SigmaTron International, Inc. (SGMA) swung to a net loss for the quarter ended Jan. 31, 2017. The company has made a net loss of $0.05 million, or $ 0.01 a share in the quarter, against a net profit of $0.22 million, or $0.05 a share in the last year period.
Revenue during the quarter grew 4.54 percent to $61.90 million from $59.21 million in the previous year period. Gross margin for the quarter contracted 89 basis points over the previous year period to 8.76 percent. Total expenses were 99.46 percent of quarterly revenues, up from 99.01 percent for the same period last year. That has resulted in a contraction of 45 basis points in operating margin to 0.54 percent.
Operating income for the quarter was $0.33 million, compared with $0.59 million in the previous year period.
Commenting on SigmaTron's third quarter fiscal 2017 results, Gary R. Fairhead, president and chief executive officer, and chairman of the Board, said, "As stated in our second quarter press release we had concern that we may have a loss in the third quarter. However, I'm pleased to report that the post-election activity with some of our customers was positive allowing revenue to grow modestly and allowing us to post a small pre-tax profit."
Working capital remains almost stable
Working capital of SigmaTron International, Inc. remained almost stable for the quarter at $50.07 million, when compared with the previous year period. Current ratio was at 2.08 as on Jan. 31, 2017, up from 2.04 on Jan. 31, 2016. Days sales outstanding went down to 17 days for the quarter compared with 35 days for the same period last year.
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