SigmaTron International, Inc. (SGMA): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the behind-the-scenes players that power the electronics we use every day? What about SigmaTron International, Inc. (SGMA), an electronic manufacturing services (EMS) provider, that has been around since 1993? With fiscal year 2024 revenues of $374 million, let's dive into the history, ownership structure, mission, and operational strategies that define this company and explore how it navigates the complexities of the global electronics market.

SigmaTron International, Inc. (SGMA) History

SigmaTron International, Inc. Founding Timeline

Year established

SigmaTron International, Inc. was established in 1994.

Original location

The company's original location was in Elk Grove Village, Illinois.

Founding team members

The founding team members included:

• Bharat S. Sangani, who served as Chairman, President, and Chief Executive Officer.

Initial capital/funding

Information regarding the specific initial capital or funding is not readily available in the provided search results.

SigmaTron International, Inc. Evolution Milestones

SigmaTron International, Inc. Transformative Moments

• Strategic Acquisitions: The acquisition of Wagstaff Applied Technologies in 2005 significantly broadened SigmaTron's service offerings to include precision machining, complementing its core EMS business.
• Global Expansion Initiatives: Establishing manufacturing facilities in Mexico, China, and Vietnam allowed SigmaTron to tap into cost-effective production capabilities and serve a geographically diverse customer base.
• Leadership Transition: In February 2024, James Barnes was appointed as the new CEO, succeeding Bharat S. Sangani, who transitioned to the role of Executive Chairman. This marked a significant leadership change aimed at steering the company through its next phase of growth.
• Executive Compensation Adjustments: Recent adjustments to executive compensation, including base salaries and potential bonus payouts, reflect the company's focus on incentivizing leadership to achieve specific financial and operational targets. For instance, the named executive officers' compensation includes base salaries, bonus opportunities, and stock options, aligning their interests with shareholder value.
• Operational Adaptations During Economic Fluctuations: SigmaTron has navigated various economic cycles by adjusting its operational strategies, including supply chain management and inventory control, to maintain profitability and competitiveness.

To gain deeper insights into the company's financial stability, consider exploring this resource: Breaking Down SigmaTron International, Inc. (SGMA) Financial Health: Key Insights for Investors

SigmaTron International, Inc. (SGMA) Ownership Structure

SigmaTron International, Inc. exhibits a mixed ownership structure, featuring a combination of public shareholders, institutional investors, and company insiders.

SigmaTron International, Inc.'s Current Status

SigmaTron International, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange.

SigmaTron International, Inc.'s Ownership Breakdown

The ownership of SigmaTron International, Inc. is distributed among various shareholders, including institutional investors, individual shareholders, and potentially company insiders. The following table provides an overview of the ownership breakdown:

SigmaTron International, Inc.'s Leadership

The leadership team of SigmaTron International, Inc. is responsible for the strategic direction and operational management of the company. Key members of the leadership team include:

• Gary R. Fairhead: Chairman of the Board and Chief Executive Officer
• James A. Barnes: Chief Financial Officer, Treasurer and Secretary

These individuals hold key positions within the company and play a crucial role in guiding SigmaTron International, Inc.'s strategy and operations. For more detailed insights into SigmaTron International, Inc.'s investor profile, consider exploring this resource: Exploring SigmaTron International, Inc. (SGMA) Investor Profile: Who’s Buying and Why?

SigmaTron International, Inc. (SGMA) Mission and Values

SigmaTron International aims to provide agile manufacturing solutions, while also upholding values like integrity and customer satisfaction.

SigmaTron International, Inc.'s Core Purpose

Official mission statement

SigmaTron International, Inc. does not have a single, universally publicized official mission statement. However, the company's core focus is providing agile manufacturing solutions with global flexibility. This encompasses:

• Delivering comprehensive electronics manufacturing services.
• Offering flexibility and customization to meet diverse customer needs.
• Ensuring high-quality production and efficient supply chain management.

Vision statement

While a specific vision statement isn't formally published, SigmaTron International, Inc.'s vision can be inferred from their strategic goals and operational focus:

• To be a leading provider of electronics manufacturing services (EMS).
• To expand its global footprint and enhance its manufacturing capabilities.
• To foster long-term partnerships with customers through reliable and innovative solutions.

Company slogan/tagline

SigmaTron International, Inc. does not have a widely advertised official slogan or tagline. However, considering their service offerings, a fitting tagline might emphasize their core strengths:

• Agile Manufacturing Solutions.
• Your Global Manufacturing Partner.
• Excellence in Electronics Manufacturing.

To learn more about SigmaTron's investors, check out this insightful piece: Exploring SigmaTron International, Inc. (SGMA) Investor Profile: Who’s Buying and Why?

SigmaTron International, Inc. (SGMA) How It Works

SigmaTron International, Inc. operates as an electronic manufacturing services (EMS) provider, offering a range of services from printed circuit board assembly to full systems integration. They primarily serve industries requiring high-reliability manufacturing, such as medical, defense, and aerospace.

SigmaTron International's Product/Service Portfolio

SigmaTron International's Operational Framework

SigmaTron International focuses on providing customized manufacturing solutions to its customers. Their operational framework includes:

• Customer Engagement: Working closely with customers from the design phase through manufacturing and delivery to ensure alignment with their specific requirements.
• Manufacturing Facilities: Operating multiple manufacturing facilities located strategically to serve different customer needs, including facilities in North America and Asia.
• Quality Control: Implementing rigorous quality control processes throughout the manufacturing process, adhering to industry standards such as ISO 9001 and AS9100.
• Technology Adoption: Investing in advanced manufacturing technologies to enhance efficiency, accuracy, and reliability.
• Supply Chain Optimization: Managing a global supply chain to source components efficiently and mitigate risks.

More insights about the company can be found here: Mission Statement, Vision, & Core Values of SigmaTron International, Inc. (SGMA).

SigmaTron International's Strategic Advantages

SigmaTron International's success in the EMS market is driven by several strategic advantages:

• Focus on High-Reliability Industries: Specializing in industries with stringent quality and reliability requirements, such as medical, aerospace, and defense.
• Customized Solutions: Offering tailored manufacturing solutions to meet the unique needs of each customer.
• Global Footprint: Maintaining a global presence with manufacturing facilities in different regions, enabling them to serve customers worldwide efficiently.
• Strong Customer Relationships: Building long-term relationships with customers based on trust, reliability, and responsiveness.
• Comprehensive Service Offering: Providing a full suite of services from design and engineering support to manufacturing, testing, and supply chain management.

SigmaTron International, Inc. (SGMA) How It Makes Money

SigmaTron International, Inc. primarily generates revenue by providing electronic manufacturing services (EMS). This includes printed circuit board assembly, manufacturing, and other electronic manufacturing services.

SigmaTron International, Inc.'s Revenue Breakdown

As of the latest available data from the 2024 fiscal year, here is a breakdown of SigmaTron International, Inc.'s revenue streams:

SigmaTron International, Inc.'s Business Economics

SigmaTron International, Inc.'s business economics are shaped by several key factors:

• Pricing Strategy: The company employs a cost-plus pricing strategy, marking up manufacturing costs to ensure profitability.
• Economic Fundamentals: Demand for electronic manufacturing services is closely tied to the broader electronics industry and global economic conditions. Economic upturns typically drive higher demand, while downturns can reduce manufacturing volumes.
• Supply Chain Management: Effective management of the supply chain is crucial, as component shortages or price fluctuations can significantly impact production costs and timelines.

More insights about the company can be found here: Mission Statement, Vision, & Core Values of SigmaTron International, Inc. (SGMA).

SigmaTron International, Inc.'s Financial Performance

Key aspects of SigmaTron International, Inc.'s financial performance include:

• Revenue Growth: In the third quarter of fiscal year 2024, SigmaTron International, Inc. reported net sales of $93.8 million, compared to $88.4 million in the same quarter of the previous year, representing an increase of 6.1%.
• Gross Margin: The gross margin for the third quarter of fiscal year 2024 was 9.8%, compared to 8.4% for the same quarter last year.
• Net Income: The company reported net income of $1.4 million for the third quarter of fiscal year 2024, compared to a net loss of $0.4 million for the same quarter last year.
• Operating Expenses: Operating expenses for the third quarter of fiscal year 2024 were $7.7 million, compared to $7.5 million for the same quarter last year.

These metrics reflect SigmaTron International, Inc.'s ability to increase sales and improve profitability through efficient operations and effective cost management.

SigmaTron International, Inc. (SGMA) Market Position & Future Outlook

SigmaTron International is strategically positioned to leverage its manufacturing capabilities and global footprint to pursue growth opportunities, while also navigating a complex and competitive landscape.

Competitive Landscape

Opportunities & Challenges

Industry Position

SigmaTron International operates within the highly competitive Electronic Manufacturing Services (EMS) industry. Key aspects of their industry standing include:

• Focus on small to medium-sized customers, providing customized solutions that larger EMS providers may overlook.
• Emphasis on serving industries with stringent regulatory requirements, such as medical, aerospace, and defense.
• Commitment to maintaining high quality standards and certifications to meet the specific needs of their target markets.

For more insights into SigmaTron International, Inc.'s core values, read Mission Statement, Vision, & Core Values of SigmaTron International, Inc. (SGMA).