INTERNATIONAL, INC.
ANNUAL REPORT 2023
SIGMATRON About the Company
For nearly three decades, SigmaTron International,
Inc. (SII) continues as an Electronic Manufacturing
Services (EMS) provider of printed circuit board
assemblies (PCBAs) and completely assembled
(box-build) electronic products to customers in
three diverse end-user markets: Industrial, Consumer
and Medical/Life Sciences. SII provides superior
EMS value from customized engineering to
component sourcing, manufacturing, test and
fulfillment. We offer differentiated services through
a global network of seven manufacturing facilities
in the United States, Mexico, China and Vietnam,
with a companywide International Procurement
Office (IPO) and Sustainability and Compliance
Center (SCC) in Taiwan.
OUR CONTINUING PROMISE: EMS EXCELLENCE
SigmaTron’s talented workforce has remained resolute, committed,
and reliable despite noteworthy economic, supply chain and
geopolitical challenges in FY23. We continued systems that
support our customers’ needs and pace that meet targets for their
end-market distribution. Throughout, we have remained steady
and irrepressible—netting a record of ever-expanding customer
programs with a formidable pipeline slated for FY24.
ANNUAL REPORT 2023INTERNATIONAL, INC. SIGMATRONCORPORATE OFFICESCORPORATE OFFICES SigmaTron International, Inc.SigmaTron International, Inc.2201 Landmeier Road 2201 Landmeier Road Elk Grove Village, IL 60007Elk Grove Village, IL 60007TelTel 847.956.8000847.956.8000FaxFax 847.956.9801847.956.9801 INVESTOR RELATIONSINVESTOR RELATIONS 800.700.9095800.700.9095www.sigmatronintl.comwww.sigmatronintl.comBOARD OF DIRECTORSGary R. Fairhead Chairman of the Board Chairman of the Board and Chief Executive Officer, and Chief Executive Officer, SigmaTron International, Inc. SigmaTron International, Inc. Linda K. Frauendorfer Independent ConsultantIndependent ConsultantBarry R. Horek** Retired Partner Retired Partner Ernst & Young LLP Ernst & Young LLP **In FY23, Mr. Horek served as a **In FY23, Mr. Horek served as a Director until September 16, 2022.Director until September 16, 2022.Bruce J. Mantia1,2,3 Retired Partner Retired Partner Ernst & Young LLP Ernst & Young LLP Paul J. Plante1,2 Director, Cardinal Vending Director, Cardinal Vending and Markets, LLCand Markets, LLCThomas W. Rieck1,3 Of Counsel, Rieck and Crotty, P.C. Of Counsel, Rieck and Crotty, P.C. Dilip S. Vyas 2,3,4 Independent Consultant Independent Consultant 1 Member of the Audit Committee Member of the Audit Committee 2 Member of the Compensation Committee Member of the Compensation Committee 3 Member of the Nominating Committee Member of the Nominating Committee 4 Lead Director Lead Director OFFICERSGary R. Fairhead* Chairman of the Board Chairman of the Board and Chief Executive Officer and Chief Executive Officer John P. Sheehan* PresidentPresidentJames J. Reiman*Chief Financial Officer, Vice President, Chief Financial Officer, Vice President, Finance, Treasurer and Secretary Finance, Treasurer and Secretary Gregory A. Fairhead* Executive Vice President Executive Vice President and Assistant Secretary and Assistant Secretary Dennis P. McNamara Vice President, Engineering Vice President, Engineering Michael L. Schillaci Vice President, Vice President, Information Technology Information Technology Keith D. Wheaton Vice President, Vice President, Business Development Business Development West Coast Operations West Coast Operations *Executive Officers *Executive Officers Daniel P. Camp* Vice President, Vice President, Acuña OperationsAcuña OperationsRajesh B. Upadhyaya* Executive Vice President, Executive Vice President, West Coast Operations West Coast Operations Hom-Ming Chang* Vice President, China Operations Vice President, China Operations Curtis W. Campbell Vice President of Sales, Vice President of Sales, West Coast Operations West Coast Operations CORPORATE INFORMATIONSEC Counsel Greenberg Traurig, LLP Greenberg Traurig, LLP 77 West Wacker Drive 77 West Wacker Drive Chicago, Illinois 60601 Chicago, Illinois 60601 Corporate Counsel Howard & Howard Howard & Howard Attorneys PLLC Attorneys PLLC 200 South Michigan Avenue 200 South Michigan Avenue Chicago, Illinois 60604Chicago, Illinois 60604Independent Public Accountants BDBDOO USA, LLP USA, LLP 330 North Wabash Avenue 330 North Wabash Avenue Chicago, Illinois 60611 Chicago, Illinois 60611 Form 10-K If you would like a free copy of If you would like a free copy of the Form 10-K report filed with the Form 10-K report filed with the Securities and Exchange the Securities and Exchange Commission, please call Commission, please call James J. Reiman at the James J. Reiman at the SigmaTron corporate office, SigmaTron corporate office, 1.800.700.9095. 1.800.700.9095. Stock Transfer Agent and Registrar American Stock Transfer American Stock Transfer & Trust Company, LLC & Trust Company, LLC 6201 15th Avenue 6201 15th Avenue Brooklyn, New York 11219 Brooklyn, New York 11219 Stock Information SigmaTron’s common stock SigmaTron’s common stock has been trading on the Nasdaq has been trading on the Nasdaq System under the symbol SGMA System under the symbol SGMA since the Company’s initial since the Company’s initial public offering in February 1994. public offering in February 1994. The Company has 6 million The Company has 6 million shares of common stock shares of common stock outstanding. outstanding. SigmaTron has not paid cash SigmaTron has not paid cash dividends on its common dividends on its common stock since completing its stock since completing its February 1994 initial public February 1994 initial public offering and does not intend offering and does not intend to pay any dividends in the to pay any dividends in the foreseeable future. foreseeable future. To Our Stockholders,
Fiscal year 2023 will be remembered as both a challenging and
a rewarding year of performance highs and lows for SigmaTron
International, Inc. (SII). Throughout, we remained committed to our
long-held operating principles, led a necessary course correction
for Wagz Inc. (“Wagz”) in our Q4, and ultimately ended the year
with the highest revenues ever reported for the Company. Again,
our year-over-year realignment toward differentiated EMS end-
user markets is succeeding—with a 13.8% growth in industrial
programs, or 67% of our total revenues. In all, we remain resolute
in our purpose, redoubling our commitment to our core principles
to drive short- and long-term EMS business growth.
STRONG EMS DEMAND UPLIFTS FY23
BUSINESS RESULTS
Revenues from continuing operations increased $36 million, or
10%, to $414 million for FY23 compared to $378 million for FY22.
Net income from continuing operations for FY23 was $14 million,
compared to net income of $18 million for the prior year. Basic
income per share from continuing operations for FY23 was $2.34,
compared to $3.81 income per share for FY22. Diluted income per
share from continuing operations for FY23 was $2.34, compared
to $3.58 income per share for FY22.
After the Company sold a majority position in its wholly owned
subsidiary Wagz, effective April 1, 2023, it reports results from
Wagz for FY23 and FY22 as discontinued operations. For FY23
and FY22, net loss from discontinued Wagz operations was $34.8
million and $8.5 million, respectively. Net loss per share from
discontinued operations for FY23 and FY22 was $5.73 and $1.77,
respectively.
SII SALE OF A MAJORITY POSITION IN WAGZ
At the end of our fiscal Q3, the Company tested for any potential
impairment of goodwill and intangibles as required under GAAP.
Unfortunately, our IoT pet tech startup Wagz continued to miss its
financial projections, and this resulted in a large non-cash impairment
of goodwill and intangible assets related to the Wagz acquisition.
These impairments led to a violation of our covenants with our
secured lenders. Given the situation, SII sold a majority position in
Wagz, included a $900,000 working capital loan, and terminated
any future financial support or responsibilities to Wagz. Post-
transaction, our secured lenders waived the covenant violations
and amended our agreements going forward. Under the amended
agreements, SII complied with all bank covenants by fiscal year-end
and remains focused on one business segment, its core EMS business.
OUR CONTINUING COMMITMENT: EMS EXCELLENCE
“EMS Excellence” has defined our founding principles and, in
FY23, continued to guide every facet of our corporatewide
service culture. SII is singled out not only for our strategy, but
also for our workforce’s complete, unequivocal dedication to
excellence. Numerous OEM market leaders cite SII’s flexible “One
Source. Global Options.®” philosophy in selecting the Company
as their provider of choice. Our leadership and their global
teams remained at-the-ready to respond to FY23’s industrywide
challenges. We continued exemplary personalized services
from seven manufacturing sites, led by our multidisciplinary,
multidivisional teams who build customer trust and longevity
across our three fast-growing markets: industrial, consumer and
medical/life sciences.
FY23 AR SIGMATRON INTERNATIONAL | 1
UNLOCKING EMS VALUE: SII’S
FY23 PERFORMANCE HIGHLIGHTS
EMS has led a radical transformation across
decades from legacy electromechanical
solutions to new digital solutions, fueling
unprecedented growth in our industry. The
global EMS market is expected to grow from
$504 billion in 2022 to $798 billion by 2029.
For SII a backlog of demand in our core EMS
business remains strong and growing. Despite
continuing challenges in the electronic component
marketplace, revenues are running at record
levels for the Company with momentum ex-
pected to continue well into FY24.
• We advanced our goals as a total solutions
EMS provider. We served as our customers’
steady, long-term value creator netting our most
complex, complete build PCBA programs and
in parallel, netting the highest EMS revenues in
our history.
• We rebalanced our market mix and diversity.
SII gained traction in our tactical shift to balance
the right margin work in the right markets. We
logged an increase in total system integration
work with industrial programs rising to 67% of
our revenue—the highest recorded.
• We leveraged our proprietary tools and services.
Our IT and Supply Chain Management (SCM)
services, International Procurement Office (IPO)
and Design Services Center (DSC) enriched our
customer experience across markets.
• We invested in across-the-globe process
advancements. SII took deliberate steps to
further shape our Six Sigma processes, heighten
quality, speed, efficiency, and production visibility,
and synchronize program management
collaborations systemwide.
• We expanded our warehouses. SII’s facilities
in Texas and California grew in square footage
and continue to align customers’ needs with
our North America manufacturing and
warehouse facilities.
FY23 LEADERSHIP ANNOUNCEMENTS:
BUILDING OUR FUTURE
In Q3 SII’s Board of Directors promoted a tenured
member of management, John P. Sheehan, to
President, effective January 4, 2023. John has
served the Company for 37 years, most recently
as a Vice President and Director of Supply Chain.
He is an accomplished business leader whose
focus on EMS operating strategy includes a
deep knowledge of our respective markets.
Also, in Q3, Thomas F. Rovtar, Vice President
of Information Technology (IT), announced his
retirement after 22 years of service. Concur-
rently he was succeeded as Vice President by
Michael L. Schillaci, a nine-year Company veteran
who will lead our global network of software
and hardware tools and security systems.
2 | FY23 AR SIGMATRON INTERNATIONAL
“ I believe the EMS market offers SII a unique
position that will allow us to continue to grow
and create value for our stockholders, customers
and employees. While certain challenges
remain in our industry, they are far outweighed
by the opportunities we see ahead.”
– John P. Sheehan, President
SII’S GLOBALLY CONNECTED,
PROPRIETARY SERVICES
From hubs in Elk Grove Village and Elgin in
Illinois, and Taichung City, Taiwan, SII’s SCM,
DSC and IT systems continued to drive 24/7
high tech timeliness, reliability, transparency, and
competitive differentiation to each customer
program and market. SII’s reputation for highly
personalized and flexible EMS is guided by
continuous commitment to our array of
proprietary tools and technologies.
Our proprietary IT drove numerous benefits, each
of increasing value to employees and customers
alike. IT upgraded its legacy and internally
developed systems, to standardized purchasing,
materials planning, and inventory management.
In FY23’s rigorous environment, we also led key
advancements, increasing efficacy, seamlessness,
and visibility of all documentation.
• SCORE® – In Q1, SII IT launched upgrades to the
appearance, speed, function and security of
the Company’s proprietary customer portal,
SCORE. Now SII customers can view progress
of their multidivisional programs holistically,
versus one program and division at a time.
• SII’s Proprietary Manufacturing Execution
System (MES) – SII fully integrates Tango, our
effective combination of enterprise resource
planning (ERP) suite of production modeling tools
with our ERP system and iSCORE® to convey
constraints, quality control and warehouse
activities in real time, with clear exception
signals. Our new virtual assistant drives early
alerts to our program managers (PMs).
• MRP Share – We enable automated views of
parts consumption systemwide via our custom
MRP. It informs our suppliers with a customer’s
forecast, lists SII’s inventory and prompts
materials ordering.
• Information Security Management System –
IT pursued ISO 27001, the international
standard of information security controls
that uplifts our global security. We enhanced
our SCM systems to elevate visibility across
planning and execution, including:
– New IT Dashboards – These improve
speed and visibility of forecast and
inventory, furthering a PM’s adaptivity to
rapid changes in materials requirements.
– Enhanced Application Programming
Interface (API) – SII APIs continued inte-
grating with component distributors directly
to deliver real time data across our systems.
Fueled by SII’s rigorous
operating standards, honed
methodologies, and training,
we continued investment
in automated systems that
enhance production speeds,
next level efficiencies and
manufactured yields.
Led by a team of specialists,
SII supports development
of a broad range of testing
methodologies that span
from in-circuit to final
functional test (FCT), each
critical to customers’ high
standards of quality.
“ EMS Excellence” continues to guide our decades-long core strategy, corporate culture
and customer focus. For nearly 30 years, SII delivers personalized and flexible electronic
manufacturing services programs. Altogether, these shape our reputation as a trusted,
total solutions provider.
2 | FY23 AR SIGMATRON INTERNATIONAL
Through a Customer-Focused Management team, SII’s processes promote cost savings and
quality that optimize time-to-market for many of the most technologically sophisticated
customers in our history. For these and many other service hallmarks, we acknowledge our
3,100 tenured and committed global personnel at all levels of the organization.
With benefits in FY24 and ongoing, IT will launch
a Security Information and Event Management
system, virtual servers, and a Freshworks cloud-
and knowledge-based software to best track
assets and services. IT will implement Azure
Disaster Recovery to provide integrated, end-to-
end backup and data protection. IT plans upgrades
to SII’s general infrastructure and security
required to achieve ISO 27001 compliance.
OUR GLOBALLY EMPOWERED SUPPLY
CHAIN MANAGEMENT TOOLS
SII and all global EMS are managing the broadest
and most persistent period of supply chain
imbalance in recent history. Then also, a FY23
report cited that 71% of global companies
considered the rising cost of materials as their
central supply chain threat. SII supported
customers by mitigating insecurity in response to:
• Supply Gaps – Throughout the year, material
and component needs exceeded supply and
drove industry challenges, many ongoing.
• Semiconductor Imbalances – For users of
semiconductors, demand spikes reported at
17% per annum drove major bottlenecks in
FY23 with volumes slow to recover. Experts
predict relief sometime in FY24-25.
OUR SCM STRENGTHS MITIGATE
FY23 CHALLENGES
SII offers customers first-rate, global SCM
systems. In tandem, SII’s IPO hub in Taiwan
lends 30 years of seasoned SCM relationships
with interdivisional benefits to customers, 24/7.
Our customers’ resultant global purchasing
power is likewise enhanced by the direct
support of SII corporate management. Together,
these services are especially valued amid
FY23’s myriad of industry challenges.
• Decades-Honed Expertise – With a track
record of reliability and integrity, SII’s time-
tested supply network offers our customers’
advantages, and powered them forward
through this year’s historic components and
raw materials shortages.
• Enhanced SCM Tools and Processes – Our
differentiated set of tools and processes
navigate an ever complex, fast changing supply
chain landscape. Long term our focus is to
leverage our valued, decades-experienced
global suppliers in response to customer needs.
• Real-Time SCM Visibility – SII advanced our
Tango system and customer portal Score® for
heightened simplicity, visibility and efficacy.
All SCM services are merged into a central
ERP platform.
• Application Programming Interface – Our
API digitally mediates and clarifies supplies and
key partners who potentially fill timely needs
for materials and components.
• Personal Communications – With clarity
and timeliness, SII analyzes risks, closely
communicates shortages, and swiftly responds
to minimize customer impacts. This is critical
amid suppliers’ practices of adopting a
12–18-month window as non-cancellable, non-
reschedulable orders.
• Corporate Material Specialist Group – Our
IPO expanded its purchasing agents to support
broadened purchasing activities and to help
locate one-off or difficult-to-source materials.
• Sustainability and Compliance Center (SCC) –
Our SCC teams facilitate volumes of reporting
requirements to ensure customers’ compliance
with social and government regulations globally.
Begun the prior year, many industrywide SCM
issues were systemic in FY23 and expected to
continue in FY24. In response, SII will continue
to pursue new tools and reporting to heighten
efficacies for all SCM services. We will continue
to rebalance inventories amid bloating and a lax
market demand to limit the effect on forecast
and purchasing. In response to any persistent
or sudden changes to market conditions, SII will
adapt our processes and liaise with suppliers
and customers to satisfactorily address any new
challenge ahead, advancing our track record of
SCM reliability.
SII DESIGN SERVICES CENTER
With a reputation spanning over 30 years for
high-quality service support across the EMS
lifecycle, our DSC, Elgin, Illinois (Elgin), focuses
on best-in-class engineering and design or
engineering, design, and test support. DSC
closes service gaps for our customers’ in-house
capabilities with formidable advisory and imple-
mentation experience, and by leveraging
analytical and enablement tools and services
that net optimal EMS results.
In FY23 Elgin continued to lead the Company’s
new product introduction (NPI) capabilities
systemwide and expects its year-over-year market
support to expand from current, highly valued
consumer customers to an even broader range
of products and end markets. These include an
increased breadth and depth of DFx assessment
and custom test development benefiting over
nine industrial submarkets.
Ahead, our DSC will continue to employ quarterly
collaboration with our divisional counterparts to
net a global technical team solution with greater
efficiency and innovation.
OUR STRATEGIC GLOBAL OPERATIONS
SIGMATRON NORTH AMERICA
Focused on “EMS Excellence,” SII’s North
American (N.A.) operations leveraged formi-
dable technical experience and fundamental
strengths from our five manufacturing sites in
the U.S. and Mexico. Resilient to industrywide
FY23 AR SIGMATRON INTERNATIONAL | 5
With personalized service
at each critical stage of
the EMS lifecycle, our cus-
tomers benefit from SII’s
scalability of volume and
mix amid ever evolving
product requirements and
turnaround times.
In this year’s rigorous
operating environment, we
continued enhancements to
the Company’s proprietary
Information Technology
tools and systems aimed
at efficacy, 24/7 visibility,
and traceability.
challenges, and strategically aligned via our
expanded warehouses in California and Texas,
N.A. fulfilled a robust program backlog predicted
the prior year. In all, our globally connected,
yet personalized approach aligns with our
commitment to deliver stockholder value. N.A.
led upgrades to our valued SCORE® customer
portal and other online program tracking systems
that advance our goal of steady expansion into
complete, value-added, high-level assemblies
and box-builds for customers. FY23 investments
support greater accuracy, speed, and agility,
with several key customers signaling a growth
trajectory in FY24.
SIGMATRON UNITED STATES
SII’s Elk Grove Village (EGV), Illinois, head-
quarters and manufacturing site furthered its
long reputation for flexible manufacturing and
scalability from low-to-high level in support of
advanced, complete product builds. In FY23, the
division reported strong sales across markets,
especially medium-to-higher volume assemblies.
EGV continued to see strong sales from our
top six existing and fast-growing industrial and
consumer customers. Other noteworthy growth
this year includes manufactured applications for
clean energy and agricultural end-use markets,
among many others.
This year, EGV invested in advanced end-to-
end manufacturing and test systems for higher
complexity programs while expanding its latest
SMT platforms. Ahead, the division will focus on
advancements and continuous improvements to
its manufacturing and tests systems.
In FY23, Union City (UC), California, continued
complete product build services for numerous
new and existing programs, extending the
division’s reputation for high quality, on-time
deliveries of sophisticated products. Supported
by our SCM systems in response to materials
constraints, UC led desirable alternatives for
customers: parts harvesting, expanded ball grid
array rework and re-balling.
Another hallmark this year, UC continued quick
turnaround NPI with flexibility to sustain production
locally or migrate it to one of SII’s lower-cost
regions. The division also invested in latest
equipment and technologies that support rapid
production ramp-ups, and speed line changeovers,
with improved throughput and assembly
capacity for large, complex PCBAs. UC also
drove enhancements to its test capabilities. In
FY24, UC will further streamline processes and
continuously improve production efficiencies.
SIGMATRON MEXICO
For SII Mexico, “EMS Excellence” is fueled by a
reputation earned for end-to-end services, from
skilled labor, quality certifications, and technical
6 | FY23 AR SIGMATRON INTERNATIONAL
acumen. This fiscal year, SII’s three divisions
in Mexico: Acuña, Chihuahua and Tijuana
experienced growth by leveraging operating
strengths honed across multiple decades.
The region’s customers value access to nearshore
solutions and shortened supply chain pipelines,
along with labor cost advantages that closely
mirror offshore providers. Each of Mexico’s
strategic manufacturing sites offer an efficient
transportation corridor. Our experienced customs
teams and time zones align with U.S. work
schedules and SII’s newly expanded ware-
houses in nearby California and Texas.
In FY23, the region furthered its track record
of excelling at onboarding and quickly scaling
low-to-high production volumes and complete
product builds. This includes deliveries of
packaged and varied lots of finished goods.
Again, the region saw market expansion into
clean energy, agriculture, and medical EMS
while growing multiple consumer programs:
cooking, dishwasher controls, and automotive.
Year-over-year, Mexico adopts continuous
and structured benchmarking activities for
plant equipment and interregional process
improvements. In FY23, Mexico invested in
state-of-the-art equipment, Six Sigma, and
Quality Core Tool training to further automate
processes and production. The region’s Quality
Teams drive next-level technologies, optimized
DFM planning, and data analysis with effective
interterm communications. Mexico enhanced
its SMT lines with investments in in-circuit
tests (ICT) and final functional tests (FCT) with
traceable bar codes.
Ahead in FY24, Mexico will continue to target
operational upgrades and training to remain
competitive and drive benefits to the region’s
increasingly sophisticated customers.
SIGMATRON ASIA
SII’s Asian operations in Suzhou, China, and
Biên Hòa City, Vietnam (Asia), remain highly
valued and strategic locations within the
Company’s "Global Options" framework. Amid
a decades-long reputation for EMS excellence,
competitive pricing, and technically experienced
teams, the region continued investment in the
latest automated equipment, next-level MES.
Asia strengthened interdivisional communi-
cations and collaborations with N.A. in support
of sister regions and domestic customers alike.
The region’s IPO located in nearby Taipei City,
Taiwan, along with SII’s IT and SCM tools drive
interconnectedness and visibility among global
PMs, work teams, and customers. From design
optimization through product launch, our remote
tools and systems help to countermand any
world event that may restrict in-person travel.
SII offers lean, Six Sigma
philosophies and a solid
track record of full-service,
reliable and flexible production
that, end-to-end, precedes
each program’s success.
In FY23, our customer
service success included
nine industrial submarkets:
automotive, commercial
cooking, fluid controls, LED
lighting, marine, pools,
safety, monitoring sensors,
and renewable energy.
Amid FY23’s imbalanced supply and demand, and delays for certain raw materials and
components, SII responded to customers with our decades-honed proprietary Supply Chain
tools and processes. Other services from our Sustainability and Compliance Center help
align industry certifications with social, government and regulatory reporting.
Superior Customer Service
From Our Global Operations
SIGMATRON CHINA
In FY23, Suzhou, China (China), continued its operating
strengths: highly qualified, long-experienced engineering
and DFx teams, close customer communications, and agile
production. Led by a PM, China consistently meets customers’
strict quality and technical requirements. Amid recent
pressures, China offers competitive costs via certain lower
regional labor rates in Southeast Asia. China minimized the
continuing effects of U.S.-China trade tensions that originated
in past years all while growing its domestic EMS business. In
FY23, China earned an “Excellent Supplier Award” from
the world’s leading manufacturer of static controls.
China also invested in advanced systems, and furthered
employee training at all levels. The division will further optimize
costs and efficiency, while managing any industrywide
pressures. This year, as COVID-19 safety protocols receded,
the division resumed on-site customer visits, a positive
step toward business wins. Ahead, China will further
reduce inventory, redirecting that working capital to support
business expansion.
SIGMATRON VIETNAM
Across decades, SII Biên Hòa City, Vietnam (VN), has offered
customers direct access to some of the world’s main shipping
routes and brings a reputation for skilled, right-priced EMS.
This year, VN continued its decades-long manufacturing and
design services support all within the country’s favorable
business and regulatory environment. Certain customers
also benefit from VN as an alternative option amid continuing
Section 301 Tariffs on Chinese exports by the U.S.
Our program teams continued delivering high quality, among
other favorable performance indicators. In close collaboration
with their U.S. counterparts, VN also streamlines the devel-
opment of highly automated FCT which optimizes DFx. Also,
VN advanced production efficiencies and manufactured mix
in direct response to new and existing customers. For FY23,
this includes specialized controls and PCBAs for several
global leaders in the consumer market.
OUR OPERATING STRENGTHS FUEL A
GROWTH PATH FOR FY24
A number of strengths fuel optimism for SII’s sustained growth
in the year that lies ahead. Consistent with these strengths,
our speed-to-market developments, program efficiencies, and
better market mix, will help us to deliver on our commitment
to drive stockholder value. Differentiation includes:
Longevity in Customer Relationships – Noted previously,
the number of industry-leading customers that SIl has
retained for 10 or more years is growing, with some as long
as 33 years. Even as customers faced supply chain and
other challenges, Sll responded with custom EMS solutions,
strengthening these relationships for the long term.
Proven Strategy Across Decades – SII offers a dynamic
and flexible global network in seven manufacturing
facilities and four countries. Customers may opt to
manufacture in one or more of our operations to meet
their goals of cost, quality, and time-to-market.
Momentum in Our Customer Pipeline – For consecutive
years, Sll attracted a number of new programs in the markets
we serve. Barring further challenges in the U.S. economy
and supply levels, SII expects sustained momentum in
FY24 driven by our core EMS business.
Steady Growth in EMS – Our industry has expanded from
$35 billion in FY94 as SII began trading on Nasdaq to $504
billion (FY22) amid the market’s transformation from legacy
electromechanical solutions to an unprecedented number
of digital, end user solutions.
BUILDING A BETTER SIGMATRON
FOR THE LONG-TERM
“Continuing EMS Excellence” is expected to guide our
core strategy, corporate culture, and our judgment. It
bears repeating that our decades of operating experience
constitute a keystone in good times and challenging times.
We expect to continue our laser focus on SII’s operating
priorities while pursuing attractive long-term returns for our
stockholders, providing a great experience for customers,
and offering meaningful work for team members.
“ Our unwavering service focus and employee commitment
are key to drive new revenue streams, land business
growth at next levels, offer cost-competitive solutions
for our customers, and ultimately build a better, more
profitable SigmaTron for the long-term.”
– Gary R. Fairhead, CEO
We look forward to better serving our customers and contin-
uing to position SII for growth and profitability. Ahead in FY24
as SII logs our 30th year of trading as a public company
on Nasdaq, we reflect with pride on our steady growth
in revenues from $37 million reported in FY94 and $278 in
FY18 to $414 million in FY23. Amid market demand catalysts,
SII’s formidable and steady flywheel of EMS opportunities are
expected to continue well into the new year.
As always at fiscal year-end, we wish to thank our dedicated
teams of employees around the world and others who have
contributed to our success: our customers, supply chain
providers, professional firms, our banking partners, and
Board of Directors. We also thank you, our stockholders,
for your continued support and interest in SII’s purpose,
which is to transform ideas into solutions and deliver EMS
Excellence to our growing global customers enterprisewide.
Our accomplishments across decades and present growth,
together with the depth and breadth of our geographical
diversity, bode well for the future of SII as we strive to increase
value for all Company stakeholders in FY24.
Sincerely,
Gary R. Fairhead,
Chief Executive Officer
John P. Sheehan,
President
SigmaTron International, Inc.
August 24, 2023
8 | FY23 AR SIGMATRON INTERNATIONAL
Firm: Ackerly Communications, LLC Copywriting/Art Direction: Mary Ackerly Designers: Tatjana Jovancevic; Patty Ofriel Proofreading: Deborah Livingstone Printer: Dreamworks GC, LLC
Superior Customer Service
From Our Global Operations
MEXICO
MEXICO
Manufacturing
SigmaTron International, Inc.
Mexico Operations:
• Acuña, Mexico
• Chihuahua, Mexico
• Tijuana, Mexico
Amid accelerating complexity in
EMS technologies, SigmaTron’s
at-the-ready “One Source.
Global Options.®®” philosophy,
superior customer experi-
ence speeds our OEMs and
customers to market. Through
the specialized skill sets of our
worldwide design engineers,
a d a p t i v e s u p p l y c h a i n
specialists and committed
manufacturing teams, we
relentlessly seek to be our
customers’ provider of choice.
ASIAASIA
Manufacturing/
Value-Added Services
SigmaTron International, Inc.
China Operations
Suzhou, China
UNITED STATES
UNITED STATES
Manufacturing/Design
SigmaTron International, Inc.
Corporate Headquarters
Midwest Operations
Elk Grove Village, Illinois
SigmaTron International, Inc.
Vietnam Operations
Biên Hòa City, Vietnam
West Coast Operations
Union City, California
International
Procurement Office
SigmaTron International, Inc.
Taiwan Procurement Office
Taipei City, Taiwan
Sustainability and
Compliance Center
Taipei City, Taiwan
Design Services Center
Elgin, Illinois
Warehouses
• Del Rio, Texas
• El Paso, Texas
• San Diego, California
Information Technology Offices
SigmaTron International, Inc.
U.S. Information Technology
Elk Grove Village, Illinois
SigmaTron International, Inc.
Asia Information Technology
Taichung City, Taiwan
67.0%
INDUSTRIAL
Smart grid connectivity,
gaming, controls, and
IoT connectivity.
26.6%
CONSUMER
Appliances/white goods,
automotive vision systems and
carbon monoxide detectors.
6.4%
MEDICAL/LIFE SCIENCES
Operating tables, battery
packs, dental equipment,
sterilizers, and dialysis.
Continuing “EMS
Excellence” to Diverse
End-User Marke ts
In FY23 and ongoing, SII meets
both the pace and program
breadth of our most diverse and
sophisticated EMS customers
in Company history. Ahead,
we expect to continue to re-
spond with determinism and
commitment to the needs of
each customer and end-user
market to deliver EMS Excellence,
keep production flowing and
speed on time deliveries.
Firm: Ackerly Communications, LLC Copywriting/Art Direction: Mary Ackerly Designers: Tatjana Jovancevic; Patty Ofriel Proofreading: Deborah Livingstone Printer: Dreamworks GC, LLC
CORPORATE OFFICES
CORPORATE OFFICES
SigmaTron International, Inc.
SigmaTron International, Inc.
2201 Landmeier Road
2201 Landmeier Road
Elk Grove Village, IL 60007
Elk Grove Village, IL 60007
TelTel 847.956.8000
847.956.8000
847.956.9801
FaxFax 847.956.9801
INVESTOR RELATIONS
INVESTOR RELATIONS
800.700.9095
800.700.9095
www.sigmatronintl.com
www.sigmatronintl.com
Daniel P. Camp*
Vice President,
Vice President,
Acuña Operations
Acuña Operations
Rajesh B. Upadhyaya*
Executive Vice President,
Executive Vice President,
West Coast Operations
West Coast Operations
Hom-Ming Chang*
Vice President, China Operations
Vice President, China Operations
Curtis W. Campbell
Vice President of Sales,
Vice President of Sales,
West Coast Operations
West Coast Operations
Dennis P. McNamara
Vice President, Engineering
Vice President, Engineering
Michael L. Schillaci
Vice President,
Vice President,
Information Technology
Information Technology
Keith D. Wheaton
Vice President,
Vice President,
Business Development
Business Development
West Coast Operations
West Coast Operations
*Executive Officers
*Executive Officers
Member of the Audit Committee
1 Member of the Audit Committee
Member of the Compensation Committee
2 Member of the Compensation Committee
Member of the Nominating Committee
3 Member of the Nominating Committee
Lead Director
4 Lead Director
Bruce J. Mantia1,2,3
Retired Partner
Retired Partner
Ernst & Young LLP
Ernst & Young LLP
Paul J. Plante 1,2
Director, Cardinal Vending
Director, Cardinal Vending
and Markets, LLC
and Markets, LLC
Thomas W. Rieck 1,3
Of Counsel, Rieck and Crotty, P.C.
Of Counsel, Rieck and Crotty, P.C.
Dilip S. Vyas 2,3,4
Independent Consultant
Independent Consultant
OFFICERS
Gary R. Fairhead*
Chairman of the Board
Chairman of the Board
and Chief Executive Officer
and Chief Executive Officer
John P. Sheehan*
President
President
James J. Reiman*
Chief Financial Officer, Vice President,
Chief Financial Officer, Vice President,
Finance, Treasurer and Secretary
Finance, Treasurer and Secretary
Gregory A. Fairhead*
Executive Vice President
Executive Vice President
and Assistant Secretary
and Assistant Secretary
BOARD OF DIRECTORS
Gary R. Fairhead
Chairman of the Board
Chairman of the Board
and Chief Executive Officer,
and Chief Executive Officer,
SigmaTron International, Inc.
SigmaTron International, Inc.
Linda K. Frauendorfer
Independent Consultant
Independent Consultant
Barry R. Horek**
Retired Partner
Retired Partner
Ernst & Young LLP
Ernst & Young LLP
**In FY23, Mr. Horek served as a
**In FY23, Mr. Horek served as a
Director until September 16, 2022.
Director until September 16, 2022.
CORPORATE INFORMATION
SEC Counsel
Greenberg Traurig, LLP
Greenberg Traurig, LLP
77 West Wacker Drive
77 West Wacker Drive
Chicago, Illinois 60601
Chicago, Illinois 60601
Corporate Counsel
Howard & Howard
Howard & Howard
Attorneys PLLC
Attorneys PLLC
200 South Michigan Avenue
200 South Michigan Avenue
Chicago, Illinois 60604
Chicago, Illinois 60604
Independent
Public Accountants
USA, LLP
BDBDOO USA, LLP
330 North Wabash Avenue
330 North Wabash Avenue
Chicago, Illinois 60611
Chicago, Illinois 60611
Form 10-K
If you would like a free copy of
If you would like a free copy of
the Form 10-K report filed with
the Form 10-K report filed with
the Securities and Exchange
the Securities and Exchange
Commission, please call
Commission, please call
James J. Reiman at the
James J. Reiman at the
SigmaTron corporate office,
SigmaTron corporate office,
1.800.700.9095.
1.800.700.9095.
Stock Transfer Agent
and Registrar
American Stock Transfer
American Stock Transfer
& Trust Company, LLC
& Trust Company, LLC
6201 15th Avenue
6201 15th Avenue
Brooklyn, New York 11219
Brooklyn, New York 11219
Stock Information
SigmaTron’s common stock
SigmaTron’s common stock
has been trading on the Nasdaq
has been trading on the Nasdaq
System under the symbol SGMA
System under the symbol SGMA
since the Company’s initial
since the Company’s initial
public offering in February 1994.
public offering in February 1994.
The Company has 6 million
The Company has 6 million
shares of common stock
shares of common stock
outstanding.
outstanding.
SigmaTron has not paid cash
SigmaTron has not paid cash
dividends on its common
dividends on its common
stock since completing its
stock since completing its
February 1994 initial public
February 1994 initial public
offering and does not intend
offering and does not intend
to pay any dividends in the
to pay any dividends in the
foreseeable future.
foreseeable future.
SIGMATRON