SigmaTron International, Inc. Regains Compliance with Nasdaq Listing Rule 5250(c)(1)

Rhea-AI Summary

SigmaTron International (NASDAQ: SGMA), an electronic manufacturing services company, has regained compliance with Nasdaq Listing Rule 5250(c)(1). The company received notice from Nasdaq on September 10, 2024, confirming its compliance after filing its Form 10-K for the annual period ended April 30, 2024, on September 3, 2024 (amended on September 6, 2024). This development resolves the previous non-compliance issue raised by Nasdaq on August 16, 2024, due to the delay in filing the Form 10-K. The timely resolution of this matter ensures SigmaTron's continued listing on the Nasdaq stock exchange.

Positive

• Regained compliance with Nasdaq Listing Rule 5250(c)(1)
• Timely resolution of non-compliance issue
• Continued listing on Nasdaq stock exchange assured

Negative

• None.

Insights

Financial Analyst

SigmaTron International's regained compliance with Nasdaq's listing rule is a positive development for the company. This action removes a significant regulatory overhang and reduces the risk of potential delisting, which could have severely impacted investor confidence and stock liquidity. The timely filing of the Form 10-K demonstrates improved financial reporting processes and corporate governance.

However, investors should note that while compliance has been restored, the initial delay in filing suggests potential internal control or accounting complexities. It's important to scrutinize the Form 10-K contents for any material weaknesses or restatements that might have caused the delay. Additionally, the market's reaction to this news may be muted if investors had already anticipated the compliance resolution.

Moving forward, maintaining timely filings will be critical for SigmaTron to avoid future compliance issues and preserve investor trust. The electronic manufacturing services sector faces challenges like supply chain disruptions and economic uncertainties, making transparent and timely financial reporting even more essential for investor assessment.

Legal Expert

SigmaTron's successful resolution of its Nasdaq compliance issue is legally significant. By filing the required Form 10-K, albeit late, the company has averted potential severe consequences such as delisting or trading suspension. This compliance restoration reinforces the company's commitment to meeting regulatory obligations and maintaining its Nasdaq listing status.

However, the initial non-compliance raises questions about the company's internal processes for financial reporting and regulatory adherence. Investors should be vigilant for any disclosed material weaknesses in internal controls over financial reporting within the filed Form 10-K. Such disclosures could indicate underlying issues that may require further remediation and monitoring.

From a governance perspective, the board and management should implement measures to prevent future filing delays. This may include strengthening financial reporting systems, enhancing internal controls and improving communication with auditors to ensure timely completion of financial statements and regulatory filings.

ELK GROVE VILLAGE, Ill., Sept. 11, 2024 (GLOBE NEWSWIRE) -- SigmaTron International, Inc. (NASDAQ: SGMA), an electronic manufacturing services company (the “Company”), announced today that on September 10, 2024, it received notice from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) indicating the Company has regained compliance with Nasdaq Listing Rule 5250(c)(1) by filing with the Securities and Exchange Commission (“SEC”) its Form 10-K for the annual period ended April 30, 2024, on September 3, 2024 (as amended on September 6, 2024, the “Form 10-K”).

As previously disclosed, on August 16, 2024, the Company received notice from Nasdaq indicating that, as a result of the Company’s delay in filing its Form 10-K, the Company was no longer in compliance with the timely filing requirements under Nasdaq Listing Rule 5250(c)(1). As a result of filing the Form 10-K, the Company has regained compliance with Nasdaq Listing Rule 5250(c)(1).

About SigmaTron International, Inc.

Headquartered in Elk Grove Village, Illinois, SigmaTron International, Inc. operates in one reportable segment as an independent provider of electronic manufacturing services (“EMS”). The EMS segment includes printed circuit board assemblies, electro-mechanical subassemblies and completely assembled (box-build) electronic products. The Company and its wholly-owned subsidiaries operate manufacturing facilities in Elk Grove Village, Illinois; Acuna, Chihuahua, and Tijuana Mexico; Union City, California; Suzhou, China; and Biên Hòa City, Vietnam. In addition, the Company maintains an International Procurement Office and Compliance and Sustainability Center in Taipei, Taiwan. The Company also provides design services in Elk Grove Village, Illinois, U.S.

For Further Information Contact:
SigmaTron International, Inc.
James J. Reiman
1-800-700-9095

FAQ

When did SigmaTron International (SGMA) regain compliance with Nasdaq Listing Rule 5250(c)(1)?

SigmaTron International (SGMA) regained compliance with Nasdaq Listing Rule 5250(c)(1) on September 10, 2024, as confirmed by a notice from the Nasdaq Listing Qualifications Department.

What caused SigmaTron International (SGMA) to be non-compliant with Nasdaq rules?

SigmaTron International (SGMA) was non-compliant due to a delay in filing its Form 10-K for the annual period ended April 30, 2024, which violated the timely filing requirements under Nasdaq Listing Rule 5250(c)(1).

How did SigmaTron International (SGMA) resolve its non-compliance issue with Nasdaq?

SigmaTron International (SGMA) resolved its non-compliance issue by filing its Form 10-K for the annual period ended April 30, 2024, on September 3, 2024, with an amendment on September 6, 2024.

What was the initial date SigmaTron International (SGMA) received notice of non-compliance from Nasdaq?

SigmaTron International (SGMA) initially received notice of non-compliance from Nasdaq on August 16, 2024.