SigmaTron International, Inc. Reports Year End Financial Results for Fiscal Year 2013

SigmaTron International, Inc. Reports Year End Financial Results for Fiscal
Year 2013

ELK GROVE VILLAGE, Ill., July 23, 2013 (GLOBE NEWSWIRE) -- SigmaTron
International, Inc. (Nasdaq:SGMA), an electronic manufacturing services
company, today reported revenues and earnings for the fiscal year ended April
30, 2013. Revenues increased 26.7% to $198.4 million in fiscal year 2013 from
$156.6 million in the prior fiscal year. Net income decreased to $492,961 in
fiscal year 2013 compared to $1,134,324 in fiscal year 2012. Basic and diluted
earnings per share for the fiscal year ended April 30, 2013 were $0.13 and
$0.12, respectively compared to $0.29 in fiscal year 2012.

For the fourth quarter of fiscal year 2013, revenues increased to $51.3
million compared to $39.7 million for the same quarter in the prior fiscal
year. Basic and diluted earnings per share for the fiscal year 2013 fourth
quarter were each $0.08 compared to basic and diluted earnings per share of
$0.17 for the same period of fiscal year 2012.

Commenting on SigmaTron's results, Gary R. Fairhead, President & Chief
Executive Officer, said, "SigmaTron's fourth quarter was similar to last
year's fourth quarter in that it was the strongest quarter for pre-tax profits
for the fiscal year. We posted pre-tax profits of $934,747, which on a pre-tax
basis was greater than our pre-tax profits for the entire fiscal year. I am
hopeful that the fourth quarter bodes well for fiscal 2014, but short term we
continue to see volatility and choppiness so the signs remain mixed.

"When comparing fiscal year 2013 to fiscal year 2012, we have another year
where the results are disappointing in comparison to the prior year. However,
there were non-recurring expenses incurred early in fiscal year 2013 related
to the Spitfire Controls acquisition and the relocation of our Tijuana plant
that negatively impacted our overall results. Also negatively impacting our
fiscal year 2013 results was a negative $500,000 swing from fiscal year 2012
related to foreign currency adjustments. The United States had a stated policy
of trying to weaken the U.S. dollar during this period of time and that
success negatively affected our results. With all that said, we still see
continuing margin pressure and a spotty economy that will continue to impact
our performance.

"However, not all is negative and there are reasons to be cautiously
optimistic going forward. We continue to land new customers and new programs
with existing customers. Some are not launching or transitioning as quickly as
initially indicated by our customers but we believe that they will eventually
add to our revenues and bottom line. The integration of Spitfire Controls is
proceeding on plan and we have started to add to our menu of services that we
can offer customers. In May 2013, we acquired a building in Elgin, Illinois
and in June 2013, we relocated the Spitfire operations into the Elgin
building. The new building will reduce our overhead costs and we believe that
having our Spitfire team in one location will be a significant benefit to the
operation. While the engineering experience of Spitfire Controls has
historically focused on appliance controls, it will seek to expand to new
markets. Spitfire Controls also will work synergistically with SigmaTron to
develop new customers and support existing customers.

"Earlier this year the hope was that a sustained recovery of the economy would
be seen the second half of calendar 2013. If that happens, SigmaTron should be
in an excellent position to benefit from that recovery. Until that happens, we
will continue to carefully manage our costs while still investing for the
future growth that we believe will eventually come. In closing, I want to
thank everyone that has continued to support our plans and efforts, which
includes our customers, supply chain, our bank, Wells Fargo Bank, N.A., our
employees and our Board of Directors."

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, China, and Ho Chi Minh City, Vietnam. SigmaTron International, Inc.
maintains engineering and materials sourcing offices in Elgin, 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 and goodwill 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, including conflict minerals; 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 Twelve Months Twelve Months
                        Ended        Ended        Ended         Ended
                        April 30,   April 30,   April 30,    April 30,
                        2013         2012         2013          2012
                                                             
Net sales                $51,322,342  $39,741,827  $198,439,534  $156,635,984
                                                             
Cost of products sold    45,628,141   35,122,781   178,513,888   141,381,443
                                                             
Gross profit             5,694,201    4,619,046    19,925,646    15,254,541
                                                             
Selling and              4,632,670    3,544,550    18,358,354    12,611,673
administrative expenses
                                                             
Operating income         1,061,531    1,074,496    1,567,292     2,642,868
                                                             
Other expense            126,784      187,658      752,968       986,373
                                                             
Income from operations   934,747      886,838      814,324       1,656,495
before income tax
                                                             
Income tax expense       614,700      237,398      321,363       522,171
                                                             
Net income               $320,047     $649,440     $492,961      $1,134,324
                                                             
                                                             
Net income per common    $0.08        $0.17        $0.13         $0.29
share --basic
                                                             
Net income per common
share --assuming        $0.08        $0.17        $0.12         $0.29
dilution
                                                             
                                                             
Weighted average number
of common equivalent     4,027,881    3,909,572    4,003,887     3,906,279
shares outstanding -
assuming dilution
                                                             
                                                             
                                                             
CONDENSED CONSOLIDATED                                        
BALANCE SHEETS
                                                             
                        April 30,    April 30,                 
                        2013         2012                      
                                                             
Assets:                                                       
                                                             
Current assets           $78,939,507  $74,139,130               
                                                             
Machinery and            28,567,052   24,373,494                
equipment-net
                                                             
Intangibles              5,949,434    86,925                    
Goodwill                 3,222,899    --                      
Other assets             910,025      547,334                   
                                                             
Total assets             $117,588,917 $99,146,883               
                                                             
Liabilities and                                               
stockholders' equity:
                                                             
Current liabilities      $38,129,159  $24,566,962               
                                                             
Long-term obligations    27,476,027   23,558,850                
                                                             
Stockholders' equity     51,983,731   51,021,071                
                                                             
Total liabilities and    $117,588,917 $99,146,883               
stockholders' equity

CONTACT: SigmaTron International, Inc.
         Linda K. Frauendorfer
         1-800-700-9095
 
Press spacebar to pause and continue. Press esc to stop.