Sigmatron International (SGMA) has reported 97.12 percent plunge in profit for the quarter ended Oct. 31, 2016. The company has earned $0.03 million, or $0.01 a share in the quarter, compared with $1.16 million, or $0.27 a share for the same period last year.
Revenue during the quarter dropped 5.57 percent to $65.84 million from $69.72 million in the previous year period. Gross margin for the quarter contracted 254 basis points over the previous year period to 8.36 percent. Total expenses were 99.60 percent of quarterly revenues, up from 97.04 percent for the same period last year. That has resulted in a contraction of 256 basis points in operating margin to 0.40 percent.
Operating income for the quarter was $0.26 million, compared with $2.06 million in the previous year period.
Commenting on SigmaTron's second quarter fiscal 2017 results, Gary R. Fairhead, president, chief executive officer, and chairman of the Board, said, "I'm pleased to report that SigmaTron remained profitable for the second quarter of fiscal 2017 but overall the results remain disappointing. We did see a sequential increase in sales from the first quarter, but not the increase that we initially thought would occur. Sales were down over 5% from the same period last year and sales for the first six months of fiscal 2017 are down 6.8% from the same period in fiscal 2016. During this period, customers continued to require lower volumes than forecasted and orders continued to be modestly pushed out. As previously reported, this activity was generally across the board for all markets we serve and we believe it continues to reflect a sluggish domestic economy.
Working capital increases marginallySigmatron International has recorded an increase in the working capital over the last year. It stood at $51.82 million as at Oct. 31, 2016, up 2.85 percent or $1.44 million from $50.38 million on Oct. 31, 2015. Current ratio was at 2.10 as on Oct. 31, 2016, up from 2.03 on Oct. 31, 2015. Days sales outstanding went down to 15 days for the quarter compared with 29 days for the same period last year.
Debt moves upSigmatron International has witnessed an increase in total debt over the last one year. It stood at $33.76 million as on Oct. 31, 2016, up 13.91 percent or $4.12 million from $29.64 million on Oct. 31, 2015. Total debt was 23.89 percent of total assets as on Oct. 31, 2016, compared with 20.91 percent on Oct. 31, 2015. Debt to equity ratio was at 0.56 as on Oct. 31, 2016, up from 0.50 as on Oct. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
