SigmaTron reports financial results after Wagz merger

ELK GROVE VILLAGE - SigmaTron International Inc. reported revenues and earnings for its fiscal year third quarter, including a 31% increase in revenues.

Revenues increased $22.2 million, to a total of $93.7 million in the quarter ended Jan. 31, compared to $71.5 million for the same quarter in the prior year. Net loss for the third quarter was $2.7 million, which includes a $6.3 million noncash impairment charge related to the Wagz Inc. merger.

The company closed the merger agreement with Wagz, a maker of global satellite tracking dog collars, on Dec. 31. Prior to the closing of the transaction, SigmaTron had an initial investment in Wagz, along with promissory notes issued by Wagz, for a total of $12.6 million. As per the merger agreement all of these items converted to Wagz common stock just prior to the merger.

As per U.S. accounting guidance, the company's equity interest of Wagz common stock was remeasured to fair value of $6.3 million, resulting in the noncash impairment charge of $6.3 million.

"In spite of the uncertainty that continues in the electronic component marketplace, we remain excited, optimistic and enthusiastic going forward," said Gary R. Fairhead, chief executive officer and chairman of the board. "The company's operating performance continues to be the best in its history and we do not see any weakening in sight."