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

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

ELK GROVE VILLAGE, Ill., March 12, 2014 (GLOBE NEWSWIRE) -- SigmaTron
International, Inc. (Nasdaq:SGMA), an electronic manufacturing services
company, today reported revenues and earnings for the third quarter ended
January 31, 2014.

Revenues increased to $54.2 million for the third quarter of fiscal 2014 from
$46.8 million for the same quarter in the prior year. Net income increased to
$743,794 in the third fiscal quarter compared to a loss of $216,776 for the
same period in the prior year. Basic and diluted earnings per share were $0.19
and $0.18 respectively, for the quarter ended January 31, 2014, compared to
basic and diluted loss per share of $0.06 for the same quarter in fiscal 2013.

For the nine months ended January 31, 2014, revenues increased to $166.9
million compared to $147.1 million for the same period ended January 31, 2013.
Net income for the period ended January 31, 2014 was $2,495,912 compared to
net income of $172,914 for the same period in the prior year. Basic and
diluted earnings per share for the nine months ended January 31, 2014, were
$0.63 and $0.62, respectively, compared to basic and diluted earnings per
share of 0.04 for the nine months ended January 31, 2013.

Commenting on SigmaTron's third quarter fiscal 2014 results, Gary R. Fairhead,
President, Chief Executive Officer and Chairman of the Board, said, "While
SigmaTron posted a positive diluted earnings per share for the third fiscal
quarter, we were disappointed with our overall results. The positive earnings
were entirely attributable to changes in deferred tax items as a result of new
legislation enacted in Mexico. My disappointment is reflected in the fact that
we posted a pre-tax loss of $130,182 for the third quarter.

"Our revenue for the third quarter was slightly less, 4.2% less, than the
prior quarter. The decline appears to be primarily attributable to an
adjustment by our customers of their production schedules related to year-end
inventory levels and, in some cases, softer sales, and secondarily
attributable to customary year-end calendar holidays and the Lunar New Year
holiday in Asia. The lower revenue resulted in a pre-tax operating loss for
the quarter.

"On a positive note, we continue to build our partnerships with our current
customers and have added several new customers that we believe will positively
impact fiscal 2015. Our modest expansion plans continue on-track and we
continue to build infrastructure to support future growth. Our Elk Grove
Village, Illinois plant achieved medical ISO 13485 certification during the
third quarter, which we believe will open up new opportunities and markets for
them.

"The pricing pressures tied to the nature of the economy continue. On a macro
level, Gross Domestic Product for the fourth quarter for the United States was
once again revised downward and numerous reports indicate the Chinese economy
is slowing. All signs are that the economy will continue to be volatile and
choppy for the short-term. However we believe we remain well positioned to
leverage our strengths as we pursue new opportunities and grow the Company. We
will also continue to manage the Company consistent with the economy we find
ourselves competing in."

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 Nine Months  Nine Months
                          Ended        Ended        Ended        Ended
                          January 31,  January 31,  January 31,  January 31,
                          2014         2013         2014         2013
                                                              
Net sales                  $54,175,196  $46,758,568  $166,918,544 $147,117,192
                                                              
Cost of products sold      49,357,816   42,636,191   149,816,620  132,885,747
                                                              
Gross profit               4,817,380    4,122,377    17,101,924   14,231,445
                                                              
Selling and administrative 4,725,540    4,380,524    14,420,852   13,725,684
expenses
                                                              
Operating income (loss)    91,840       (258,147)    2,681,072    505,761
                                                              
Other expense              222,022      220,977      621,104      626,184
                                                              
(Loss) Income from
operations before income   (130,182)    (479,124)    2,059,968    (120,423)
tax
                                                              
Income tax (benefit)       (873,976)    (262,348)    (435,944)    (293,337)
expense
                                                              
Net income (loss)          $743,794     ($216,776)   $2,495,912   $172,914
                                                              
                                                              
Net income (loss) per      $0.19        ($0.06)      $0.63        $0.04
common share -basic
                                                              
Net income (loss) per
common share -assuming    $0.18        ($0.06)      $0.62        $0.04
dilution
                                                              
                                                              
Weighted average number of
common equivalent shares   4,088,695    3,930,402    4,055,898    3,995,678
outstanding - assuming
dilution
                                                              
                                                              
                                                              
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                              
                          January 31,  April 30,                
                          2014         2013                     
                                                              
Assets:                                                        
                                                              
Current assets             $83,481,224  $78,939,507              
                                                              
Machinery and              32,792,293   28,567,052               
equipment-net
                                                              
Intangibles                5,689,232    5,949,434                
Goodwill                   3,222,899   3,222,899               
Other assets               783,171      910,025                  
                                                              
Total assets               $125,968,819 $117,588,917             
                                                              
Liabilities and                                                
stockholders' equity:
                                                              
Current liabilities        $36,783,638  $38,129,159              
                                                              
Long-term obligations      34,535,248   27,476,027               
                                                              
Stockholders' equity       54,649,933   51,983,731               
                                                              
Total liabilities and      $125,968,819 $117,588,917             
stockholders' equity

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