SigmaTron International, Inc. Reports Second Quarter Financial Results for Fiscal 2014

SigmaTron International, Inc. Reports Second Quarter Financial Results for
Fiscal 2014

ELK GROVE VILLAGE, Ill., Dec. 12, 2013 (GLOBE NEWSWIRE) -- SigmaTron
International, Inc. (Nasdaq:SGMA), an electronic manufacturing services
company, today reported revenues and earnings for the second quarter ended
October 31, 2013.

Revenues increased to $56.6 million for the second quarter of fiscal 2014 from
$52.7 million for the same quarter in the prior year. Net income increased to
$784,654 in the second fiscal quarter compared to $482,834 for the same period
in the prior year. Basic and diluted earnings per share were $0.20 and $0.19
respectively, for the quarter ended October 31, 2013, compared to basic and
diluted earnings per share of $0.12 for the same quarter in fiscal 2013.

For the six months ended October 31, 2013, revenues increased to $112.7
million compared to $100.4 million for the same period ended October 31, 2012.
Net income for the period ended October 31, 2013 was $1,752,121, compared to
$389,690 for the same period in the prior year. Basic and diluted earnings per
share for the six months ended October 31, 2013, were $0.44 and $0.43,
respectively, compared to basic and diluted earnings per share of $0.10 for
the six months ended October 31, 2012.

Commenting on SigmaTron's second quarter fiscal 2014 results, Gary R.
Fairhead, President, Chief Executive Officer and Chairman of the Board, said,
"I am pleased to report that SigmaTron followed up its excellent first quarter
results with a strong second quarter. Furthermore, the results for the second
quarter include expenses of $300,410 related to the Tender Offer filed with
the SEC on October 1, 2013. The comparison of this second quarter to last
year's second quarter is favorable in terms of revenue and earnings and
halfway through fiscal 2014, we have some nice momentum.

"As mentioned in our first quarter press release, we are continuing to see the
benefits in terms of revenue and scale from several new customers and new
programs that had previously been delayed. We are hopeful that the momentum
will continue and we have several new opportunities that we believe will help
set the stage for fiscal 2015 if our customers' products meet their
expectations. We are looking at modest expansions at several of our offshore
facilities during the second half of this fiscal year, which is also a good
sign.

"With that said, the economy remains volatile, the cost of doing business is
increasing, especially in the United States and long term planning remains
difficult.Short term there could be swings in demand as customers try to
manage their inventory for calendar year end. Pricing pressures also continue
from both customers and suppliers and we plan to continue to manage our
expenses conservatively. However, we are continuing to leverage the assets
that came to us with the Spitfire acquisition and we believe we continue to be
well positioned to handle the challenges that we face."

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 Six Months   Six Months
                          Ended        Ended        Ended        Ended
                          October 31, October 31, October 31, October 31,
                          2013         2012         2013         2012
                                                              
Net sales                  $56,577,287  $52,729,395  $112,743,348 $100,358,624
                                                              
Cost of products sold      50,581,151   47,326,225   100,458,804  90,249,556
                                                              
Gross profit               5,996,136    5,403,170    12,284,544   10,109,068
                                                              
Selling and administrative 4,839,754    4,679,755    9,695,312    9,345,160
expenses
                                                              
Operating income          1,156,382    723,415      2,589,232    763,908
                                                              
Other expense             206,571      216,870      399,081      405,207
                                                              
Income (loss) from
operations before income   949,811      506,545      2,190,151    358,701
tax
                                                              
Income tax expense         165,157      23,711       438,030      (30,989)
(benefit)
                                                              
Net income (loss)          $784,654     $482,834     $1,752,121   $389,690
                                                              
                                                              
Net income (loss) per      $0.20        $0.12        $0.44        $0.10
common share --basic
                                                              
Net income (loss) per
common share --assuming   $0.19        $0.12        $0.43        $0.10
dilution
                                                              
                                                              
Weighted average number of
common equivalentshares   4,037,627    4,002,264    4,028,681    3,989,180
outstanding - assuming
dilution
                                                              
                                                              
                                                              
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                              
                          October 31, April 30,                
                          2013         2013                     
                                                              
Assets:                                                        
                                                              
Current assets             $78,324,313  $78,939,507              
                                                              
Machinery and              32,523,164   28,567,052               
equipment-net
                                                              
Intangibles                5,775,710    5,949,434                
Goodwill                   3,222,899   3,222,899               
Other assets               758,907      910,025                  
                                                              
Total assets               $120,604,993 $117,588,917             
                                                              
Liabilities and                                                
stockholders' equity:
                                                              
Current liabilities        $35,074,679  $38,129,159              
                                                              
Long-term obligations      31,731,627   27,476,027               
                                                              
Stockholders' equity       53,798,687   51,983,731               
                                                              
Total liabilities and      $120,604,993 $117,588,917             
stockholders' equity

CONTACT: For Further Information Contact:
         SigmaTron International, Inc.
         Linda K. Frauendorfer
         1-800-700-9095
 
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