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SigmaTron International Inc. (SGMA+2.06%) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $74,719,360 from $98,691,684 in the same quarter the previous year. This decrease is attributed to reduced demand from customers in the industrial electronics, consumer electronics, and medical/life sciences markets.
Cost of products sold for the quarter was $67,815,156, representing 90.8% of net sales, compared to 90.2% in the same quarter of the previous year. The increase in cost ratio is due to lower sales volumes and higher labor costs.
The company reported a gross profit of $6,904,204 for the quarter, compared to $9,687,755 in the previous year, with the decline attributed to reduced sales volumes and increased costs.
Selling and administrative expenses decreased to $6,370,511 from $6,613,634, primarily due to a reduction in bonus expenses.
Net loss for the quarter was $9,466,669, compared to a net income of $28,262 in the previous year. The loss is attributed to lower sales, higher interest expenses, and changes in the fair value of warrants.
Cash provided by operating activities was $12,931,640, while cash used in investing and financing activities was $708,301 and $10,657,216, respectively.
SigmaTron had a working capital of $22,338,214 as of October 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including amendments to its credit agreements with JPMorgan Chase Bank and TCW Asset Management Company.
SigmaTron does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting related to revenue recognition.
SigmaTron continues to focus on reducing its debt and cost structure, including the execution of a sale/leaseback transaction for its Elk Grove Village, Illinois headquarters.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SigmaTron International Inc. quarterly 10-Q report dated December 20, 2024. To report an error, please email earnings@qz.com.