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SigmaTron International Inc. (SGMA+6.54%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing a decrease in net sales to $71,067,863 from $95,919,888 in the same quarter the previous year. The decrease is attributed to reduced demand from customers in the consumer electronics, industrial electronics, and medical/life science markets.
Cost of products sold for the quarter was $65,514,800, representing 92.2% of sales, compared to 89.7% in the same quarter of the previous year. This increase in cost ratio is due to lower sales volumes and inefficient labor costs.
The company reported a gross profit of $5,553,063 for the quarter, compared to $9,926,960 in the previous year, with the decline attributed to reduced sales volumes.
A gain of $7,175,191 was recorded from a sale/leaseback transaction related to the Elk Grove Village, Illinois headquarters.
Selling and administrative expenses decreased to $6,378,141 from $6,683,488, primarily due to reduced bonus expenses.
Net income for the quarter was $3,883,611, up from $599,006 in the previous year. The increase is primarily due to the gain from the sale/leaseback transaction.
Cash provided by operating activities was $13,714,684, while cash provided by investing activities was $7,359,036, primarily from the sale/leaseback transaction.
SigmaTron had a working capital of $27,841,886 as of January 31, 2025. 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 credit agreements with JPMorgan Chase Bank and TCW Asset Management Company.
SigmaTron continues to focus on reducing its debt and cost structure, including exploring strategic initiatives and refinancing options.
The company identified a material weakness in its internal controls over financial reporting related to the application of appropriate accounting principles over non-standard revenue transactions.
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 March 14, 2025. To report an error, please email earnings@qz.com.