here's the report - looking good:
SOURCE: Sigma Circuits, Inc.
Sigma Circuits Reports Strong Revenue and Earnings for Fiscal 1998 Second Quarter
SANTA CLARA, Calif., Jan. 15 /PRNewswire/ -- Sigma Circuits, Inc. (Nasdaq: SIGA - news) today announced continued revenue and earnings growth for its fiscal 1998 second quarter and six-month period ended December 31, 1997.
For the second quarter, net sales increased 23.9 percent to $24.7 million from $19.9 million reported in the same quarter a year ago. All divisions contributed to the revenue increase. Sales from the combined rigid printed circuit board (PCB) and flexible circuit divisions to the merchant market increased 21.0 percent, while sales from the value-added Systems Integration division increased 35.5 percent over the same period a year ago. Primarily as a result of improving contributions from the Systems Integration division, gross profit grew to $5.1 million, or 20.6 percent of net sales, compared with gross profit of $3.5 million, or 17.8 percent of net sales, for the second quarter of fiscal 1997. Operating income rose 93.3 percent to approximately $2.0 million from $1.0 million for the same quarter last year.
Net income for the second quarter of fiscal 1998 improved to $960,000, or $.19 per diluted share, on 5.2 million equivalent shares outstanding, compared with net income of $273,000, or $.06 per diluted share, on 4.7 million equivalent shares outstanding for the same period a year ago.
For the six-month period ended December 31, 1997, net sales were up 22.7 percent to $47.5 million from $38.7 million for the comparable six-month period of fiscal 1997. All divisions contributed to the increase. The combined rigid PCB and flexible circuit sales to the merchant market increased 21.6 percent, while sales from the Systems Integration division were up 26.8 percent over the same period a year ago. Gross profit for the period increased to $9.6 million, or 20.2 percent of net sales, compared with gross profit of $5.9 million, or 15.1 percent of sales, for the same period last year. Operating income improved to $3.8 million for the first six months of fiscal 1998 from $1.2 million for the comparable period last year.
Net income for the six-month period increased to $1.8 million, or $.36 per diluted share, on 5.1 million equivalent shares outstanding. This compares with net income of $90,000, or $.02 per diluted share, on 4.5 million equivalent shares outstanding for the same period last year.
President and Chief Executive Officer B. Kevin Kelly commented, ''As we stated in previous quarters, we have been and continue to be focused on revenue growth, improvement in gross margin and earnings predictability. The current quarter results mark the sixth consecutive quarter of revenue growth and the third sequential quarter of gross margin and earnings improvement. In particular, we are pleased with the increased revenue and earnings generated by our Systems Integration division.''
Added Mr. Kelly, ''During the quarter, we completed the expansion of our Stockton PCB operations and are currently in the process of expanding our Santa Clara quick-turn PCB operation by approximately 26,000 square feet. The expansion will increase our quick-turn capacity and allow us to enhance our manufacturing capabilities as we support our customers' higher density interconnect requirements. The expansion should be completed by the end of the fiscal 1999 first quarter and will include the integration of our flexible circuit and rigid PCB manufacturing operations, enabling us to take advantage of these converging technologies.
''Finally, we are pleased to report that improved operating cash flow has allowed Sigma to continue reducing outstanding debt obligations during the quarter while, at the same time, increasing investment in capital equipment. We remain confident that the adjustments made to our sales and operations organizations early last year have been sound and bode well for prospects of future growth as we enter the new calendar year,'' concluded Mr. Kelly.
Sigma Circuits, Inc. is a leading quick-turn manufacturer of electronic interconnect products including multilayer printed circuit boards, backplane assemblies and flexible circuits. The Company focuses on the time-to-market and time-to-volume requirements of its OEM and contract manufacturing customers in the telecommunications, networking, computers, peripherals, instrumentation, medical, and semiconductor segments of the electronics industry. |
