##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
  þ
    
    Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the fiscal year ended April 30, 2009.
 Or
 o
    
    Transition Report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
 For
the transition period from  to .
 Commission file number 0-23248
 SIGMATRON
INTERNATIONAL, INC.
  Delaware
    
    36-3918470(State or other jurisdiction 
of incorporation or organization)
    
    (I.R.S. Employer
Identification Number)2201 Landmeier Rd., Elk Grove Village, IL
    
    60007(Address of principal executive offices)
    
    (Zip Code)
   
  o þ
 o þ
 þ o
 þ o
 þ
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting
company þ o þ
   DOCUMENTS INCORPORATED BY REFERENCE




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##### 



PART IITEM 1.
    
    BUSINESS
    
    
    3ITEM 1A.
    
    RISK FACTORS
    
    
    9ITEM 1B.
    
    UNRESOLVED STAFF COMMENTS
    
    
    13ITEM 2.
    
    PROPERTIES
    
    
    13ITEM 3.
    
    LEGAL PROCEEDINGS
    
    
    14ITEM 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    14PART IIITEM 5.
    
    MARKET FOR
REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
    
    
    14ITEM 6.
    
    SELECTED FINANCIAL DATA
    
    
    15ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    15ITEM 7A.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    22ITEM 8.
    
    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
    
    
    22ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
    
    
    22ITEM 9A(T).
    
    CONTROLS AND PROCEDURES
    
    
    22ITEM 9B.
    
    OTHER INFORMATION
    
    
    23PART IIIITEM 10.
    
    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
    
    
    23ITEM 11.
    
    EXECUTIVE COMPENSATION
    
    
    23ITEM 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
    
    
    23ITEM 13.
    
    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
    
    
    23ITEM 14.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES
    
    
    24PART IVITEM 15.
    
    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
    
    
    24SIGNATURES
    
    
    
    
    27EX-23.1EX-31.1EX-31.2EX-32.1EX-32.2
  2




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PART 1
 
 ITEM 1. BUSINESS
 CAUTIONARY NOTE:
  Overview
    3




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Products and Services
  Supply Chain Management
  Assembly and Manufacturing
  Manufacturing and Related Services
 4




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Product Testing
 Warehousing and Distribution
 Markets and Customers
   Percent of Net SalesTypical
    
    Fiscal
    
    FiscalMarkets
    
    OEM Application
    
    2008
    
    2009Appliances
    
    Household appliance controls
    
    
    35.8
    %
    
    
    40.9
    %Industrial Electronics
    
    Motor controls, power supplies
    
    
    27.3
    
    
    
    27.0Fitness
    
    Treadmills, exercise bikes, cross trainers
    
    
    20.6
    
    
    
    18.2Telecommunications
    
    Routers
    
    
    6.1
    
    
    
    6.5Gaming
    
    Slot machines, lighting displays
    
    
    2.9
    
    
    
    2.4Life Sciences
    
    Clinical diagnostic systems and instruments
    
    
    3.7
    
    
    
    1.7Semiconductor Equipment
    
    Process control and yield management
equipment for semiconductor productions
    
    
    2.6
    
    
    
    2.2Consumer Electronics
    
    Battery backup sump pumps, electric bikes
    
    
    0.7
    
    
    
    1.0Automotive
    
    Automobile lighting
    
    
    0.3
    
    
    
    0.1Total
    
    
    
    
    100
    %
    
    
    100
    %
  5




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Sales and Marketing
    Mexico and China Operations
    6




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Competition
    Consolidation
   Governmental Regulations
  7




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Backlog
  Employees
    Executive Officers of the Registrants
 Name
    
    Age
    
    PositionGary R. Fairhead
    
    
    57
    
    
    President and Chief Executive
Officer. Gary R. Fairhead has
been the President of the
Company since January 1990.
Gary R. Fairhead is the brother
of Gregory A. Fairhead.Linda K. Frauendorfer
    
    
    48
    
    
    Chief Financial Officer, Vice
President Finance, Treasurer
and Secretary since February
1994.Gregory A. Fairhead
    
    
    53
    
    
    Executive Vice President and
Assistant Secretary. Gregory
A. Fairhead has been Executive
Vice President since February
2000 and Assistant Secretary
since 1994. Mr. Fairhead was
Vice President  Acuna
Operations for the Company from
February 1990 to February 2000.
Gregory A. Fairhead is the
brother of Gary R. Fairhead.John P. Sheehan
    
    
    48
    
    
    Vice President, Director of
Supply Chain and Assistant
Secretary since February 1994.Daniel P. Camp
    
    
    60
    
    
    Vice President, Acuna Operation
since 2007. Vice President 
China Operations from 2003 to
2007. General Manager / Vice
President of Acuna Operations
from 1994 to 2003.Raj B. Upadhyaya
    
    
    54
    
    
    Executive Vice President, West
Coast Operations since 2005.
Mr. Upadhyaya was the Vice
President of the Fremont
Operation from 2001 until 2005.Hom-Ming Chang
    
    
    49
    
    
    Vice President, China Operation
since 2007. Vice President 
Hayward Materials / Test / IT
from 2005  2007. Vice
President of Fremont Operation
from 2001 to 2005.
 8




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ITEM 1A. RISK FACTORS
  The Companys ability to secure and maintain sufficient credit arrangements is key to its continued
operations
     The financial crisis and global economic slowdown could negatively impact the Companys business,
results of operations and financial condition.
  9




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The Company experiences variable operating results.
   
    
    Changes in sales mix to customers
    
    Changes in availability and cost of components
    
    Volume of customer orders relative to capacity
    
    Market demand and acceptance of our customers products
    
    Price erosion within the EMS marketplace
    
    Capital equipment requirements needed to remain technologically competitive
    
    Volatility of the global economy and financials markets
 The Companys customer base is concentrated.
  There is variability in the requirements of the Companys customers.
  The Company and its customers may be unable to keep current with the industrys technological
changes.
   10




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The Company faces intense industry competition and downward pricing pressures.
   The Company has foreign operations that may pose additional risks.
    The Company may be unable to manage its growth.
  Disclosure and internal controls may not detect all errors or fraud.
  There is a risk of fluctuation of various currencies integral to the Companys operations.
  11




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The availability of raw components may affect the Companys operations.
  The Company is dependent on key personnel.
  Favorable labor relations are important to the Company.
  Failure to comply with environmental regulations could subject the Company to liability.
  The price of the Companys stock is volatile.
  Being a public company increases the Companys administrative costs.
  12




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ITEM 1B.
    
    UNRESOLVED STAFF COMMENTS
  
 ITEM 2.
    
    PROPERTIES
   Square
    
    
    
    Owned/Location
    
    Feet
    
    Services Offered
    
    LeasedSuzhou-Wujiang, China
    
    
    147,500
    
    
    High volume assembly, and testing of PTH and SMT, box-build, BGA
    
    *Hayward, CA
    
    
    126,000
    
    
    Assembly and testing of PTH, SMT and BGA, box-build, prototyping,
warehousing
    
    LeasedElk Grove Village, IL
    
    
    118,000
    
    
    Corporate headquarters, assembly and testing of PTH, SMT and BGA,
box-build, prototyping, warehousing
    
    OwnedAcuna, Mexico
    
    
    115,000
    
    
    High volume assembly, and testing of PTH and SMT, box-build, transformers
    
    Owned
**Las Vegas, NV
    
    
    38,250
    
    
    N/A
    
    Leased
***Del Rio, TX
    
    
    44,000
    
    
    Warehouse, portion of which is bonded
    
    LeasedTijuana, Mexico
    
    
    67,700
    
    
    High volume assembly, and testing of PTH and SMT, box-build
    
    LeasedTaipei, Taiwan
    
    
    2,900
    
    
    Materials procurement, alternative sourcing assistance and quality control
    
    Leased
 
 *
    
    The Companys Suzhou-Wujiang, China building is owned by the Company and the land is leased from
the Chinese government for a 50 year term.**
    
    A portion of the facility is leased.***
    
    During fiscal year 2006, the Las Vegas operation was sold. The Company continues to be
obligated under the primary lease agreement for the facility and sublets the property to other
occupants. The Company will not renew this lease when it expires in October 2009.  13




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ITEM 3.
    
    LEGAL PROCEEDINGS
   
 ITEM 4.
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 PART II
 
 ITEM 5.
    
    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
 SECURITIES
 Market Information
  
 Period
    
    High
    
    LowFiscal 2009:Fourth Quarter
    
    $
    2.60
    
    
    $
    1.27Third Quarter
    
    
    3.48
    
    
    
    1.58Second Quarter
    
    
    7.15
    
    
    
    2.82First Quarter
    
    
    7.29
    
    
    
    5.00Fiscal 2008:Fourth Quarter
    
    $
    7.85
    
    
    $
    5.25Third Quarter
    
    
    12.50
    
    
    
    6.88Second Quarter
    
    
    13.37
    
    
    
    8.44First Quarter
    
    
    11.64
    
    
    
    8.95
  14




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Dividend Information
  Equity Compensation Plan Information
  
 ITEM 6.
    
    SELECTED FINANCIAL DATA
  
 ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  Overview
  15




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Critical Accounting Policies:
 Management Estimates and Uncertainties
 Revenue Recognition
 16




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Inventories
 Impairment of Long-Lived Assets
 Goodwill and Other Intangibles
  17




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New Accounting Standards:
  The Fair Value Options for Financial Assets
and Financial Liabilities
   Results of Operations:
 
  18




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19




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Non-Gaap Reconciliation*Twelve MonthsEndedApril 30, 2008Income (loss) Reconciliation:Net income before goodwill impairment
    
    $
    2,842,109Goodwill impairment charge
    
    
    9,298,945Net loss
    
    
    ($6,456,836
    )EPS Reconciliation:Net income per common share  assuming dilution
before goodwill impairment
    
    $
    0.74Goodwill impairment charge
    
    
    ($2.43
    )Net loss per common share  assuming dilution
    
    
    ($1.69
    )Weighted average number of common equivalent
shares outstanding  assuming dilution
    
    
    3,811,832
 
 *
    
    A non-GAAP financial measure is a numerical measure of a companys performance, financial
position, or cash flows that either excludes or includes amounts that are not normally excluded or
included in the most directly comparable measure calculated and presented in accordance with GAAP. Liquidity and Capital Resources:
 Operating Activities.
   20




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Investing Activities.
   Financing Activities.
       21




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Off-balance Sheet Transactions:
  Contractual Obligations and Commercial Commitments:
  
 ITEM 7A.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
  
 ITEM 8.
    
    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
  
 ITEM 9.
    
    CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
  
 ITEM 9A (T).
    
    CONTROLS AND PROCEDURES
   22




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ITEM 9B.
    
    OTHER INFORMATION
  
 PART III
 
 ITEM 10.
    
    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
  
 ITEM 11.
    
    EXECUTIVE COMPENSATION
  
 ITEM 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
  
 ITEM 13.
    
    CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND
DIRECTOR INDEPENDENCE
  23




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ITEM 14.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES
  
 PART IV
 
 ITEM 15.
    
    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
   24




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Index to Exhibits
  3.1
    
    Certificate of Incorporation of the Company, incorporated herein by reference to Exhibit 3.1
to Registration Statement on Form S-1, File No. 33-72100, dated February 9, 1994.3.2
    
    Amended and Restated By-laws of the Company, adopted on September 24, 1999, filed as Exhibit
3.2 to the Companys Form 10-K for the fiscal year ended April 30, 2000, and hereby
incorporated by reference.10.1
    
    Form of 1993 Stock Option Plan  filed as Exhibit 10.4 to the Companys Registration
Statement on Form S-1, File No. 33-72100, and hereby incorporated by reference. *10.2
    
    Form of Incentive Stock Option Agreement for the Companys 1993 Stock Option Plan  filed as
Exhibit 10.5 to the Companys Registration Statement on Form S-1, File No. 33-72100, and
hereby incorporated by reference. *10.3
    
    Form of Non-Statutory Stock Option Agreement for the Companys 1993 stock Option Plan 
filed as Exhibit 10.6 to the Companys Registration Statement on Form S-1, File No. 33-72100,
and hereby incorporated by reference. *10.4
    
    2000 Outside Directors Stock Option Plan and hereby incorporated by reference  filed as
Appendix 1 to the Companys 2000 Proxy Statement filed on August 21, 2000*.10.5
    
    Loan and Security Agreement between SigmaTron International, Inc. and LaSalle National Bank
dated August 25, 1999, filed as Exhibit 10.26 to the Companys Form 10-Q for the quarter ended
October 31, 1999, and hereby incorporated by reference.10.6
    
    2004 Directors Stock Option Plan and hereby incorporated by reference  filed as Appendix C
to the Companys 2004 Proxy Statement filed on August 16, 2004. *10.7
    
    2004 Employee Stock Option Plan and hereby incorporated by reference  filed as Appendix B
to the Companys 2004 Proxy Statement filed on August 16, 2004. *10.8
    
    Change in Control Plan dated May 30, 2002, filed as Exhibit 10.15 to the Companys Form 10-K
for the fiscal year ended April 30, 2005, and hereby incorporated by reference.*10.9
    
    Tenth Amendment to Loan and Security Agreement between SigmaTron International, Inc. and
LaSalle Bank National Association, dated July 14, 2005, filed as Exhibit 10.18 to the
Companys Form 10-Q for the quarter ended October 31, 2005, and hereby incorporated by
reference.10.10
    
    Eleventh Amendment to Loan and Security Agreement between SigmaTron International, Inc. and
LaSalle Bank National Association, dated September 12, 2005, filed as Exhibit 10.19 to the
Companys Form 10-Q for the quarter Ended October 31, 2005, and hereby incorporated by
reference.10.11
    
    Twelfth Amendment to Loan and Security Agreement between SigmaTron International, Inc. and
LaSalle Bank National Association, dated July 31, 2006, filed as Exhibit 10.21 to the
Companys Form 10-Q for the quarter ended July 31, 2006, and hereby incorporated by reference.10.12
    
    Thirteen Amendment to Loan and Security Agreement between SigmaTron International, Inc. and
LaSalle Bank National Association, dated October 20, 2006, filed as Exhibit 10.22 to the
Companys Form 10-Q for the quarter ended October 31, 2006, and hereby incorporated by
reference.10.13
    
    Fourteenth Amendment to Loan and Security Agreement between SigmaTron International, Inc.
and LaSalle Bank National Association, dated January 2007, filed as Exhibit 10.23 to the
Companys Form 10-Q for the quarter ended January 31, 2007, and hereby incorporated by
reference.
 25




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10.14
    
    Amended and Restated Mortgage Note between SigmaTron International, Inc. and LaSalle Bank
National Association dated April 30, 2008, and hereby incorporated by reference.10.15
    
    Sixteenth Amendment to Loan and Security Agreement between SigmaTron International, Inc. and
LaSalle Bank National Association, dated March 7, 2008, and hereby incorporated by reference.10.16
    
    Seventeenth Amendment to Loan and Security Agreement between SigmaTron International, Inc.
and LaSalle Bank National Association, dated June 25, 2008, filed as Exhibit 10.17 to the
Companys Form 10-Q for the quarter ended July 31, 2008, and hereby incorporated by reference.21.0
    
    Subsidiaries of the Registrant to the Companys Form 10-K for the fiscal year ended April 30,
2007, and hereby incorporated by reference.23.1
    
    Consent of BDO Seidman, LLP.**31.1
    
    Certification of Principal Executive Officer of the Company Pursuant to Rule 13a-14(a) under
the Exchange Act, as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**31.2
    
    Certification of Principal Financial Officer of the Company Pursuant to Rule 13a-14(a) under
the Exchange Act, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**32.1
    
    Certification by the Principal Executive Officer of SigmaTron International, Inc. Pursuant to
Rule 13a-14(b) under the Exchange Act and Section 906 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. 1350).**32.2
    
    Certification by the Principal Financial Officer of SigmaTron International, Inc. Pursuant to
Rule 13a-14(b) under the Exchange Act and Section 906 of the Sarbanes-Oxley Act of 2002 (18
U.S.C. 1350).**
 
 *
    
    Indicates management contract or compensatory plan.**
    
    Filed herewith   26




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SIGNATURES
  SIGMATRON INTERNATIONAL, INC.By:
    /s/ Gary R. FairheadGary R. Fairhead, President and Chief Executive Officer,
Principal Executive Officer and Director    Signature
    
    Title
    
    Date/s/ Franklin D. Sove

Franklin D. Sove
    
    Chairman of the Board of Directors
    
    July 17, 2009/s/ Gary R. Fairhead

Gary R. Fairhead
    
    President and Chief Executive Officer, (Principal
Executive Officer) and Director
    
    July 17, 2009/s/ Linda K. Frauendorfer

Linda K. Frauendorfer
    
    Chief Financial Officer, Secretary and Treasurer (Principal
Financial Officer and Principal
Accounting Officer)
    
    July 17, 2009/s/ John P. Chen

John P. Chen
    
    Director
    
    July 17, 2009/s/ Thomas W. Rieck

Thomas W. Rieck
    
    Director
    
    July 17, 2009/s/ Dilip S. Vyas

Dilip S. Vyas
    
    Director
    
    July 17, 2009/s/ Carl Zemenick

Carl Zemenick
    
    Director
    
    July 17, 2009
 27




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##### 



INDEX TO FINANCIAL STATEMENTS
  
 PageSigmaTron International, Inc. and SubsidiariesREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    F-2CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED BALANCE SHEETS ASSETS
    
    F-3LIABILITIES AND STOCKHOLDERS EQUITY
    
    F-4CONSOLIDATED STATEMENTS OF OPERATIONS
    
    F-5CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS EQUITY
    
    F-6CONSOLIDATED STATEMENTS OF CASH FLOWS
    
    F-7NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    
    F-8
   F-1




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 Board of Directors and Stockholders
SigmaTron International, Inc.
Elk Grove, Illinois
    
 F-2




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SigmaTron International, Inc. and Subsidiaries
 
 CONSOLIDATED BALANCE SHEETS
 April 30,
 ASSETS
    
    2009
    
    
    2008CURRENT ASSETSCash and cash equivalents
    
    $
    3,781,252
    
    
    $
    3,833,627Accounts receivable, less allowance for doubtful
accounts of $167,788 and $213,000 at April 30,
2009 and 2008, respectively
    
    
    16,785,079
    
    
    
    26,747,552Inventories, net
    
    
    36,230,555
    
    
    
    42,146,770Prepaid expenses and other assets
    
    
    923,911
    
    
    
    1,039,607Deferred income taxes
    
    
    1,560,425
    
    
    
    1,453,007Other receivables
    
    
    341,310
    
    
    
    38,783Total current assets
    
    
    59,622,532
    
    
    
    75,259,346PROPERTY, MACHINERY AND EQUIPMENT, NET
    
    
    26,200,578
    
    
    
    29,354,623LONG-TERM ASSETSOther assets
    
    
    699,379
    
    
    
    1,034,155Intangible assets, net of amortization of $2,161,113
and $1,811,931 at April 30, 2009 and 2008,
respectively
    
    
    608,887
    
    
    
    958,069Total long-term assets
    
    
    1,308,266
    
    
    
    1,992,224TOTAL ASSETS
    
    $
    87,131,376
    
    
    $
    106,606,193
  F-3




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SigmaTron International, Inc. and Subsidiaries  CONSOLIDATED BALANCE SHEETS  CONTINUED  April 30,
 
 LIABILITIES AND STOCKHOLDERS EQUITY
    
    2009
    
    
    2008CURRENT LIABILITIESTrade accounts payable
    
    $
    10,531,553
    
    
    $
    19,722,175Accrued expenses
    
    
    1,602,913
    
    
    
    2,297,601Accrued payroll
    
    
    1,555,736
    
    
    
    2,583,379Income taxes payable
    
    
    272,750
    
    
    
    555,380Notes payable  bank
    
    
    1,000,000
    
    
    
    1,000,000Notes payable  buildings
    
    
    140,250
    
    
    
    326,935Capital lease obligations
    
    
    951,983
    
    
    
    1,595,931Total current liabilities
    
    
    16,055,185
    
    
    
    28,081,401NOTES PAYABLE  BANK,
LESS CURRENT PORTION
    
    
    19,746,696
    
    
    
    27,876,255NOTES PAYABLE  BUILDINGS,
LESS CURRENT PORTION
    
    
    2,521,188
    
    
    
    2,661,437CAPITAL LEASE OBLIGATIONS,
LESS CURRENT PORTION
    
    
    1,490,773
    
    
    
    2,125,692DEFERRED INCOME TAXES
    
    
    1,915,649
    
    
    
    2,446,449Total liabilities
    
    
    41,729,491
    
    
    
    63,191,234COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS EQUITYPreferred stock, $.01 par value; 500,000 shares
authorized, none issued and outstanding
    
    
    
    
    
    
    Common stock, $.01 par value; 12,000,000 shares
authorized, 3,822,556 shares issued and outstanding
at April 30, 2009 and 2008
    
    
    38,226
    
    
    
    38,226Capital in excess of par value
    
    
    19,630,580
    
    
    
    19,599,501Retained earnings
    
    
    25,733,079
    
    
    
    23,777,232Total stockholders equity
    
    
    45,401,885
    
    
    
    43,414,959TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY
    
    $
    87,131,376
    
    
    $
    106,606,193
  F-4




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SigmaTron International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended April 30,
 2009
    
    
    2008Net sales
    
    $
    133,744,642
    
    
    $
    167,810,994Cost of products sold
    
    
    117,769,739
    
    
    
    148,247,604Gross profit
    
    
    15,974,903
    
    
    
    19,563,390Selling and administrative expenses
    
    
    11,591,440
    
    
    
    12,375,458Goodwill impairment charge
    
    
    
    
    
    
    9,298,945Operating income (loss)
    
    
    4,383,463
    
    
    
    (2,111,013
    )Other (income) expense
    
    
    (219,479
    )
    
    
    22,832Interest expense
    
    
    1,710,817
    
    
    
    2,667,473Income (loss) before income tax expense
    
    
    2,892,125
    
    
    
    (4,801,318
    )Income tax expense
    
    
    936,278
    
    
    
    1,655,518NET INCOME (LOSS)
    
    $
    1,955,847
    
    
    $
    (6,456,836
    )Earnings (loss) per common shareBasic
    
    $
    0.51
    
    
    $
    (1.69
    )Diluted
    
    $
    0.51
    
    
    $
    (1.69
    )Weighted-average shares of common
stock outstandingBasic
    
    
    3,822,556
    
    
    
    3,811,832Diluted
    
    
    3,859,526
    
    
    
    3,811,832
  F-5




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
Two years ended April 30, 2009 and 2008
 Capital in
    
    
    
    
    
    
    TotalPreferred
    
    
    Common
    
    
    excess of par
    
    
    Retained
    
    
    stockholdersstock
    
    
    stock
    
    
    value
    
    
    earnings
    
    
    equityBalance at May 1, 2007
    
    $
    
    
    
    $
    37,950
    
    
    $
    19,315,104
    
    
    $
    30,387,968
    
    
    $
    49,741,022Adjustment to initially
apply FIN 48,
Accounting for
Uncertainty in Income
Taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (153,900
    )
    
    
    (153,900
    )Exercise of options
    
    
    
    
    
    
    276
    
    
    
    252,816
    
    
    
    
    
    
    
    253,092Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    31,581
    
    
    
    
    
    
    
    31,581Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,456,836
    )
    
    
    (6,456,836
    )Balance at April 30, 2008
    
    
    
    
    
    
    38,226
    
    
    
    19,599,501
    
    
    
    23,777,232
    
    
    
    43,414,959Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    31,079
    
    
    
    
    
    
    
    31,079Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,955,847
    
    
    
    1,955,847Balance at April 30, 2009
    
    $
    
    
    
    $
    38,226
    
    
    $
    19,630,580
    
    
    $
    25,733,079
    
    
    $
    45,401,885
  F-6




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended April 30,
 2009
    
    
    2008Cash flows from operating activitiesNet income (loss)
    
    $
    1,955,847
    
    
    $
    (6,456,836
    )Adjustments to reconcile net income (loss) to net
cash provided by operating activitiesDepreciation and amortization
    
    
    4,035,804
    
    
    
    4,004,108Goodwill impairment charge
    
    
    
    
    
    
    9,298,945Stock-based compensation
    
    
    31,079
    
    
    
    31,581Provision for doubtful accounts
    
    
    17,788
    
    
    
    63,000Provision for inventory obsolescence
    
    
    157,000
    
    
    
    477,719Deferred income tax benefit
    
    
    (518,981
    )
    
    
    (490,787
    )Amortization of intangible assets
    
    
    349,182
    
    
    
    503,703Loss from sale of machinery and equipment
    
    
    279,521
    
    
    
    Changes in operating assets and liabilitiesAccounts receivable
    
    
    9,944,685
    
    
    
    (6,530,677
    )Inventories
    
    
    5,759,215
    
    
    
    (1,774,698
    )Prepaid expenses and other assets
    
    
    147,945
    
    
    
    406,977Trade accounts payable
    
    
    (9,190,622
    )
    
    
    4,248,515Accrued expenses and wages
    
    
    (1,722,331
    )
    
    
    26,057Income taxes
    
    
    (401,867
    )
    
    
    355,862Net cash provided by operating activities
    
    
    10,844,265
    
    
    
    4,163,469Cash flows from investing activitiesProceeds from sale of machinery and equipment
    
    
    18,052
    
    
    
    12,396Purchases of machinery and equipment
    
    
    (820,705
    )
    
    
    (2,400,020
    )Net cash used in investing activities
    
    
    (802,653
    )
    
    
    (2,387,624
    )Cash flows from financing activitiesProceeds from exercise of options
    
    
    
    
    
    
    253,092Payments under building notes payable
    
    
    (326,934
    )
    
    
    (528,092
    )Proceeds under sale lease back agreements
    
    
    
    
    
    
    615,855Payments under capital lease obligations
    
    
    (1,637,494
    )
    
    
    (1,709,966
    )Payments under term loan
    
    
    (1,000,000
    )
    
    
    (1,000,000
    )Net (payments) proceeds under lines of credit
    
    
    (7,129,559
    )
    
    
    1,657,240Net cash used in financing activities
    
    
    (10,093,987
    )
    
    
    (711,871
    )(DECREASE) INCREASE IN CASH
    
    
    (52,375
    )
    
    
    1,063,974Cash and cash equivalents at beginning of year
    
    
    3,833,627
    
    
    
    2,769,653Cash and cash equivalents at end of year
    
    $
    3,781,252
    
    
    $
    3,833,627Supplementary disclosures of cash flow informationCash paid for interest
    
    $
    1,810,000
    
    
    $
    2,512,453Cash paid for income taxes, net of (refunds)
    
    
    1,560,243
    
    
    
    1,594,771Purchase of machinery and equipment financed
under capital lease obligations
    
    
    358,627
    
    
    
    Purchase of machinery and equipment financed
under sale lease back agreements
    
    
    
    
    
    
    615,855
  F-7




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  April 30, 2009 and 2008
 NOTE A  DESCRIPTION OF THE BUSINESS
  NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Consolidation Policy
  Use of Estimates
  F-8




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued
 Cash and Cash Equivalents
  Accounts Receivable
  Allowance for Doubtful Accounts
  Inventories
  F-9




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued
 Inventory Policies
  Property, Machinery and Equipment
  Buildings
    
    20 yearsMachinery and equipment
    
    5-12 yearsOffice equipment
    
    5 yearsTools and dies
    
    12 monthsLeasehold improvements
    
    term of lease
 Income Taxes
  Earnings per Share
  F-10




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued
 Revenue Recognition
  Shipping and Handling Costs
  Fair Value of Financial Instruments
  Long-Lived Assets
  F-11




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued
 Long-Lived Assets  Continued
  Goodwill and Other Intangibles
   F-12




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued
 Goodwill and Other Intangibles  Continued
   Non-competes and
    
    
    CustomerBacklog
    
    
    Relationships
    
    
    TotalBalance as of May 1, 2007
    
    $
    5,826
    
    
    $
    1,455,946
    
    
    $
    1,461,772Amortization expense 2008
    
    
    (5,826
    )
    
    
    (497,877
    )
    
    
    (503,703
    )Balance as of April 30, 2008
    
    
    
    
    
    
    958,069
    
    
    
    958,069Amortization expense 2009
    
    
    
    
    
    
    (349,182
    )
    
    
    (349,182
    )Balance as of April 30, 2009
    
    $
    
    
    
    $
    608,887
    
    
    $
    608,887Amortization period
    
    2 years
    
    8 years
    
    
    N/A
  Years Ended April 30,2010
    
    $
    245,2162011
    
    
    163,9982012
    
    
    112,7462013
    
    
    75,8502014
    
    
    11,077$
    608,887
  F-13




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED
April 30, 2009 and 2008
 NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued
 Stock Incentive Plans
  New Accounting Standards
  The Fair Value Options for Financial Assets and
Financial Liabilities
  F-14




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Continued
 New Accounting Standards  Continued
   NOTE C  ALLOWANCE FOR DOUBTFUL ACCOUNTS
  2009
    
    
    2008Beginning balance
    
    $
    213,000
    
    
    $
    150,000Bad debt expense
    
    
    17,788
    
    
    
    63,000Write-offs
    
    
    (63,000
    )
    
    
    $
    167,788
    
    
    $
    213,000
 F-15




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE D  INVENTORIES
  2009
    
    
    2008Finished products
    
    $
    11,644,129
    
    
    $
    18,735,846Work in process
    
    
    2,391,559
    
    
    
    2,542,762Raw materials
    
    
    23,993,727
    
    
    
    22,591,18138,029,415
    
    
    
    43,869,789Less obsolescence reserve
    
    
    1,798,860
    
    
    
    1,723,019$
    36,230,555
    
    
    $
    42,146,770
  2009
    
    
    2008Beginning balance
    
    $
    1,723,019
    
    
    $
    1,245,300Provision for obsolescence
    
    
    157,000
    
    
    
    477,719Write-offs
    
    
    (81,159
    )
    
    
    $
    1,798,860
    
    
    $
    1,723,019
 F-16




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE E  PROPERTY, MACHINERY AND EQUIPMENT, NET
  2009
    
    
    2008Land and buildings
    
    $
    12,021,913
    
    
    $
    11,920,435Machinery and equipment
    
    
    38,670,381
    
    
    
    36,046,726Office equipment
    
    
    3,947,899
    
    
    
    3,764,374Tools and dies
    
    
    288,598
    
    
    
    288,598Leasehold improvements
    
    
    3,089,065
    
    
    
    3,019,545Equipment under capital leases
    
    
    4,899,539
    
    
    
    7,445,20262,917,395
    
    
    
    62,484,880Less accumulated depreciation and
amortization, including amortization of
assets under capital leases of $1,218,393 and
$1,631,488 at April 30, 2009 and 2008,
respectively
    
    
    36,716,817
    
    
    
    33,130,257Property, machinery and equipment, net
    
    $
    26,200,578
    
    
    $
    29,354,623
  NOTE F  LONG-TERM DEBT
 Note Payable  Bank
  F-17




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE F  LONG TERM DEBT  Continued
 Note Payable  Bank  Continued
     Note Payable  Buildings
  F-18




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE F  LONG TERM DEBT  Continued
 Note Payable  Buildings  Continued
    Fiscal Year2010
    
    $
    1,140,2502011
    
    
    19,886,9462012
    
    
    140,2502013
    
    
    2,240,688$
    23,408,134
 F-19




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE G  ACCRUED EXPENSES AND WAGES
  2009
    
    
    2008Wages
    
    $
    1,555,736
    
    
    $
    1,638,659Bonuses
    
    
    
    
    
    
    944,720Interest payable
    
    
    41,101
    
    
    
    144,046Commissions
    
    
    36,514
    
    
    
    42,298Professional fees
    
    
    228,161
    
    
    
    335,202Foreign payroll accruals
    
    
    708,433
    
    
    
    734,790Other
    
    
    588,704
    
    
    
    1,021,265$
    3,158,649
    
    
    $
    4,860,980
 F-20




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED
April 30, 2009 and 2008
 NOTE H  INCOME TAXES
  2009
    
    
    2008CurrentFederal
    
    $
    1,037,422
    
    
    $
    1,707,890State
    
    
    179,311
    
    
    
    242,740Foreign
    
    
    238,526
    
    
    
    195,675DeferredFederal
    
    
    (452,450
    )
    
    
    (438,236
    )State
    
    
    (66,531
    )
    
    
    (52,551
    )$
    936,278
    
    
    $
    1,655,518
  2009
    
    
    2008Income tax atFederal rate
    
    $
    983,322
    
    
    $
    (1,632,448
    )State income tax, net of federal
    
    
    51,814
    
    
    
    (143,867
    )Goodwill impairment charge
    
    
    
    
    
    
    3,626,589Benefit of Chinese tax holiday
    
    
    (81,438
    )
    
    
    Other, net
    
    
    (17,420
    )
    
    
    (194,756
    )$
    936,278
    
    
    $
    1,655,518
 F-21




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED
April 30, 2009 and 2008
 NOTE H  INCOME TAX  Continued
  2009
    
    
    2008U.S.
    
    $
    1,857,492
    
    
    $
    (5,513,683
    )Foreign
    
    
    1,034,633
    
    
    
    712,365Total
    
    $
    2,892,125
    
    
    $
    (4,801,318
    )
  2009
    
    
    2008Allowance for doubtful accounts
    
    $
    65,436
    
    
    $
    83,069Inventory obsolescence reserve
    
    
    701,546
    
    
    
    671,969Accruals not currently deductible
    
    
    461,619
    
    
    
    325,478Inventory
    
    
    402,765
    
    
    
    402,539Current deferred tax asset
    
    
    1,631,366
    
    
    
    1,483,055Prepaid insurance
    
    
    (70,941
    )
    
    
    (30,048
    )Current deferred tax liability
    
    
    (70,941
    )
    
    
    (30,048
    )Net current deferred tax asset
    
    $
    1,560,425
    
    
    $
    1,453,007
 2009
    
    
    2008Intangible assets
    
    $
    (237,463
    )
    
    $
    (373,642
    )Machinery and equipment
    
    
    (1,670,023
    )
    
    
    (2,072,807
    )Other
    
    
    (8,163
    )
    
    
    Net long-term deferred tax liability
    
    $
    (1,915,649
    )
    
    $
    (2,446,449
    )
 F-22




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED
April 30, 2009 and 2008
 NOTE H  INCOME TAX  Continued
    2009
    
    
    2008Balance at May 1,
    
    $
    145,591
    
    
    $
    153,900Additions based on tax positions related to current year
    
    
    
    
    
    
    Additions for tax positions in prior years
    
    
    
    
    
    
    6,494Reductions for tax positions of prior years
    
    
    
    
    
    
    (14,803
    )Balance at April 30,
    
    $
    145,591
    
    
    $
    145,591
  F-23




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED
April 30, 2009 and 2008
 NOTE H  INCOME TAX  Continued
  NOTE I  401(k) RETIREMENT SAVINGS PLAN
  NOTE J  MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK
  F-24




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED
April 30, 2009 and 2008
 NOTE K  LEASES
   Capital
    
    
    OperatingYears ending April 30,
    
    leases
    
    
    leases2010
    
    $
    1,088,826
    
    
    $
    1,503,3482011
    
    
    857,245
    
    
    
    819,8892012
    
    
    514,047
    
    
    
    101,9942013
    
    
    200,934
    
    
    
    10,8002014
    
    
    27,856
    
    
    
    10,800Thereafter
    
    
    
    
    
    
    18,0002,688,908
    
    
    $
    2,464,831Less amounts representing interest
    
    
    246,1522,442,756Less current portion
    
    
    951,983$
    1,490,773
  F-25




---



##### Table of Contents



SigmaTron International, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED
April 30, 2009 and 2008
 NOTE L  STOCK OPTIONS
    2009
    
    2008Expected dividend yield
    
    
    0
    %
    
    
    0
    %Expected stock price volatility
    
    
    .750
    
    
    
    .750Average risk-free interest rate
    
    
    1.70
    %
    
    
    3.91
    %Weighted-average expected life of options
    
    6.5 years
    
    
    6.5 years
  F-26




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE L  STOCK OPTIONS  Continued
  Number ofWeighted-
    
    optionsaverage
    
    exercisableNumber of
    
    exercise
    
    at endoptions
    
    price
    
    of yearOutstanding at April 30, 2007
    
    
    531,307
    
    
    $
    8.00
    
    
    
    502,701Options granted during 2008
    
    
    2,500
    
    
    
    11.56Options exercised during 2008
    
    
    (27,600
    )
    
    
    9.17Options forfeited during 2008
    
    
    (4,400
    )
    
    
    9.17Options expired during 2008
    
    
    (3,100
    )
    
    
    12.25Outstanding at April 30, 2008
    
    
    498,707
    
    
    
    7.92
    
    
    
    477,847Options granted during 2009
    
    
    5,000
    
    
    
    5.40Outstanding at April 30, 2009
    
    
    503,707
    
    
    
    7.89
    
    
    
    496,671
  F-27




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE L  STOCK OPTIONS  Continued
  Options outstandingNumber
    
    
    Weighted-average
    
    
    Weighted-outstanding at
    
    
    remaining
    
    
    averageRange of exercise prices
    
    April 30, 2009
    
    
    contractual life
    
    
    exercise price$2.20 - 5.63
    
    
    108,515
    
    
    3.64 years
    
    $
    2.649.17 - 11.56
    
    
    395,192
    
    
    6.82 years
    
    
    9.34503,707
    
    
    
    
    
    
    $
    7.89
 Options exercisableNumber
    
    
    Weighted-exercisable at
    
    
    averageRange of exercise prices
    
    April 30, 2009
    
    
    exercise price$2.20 - 5.63
    
    
    104,765
    
    
    $
    2.549.17 - 11.56
    
    
    391,906
    
    
    
    9.22496,671
    
    
    $
    7.82
   F-28




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE M  SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
  First
    
    Second
    
    Third
    
    Fourth2009
    
    quarter
    
    quarter
    
    quarter
    
    quarterNet sales
    
    $
    38,478,118
    
    
    $
    41,132,728
    
    
    $
    26,970,927
    
    
    $
    27,162,869Income (loss) before
income tax expense977,903
    
    
    
    2,070,389
    
    
    
    (160,585
    )
    
    
    4,418Net income (loss)
    
    
    579,324
    
    
    
    1,505,316
    
    
    
    (265,458
    )
    
    
    136,665Earnings (loss) per share-Basic
    
    $
    0.15
    
    
    $
    0.39
    
    
    $
    (0.07
    )
    
    $
    0.04Earnings (loss) per share-Diluted
    
    $
    0.15
    
    
    $
    0.39
    
    
    $
    (0.07
    )
    
    $
    0.04Total shares-Basic
    
    
    3,822,556
    
    
    
    3,822,556
    
    
    
    3,822,556
    
    
    
    3,822,556Total shares-Diluted
    
    
    3,884,075
    
    
    
    3,874,643
    
    
    
    3,822,556
    
    
    
    3,822,556
 F-29




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE M  SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)  Continued
  First
    
    Second
    
    Third
    
    Fourth2008
    
    quarter
    
    quarter
    
    quarter
    
    quarterNet sales
    
    $
    39,843,813
    
    
    $
    42,815,107
    
    
    $
    41,131,744
    
    
    $
    44,020,330Income (loss) before
income tax expense
    
    
    1,276,100
    
    
    
    1,070,014
    
    
    
    517,023
    
    
    
    (7,664,455
    )Net income (loss)
    
    
    826,988
    
    
    
    693,274
    
    
    
    312,464
    
    
    
    (8,289,562
    )Earnings (loss) per share-Basic
    
    $
    0.22
    
    
    $
    0.18
    
    
    $
    0.08
    
    
    $
    (2.17
    )Earnings (loss) per
share-Diluted
    
    $
    0.21
    
    
    $
    0.18
    
    
    $
    0.08
    
    
    $
    (2.17
    )Total shares-Basic
    
    
    3,794,956
    
    
    
    3,807,492
    
    
    
    3,822,556
    
    
    
    3,822,556Total shares-Diluted
    
    
    3,889,274
    
    
    
    3,962,531
    
    
    
    3,897,314
    
    
    
    3,822,556
 F-30




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##### Table of Contents



SigmaTron International, Inc. and Subsidiaries  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  CONTINUED  April 30, 2009 and 2008
 NOTE N  LITIGATION
   F-31