter in fiscal
2012.

For the nine months ended January 31, 2013, revenues increased to $147.1
million compared to $116.9 million for the same period ended January 31, 2012.
Net income for the same period in fiscal 2013 was $172,914, compared to
$484,884 for the same period in the prior year. Basic and diluted earnings per
share for the nine months ended January 31, 2013, were both $0.04 compared to
$0.13 for the nine months ended January 31, 2012.

Commenting on SigmaTron's third quarter and nine month results, Gary R.
Fairhead, President and Chief Executive Officer, said, "SigmaTron's financial
results for the third quarter are disappointing and a direct reflection of
what we perceive as a slowing economy. Revenue of $46.8 million for the third
quarter of fiscal 2013 is an 11.2% drop from revenue of $52.7 for our second
fiscal quarter ended October 31, 2012. As has been widely reported, the growth
rate of the U.S. economy slowed dramatically during the fourth quarter of
calendar year 2012 and our revenue reflects the slowdown. Customers were
cautious regarding inventory levels for calendar year-end, which coupled with
the slowing economy and fiscal cliff drama, led to the sharply reduced revenue
and resultant loss.

"During the quarter and going forward, we did not lose any customers or
specific programs. Orders were either pushed out or reduced and unfortunately
we anticipate that reduced demand will continue short-term. However, on a
positive note, we have been awarded new programs from current customers that
are finally launching at four of our five offshore locations, and new
customers have been landed at most locations. The new customers are not
anticipated to impact our fourth quarter of fiscal 2013 significantly, but
should help us battle what we anticipate to be a stagnant U.S. economy during
fiscal 2014.

"Overall our market remains difficult, with margin pressures ever-present and
excess capacity overall. In spite of that, we are excited about the new
opportunities that are launching short-term and believe that our anticipated
increased revenue will improve our position going forward."

Headquartered in Elk Grove Village, IL, SigmaTron International, Inc. is an
electronic manufacturing services company that provides printed circuit board
assemblies and completely assembled electronic products. SigmaTron
International, Inc. operates manufacturing facilities in Elk Grove Village,
Illinois; Acuna, Chihuahua, and Tijuana, Mexico; Union City, California;
Suzhou-Wujiang, China, and Ho Chi Minh City, Vietnam. SigmaTron International,
Inc. maintains engineering and materials sourcing offices in Carpentersville,
Illinois and Taipei, Taiwan.

Note: This press release contains forward-looking statements. Words such as
"continue," "anticipate," "will," "expect," "believe," "plan," and similar
expressions identify forward-looking statements. These forward-looking
statements are based on the current expectations of the Company. Because these
forward-looking statements involve risks and uncertainties, the Company's
plans, actions and actual results could differ materially. Such statements
should be evaluated in the context of the risks and uncertainties inherent in
the Company's business including, but not necessarily limited to, the
Company's continued dependence on certain significant customers; the continued
market acceptance of products and services offered by the Company and its
customers; pricing pressures from our customers, suppliers and the market; the
activities of competitors, some of which may have greater financial or other
resources than the Company; the variability of our operating results; the
results of long-lived assets impairment testing; the variability of our
customers' requirements; the availability and cost of necessary components and
materials; the ability of the Company and our customers to keep current with
technological changes within our industries; regulatory compliance; the
continued availability and sufficiency of our credit arrangements; changes in
U.S., Mexican, Chinese, Vietnamese or Taiwanese regulations affecting the
Company's business; the turmoil in the global economy and financial markets;
the stability of the U.S., Mexican, Chinese, Vietnamese and Taiwanese
economic, labor and political systems and conditions; currency exchange
fluctuations; and the ability of the Company to manage its growth, including
its integration of the Spitfire operation acquired in May 2012. These and
other factors which may affect the Company's future business and results of
operations are identified throughout the Company's Annual Report on Form 10-K
and as risk factors and may be detailed from time to time in the Company's
filings with the Securities and Exchange Commission. These statements speak as
of the date of such filings, and the Company undertakes no obligation to
update such statements in light of future events or otherwise unless otherwise
required by law.

                        Financial tables to follow...

                                                              
                                                              
CONDENSED CONSOLIDATED STATEMENTS OF                            
INCOME
                                                              
                                                              
                          Three Months Three Months Nine Months  Nine Months
                          Ended        Ended        Ended        Ended
                          January 31, January 31, January 31, January 31,
                          2013         2012         2013         2012
                                                              
Net sales                  $46,758,568  $38,099,493  $147,117,192 $116,894,157
                                                              
Cost of products sold      42,636,191   34,577,913   132,885,747  106,258,662
                                                              
Gross profit               4,122,377    3,521,580    14,231,445   10,635,495
                                                              
Selling and administrative 4,380,524    3,125,677    13,725,684   9,067,123
expenses
                                                              
Operating (loss) income   (258,147)    395,903      505,761      1,568,372
                                                              
Other expense             220,977      259,861      626,184      798,715
                                                              
(Loss) income from
operations before income   (479,124)    136,042      (120,423)    769,657
tax
                                                              
Income tax (benefit)       (262,348)    50,386       (293,337)    284,773
expense
                                                              
Net (loss) income         ($216,776)   $85,656      $172,914     $484,884
                                                              
                                                              
Net (loss) income per      ($0.06)      $0.02        $0.04        $0.13
common share --basic
                                                              
Net (loss) income per
common share --assuming   ($0.06)      $0.02        $0.04        $0.13
dilution
                                                              
                                                              
Weighted average number of
common equivalent shares   3,930,402    3,895,111    3,995,678    3,890,590
outstanding - assuming
dilution
                                                              
                                                              
                                                              
CONDENSED CONSOLIDATED                                         
BALANCE SHEETS
                                                              
                          January 31,  April 30,                
                          2013         2012                     
                                                              
Assets:                                                        
                                                              
Current assets             $73,941,573  $74,139,130              
                                                              
Machinery and              27,302,052   24,373,494               
equipment-net
                                                              
Intangibles                6,022,472    86,925                   
Goodwill                   3,611,960    --                     
Other assets               847,883      547,334                  
                                                              
Total assets               $111,725,940 $99,146,883              
                                                              
Liabilities and                                                
stockholders' equity:
                                                              
Current liabilities        $29,582,730  $24,566,962              
                                                              
Long-term obligations      30,562,447   23,558,850               
                                                              
Stockholders' equity       51,580,763   51,021,071               
                                                              
Total liabilities and      $111,725,940 $99,146,883              
stockholders' equity

CONTACT: SigmaTron International, Inc.
         Linda K. Frauendorfer
         1-800-700-9095
 
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