ANNUAL REPORT 2024
SIGMATRON INTERNATIONAL, INC.
For over 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. The Company provides superior
EMS value from customized engineering to component sourcing, manufacturing, test, and
fulfillment. SII offers 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.
The Company also offers a Design Services Center (DSC) hub from our headquarters in
Elk Grove Village, Illinois.
ANNUAL REPORT 2024
SIGMATRON INTERNATIONAL, INC.
CELEBRATING 30 YEARS AS A PUBLICLY TRADED COMPANY
SigmaTron, with private company roots that date back to the mid-1960s,
celebrated its 30th listing benchmark as a Nasdaq publicly traded
company on February 9, 2024. Nasdaq congratulated SII with a marquee
feature on its seven-stories-tall tower’s 10,000-square-foot video space
at its world headquarters in New York City’s Times Square. Nasdaq is
the world’s first electronic stock market with over 3,000 public companies
listed across six continents.
Cover Photo © 2024 Nasdaq. All rights reserved.
To Our Stockholders,
In fiscal year 2024, SigmaTron International Inc. (SII) pauses
to mark our 30th year as a publicly traded company. Our
journey began with SII’s private company roots in the 1960s
and continued to 1994 as our first year listed on the Nasdaq
Exchange with just $37 million in revenues. Based on our
founding strategy established decades ago, SII’s ecosystem
of valued services and reputation for collaborative, personalized
EMS vitally supports customers across the entire lifespan of
their programs.
FY24 US ECONOMIC SLOWDOWN
In what analysts termed an “economic rollercoaster,” FY24
proved to be another challenging year for US-based
companies. While they conclude that the country averted
a recession in FY24, growth was markedly stalled with bank
lending pressures continuing to build. Across nearly the
entire fiscal year, economists were unconvinced of a “soft
landing” following the Federal Reserve’s most aggressive
rate hike campaign since the 1980s. Beginning with
the pandemic, persistent inflation, unique supply chain
issues and geopolitical disruption in FY24, measures of
uncertainty arose for all companies and SII. Key evidence
of this challenged economy included:
• Interest Rates – Rates remained at a 23-year high between
5.25% and 5.5%. In FY24, the WSJ reported that “It appears
incredibly unlikely that by June 2024 the U.S. will see the
significant rate cuts forecasted by investors at the end of
last year.”
• US Inflation – The US Labor Department reported inflation’s
rise to 3.5%, up from 3.2% last year.
• US-China Trade War – Beginning in 2018, the US Section
301 and 232 tariffs on China at 25% continued and
subsequently flared with the US’s announcement
(Q1 FY25) of added tariffs of $18 billion on China-made
goods.
Yet, despite these economic challenges, SII’s global leadership
and teams remained steadfast, persevering in service to our
customers who benefit by their collaboration with SII.
SIGMATRON ADDRESSES DETRIMENTS
IN FY24
For SII, the fiscal year saw wide swings of peaks and valleys
during which we recorded fleeting periods of solid revenues.
Yet these periods of gains were offset, leading to reduced
revenues and profit reported for the year, each outside our
earlier forecasts and expectations.
Amid FY24’s demanding economic landscape, among the
detriments SII faced was tenuousness rooted in a few of
our customers’ individual markets and causing them to end
their fiscal years below forecast. So, as revised forecasts
interdicted, SII adapted to certain EMS production delays
and/or negated program commitments. Compounding
program delays was timing that concurred with our typically
slowest quarter(s) of the year. SII remained committed,
powering forward through any revised forecasts or delays.
Ahead, some adversity and residual factors in our pipeline
may prove volatile especially as the 2024 US Presidential
Election approaches.
OUR FY24 FINANCIAL RESULTS
Revenues from continuing operations decreased by
$40 million or 10%, to $374 million for FY24 compared to
$414 million for FY23. Net income (loss) from continuing
operations for FY24 was a loss of $2.5 million, compared
to net income of $14 million the prior year. Basic and diluted
income (loss) per share from continuing operations for FY24
was a loss of $0.41, compared to $2.34 income per share
for FY23.
By fiscal year’s end, SII reported a few persistent program
delays in other submarkets that, when taken together,
ultimately brought a 20% drop in demand and disappointing
setback to our bottom line. In response, we implemented
cost reductions. These include optimization of our inventory
levels, the sale of our Elgin facility (Q4) and the right-sizing
of our workforce. Certain SII operations adopted a shorter
work week. We expect to continue this strategy until we
see a rebound in soft demand.
For any fallouts that may linger with respect to our customers
and supplier networks, our teams and business model are
expected to keep SII well positioned to capitalize on
numerous opportunities, including those in new markets.
We expect to fully capitalize on FY25 opportunities already in
play at fiscal year-end. We will remain watchful and prepared
to tackle any new developments in FY25. This includes any
changes in the post-election economy, residual supply
chain constraints, and pockets of volatility within our diverse
customer markets.
SII’S HIGHLY VALUED, GLOBAL
SERVICE ARRAY
With corporate hubs in Elk Grove Village, Illinois, and
Taichung City in Taiwan, SII Information Technology (SII IT)
systems remained central to our value chain of proprietary
services in FY24, delivering a consistently superior level of
performance globally. Begun in prior years, SII IT again led
deliberate steps to continuously update the Company’s agile,
internal IT systems, synthesizing them with industry-leading
technologies at next levels to the benefit of customers and
global employees alike.
SIGMATRON: OUR 30th YEAR | 1
SII IT’s advancements this year include:
• Key Differentiation – An overall strength is SII’s internal
development and knowledge base which drives agility.
This delivers clear advantage over competitors who rely
on outside contractors and/or prepackaged software,
each which slows implementation. With our internally
developed systems, SII nets speed and flexibility in
response to customer requirements.
• Embedded IT Support: Our Supply Chain Management
(SCM) Tools – SII combines an industry standard enterprise
resource planning (ERP) software with an internally
developed suite of SCM tools to help add context to
manufacturing data through enhanced dashboarding and
analytical capabilities. Our ERP features a single global
platform that integrates best practices to meet the needs
of customers, suppliers and stakeholders across SII’s
breadth of operating geographies.
• MRP Share – In FY24, SII IT drove enhancements of
our horizontal MRP tools that help address the ongoing
challenge of managing appropriate inventory levels in
response to customers’ needs. Our MRP Share enables
our teams to monitor total requirements and flag changes
in near term demand for each customer. These tools also
equip suppliers with complete customer forecast visibility,
including current inventory and materials-on-order.
• Investments in IT Infrastructure and Security – SII
is proactive and investing in upgrades to its general
infrastructure and security aligned with ISO 27001
compliance guidelines. SII IT upgraded a number of
firewalls, replaced our core network infrastructure
and launched a next generation suite of endpoint
protection software.
In FY25, SII IT will continue to help all divisions to limit
industrywide challenges such as any residual supply chain
constraints. Also, IT systems will promote superior visibility
for supply and inventory levels, hallmarks of real time
updates and solid customer communications.
We believe our IT-embedded technologies net superior,
robust SCM systems on par with any in our industry. Another
standout strength is our mature, decades-established
communications network which seamlessly connects SII,
its global suppliers and customers. Equally important is the
dedicated support and geographic reach that flows from
among our seven manufacturing sites. With high reliability,
SII aligns customer needs with our time-tested, systemwide
International Procurement Office (IPO).
Across three decades, our corporate Supply Chain
Management (SCM) services continue as resilient,
responsive and agile, offering a proprietary range of
strategies which deliver global purchasing power. With
benefits magnified by the direct support of our corporate
management, customers cite SCM services as a highly
valued, differentiating strength. This support was especially
lauded in FY24 as we saw an incremental return of SCM
market dynamics to pre-pandemic levels. Thanks to our SCM
and IPO software and exclusive tools and systems, SII best
manages “top of mix” areas and delivers essential components
and raw materials to our EMS programs systemwide.
30-YEAR OPERATING MILESTONES
Across the past three decades, SII’s SCM established and
subsequently grew our global network, and proudly cites
five hallmarks of accomplishment:
1. Led the development of individually dedicated plant-
focused purchasing teams systemwide.
2. Established and expanded our IPO that coordinates
all logistics and quality apropos to suppliers in Asia
and Southeast Asia and executes overall commodity
management.
3. Innovated a suite of exclusive integrated systems
that provides access to operational data by each SII
procurement agent and program manager.
4. Developed SII’s Tango suite of ERP related SCM tools
which delivers unparalleled flexibility. These new and
adaptive high-tech features change in tandem with
changing market conditions.
5. Conceived, implemented and expanded a companywide
Sustainability and Compliance Center (SCC) within
SII’s IPO to ensure customers meet essential social,
governmental and industry specific requirements.
These include Reach (EC 1907/2006), Conflict Minerals,
Environmental/Sustainability, among others.
FY24’S EASING OF SUPPLY CHAIN ISSUES
While our industry saw the most persistent period of supply
chain imbalance in recent history, SII logged general SCM
improvements in industry dynamics and maintained our track
record for reliability and integrity. Generally lead times have
shortened and upward price pressures on components
have eased. Specifics include:
• Sophisticated Integrated Circuit Lead Times – Lead
times generally saw improvement to 16-26 weeks, down
from 52 weeks or longer the prior year. Only a limited
percentage of semiconductors require longer lead times.
• Improved Material Forecasts – In response to customer
requests, SII’s SCM has shortened material forecasts.
• Reduced Inventories – With improvements logged this
year, it is predicted that inventory levels will continue to
be reduced while still meeting delivery demands in FY25.
• FY24’s Geopolitical Events – Despite Russia’s war
in Ukraine and the Israel-Hamas War, SII SCM saw
no effects and acquired all customer-required materials
for the period.
2 | SIGMATRON: OUR 30th YEAR
Combined with our core strengths, SCM leveraged our
customer-facing suite of tools and services this year while
continuously developing new and exclusive systems to
further enhance SII’s business execution and success. We
advanced SII’s proprietary SCORE® customer portal to further
track customers’ programs and materials status systemwide.
We also developed Dashboard Summary reports to ease our
customers’ complete visibility. Vital to SII, our SCM’s forward-
looking and rigorous process remains at-the-ready to recognize,
adapt and respond to shifts in customers’ market conditions,
whether gradual or abrupt.
Ahead in FY25, our SCM will:
• Further optimize inventory levels to help reduce working
capital costs.
• Continue to invest in our exclusive ERP systems which
support next level Design for Manufacturability and Test (DFx).
• Take steps to hone our business practices as they pertain to
non-production, “cost adder” expenses such as 25% tariffs
on China-made goods.
This year, our corporate Design Services Center (DSC) hub
continued its decades-long reputation for high-quality
services across the EMS lifecycle from product concept
to end of life (EOL). In Q4 FY24, DSC relocated from Elgin to
our Elk Grove Village headquarters in Illinois and embraces
this opportunity to more fully integrate into SII with benefits
flowing systemwide. Again in FY24, customers across markets
increased their reliance on SII’s time-tested expertise in
electronics and mechanical engineering design, analytical
and enablement tools, and original test development to
support optimal EMS results. While price competitive, DSC’s
focus is to consistently deliver best-in-class design support,
especially resonant for customers who value high field
reliability over the long term. We earn our customers’ trust
through our robust performance track record and depth of
industry acumen. DSC attentively tailors our services to each
customer’s needs from original concepts, complete design
and DFx to joint development initiatives, each requiring
close collaboration.
In FY25, DSC will focus on deepening ties with SII’s
engineering teams to hone best practices and shared
technical information, integrating performance strengths
inter-divisionally.
OUR GLOBALLY STRATEGIC OPERATIONS
Guided by our decades-long core strategy, SII offers
customers a personalized, yet global network of seven
manufacturing facilities with over 800,000 sq. ft. of
manufacturing space in the United States, Mexico, China,
and Vietnam, with just under 100,000 sq. ft. of newly
expanded warehouse space in North America. Leveraging
SII divisions’ seven quality certifications, EMS excellence
remains a hallmark of our corporate culture and judgment
amid increasingly sophisticated customers who demand
internationally competitive pricing and quality for each
program, every day. In today’s rigorous EMS operating
environment, SII’s multidisciplinary, multi-divisional teams
continued to foster trust and longevity for customers among
our three diverse markets: Industrial, Consumer and Medical/
Life Sciences.
Across 30 years and in response to customers’ needs, SII
has grown organically by way of expansion to an Asian
operation (2004), and within Mexico (2005, 2012). We grew
by acquiring Able Electronics (2005) in the US and Mexico,
and Spitfire Controls in the US, Mexico and Vietnam (2012).
Through our Customer-Focused Management Teams we
offer lean, Six Sigma philosophies and a solid track record
of full-service reliable and flexible EMS production. Our
well-honed processes promote cost savings and quality that
optimizes time-to-market for some of the most sophisticated
customers in our history. The customer case study in this
report and the 16 case studies previously featured exemplify
that our customers remain the lifeblood of our organization.
Key to SII’s personalized service at each stage of the
EMS lifecycle, we work diligently to drive the benefits of
SII’s scalability of volume and mix to our customers. We
grasp customers’ evolving product requirements, end-use
market demands and timing, while maintaining close
end-to-end communications.
Central to our corporate culture as a total solutions EMS
provider, SII ensures that our plant equipment and other
assets offer high availability, efficiency and performance
systemwide. Each of SII’s divisions share a common ERP
system which helps our global supply chain spend to deliver
highly competitive pricing—a frequently cited factor in many
new program wins.
Embracing our high-tech principles, we continued to expand
our suite of production controls again this year, driving
next level Design for Manufacturability and Test (DFx).
Our advanced, proprietary IT delivers critical inventory
stocking and EMS program information at the speed and
transparency customers come to expect from SII.
Our divisions launched a number of sustainability initiatives
incrementally reducing the Company’s reliance on
nonrenewable energy. SII upgraded lighting of our plants
and offices to LED bulbs, adding motion-activated on/off
features. We also introduced electric forklifts and piloted a
solar panel installation that is slated to be active by FY25
in our West Coast operation, modeling it companywide.
Along with other upgrades, each improves efficiency in SII’s
energy use.
Ahead in FY25, SII plans to further automate manufacturing
and inspection processes for added efficiency, speed and
quality. Our operations will continue to tailor their overhead
in response to changes in the marketplace.
SIGMATRON: OUR 30th YEAR | 3
2022: SigmaTron reports
banner financial results
and serves customers with
resiliency, despite historic
geopolitical and industry
issues that confronted the
EMS industry as a whole.
2022
WE PAUSE WITH PRIDE IN FY24 TO MARK OUR 30TH YEAR AS A
PUBLICLY-TRADED COMPANY. This timeline offers a journey that
begins with SigmaTron’s (SII) private company roots in the 1960s,
continues to 1994 as our first year listed on the Nasdaq Exchange
and then charts subsequent growth in size and reputation as an
internationally recognized EMS provider of today.
With a focus on the future, we acknowledge our continuum of
leadership at all levels who charted a course and led our growth
organically and by acquisition. Together, we grew from $37 million in
revenues in 1994 to $414 million in 2023, the highest in our history.
2001: Our Las Vegas, NV
operation expanded to a
33,000-square-foot facility.
2000
2004: SigmaTron opened
our Wujiang/Suzhou
China Operation.
2020: SigmaTron maintains
Essential Business Status in
all global locations amid the
COVID-19 pandemic.
2020
2018: SigmaTron’s IT
capabilities expanded to
a second location in
Taichung City, Taiwan.
2018: The Company expands
EMS to include the clean
energy market with delivery
of solar power controllers.
1994: In February, SigmaTron
International, Inc. began trading
on the Nasdaq Exchange under
the stock symbol: SGMA with
operations in Acũna, Mexico,
Elk Grove Village, IL,
Las Vegas, NV and an
international purchasing
office in Taipei, Taiwan.
1994: In November, SMT
Unlimited, L.P. became a
42.5% owned affiliate adding
operations in Fremont, CA
and offering leading edge
assembly services for
BGA Components.
1994
2021: The Company powered
forward through COVID-19
related turbulence and
delivered on its promises,
reaffirming its commitment
to customers.
4 | SIGMATRON: OUR 30th YEAR
2023: With 1994 founding
revenues of $37 million,
SigmaTron grew FY23
revenues to $414 million,
the highest recorded in
our history.
Led by conscious decision making, a path to growth that
began in two locations has been transformed into seven
global manufacturing sites and four service centers in five
countries around the world. Our diverse and sophisticated
customer base which includes Fortune 100 industry leaders
benefit by our personalized services: value engineering and
design, with proprietary IT, SCM and Quality systems.
Underlying each of our timeline’s benchmarks, are
the men and women who shaped our progress: board
members; investors and suppliers; employees at all
levels; and outside professionals whose support is
immeasurable. Through their cooperative vision,
SII’s strong foundation and decades long “One Source.
Global Options.®” philosophy was born and vibrantly continues.
In all, each benchmark stands as a tangible reminder
of what exactly has made SigmaTron the Company it is
today. Our hope is that by witnessing SII’s 30-year
timeline of commitment and the commitment of our
Company’s present and its past, you will come away with
even greater confidence about our Company’s future.
2005: The Las Vegas, NV
operation was sold in May.
2005: In July, SigmaTron
acquired Able Electronics and
its Hayward, CA and Tijuana,
Mexico locations.
2005: SMT Unlimited, L.P.,
now in Hayward, CA,
became a wholly owned
entity of SigmaTron.
2005: Launched iSCORE®,
an internal portal and SCORE®,
the customer version.
2005
2011: The California operation
is relocated from Hayward to
Union City, more than doubling
our production capacity.
2010
2015
2015: Amid expanding
customer demand and
compliance complexity,
we relocated what is now
our Sustainability and
Compliance Center (SCC)
from Suzhou, China to
Taipei City, Taiwan.
2013: Our Tijuana, Mexico
plant relocated and expanded.
2013: A new tagline,
“One Source. Global Options.®”
with a new website helped
communicate SigmaTron’s
place in the world.
2012
2012: SigmaTron established
a domestic China operation.
SigmaTron acquired Spitfire
Controls in May, adding
manufacturing operations in
Chihuahua, Mexico and
Biên Hòa City, Vietnam and
a Design Services Center, IL.
2024
SIGMATRON: OUR 30th YEAR | 5
ILLINOIS TOOL WORKS
(NYSE: ITW) is a global
industrial company built
around a differentiated and proprietary
business model. The company’s seven
industry leading segments offer expertise
and innovation capabilities with 19,300
unique patents to high-value, niche
customer markets around the world. The
ITW FOOD EQUIPMENT GROUP LLC (FEG)
segment is an industry leading innovator
serving institutional, industrial, restaurant
and retail customers worldwide with
55 businesses in 23 countries, with
9,000+ employees. ITW FEG designs,
manufactures and services advanced
dishwashing, cooking, refrigeration and
food processing equipment.
BAXTER – Founded in
1958 and a member of
ITW’s premium brands,
Baxter is a renowned innovator of
manufactured quality cooking and
bakery equipment worldwide. From its
hub in Washington, it is the largest
Bakery Rack Oven supplier in the US.
For 17 consecutive years, ITW FEG
and Baxter have been awarded Energy
Star® Partner of The Year.
BAXTER SELECTED SIGMATRON
BAXTER SELECTED SIGMATRON
INTERNATIONAL INC. (SII) NEARLY A
INTERNATIONAL INC. (SII) NEARLY A
DECADE AGO
DECADE AGO as it pursued a full-EMS solutions
provider for design, hardware, prototypes,
manufactured production and custom functional
test. SII’s turnkey services proved an ideal fit and
replaced the transactional “board-only” approach
of SII’s predecessor. Earlier, SII’s track record of
success for ITW, Baxter’s sister company, generated
referrals ultimately launching an immediate win-win
collaboration for each organization.
Collaboration began with SII diagnosing hardware
and software issues from Baxter’s former third-party
provider for two separate printed circuit board
assemblies (PCBA): one board for the Company’s
room-sized Rotating Rack Oven OV500G2EE
and the other for its Mini Rack Oven OV310.
SII initially assigned two engineers from our decades-
experienced Design Services Center. We effectively
identified and resolved previously unknown data
gaps in the product’s legacy design and successfully
consolidated two PCBA designs to one board. Also,
we updated the real-time clock and other end-of-life
components. Following SII’s prototype and custom
tests, this remains the all-new single PCBA still in use
by Baxter today. In parallel, as the program entered
actual production in our Elk Grove Village, Illinois,
manufacturing site, SII/Baxter logged enhanced
functionality and major cost efficiencies. SII’s oven
program delivered over six months ahead of Baxter’s
schedule with continued EMS collaborations in the
nine years to follow…and counting.
Baxter describes SII’s service as “SII provides not
just delivery of a PCB boxes and controls, but a
simplified, right priced and holistically enhanced
EMS system.” Baxter also reports that amid the
inherent challenge of high-SKUs and low-volumes,
SII is willing to serve it all. When asked what
distinguishes SII, Baxter reports that we continue
to hit all key points on their list: quality, delivery
and customer service. Baxter specifically gives
SII high marks for what it terms sustaining “value
engineering” with resilient production support,
geographic footprint and manufacturing flexibility—
each conforming to the product’s rigorous
Energy Star® rating.
Baxter continues, “Equally crucial engineering
and test services, is/was SII’s personalized support
of Baxter through actual first production. As we
faced a potential redesign like the kind SII served,
it’s not just all about cost reductions. Any redesign
involves layers of risk mitigation; SII has proven to be a
worthy partner providing us with low-risk and quality—
each transcending mere cost reduction.”
Photos: © 2024 ITW Food Equipment Group LLC: Baxter. Used with permission. All rights reserved.
ITW/BAXTER DISCOVERS IN SIGMATRON VALUE ENGINEERING
AND EMS INNOVATION FOR NEARLY A DECADE
SII has provided high-level redesign, flexible
manufacturing support and custom test for
Baxter’s Rotating Rack and Mini Rack Ovens.
These award-winning ovens with patented
baking technology are in current use by
Baxter’s customers and end-users globally
who seek quality, efficiency and ease of use.
SIGMATRON NORTH AMERICA
SIGMATRON UNITED STATES
In FY24, SII’s Elk Grove Village (EGV), Illinois, headquarters,
manufacturing site and Design Services Center furthered its
reputation for timely new product introduction (NPI) services
and scalable manufacturing across customer markets.
With the DSC’s relocation to EGV in Q4, SII is enhancing our
track record of flexible manufacturing for advanced product
builds. This year, EGV invested in process and quality
improvements. Among these are new plant-facing dashboards
to support communications and to speed visibility of forecast
and inventory, while streamlining a program manager’s (PM)
response to changes in material requirements. EGV also
launched rough-cut models, which extend equipment capacity
loading, among other initiatives. We again attracted new
program wins, some offset by certain downward fluctuations
in market demand that may continue in FY25.
In FY24, Union City (UC), California, West Coast Operations,
continued its reputation for providing high quality EMS and
consistent, on time deliveries to some of SII’s most sophisticated,
new and existing customer programs. Again this year, the
division proudly built upon its reputation of offering desirable
design alternatives. This includes DFM engineering services,
incisive component substitutions and/or additions with
inventory support. Together with our EGV operation UC will
continue their long-term focus on enhanced quality, on time
deliveries and close customer collaborations.
SIGMATRON MEXICO
SII’s private company roots in Mexico date back to the mid-
1960s with continuous service from our initial operation in
Acuña. Now, Mexico’s manufacturing economy has grown to
the eighth largest in the world and ranks seventh in Deloitte’s
worldwide, competitive index calculator. Individually and as
a whole, SII’s three divisions in the region offer favorable
labor and tariff costs to service the North American market
under USMCA.
In FY24, SII Acuña continued to excel at high-volume
production runs, quick model changeovers and multiple-
model manufacturing simultaneously. The division’s
engineers collaborate with customers closely to streamline
designs and enhance DFx. As of Q1 2024, the division also
pursued specialized EMS solutions that transcend standard
assembly requirements. In Q3, Acuña began to leverage SII’s
newly expanded 30,000 sq. ft. of cross-border warehouse
space in nearby Del Rio, Texas. The expansion nets 56,400
sq. ft. of traditional space and 21,000 sq. ft. of in-bond space,
with 1,200 sq. ft. of temperature- and humidity-controlled
areas for sensitive components. This meets customers’
needs to both receive raw material shipments and selectively
store finished goods.
SII Chihuahua offers over 23 years of dedicated manufacturing
experience and regional logistics simplicity, specializing
in flexible, low- to-high volume runs with a mix of models.
Chihuahua’s EMS programs are supported by tenured teams
with decades of experience including custom, in-house EMS
test development. In Q1 FY24, the division passed ISO
13485:2016’s audit stage, the manufacturing quality standard
required for medical devices. In Q2 FY24, Chihuahua
completed a two-year transition to SII’s proprietary Tango
MES, fully integrating it into all plant production. Gains
include enhanced productivity and system visibility for each
assembly including Kanban inventory levels, fully electronic
replenishment and manufactured date of issue.
With benefits continuing in FY25, the division launched excess
material reports with automated updates daily. Ahead,
Chihuahua will focus on securing optimized costs for its
top-tier components and should cull inventory by reverifying
customer forecasts and reducing any overstocks.
SII Tijuana, together with its sister divisions in Mexico, offers
skilled labor from a strategic transportation corridor to our
US manufacturing and warehouse sites with critically aligned
time zones and work schedules. Our tenured management
team in Tijuana averages 19 years length of service and
logged a stable employee retention rate of 98%. In FY25, the
division’s workforce expects to continue training, especially
its Six Sigma Green and Black Belt leadership and engineering
practices. Tijuana will also continue to focus on advanced
processes to net improved quality, efficiency and profitability.
SIGMATRON ASIA
Within the Company’s “Global Options” framework, our
technically experienced engineering and manufacturing
teams in our decades-established Asian operations in
Suzhou, China, and Biên Hòa City, Vietnam (SII Asia)
complement our North American operations and remain
highly valued and strategic.
Our Suzhou, China, division pursued programs for both
domestic sales and export while collaborating on EMS
programs with sister divisions. The operation continued
its focus on latest automated equipment, next-level
manufacturing execution systems (MES) and an array of
tools which optimize processes.
Amid many FY24 accomplishments, our China division
innovated a unique automated pin-through-hole (PTH)
inspection capability with potential benefits flowing
to SII customers systemwide. Specifically, our China
team’s proprietary solution termed the MVS-1.0 machine
vision system, began in Q1 FY24 with Stage A prototype
development. By Q4, Suzhou progressed to Stages B
and C (MVS-2.0) which features robotics to minimize
handling and improve cycle time and inspections for
varied defect types. By FY25, China’s Stage D MVS-3.0
SIGMATRON: OUR 30th YEAR | 7
platform is expected to integrate machine learning
capabilities and Industry 4.0 (AI) inspection.
SII Biên Hòa City, Vietnam’s (VN) strategic location
established back in Q1 FY13, continued its long manufacturing
presence in SII’s global footprint. VN offers direct access to
some of the world’s main shipping routes and leverages a
highly favorable business and regulatory environment. The
operation is seen by customers as an advantage as it long
preceded the current wave of movement being driven by
the US Section 301 Tariffs imposed on Chinese exports.
As a country, VN offers a desirable labor participation rate
of 69% as reported in FY24, along with quality infrastructure,
high levels of technical education and a manufacturing base
insulated from the tariffs and geostrategic risks. (Forbes,
2024). Led by a seasoned management team, VN logged
a 98% employee retention rate this year amid their highly
competitive labor rates.
This year, VN’s reputation continued for cost-effective,
high-quality EMS with 24/7 communications from design
optimization through product launch. Also, VN worked
closely with SII’s IPO team to coordinate supply chain
information and provide components to keep production
running smoothly. As in prior years, VN’s engineering team
collaborated in parallel with their US counterparts to innovate
and streamline test processes, optimizing DFx while keeping
efficient pace with production volumes.
Ahead, the division will continue to leverage SII’s suite
of proprietary tools and processes, while providing intra-
team connectedness among global PMs, work teams
and customers.
OUR STRATEGY REMAINS OUR
OPERATING STRENGTH
In FY24’s demanding operating environment, certain fallouts
for the Company may linger into the early quarters of FY25.
SII’s decades-experienced teams, talent and business
model remain well positioned. Our agile manufacturing and
supply chain philosophies, cost efficiencies and committed
workforce will help power us forward. SII is committed to
move past any operational challenges that may lie ahead
and restore our profitability to prior levels and beyond.
In the fiscal year ahead, SigmaTron will continue to exert
our operating strengths including global scale and market
diversity and to further advance our processes and improve
quality and productivity.
Our operating strengths include:
• Flexibility on a global scale: One Source, Global Options®…
for over 30 years.
• Decades-established and trusted service array: Supply
Chain Management, Design Services Center, Quality and
IT Systems (US and Taiwan).
• EMS excellence and personalized service for a global
company our size.
• Steady hand of senior management in direct support of
a skilled, committed global workforce.
• An EMS backlog that meets the pace and program demands
of three diverse markets: Industrial, Consumer, and Medical/
Life Sciences and nine submarkets including: automotive,
commercial cooking, fluid controls, LED lighting, marine, pools,
safety, monitoring sensors, and renewable energy. At
fiscal year’s end, the Company saw significant new
opportunities and in relatively new marketplaces that we
believe will pay off by mid to late FY25 and beyond.
In parallel, we will accelerate our growth strategies for
complete-build EMS, while supporting specialized end-user
markets and unique requirements. We will continue to hone
our customer-centric organizational culture—one defined
and clarified around its common values: EMS excellence,
program field reliability and personal accountability.
As we look ahead, I wish to thank all those who helped
SII to navigate FY24 and its challenges—our customers and
professional and supply chain partners. SII acknowledges
our leadership team, global employees and our Board of
Directors for persevering amid unprecedented headwinds
to meet the needs of all Company stakeholders in FY25
and beyond.
Sincerely,
Gary R. Fairhead,
Chief Executive Officer
John P. Sheehan,
President
SigmaTron International, Inc.
September 20, 2024
8 | SIGMATRON: OUR 30th YEAR
GLOBAL QUALITY CERTIFICATIONS:
ISO 9001:2015
ISO 13485:2016
ISO 14001:2015
IATF 16949:2016
ITAR Registered
FDB Certification
Safety Certification
Firm: Ackerly Communications, LLC Copywriting/Art Direction: Mary Ackerly Designers: Tatjana Jovancevic; Patty Ofriel Proofreading: Deborah Livingstone Printer: Dreamworks GC, LLC
SigmaTron International:
Superior Customer Service
From Our Global Operations
MEXICO
MEXICO
n
TIJUANA OPERATIONS
Calle Hacienda del Colorado
No. 21603 T-1,
Parque Industrial Presidentes
Tijuana, B. C. Mexico 22215
Tel: 52-664-626-8680 1
112,100 sq. ft.
n
CHIHUAHUA OPERATIONS
Miguel de Cervantes No. 151
Complejo Industrial Chihuahua
Chihuahua, Mexico 31136
Tel: 52-614-44-20200
113,000 sq. ft.
n ACUÑA OPERATIONS
Carretera Presa La Amistad
KM 6.5 S/N
Parque Industrial
Ciudad Acuña,
Coahuila, Mexico CP 26248
Tel: 830-774-7216
115,000 sq. ft.
UNITED STATES
UNITED STATES
SIGMATRON US: HEADQUARTERS
n MIDWEST MANUFACTURING
OPERATIONS
n
CORPORATE INFORMATION
TECHNOLOGY (IT) OFFICE
n
CORPORATE DESIGN SERVICES CENTER
2201 Landmeier Road
Elk Grove Village, IL 60007
Tel: 847-956-8000
124,300 sq. ft.
n
WEST COAST OPERATIONS
30000 Eigenbrodt Way
Union City, CA 94587
Tel: 510-477-5000
117,000 sq. ft.
WAREHOUSES
n
California Warehouse: San Diego
2055 Dublin Drive, Suite 300
San Diego, CA 92154
Tel: 619-415-8101
30,240 sq. ft.
n
Texas Warehouse: El Paso
9 Butterfield Trail Blvd., Suite B
El Paso, TX 79906
Tel: 915-995-0660
18,180 sq. ft.
n
Texas Warehouse: Del Rio
103 Avenue J
Del Rio, TX 78840
Tel: 830-775-0335
44,000 sq. ft.
ASIA
ASIA
n CHINA OPERATIONS
386 Hua Hong Road
Suzhou, China 215200
Tel: 86-512-6340-8518-101
202,000 sq. ft.
n
TAIWAN INTERNATIONAL
PROCUREMENT OFFICE (IPO),
SUSTAINABILITY AND
COMPLIANCE CENTER (SCC)
9F., No. 180, Sec. 1,
Keelung Road, Xinyi Dist.,
Taipei City, Taiwan 11006
Tel: 886-2-27601656
4,685 sq. ft.
n
TAIWAN INFORMATION
TECHNOLOGY (IT) OFFICE
12F., No. 375, Sec. 2,
Taiwan Blvd., West Dist.,
Taichung City, Taiwan 403020
1,650 sq. ft.
n
VIETNAM OPERATIONS
No.13, Plot 103/4, Street No.5,
Amata Industrial Park
Biên Hòa City, S.R. Vietnam
26,479 sq. ft.
Manufacturing
Warehouse
Information Technology Office
International Procurement Office
Design Services Center
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
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, 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
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
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
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
** Mr. Camp served in his role through
** Mr. Camp served in his role through
Oct. 6, 2023 and retired thereafter.
Oct. 6, 2023 and retired thereafter.
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,
Vice President,
China Operations
China Operations
Curtis W. Campbell
Vice President of Sales
Vice President of Sales
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
BD
BDO 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.
30 YEARS OF TRADING
AS A PUBLIC
COMPANY
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
Tel
Tel 847.956.8000
847.956.8000
INVESTOR RELATIONS
INVESTOR RELATIONS
800.700.9095
800.700.9095
www.sigmatronintl.com
www.sigmatronintl.com