Sigmatron International Inc - SGMA STOCK NEWS

On March 23, 2023, SigmaTron International received a notification from Nasdaq indicating non-compliance with listing requirements due to the late filing of its Form 10-Q for the quarter ending January 31, 2023. This delay is attributed to necessary impairment assessments related to its Pet Tech subsidiary, Wagz, Inc., alongside ongoing negotiations with J.P. Morgan Chase Bank and TCW Asset Management for loan covenant defaults. SigmaTron must submit a compliance plan by May 22, 2023; if accepted, Nasdaq may grant an extension to regain compliance until September 13, 2023.

SigmaTron International, Inc. (NASDAQ: SGMA) has appointed John P. Sheehan as President of EMS Operations effective January 4, 2023. With a long tenure at the company since 1986, Sheehan has substantial experience in supply chain management and customer relations. His promotion comes amidst ongoing supply chain challenges during the pandemic. CEO Gary Fairhead expressed confidence in Sheehan's capability to drive growth and value creation for stakeholders. SigmaTron operates in electronic manufacturing services and pet technology, with facilities in the U.S., Mexico, China, and Vietnam.

SigmaTron International (NASDAQ: SGMA) reported a revenue increase of $8.5 million, or 8%, reaching $108.7 million for Q2 FY2023, despite a net income decline to $871,872 compared to $3.15 million in the prior year. For the first half of FY2023, revenues rose 11.5% to $214.2 million, while net income plummeted to $2.25 million from $11.95 million the previous year. CEO Gary R. Fairhead noted strong EMS backlog but acknowledged challenges from supply chain volatility and a slowing macro economy. Wagz, their Pet Tech division, faces short-term losses but potential long-term growth.

SigmaTron International, Inc. (NASDAQ: SGMA) reported a 23% revenue increase for Q1 fiscal 2023, totaling $105.5 million, up from $85.7 million a year prior. However, net income sharply declined to $1.4 million from $8.8 million, which included a one-time PPP loan forgiveness in the previous year. The company faces ongoing supply chain challenges impacting cash flow and manufacturing efficiency. Despite setbacks, the EMS segment backlog remains strong, and optimism is noted for the pet tech segment, including the Freedom Smart Dog Collar™, amidst expected losses.

SigmaTron International, Inc. (NASDAQ: SGMA) announced the resignation of President James E. Barnes, effective August 12, 2022, to pursue another business opportunity. His departure is unrelated to the company's operations. In the interim, CEO Gary R. Fairhead will assume Mr. Barnes' responsibilities while the company searches for a replacement. SigmaTron provides electronic manufacturing services and operates multiple facilities in the U.S., Mexico, China, and Vietnam, positioning itself strategically in the electronics sector.

SigmaTron International, Inc. (NASDAQ: SGMA) reported strong financial results for fiscal 2022, achieving revenues of $378.9 million, a 36% increase from fiscal 2021. Net income rose to $9.9 million, compared to $1.5 million the previous year. However, net income for Q4 was $0.6 million, down from $1.6 million year over year. The company faced challenges due to supply chain volatility and pandemic disruptions, yet anticipates growth with record backlogs and new customer opportunities. SigmaTron secured $40 million in subordinated debt to support inventory and operational growth.

SigmaTron International, Inc. (SGMA) has amended its credit agreement with JPMorgan Chase, extending its duration to July 18, 2027, and boosting its revolving credit line to $70 million. Additionally, it secured a new 5-year term loan of $40 million from TCW Asset Management for working capital, addressing supply chain challenges and fostering growth in its electronic manufacturing services and Wagz, Inc. pet technology segments. CEO Gary Fairhead expressed optimism about future opportunities, emphasizing the support from both financial institutions.

SigmaTron International reported a revenue increase of 31% to $93.7 million for the third quarter of fiscal 2022, compared to $71.5 million in the same quarter last year. However, the company faced a net loss of $2.7 million, largely attributed to a non-cash impairment charge of $6.3 million related to its acquisition of Wagz, Inc. For the nine months ended January 31, 2022, revenues rose 39% to $279.6 million, with a net income of $9.2 million.

Despite ongoing challenges in the supply chain and geopolitical tensions, SigmaTron remains optimistic about future growth opportunities.

On January 3, 2022, SigmaTron International (NASDAQ: SGMA) announced the successful closure of its merger with Wagz, Inc., effective December 31, 2021. Wagz will operate as a wholly-owned subsidiary under SigmaTron, with its shareholders receiving 1,546,592 newly issued shares of SigmaTron common stock. Both companies aim to leverage their synergies in design, manufacturing, and distribution to capitalize on the growing Pet Tech market. The combined advantages are expected to enhance overall margins and market competitiveness.