10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

      X       Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

 For the fiscal year ended April 30, 2015.

Or

 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.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)   2201 Landmeier Rd., Elk Grove Village, IL (Address of principal executive offices)   Registrant’s telephone number, including area code:  847-956-8000 Securities registered pursuant to Section 12(b) of the Act: 36-3918470 (I.R.S. Employer Identification Number)   60007 (Zip Code)    

	ASDAQ Capital Market
Title of each class Common Stock $0.01 par value per share	Name of each exchange on which registered The NASDAQ Capital Market

Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  ☐Yes   ☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  ☐Yes   ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

☒  Yes   ☐ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   ☒ Yes  ☐  No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See definition of “accelerated filer” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐  Accelerated filer  ☐Non-accelerated ☐  Smaller reporting company  ☒

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Act.)☐Yes☒ No

The aggregate market value of the voting common equity held by non-affiliates of the registrant as of October 31, 2014 (the last business day of the registrant’s most recently completed second fiscal quarter) was $25,246,669 based on the closing sale price of $7.00 per share as reported by Nasdaq Capital Market as of such date.

The number of outstanding shares of the registrant’s Common Stock, $0.01 par value, as of July 22, 2015 was 4,162,285.

DOCUMENTS INCORPORATED BY REFERENCE

Certain sections or portions of the definitive proxy statement of SigmaTron International, Inc., for use in connection with its 2015 annual meeting of stockholders, which the Company intends to file within 120 days of the fiscal year ended April 30, 2015, are incorporated by reference into Part III of this Form 10-K.

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TABLE OF CONTENTS

PART I
	ITEM 1.	BUSINESS	4
	ITEM 1A.	RISK FACTORS	11
	ITEM IB.	UNRESOLVED STAFF COMMENTS	17
	ITEM 2.	PROPERTIES	17
	ITEM 3.	LEGAL PROCEEDINGS	18
	ITEM 4.	MINE SAFETY DISCLOSURES	19
PART II
	ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	19
	ITEM 6.	SELECTED FINANCIAL DATA	20
	ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20
	ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS	29
	ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	29
	ITEM 9.	CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	30
	ITEM 9A.	CONTROLS AND PROCEDURES	30
	ITEM 9B.	OTHER INFORMATION	30
PART III
	ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	31
	ITEM 11.	EXECUTIVE COMPENSATION	31
	ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	31
	ITEM 13.	CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE	31
	ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	31
PART IV
	ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	31
SIGNATURES			35

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PART I

ITEM 1.  BUSINESS

CAUTIONARY NOTE:

In addition to historical financial information, this discussion of the business of SigmaTron International, Inc. (“SigmaTron”), its wholly-owned subsidiaries Standard Components de Mexico S.A., AbleMex, S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd., wholly-owned foreign enterprises Wujiang SigmaTron Electronics Co., Ltd. and SigmaTron Electronic Technology Co., Ltd. (collectively, “SigmaTron China”) and international procurement office SigmaTron Taiwan branch (collectively, the “Company”) and other Items in this Annual Report on Form 10-K contain forward-looking statements concerning the Company’s business or results of operations.  Words such as “continue,” “anticipate,” “will,” “expect,” “believe,” “plan,” and similar expressions identify forward-looking statements.  These forward-looking statements are based on the current expectations of the Company.  Because these forward-looking statements involve risks and uncertainties, the Company’s plans, actions and actual results could differ materially.  Such statements should be evaluated in the context of the risks and uncertainties inherent in the Company’s business including, but not necessarily limited to, the Company’s continued dependence on certain significant customers; the continued market acceptance of products and services offered by the Company and its customers; pricing pressures from the Company’s customers, suppliers and the market; the activities of competitors, some of which may have greater financial or other resources than the Company; the variability of our operating results; the results of long-lived assets and goodwill impairment testing; the variability of our customers’ requirements; the availability and cost of necessary components and materials; the ability of the Company and our customers to keep current with technological changes within our industries; regulatory compliance, including conflict minerals; the continued availability and sufficiency of our credit arrangements; changes in U.S., Mexican, Chinese, Vietnamese or Taiwanese regulations affecting the Company’s business; the turmoil in the global economy and financial markets; the stability of the U.S., Mexican, Chinese, Vietnamese and Taiwanese economic, labor and political systems and conditions; currency exchange fluctuations; and the ability of the Company to manage its growth.  These and other factors which may affect the Company’s future business and results of operations are identified throughout the Company’s Annual Report on Form 10-K, and as risk factors, and may be detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  These statements speak as of the date of such filings, and the Company undertakes no obligation to update such statements in light of future events or otherwise unless otherwise required by law.

Overview

SigmaTron is a Delaware corporation, which was organized on November 16, 1993, and commenced operations when it became the successor to all of the assets and liabilities of SigmaTron L.P., an Illinois limited partnership, through a reorganization on February 8, 1994.

The Company operates in one business segment as an independent provider of electronic manufacturing services (“EMS”), which includes printed circuit board assemblies and completely assembled (box-build) electronic products.  In connection with the production of assembled products, the Company also provides services to its customers, including (1) automatic and manual assembly and testing of products; (2) material sourcing and procurement; (3) manufacturing and test engineering support; (4) design services; (5) warehousing and distribution services; and (6) assistance in obtaining product approval from governmental and other regulatory bodies.  The Company provides these manufacturing services through an international network of facilities located in the United States, Mexico, China, Vietnam and Taiwan.

The Company provides manufacturing and assembly services ranging from the assembly of individual components to the assembly and testing of box-build electronic products.  The Company has the ability to produce assemblies requiring mechanical as well as electronic capabilities.  The products assembled by the

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Company are then incorporated into finished products sold in various industries, particularly appliance, consumer electronics, gaming, fitness, industrial electronics, medical/life sciences, semiconductor and telecommunications.

The Company operates manufacturing facilities in Elk Grove Village, Illinois United States of America (“U.S.”); Union City, California U.S.; Acuna, Chihuahua and Tijuana, Mexico; Suzhou, China; and Ho Chi Minh City, Vietnam.  In addition, the Company maintains materials sourcing offices in Elk Grove Village, Illinois U.S.; Union City, California U.S.; and Taipei, Taiwan.  The Company also provides design services in Elgin, Illinois.

In an effort to facilitate the growth of our China operation, the Company established a new Chinese entity in October 2011 thatallows the Company to provide services competitively to the domestic market in China and in fiscal year 2015 expanded the Company’s manufacturing facility.  The Company expects the China operation to continue to grow despite increasing costs of operation.

The Company’s international footprint provides our customers with flexibility within the Company to manufacture in China,  Mexico,Vietnam or the U.S.We believe this strategy has continued to serve the Company well during these difficult economic times as its customers continuously evaluate their supply chain strategies.

The Company's overall results reflect the choppy economy in both the United States and globally. In the first quarter of 2015, the gross domestic product (GDP) for the United States actually contracted and the Company believes the contraction caused the Company’s customers to adjust their orders and requirements, which had a negative impact on the Company's results.  The rescheduling of orders negatively impacted what the Company thought would be a much stronger fourth quarter of fiscalyear 2015.  The Company did however launch new programs in the fourth quarter of fiscal year 2015.  The new orders came from both existing and new customers.  The Company has seen gains in markets thatit has been actively pursuing during the past two fiscal years and believes both revenues and pre-tax income will increase in fiscal year 2016.  However, margin pressures continue from both customers and vendors and will likely continue in fiscal year 2016.

Products and Services

The Company provides a broad range of electronic and electromechanical manufacturing related outsourcing solutions for its customers.   These solutions incorporate the Company’s knowledge and expertise in the EMS industry to provide its customers with the most advanced manufacturing technologies, complete supply chain management, responsive and flexible customer service, as well as product design, test and engineering support.  The Company’s EMS solutions are available from inception of product concept through the ultimate delivery of a finished product.  Such technologies and services include the following:

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Manufacturing and Testing Services:  The Company’s core business is the assembly and testing of all types of electronic printed circuit board assemblies (“PCBA”) and often incorporating these PCBAs into electronic modules used in all types of devices and products that depend on electronics for their operation.  This assembly work utilizes state of the art manufacturing and test equipment to deliver highly reliable products to the Company’s customers.  The Company supports new product introduction (“NPI”), low volume / high mix as well as high volume/ low mix assembly work at all levels of complexity.  Assembly services include pin-through-hole (“PTH”) components, surface mount (“SMT”) components, including ball grid array (“BGA”), part-on-part components, conformal coating, parylene coating and others.  Test services include and are not limited to, in-circuit, automated optical inspection (“AOI”), functional, burn-in, hi-pot and boundary scan.  From simple component assembly through the most complicated industry testing, the Company offers virtually every service required to build electronic devices commercially available in the market today.

Design Services:To compliment the manufacturing services it offers its customers, the Company also offers DFM, design for manufacturing and DFT, design for test review services to help customers ensure that the products they have designed are optimized for production and testing.  In addition, through its Spitfire Control division, the Company offers complete product design services for a variety of industries and applications, including appliance controls.

Supply Chain Management:  The Company provides complete supply chain management for the procurement of components needed to build customers’ products.  This includes the procurement and management of all types of electronic components and related mechanical parts such as plastics and metals.  The Company’s resources supporting this activity are provided both on a plant specific basis as well as globally through its international procurement office (“IPO”) in Taipei, Taiwan.  Each of its sites is linked together using the same Enterprise Resource Planning (“ERP”) system and custom IScore software tools with real-time on-line visibility for customer access.  The Company generally procures material from major manufacturers and distributors of electronic parts.

Warehousing and Distribution:  The Company provides in-house and third party warehousing, shipping, and customs brokerage for border crossings as part of its service offering.  This includes international shipping, drop shipments to the end customer, as well as, support of inventory optimization activities such as kanban and consignment.

Green, Sustainability, and Social Responsible Initiatives:  The Company supports initiatives that promote sustainability, green environment and social responsibility.  The Company requires its supply chain to meet all government imposed requirements in these areas and helps its customers in achieving effective compliance.  This includes, but is not limited to, Restrictions of Hazardous Substances (“RoHS”), Restriction of Chemicals (“Reach”) and Conflict Minerals regulations.

Manufacturing Location and Certifications:The Company’s manufacturing and warehousing locations are  strategically located to support our customers with  locations in Elk Grove Village, Illinois U.S.; Union City, California U.S.; Acuna, Chihuahua and Tijuana, Mexico; Suzhou, China and Ho Chi Minh City, Vietnam.  The Company’s ability to transition manufacturing to lower cost regions without jeopardizing flexibility and service, differentiates it from many competitors.  Manufacturing certifications and registrations are location specific, and include ISO 9001:2008, ISO 14001:2004, Medical ISO 13485:2003, Aerospace AS9100C and International Traffic in Arms Regulations (“ITAR”) certifications. 

Markets and Customers

The Company’s customers are in the appliance, gaming, industrial electronics, fitness, medical/life sciences, semiconductor, telecommunications and consumer electronics industries.  As of April 30, 2015, the Company had approximately 115 active customers ranging from Fortune 500 companies to small, privately held enterprises.

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The following table shows, for the periods indicated, the percentage of net sales to the principal end-user markets it serves.

	Percent of Net Sales
Markets	Typical OEM Application	Fiscal 2015 %	Fiscal 2014 %
Appliances	Household appliance controls	49.9	48.6
Industrial Electronics	Motor controls, power supplies, lighting products, scales, joysticks	31.2	31.2
Fitness	Treadmills, exercise bikes, cross trainers	6.7	7.0
Consumer Electronics	Personal grooming, computers	4.7	5.5
Semiconductor Equipment	Process control and yield management equipment for semiconductor productions	2.9	2.4
Medical/Life Sciences	Clinical diagnostic systems and instruments	2.6	3.0
Telecommunications	Routers, communication	1.7	1.4
Gaming	Slot machines, lighting displays	0.3	0.9
Total		100%	100%

For the fiscal year ended April 30, 2015, the Company’s largest two customers, Electrolux and Whirlpool Inc., accounted for 36.8% and 9.9%, respectively, of the Company’s net sales.  For the fiscal year ended April 30, 2014, Electrolux and Whirlpool Inc., accounted for 31.6% and 12.0%, respectively, of the Company’s net sales.  Although the Company does not have a long term contract with Electrolux or Whirlpool, the Company expects that Electrolux and Whirlpool will continue to account for a significant percentage of the Company’s net sales, although the percentage of net sales may vary from period to period.

Sales and Marketing

The Company markets its services through 9 independent manufacturers’ representative organizations that together currently employ 18 sales personnel in the United States and Canada.  Independent manufacturers’ representatives organizations receive variable commissions based on orders received by the Company and are assigned specific accounts, not territories.  Many of the members of the Company’s senior management are actively involved in sales and marketing efforts, and the Company has 3 direct sales employees.  In addition, the Company markets itself through its website and tradeshows. 

Mexico, Vietnam and China Operations

The Company’s wholly-owned subsidiary, Standard Components de Mexico, S.A, a Mexican corporation, is located in Acuna, Coahuila Mexico, a border town across the Rio Grande River from Del Rio, Texas, and is 155 miles west of San Antonio. Standard Components de Mexico, S.A. was incorporated and commenced operation in 1968 and had 825 employees at April 30, 2015.  The Company’s wholly-owned subsidiary, AbleMex S.A. de C.V., a Mexican corporation, is located in Tijuana, Baja California Mexico, a border town south of San Diego, California.  AbleMex S.A. de C.V. was incorporated and commenced operations in 2000.  The operation had 194 employees at April 30, 2015.  The Company’s wholly-owned subsidiary, Digital Appliance Controls de Mexico S.A., a Mexican corporation, operates in Chihuahua, Mexico, located approximately 235 miles from El Paso, Texas.  Digital Appliance Controls de Mexico S.A. was incorporated and commenced operations in 1997.  The operation had 375 employees at April 30, 2015.  The Company believes that one of the key benefits to having operations in Mexico is its access to cost-effective labor resources while having geographic proximity to the United States.

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The Company’s wholly-owned foreign enterprises,Wujiang SigmaTron Electronics Co., Ltd. and SigmaTron Electronic Technology Co., Ltd.,are located in Suzhou, China.  The Company has entered into an agreement with governmental authorities in the economic development zone of Wujiang, Jiangsu Province, Peoples Republic of China, pursuant to which the Company became the lessee of a parcel of land of approximately 100 Chinese acres.  The term of the land lease is 50 years.  The Company built a manufacturing plant, office space and dormitories on this site during 2004.  In fiscal 2015, the China facility expanded and added 40,000 square feet in warehouse and manufacturing.  The total square footage of the facility is 202,000 and has 537 employees as of April 30, 2015.  Both SigmaTron China entities operate at this site.

The Company’s wholly-owned subsidiary, Spitfire Controls (Vietnam) Co. Ltd. is located in Amata Industrial Park, Bien Hoa City, Dong Nai Province, Vietnam, and is 18 miles east of Ho Chi Minh City.  Spitfire Controls (Vietnam) Co. Ltd. was incorporated and commenced operation in 2005 and had 310 employees as of April 30, 2015.

The Company provides funds for salaries, wages, overhead and capital expenditure items as necessary to operate its wholly-owned Mexican, Vietnam and Chinese subsidiaries and the Taiwan IPO.  The Company provides funding in U.S. dollars, which are exchanged for Pesos, Dong, Renminbi, and New Taiwan dollars, except for the Acuna Mexico operation, which is funded in Pesos.  The fluctuation of currencies from time to time, without an equal or greater increase in inflation, could have a material impact on the financial results of the Company.The impact of currency fluctuation for the fiscal year ended April 30, 2015 resulted in a net foreign currency gain of $40,000 compared to a net foreign currency loss of $128,000 in the prior year.  In fiscal year 2015, the Company paid approximately $52,220,000 to its foreign subsidiaries.

During fiscal year 2014, the Company realized a distribution of approximately $3,006,825 from foreign subsidiaries based in Mexico.  The U.S. income tax on the distribution was $333,128 which was reflected in the Company’s tax provision for the fiscal year ended April 30, 2014.The Company has not recorded U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries. Since the earnings of the foreign subsidiaries have been, and under fiscal April 30, 2015 plans, will continue to be indefinitely reinvested, no deferred tax liability has been recorded.  With respect to fiscal April 30, 2016, as a result of the uncertainty of the Company’s financing arrangements and its domestic liquidity profile, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts.  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

During fiscal year 2015, the Company reflected tax expense of $643,708 related to the inability to realize the tax benefit recorded in fiscal year 2014 for potential foreign tax credits related to the above distribution from Mexico.  The Company’s current estimate of cumulative taxable income during the foreign tax credit carryforward period is insufficient to support that the tax benefit from the foreign tax credit is more likely than not to be realized.

The consolidated financial statements as of April 30, 2015 include the accounts and transactions of SigmaTron, its wholly-owned subsidiaries, Standard Components de Mexico, S.A., AbleMex S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd., wholly-owned foreign enterprises Wujiang SigmaTron Electronics Co., Ltd. and SigmaTron Electronic Technology Co., Ltd., and international procurement office, SigmaTron Taiwan Branch.  The functional currency of the Mexican and Vietnamsubsidiaries, Chinese foreign enterprise andTaiwanese procurement branchis the U.S. dollar.  Intercompany transactions are eliminated in the consolidated financial statements.

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Competition

The EMS industry is highly competitive and subject to rapid change.  Furthermore, both large and small companies compete in the industry, and many have significantly greater financial resources, more extensive business experience and greater marketing and production capabilities than the Company.  The significant competitive factors in this industry include price, quality, service, timeliness, reliability, the ability to source raw components, and manufacturing and technological capabilities.  The Company believes it can competitively address all of these factors.

Consolidation

As a result of consolidation and other transactions involving competitors and other companies in the Company’s markets, the Company occasionally reviews potential transactions relating to its business, products and technologies.  Such transactions could include mergers, acquisitions, strategic alliances, joint ventures, licensing agreements, co-promotion agreements, financing arrangements or other types of transactions.  In the future, the Company may choose to enter into these types of or other transactions at any time depending on available sources of financing, and such transactions could have a material impact on the Company’s business, financial condition or operations.

Governmental Regulations

The Company’s operations are subject to certain foreign, federal, state and local regulatory requirements relating to, among others, environmental, waste management, labor and health and safety matters.  Management believes that the Company’s business is operated in material compliance with all such regulations, including Restriction of Hazardous Substances (“RoHS”) and Registration, Evaluation, Authorization and Restriction of Chemicals  (“REACH").  RoHS prohibits the use of lead, mercury and certain other specified substances in electronics products.  The Company has RoHS-dedicated manufacturing capabilities at all of its manufacturing operations. REACH is a European Union Regulation enacted as of December 2006.  The regulation imposes information reporting requirements on 163 listed SVHCs (substances of very high concern) as of June 2015. From time-to-time the Company's customers request REACH required information and certifications on the assemblies the Company manufactures for them.  These requests require the Company to gather information from component suppliers to verify the presence and level of mass of any SVHCs greater than 0.1% in the assemblies the Company manufactures based on customer specifications.  If any SVHCs are present at more than 0.1% of the mass of the item, the specific concentration and mass of the SVHC must be reported to proper authorities by the Company'scustomer.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) introduced reporting requirements for verification of whether the Company directly (or indirectly through suppliers of components) is purchasing the minerals or metals gold, columbite-tantalite, cassiterite, wolframite and their derivatives (tin, tungsten, and tantalum), that are being provided by sources in the conflict region of the Democratic Republic of Congo (“DRC”).  On June 1, 2015, the Company filed Form SD with the Securities and Exchange Commission stating the Company’s supply chain remains DRC conflict undeterminable.

To date, the Company’s costs of compliance for conflict minerals reporting is estimated to be $550,000.  Additional or modified requirements may be imposed in the future.  If such additional or modified requirements are imposed, or if conditions requiring remediation are found to exist, the Company may be required to incur additional expenditures.

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Backlog

The Company relies on customers’ forecasted orders and purchase orders (firm orders) from its customers to estimate backlog.  The Company’s backlog of firm orders as of April 30, 2015 and 2014 was approximately $142,520,000 and $114,420,000, respectively.  The Company anticipates a significant portion of the backlog at April 30, 2015 will ship in fiscal year 2016.  Because customers may cancel or reschedule deliveries, backlog may not be a meaningful indicator of future revenue.  Variations in the magnitude and duration of contracts, forecasts and purchase orders received by the Company and delivery requirements generally may result in substantial fluctuations in backlog from period to period.

Employees

The Company employed approximately 2,710 people as of April 30, 2015, including 181 engaged in engineering or engineering-related services, 2,154 in manufacturing and 375 in administrative and marketing functions. 

The Company has a labor contract with Chemical & Production Workers Union Local No. 30, AFL-CIO, covering the Company’s workers in Elk Grove Village, Illinois which expires on November 30, 2015. The Company’s Mexican subsidiary, Standard Components de Mexico S.A., has a labor contract with Sindicato De Trabajadores de la Industra Electronica, Similares y Conexos del Estado de Coahuila, C.T.M. covering the Company’s workers in Acuna, Mexico which expires on February 1, 2016.  The Company’s subsidiary located in Tijuana Mexico has a labor contract with Sindicato Mexico Moderno De Trabajadores De La, Baja California, C.R.O.C.  The contract does not have an expiration date.  The Company’s subsidiary located in Ho Chi Minh City, Vietnam, has a labor contract with CONG DOAN CO SO CONG TY TNHH Spitfire Controls Vietnam. The contract expires December 31, 2015. 

Since the time the Company commenced operations, it has not experienced any union-related work stoppages.  The Company believes its relations with both unions and its other employees are good.

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Executive Officers of the Registrant

Name	Age	Position
Gary R. Fairhead	63	President and Chief Executive Officer.  Gary R. Fairhead has been the President of the Company since January 1990 and Chairman of the Board of Directors of the Company since August 2011.  Gary R. Fairhead is the brother of Gregory A. Fairhead.
Linda K. Frauendorfer	54	Chief Financial Officer, Vice President of Finance, Treasurer and Secretary since February 1994. Director of the Company since August 2011.
Gregory A. Fairhead	59	Executive Vice President and Assistant Secretary.  Gregory A. Fairhead has been the 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	54	Vice President, Director of Supply Chain and Assistant Secretary since February 1994.
Daniel P. Camp	66	Vice President, Acuna Operations since 2007.  Vice President - China Operations from 2003 to 2007.  General Manager / Vice President of Acuna Operations from 1994 to 2003.
Rajesh B. Upadhyaya	60	Executive Vice President, West Coast Operations since 2005.  Mr. Upadhyaya was the Vice President of the West Coast Operations from 2001 until 2005.
Hom-Ming Chang	55	Vice President, China Operations since 2007.  Vice President – West Coast Materials / Test / IT from 2001 - 2006.

ITEM 1A. RISK FACTORS

The following risk factors should be read carefully in connection with evaluating our business and the forward-looking information contained in this Annual Report on Form 10-K.  Any of the following risks could materially adversely affect our business, operations, industry or financial position or our future financial performance.  While the Company believes it has identified and discussed below the key risk factors affecting its business, there may be additional risks and uncertainties that are not presently known or that are not currently believed to be significant that may adversely affect its business, operations, industry, financial position and financial performance in the future.

The Company’s ability to secure and maintain sufficient credit arrangements is key to its continued operations.

There is no assurance that the Company will be able to retain or renew its credit agreements and other finance agreements in the future.  In the event the business grows rapidly, the uncertain economic climate continues or the Company considers another acquisition, additional financing resources could be necessary in the current or future fiscal years.  There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all in the future.

The Company has a senior secured credit facility with Wells Fargo, N.A. with a credit limit up to $30,000,000 and current term through October 31, 2017.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The credit facility is collateralized by substantially all of the domestically located

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assets of the Company and the Company has pledged 65% of its equity ownership interest in some of its foreign entities.  The Company is required to be in compliance with several financial covenants.  Pursuant to the agreement, financial covenants were amended, an unused line fee was added, and the borrowing interest rate was changed.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The interest rate is the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) or LIBOR plus two and one quarter percent (effectively 2.625% at April 30, 2015).  Interest is paid monthly.  Under the senior secured credit facility, the Company may borrow up to the lesser of (i) $30,000,000 or (ii) an amount equal to the sum of 85% of the receivable borrowing base plus a percentage of the inventory borrowing base (collectively, “Borrowing Base”, which cannot exceed 50% of combined eligible receivables and inventory).  Further, in specific circumstances, the Company is entitled to an over advance of up to $5,000,000 through October 31, 2015; however, at no time can the borrowings under the credit facility exceed $30,000,000.  The effective interest rate for the over advance facility was LIBOR plus two and three quarter percent.  Effective December 31, 2014, the Company amended its senior secured credit facility agreement to temporarily increase the total Borrowing Base limit to 60% through June 30, 2015 and reverting to 50% of total Borrowing Base after June 30, 2015.  Further, the senior secured credit facility agreement was modified to allow specific foreign receivables to become eligible collateral. The receivable modification is effective until June 30, 2015. The Company agreed to an increase in the effective interest rate for the over advance facility and a $5,000 amendment fee. The interest rate for the over advance facility increased from LIBOR plus two and three quarter percent (effectively 3.125% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) to LIBOR plus three and one half percent (effectively 3.875% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015).  As of April 30, 2015, there was a $27,416,793 outstanding balance and $2,583,207 of unused availability under the credit facility agreement.  At April 30, 2015, the Company was in compliance with its financial covenants.

The Company anticipates that its credit facilities, cash flow from operations and leasing resources are adequate to meet its working capital requirements and capital expenditures for fiscal year 2016 at the Company’s current level of business.  The Company has received forecasts from current customers for increased business that would require additional investments in inventory. To the extent that these forecasts come to fruition, the Company intends to meet any increased capital requirements by raising capital from other sources of debt or equity.  The Company has selected an investment banker for the purpose of completing a capital raise in the third fiscal quarter of 2016.  The capital raise, if successful, may consist of debt, equity or a combination of debt and equity.  If the capital raise is not completed, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts.  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

In addition, in the event the Company desires to expand its operations, its business grows more rapidly than expected, the current economic climate deteriorates, customers delay payments, or the Company desires to consummate an acquisition, additional financing resources may be necessary in the current or future fiscal years.  There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all, in the future.  There is no assurance that the Company will be able to retain or renew its credit agreements in the future, or that any retention or renewal will be on the same terms as currently exist.

Adverse changes in the economy or political conditionscould negatively impact the Company’s business, results of operations and financial condition.

The Company’s sales and gross margins depend significantly on market demand for its customers’ products.  The uncertainty in the U.S. and international economic and political environment could result in a decline in demand for our customers’ products in any industry.  Further, any adverse changes in tax rates and laws affecting our customers could result in decreasing gross margins.  Any of these factors could negatively impact the Company’s business, results of operations and financial condition.

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The Company experiences variable operating results.

The Company’s results of operations have varied and may continue to fluctuate significantly from period to period, including on a quarterly basis.  Consequently, results of operations in any period should not be considered indicative of the results for any future period, and fluctuations in operating results may also result in fluctuations in the price of the Company’s common stock.

The Company’s quarterly and annual results may vary significantly depending on numerous factors, many of which are beyond the Company’s control.  Some of these factors include:

-          changes in sales mix to customers

-          changes in availability and rising component costs

-          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 in the U.S. and international economic and financial markets

The Company’s customer base is concentrated.

Sales to the Company’s five largest customers accounted for 62.5% and 60.0% of net sales for the fiscal years ended April 30, 2015 and 2014, respectively.  For the year ended April 30, 2015, two customers respectively accounted for 36.8% and 9.9% of net sales of the Company, and 9.6% and 5.5% of accounts receivable at April 30, 2015.  For the year ended April 30, 2014, two customers respectively accounted for 31.6% and 12.0% of net sales of the Company and 11.2% and 4.5%, respectively, of accounts receivable at April 30, 2014.  Significant reductions in sales to any of the Company’s major customers or the loss of a major customer could have a material impact on the Company’s operations.  If the Company cannot replace canceled or reduced orders, sales will decline, which could have a material impact on the results of operations.  There can be no assurance that the Company will retain any or all of its largest customers.  This risk may be further complicated by pricing pressures and intense competition prevalent in our industry.

The Company has a significant amount of trade accounts receivable from some of its customers due to customer concentration.  If any of the Company’s customers have financial difficulties, the Company could encounter delays or defaults in the payment of amounts owed for accounts receivable and inventory obligations.  This could have a significant adverse impact on the Company’s results of operations and financial condition.

Most of the Company’scustomers do not commit to long-term production schedules, which makes it difficult to schedule production and achieve maximum efficiency at the Company’s manufacturing facilities and to manage inventory levels.

The volume and timing of sales to the Company’s customers may vary due to:

-          customers’ attempts to manage their inventory

-          variation in demand for the Company’s customers’ products

-          design changes, or

-          acquisitions of or consolidation among customers

Many of the Company’s customers do not commit to firm production schedules.  The Company’s inability to forecast the level of customer orders with certainty can make it difficult to schedule production and maximize utilization of manufacturing capacity and manage inventory levels.  The Company could be required to increase or decrease staffing and more closely manage other expenses in order to meet the anticipated demand of its customers.  Orders from the Company’s customers could be cancelled or delivery schedules could be deferred as a result of changes in our customers’ demand, thereby adversely affecting the Company’s results of operationsin any given quarter.

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The Company and its customers may be unable to keep current with the industry’s technological changes.

The market for the Company’s manufacturing services is characterized by rapidly changing technology and continuing product development.  The future success of the Company’s business will depend in large part upon our customers’ ability to maintain and enhance their technological capabilities, develop and market manufacturing services which meet changing customer needs and successfully anticipate or respond to technological changes in manufacturing processes on a cost-effective and timely basis.

Our customers have competitive challenges, including rapid technological changes, pricing pressure and decreasing demand from their customers, which could adversely affect their business and the Company’s.

Factors affecting the industries that utilize our customers’ products could negatively impact our customers and the Company.  These factors include:

-          increased competition among our customers and their competitors

-          the inability of our customers to develop and market their products

-          recessionary periods in our customers’ markets

-          the potential that our customers’ products become obsolete

-          our customers’ inability to react to rapidly changing technology

Any such factor or a combination of factors could negatively impact our customers’ need for or ability to pay for our products, which could, in turn, affect the Company’s results of operations.

Customer relationships with start-up companies present more risk.

A small portion of the Company’s current customer base is comprised of start-up companies.  Customer relationships with start-up companies may present heightened risk due to the lack of product history.  Slow market acceptance of their products could result in demand fluctuations causing inventory levels to rise.  Further, the current economic environment could make it difficult for such emerging companies to obtain additional funding.  This may result in additional credit risk including, but not limited to, the collection of trade account receivables and payment for their inventory.  If the Company does not have adequate allowances recorded, the results of operations may be negatively affected.

The Company faces intense industry competition and downward pricing pressures.

The EMS industry is highly fragmented and characterized by intense competition.  Many of the Company’s competitors have greater experience, as well as greater manufacturing, purchasing, marketing and financial resources than the Company.

Competition from existing or potential new competitors may have a material adverse impact on the Company’s business, financial condition or results of operations.  The introduction of lower priced competitive products, significant price reductions by the Company’s competitors or significant pricing pressures from its customers could adversely affect the Company’s business, financial condition, and results of operations.

The Company has foreign operations that may pose additional risks.

The Company has substantial manufacturing operations in multiple countries.  Therefore, the Company’s foreign businesses and results of operations are dependent upon numerous related factors, including the stability of the foreign economies, the political climate, relations with the United States, prevailing worker wages, the legal authority of the Company to own and operate its business in a foreign country, and the ability to identify, hire, train and retain qualified personnel and operating management in Mexico, China and Vietnam.

The Company obtains many of its materials and components through its IPO in Taipei, Taiwan.  The Company’s access to these materials and components is dependent on the continued viability of its Asian suppliers.

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Approximately 15.1%and 15.7%  of the total non-current consolidated assets of the Company are located in foreign jurisdictions outside the United States as of April 30, 2015 and 2014, respectively.

Disclosure and internal controls may not detect all errors or fraud.

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, believe that the Company’s disclosure controls and internal controls may not prevent all errors and all fraud.  The Company’s disclosure controls and internal controls can provide only reasonable assurance that the procedures will meet the control objectives.  Controls are limited in their effectiveness by human error, including faulty judgments in decision-making.  Further, controls can be circumvented by collusion of two or more people or by management override of controls.

Inadequate internal control over financial reporting could result in a reduction in the value of our common stock.

If the Company identifies and reports a material weakness in its internal control over financial reporting, shareholders and the Company’s lenders could lose confidence in the reliability of the Company’s financial statements.  This could have a material adverse impact on the value of the Company’s stock and the Company’s liquidity.

There is a risk of fluctuation of various currencies integral to the Company’s operations.

The Company purchases some of its material components and funds some of its operations in foreign currencies.  From time to time the currencies fluctuate against the U.S. dollar.  Such fluctuations could have a material impact on the Company’s results of operations and performance.  The impact of currency fluctuation for the year ended April 30, 2015 resulted in a net foreign currency gain of approximately $40,000 compared to a net foreign currency loss of $128,000 in the prior year.  These fluctuations are expected to continue and could have a negative impact on the Company’s results of operations.  The Company did not, and is not expected to, utilize derivatives or hedge foreign currencies to reduce the risk of such fluctuations.

The availability of raw components or an increase in their price may affect the Company’s operations and profits.

The Company relies on numerous third-party suppliers for components used in the Company’s production process.  Certain of these components are available only from single-sources or a limited number of suppliers.  In addition, a customer’s specifications may require the Company to obtain components from a single-source or a small number of suppliers.  The loss of any such suppliers could have a material impact on the Company’s results of operations.  Further, the Company could operate at a cost disadvantage compared to competitors who have greater direct buying power from suppliers.  The Company does not enter into long-term purchase agreements with major or single-source suppliers.  The Company believes that short-term purchase orders with its suppliers provides flexibility, given that the Company’s orders are based on the changing needs of its customers.

The Company depends on management and skilled personnel.

The Company depends significantly on its President/CEO and other executive officers.  The Company’s employees generally are not bound by employment agreements and the Company cannot assure that it will retain its executive officers or skilled personnel.  The loss of the services of any of these key employees could have a material impact on the Company’s business and results of operations.  In addition, despite significant competition, continued growth and expansion of the Company’s EMS business will require that the Company attract, motivate and retain additional skilled and experienced personnel.  The inability to satisfy such requirements could have a negative impact on the Company’s ability to remain competitive in the future.

Favorable labor relations are important to the Company.

The Company currently has labor union contracts with its employees constituting approximately 45% and 48% of its workforce for fiscal years 2015 and 2014, respectively.  Although the Company believes its labor relations

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are good, any labor disruptions, whether union-related or otherwise, could significantly impair the Company’s business, substantially increase the Company’s costs or otherwise have a material impact on the Company’s results of operations.

Failure to comply with environmental regulations could subject the Company to liability.

The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous chemicals used during its manufacturing process.  To date, the cost to the Company of such compliance has not had a material impact on the Company’s business, financial condition or results of operations.  However, there can be no assurance that violations will not occur in the future as a result of human error, equipment failure or other causes.  Further, the Company cannot predict the nature, scope or effect of environmental legislation or regulatory requirements that could be imposed or how existing or future laws or regulations will be administered or interpreted.  Compliance with more stringent laws or regulations, as well as more vigorous enforcement policies of regulatory agencies, could require substantial expenditures by the Company and could have a material impact on the Company’s business, financial condition and results of operations.  Any failure by the Company to comply with present or future regulations could subject it to future liabilities or the suspension of production which could have a material negative impact on the Company’s results of operations.

Conflict minerals regulations may cause the Company to incur additional expenses and could increase the cost of components contained in its products and adversely affect its inventory supply chain.

The Dodd-Frank Act, and the rules promulgated by the Securities and Exchange Commission (“SEC”) thereunder, requires the Company to determine and report annually whether any conflict minerals contained in our products originated from the DRC or an adjoining country. The Dodd-Frank Act and these rules could affect our ability to source components that contain conflict minerals at acceptable prices and could impact the availability of conflict minerals, since there may be only a limited number of suppliers of conflict-free conflict minerals. Our customers may require that our products contain only conflict-free conflict minerals, and our revenues and margins may be negatively impacted if we are unable to meet this requirement at a reasonable price or are unable to pass through any increased costs associated with meeting this requirement. Additionally, the Company may suffer reputational harm with our customers and other stakeholders if our products are not conflict-free.  The Company could incur significant costs in the event we are unable to manufacture products that contain only conflict-free conflict minerals or to the extent that we are required to make changes to products, processes, or sources of supply due to the foregoing requirements or pressures.

The price of the Company’s stock is volatile.

The price of the Company’s common stock historically has experienced significant volatility due to fluctuations in the Company’s revenue and earnings, other factors relating to the Company’s operations, the market’s changing expectations for the Company’s growth, overall equity market conditions and other factors unrelated to the Company’s operations.  In addition, the limited float of the Company’s common stock and the limited number of market makers also affect the volatility of the Company’s common stock.  Such fluctuations are expected to continue in the future.

An adverse change in the interest rates for our borrowings could adversely affect our results of operations.

The Company pays interest on outstanding borrowings under its senior secured credit facility and certain other long-term debt obligations at interest rates that fluctuate.  An adverse change in the Company’s interest rates could have a material adverse effect on its results of operations.

Changes in securities laws and regulations may increase costs.

The Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented by the SEC and listing requirements subsequently adopted by Nasdaq in response to Sarbanes-Oxley, have required changes in corporate governance practices, internal control policies and securities disclosure and compliancepractices of public companies.  More recently the Dodd-Frank Act requires changes to our corporate governance, compliance practices and securities disclosures.  Compliance following the implementation of these rules has

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increased our legal, financial and accounting costs.  The Company expects increased costs related to these new regulations to continue, including, but not limited to, legal, financial and accounting costs.  These developments may result in the Company having difficulty in attracting and retaining qualified members of the board or qualified officers.  Further, the costs associated with the compliance with and implementation of procedures under these laws and related rules could have a material impact on the Company’s results of operations.

ITEM 1B.UNRESOLVED STAFF COMMENTS

None.

ITEM 2.  PROPERTIES

At April 30, 2015, the Company, operating in one business segment as an independent EMS provider, had manufacturing facilities located in Elk Grove Village, Illinois U.S., Union City, California U.S., Acuna, Chihuahua and Tijuana, Mexico, Ho Chi Minh City, Vietnam and Suzhou, China.  In addition, the Company provides materials procurement services through its Elk Grove Village, Illinois U.S., Union City, California U.S, and Taipei, Taiwan offices.  The Company provides design services in Elgin, Illinois U.S.

Certain information about the Company’s manufacturing, warehouse, purchasing and design facilities is set forth below:

Location	Square Feet	Services Offered	Owned/Leased
Suzhou, China	202,000	Electronic and electromechanical manufacturing solutions	*                  ***
Elk Grove Village, IL	124,300	Corporate headquarters and electronic and electromechanical manufacturing solutions	Owned
Union City, CA	117,000	Electronic and electromechanical manufacturing solutions	Leased
Acuna, Mexico	115,000	Electronic and electromechanical manufacturing solutions	Owned **
Chihuahua, Mexico	113,000	Electronic and electromechanical manufacturing solutions	Leased
Tijuana, Mexico	112,100	Electronic and electromechanical manufacturing solutions	Leased
Ho Chi Minh City, Vietnam	24,475	Electronic and electromechanical manufacturing solutions	Leased
Del Rio, TX	44,000	Warehousing and distribution	Leased
Taipei, Taiwan	4,685	International procurement office	Leased
Elgin, IL	45,000	Design services	Owned

*The Company’s Suzhou, 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 and the Company has an option to purchase it.

***Total square footage includes 70,000 square feet of dormitories.

The Union City, California, Tijuana and Chihuahua, Mexico, Ho Chi Minh City, Vietnam and Del Rio, Texas properties are occupied pursuant to leases of the premises.  The lease agreements for the Del Rio, Texas properties expire December 2016.  The lease agreement for the California property expires March 2021.  The

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Chihuahua, Mexico lease expires July 2017.  The Tijuana, Mexico lease expires November 2018.  The lease agreement for the Ho Chi Minh City, Vietnam property expires July 2020.  The Company’s manufacturing facilities located in Acuna, Mexico, Elgin, Illinois and Elk Grove Village, Illinois are owned by the Company, except for a portion of the facility in Acuna, Mexico, which is leased.  The Company has an option to buy the leased portion of the facility in Acuna, Mexico.  The properties in Elk Grove Village, Illinois and Elgin, Illinois are financed underseparate mortgage loan agreements.  The Company leases the IPO office in Taipei, Taiwan to coordinate Far East purchasing activities.  The Company believes its current facilities are adequate to meet its current needs.  In addition, the Company believes it can find alternative facilities to meet its needs in the future, if required.

ITEM 3.  LEGAL PROCEEDINGS

In November 2008, the Company received notice of an Equal Employment Opportunity Commission (“EEOC”) claim based on allegations of discrimination, sexual harassment, and retaliation filed by Maria Gracia, a former employee.  On December 5, 2008, Ms. Gracia’s employment as an assembly supervisor was terminated after she knowingly permitted an assembly line to run leaded boards in a lead-free room with lead-free solder, contrary to the customer’s specifications and prohibited by Company policy.  The use of lead-free solder for leaded components can lead to devices that fail and significant penalties to the Company and its customers from regulatory bodies. The parts were quarantined and were not shipped.  Ms. Gracia openly admitted to permitting this to take place.

The EEOC declined to pursue Ms. Gracia’s charges against the Company, but on July 26, 2011, Ms. Gracia received a right to sue letter from the EEOC. On October 25, 2011, Ms. Gracia filed suit against the Company in the U.S. District Court for the Northern District of Illinois under Title VII of the Civil Rights Act.  The Complaint alleged claims that Ms. Gracia was subject to discrimination, harassment, and hostile work environment based on sex and national origin.  In the Complaint, Ms. Gracia alleged that her supervisor engaged in a pattern of unwanted sexual advances and that he sent her emails that were offensive to her gender and national origin.  Further, the Complaint also alleged that the Company retaliated by terminating Ms. Gracia’s employment after she filed her initial charge of discrimination with the EEOC.  Ms. Gracia sought relief in the form of (a) damages sufficient to compensate her injuries; (b) attorney’s fees; (c) costs of the action; (d) and equitable remedies.

In the court’s October 25, 2013 ruling on the Company’s Motion for Summary Judgment, the court limited plaintiff’s claims to two: (1) hostile work environment caused by gender (sexual harassment), and (2) retaliation.  In December 2014, a jury trial found in favor of the Company with respect to the first claim and for the plaintiff with respect to the second claim, awarding plaintiff damages totaling $307,000.  In post-trial motions, the judge reduced the verdict to $300,000.  The judge will now consider plaintiff’s claim for equitable remedies and attorneys’ fees and costs, along with the Company’s motion for sanctions, as the plaintiff introduced knowingly altered documents as evidence during the trial which had not been previously disclosed. It is uncertain when these claims will be ruled upon by the court.

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ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

The Company’s common stock is traded on the NASDAQ Capital Market System under the symbol SGMA.  The following table sets forth the range of quarterly high and low sales price information for the common stock for the periods ended April 30, 2015 and 2014.

Common Stock as Reported

by NASDAQ

Period		High		Low
Fiscal 2015
Fourth Quarter	$	8.08	$	5.84
Third Quarter		8.24		5.55
Second Quarter		11.49		6.29
First Quarter		12.44		8.12
Fiscal 2014
Fourth Quarter	$	12.92	$	7.53
Third Quarter		9.54		5.03
Second Quarter		6.00		4.18
First Quarter		4.49		3.86

As of July 22, 2015, there were approximately 47 holders of record of the Company’s common stock, which does not include shareholders whose stock is held through securities position listings.  The Company estimates there to be approximately 3,312 beneficial owners of the Company’s common stock.

The Company has not paid cash dividends on its common stock since completing its February 1994 initial public offering and does not intend to pay any dividends in the foreseeable future.  So long as any indebtedness remains unpaid under the Company’s revolving loan facility, the Company is prohibited from paying or declaring any dividends on any of its capital stock, except stock dividends, without the written consent of the lender under the facility.

Equity Compensation Plan Information

For information concerning securities authorized for issuance under our equity compensation plans, see Part III, Item 12 of this Annual Report, under the caption “Security Ownership of Certain Beneficial Owners and

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Management and Related Stockholders Matters” as well as the Company’s audited financial statements and notes thereto, including Note M, filed herewith and all such information is incorporated herein by reference.

ITEM 6.SELECTED FINANCIAL DATA

As a smaller reporting company, as defined in Rule 10(f)(1) of Regulation S-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is not required to provide the information required by this item.

ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

                AND RESULTS OF OPERATIONS

In addition to historical financial information, this discussion of the business of SigmaTron International, Inc. (“SigmaTron”), its wholly-owned subsidiaries Standard Components de Mexico S.A., AbleMex, S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd., wholly-owned foreign enterprises Wujiang SigmaTron Electronics Co., Ltd. and SigmaTron Electronic Technology Co., Ltd. (collectively, “SigmaTron China”) and international procurement office SigmaTron Taiwan branch (collectively, the “Company”) and other Items in this Annual Report on Form 10-K contain forward-looking statements concerning the Company’s business or results of operations.  Words such as “continue,” “anticipate,” “will,” “expect,” “believe,” “plan,” and similar expressions identify forward-looking statements.  These forward-looking statements are based on the current expectations of the Company.  Because these forward-looking statements involve risks and uncertainties, the Company’s plans, actions and actual results could differ materially.  Such statements should be evaluated in the context of the risks and uncertainties inherent in the Company’s business including, but not necessarily limited to, the Company’s continued dependence on certain significant customers; the continued market acceptance of products and services offered by the Company and its customers; pricing pressures from the Company’s customers, suppliers and the market; the activities of competitors, some of which may have greater financial or other resources than the Company; the variability of our operating results; the results of long-lived assets and goodwill impairment testing; the variability of our customers’ requirements; the availability and cost of necessary components and materials; the ability of the Company and our customers to keep current with technological changes within our industries; regulatory compliance, including conflict minerals; the continued availability and sufficiency of our credit arrangements; changes in U.S., Mexican, Chinese, Vietnamese or Taiwanese regulations affecting the Company’s business; the turmoil in the global economy and financial markets; the stability of the U.S., Mexican, Chinese, Vietnamese and Taiwanese economic, labor and political systems and conditions; currency exchange fluctuations; and the ability of the Company to manage its growth.  These and other factors which may affect the Company’s future business and results of operations are identified throughout the Company’s Annual Report on Form 10-K, and as risk factors, and may be detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  These statements speak as of the date of such filings, and the Company undertakes no obligation to update such statements in light of future events or otherwise unless otherwise required by law.

Overview

The Company operates in one business segment as an independent provider of EMS, which includes printed circuit board assemblies and completely assembled (box-build) electronic products.  In connection with the production of assembled products, the Company also provides services to its customers, including (1) automatic and manual assembly and testing of products; (2) material sourcing and procurement; (3) manufacturing and test engineering support; (4) design services; (5) warehousing and distribution services; and (6) assistance in obtaining product approval from governmental and other regulatory bodies.  The Company provides these manufacturing services through an international network of facilities located in the United States, Mexico, China, Vietnam and Taiwan.

The Company relies on numerous third-party suppliers for components used in the Company’s production process.  Certain of these components are available only from single-sources or a limited number of suppliers.  In addition, a customer’s specifications may require the Company to obtain components from a single-source or

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a small number of suppliers.  The loss of any such suppliers could have a material impact on the Company’s results of operations.  Further, the Company could operate at a cost disadvantage compared to competitors who have greater direct buying power from suppliers.  The Company does not enter into long-term purchase agreements with major or single-source suppliers.  The Company believes that short-term purchase orders with its suppliers provides flexibility, given that the Company’s orders are based on the changing needs of its customers.

Sales can be a misleading indicator of the Company’s financial performance.  Sales levels can vary considerably among customers and products depending on the type of services (turnkey versus consignment) rendered by the Company and the demand by customers.  Consignment orders require the Company to perform manufacturing services on components and other materials supplied by a customer, and the Company charges only for its labor, overhead and manufacturing costs, plus a profit.  In the case of turnkey orders, the Company provides, in addition to manufacturing services, the components and other materials used in assembly.  Turnkey contracts, in general, have a higher dollar volume of sales for each given assembly, owing to inclusion of the cost of components and other materials in net sales and cost of goods sold.  Variations in the number of turnkey orders compared to consignment orders can lead to significant fluctuations in the Company’s revenue and gross margin levels.  Consignment orders accounted for less than 5% of the Company’s revenues for each of the fiscal years ended April 30, 2015 and 2014.

In an effort to facilitate the growth of our China operation, the Company established a new Chinese entity in October 2011 thatallows the Company to provide services competitively to the domestic market in China and in fiscal year 2015 expanded the Company’s manufacturing facility.  The Company expects the China operation to continue to grow despite increasing costs of operation.   

The Company’s international footprint provides our customers with flexibility within the Company to manufacture in China,  Mexico, Vietnam or the U.S.We believe this strategy has continued to serve the Company well during these difficult economic times as its customers continuously evaluate their supply chain strategies.

The Company's overall results reflect the choppy economy in both the United States and globally. In the first quarter of 2015, the gross domestic product (GDP) for the United States actually contracted and the Company believes the contraction caused the Company’s customers to adjust their orders and requirements, which had a negative impact on the Company's results.  The rescheduling of orders negatively impacted what the Company thought would be a much stronger fourth quarter of fiscalyear 2015.  The Company did however launch new programs in the fourth quarter of fiscal year 2015.  The new orders came from both existing and new customers.  The Company has seen gains in markets thatit has been actively pursuing during the past two fiscal years and believes both revenues and pre-tax income will increase in fiscal year 2016.However, margin pressures continue from both customers and vendors and will likely continue in fiscal year 2016.

Critical Accounting Policies:

Management Estimates and Uncertainties - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory and valuation of long-lived assets.  Actual results could materially differ from these estimates.

Revenue Recognition - Revenues from sales of the Company's electronic manufacturing services business are recognized when the finished good product is shipped to the customer.  In general, and except for consignment inventory, it is the Company's policy to recognize revenue and related costs when the finished goods have been shipped from its facilities, which is also the same point that title passes under the terms of the purchase order.  Finished goods inventory for certain customers is shipped from the Company to an independent warehouse for storage or shipped directly to the customer and stored in a segregated part of the customer’s own facility.  Upon the customer’s request for finished goods inventory, the inventory is shipped to the customer if

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the inventory was stored off-site, or transferred from the segregated part of the customer’s facility for consumption or use by the customer.  The Company recognizes revenue upon such shipment or transfer.  The Company does not earn a fee for such arrangements.  The Company from time to time may ship finished goods from its facilities, which is also the same point that title passes under the terms of the purchase order, and invoice the customer at the end of the calendar month.  This is done only in special circumstances to accommodate a specific customer.  Further, from time to time customers request the Company hold finished goods after they have been invoiced to consolidate finished goods for shipping purposes.  The Company generally provides a 90 day warranty for workmanship only, except for products with proprietary design and does not have any installation, acceptance or sales incentives (although the Company has negotiated longer warranty terms in certain instances).  The Company assembles and tests assemblies based on customers’ specifications.  Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties.

Inventories - Inventories are valued at the lower of cost or market.  Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods.In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or market.  The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory.  The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss.  Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold.  The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions.  Actual product demand or market conditions could be different than that projected by management.

Goodwill - Goodwill represents the purchase price in excess of the fair value of assets acquired in business combinations.  Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, “Goodwill and other Intangible Assets,” requires the Company to assess goodwill and other indefinite-lived intangible assets for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment.  The Company is permitted the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of any reporting unit is less than its corresponding carrying value.  If, after assessing the totality of events and circumstances, the Company concludes that it is not more likely than not that the fair value of any reporting unit is less than its corresponding carrying value, then the Company is not required to take further action.  However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test,including computing the fair value of the reporting unit and comparing that value to its carrying value.  If the fair value is less than its carrying value, a second step of the test is required to determine if recorded goodwill is impaired.  The Company also has the option to bypass the qualitative assessment for goodwill in any period and proceed directly to performing the quantitative impairment test.  The Company will be able to resume performing the qualitative assessment in any subsequent period.  The Company performed its annual goodwill impairment test as of February 1, 2015 and determined no impairment existed as of that date.

Impairment of Long-Lived Assets - The Company reviews long-lived assets, including amortizable intangible assets, for impairment.  Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment.  If events or changes in circumstances occur that indicate possible impairment, the Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities.  This analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates.  The Company conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment.  Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset group.  When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value.  As of April 30, 2015, there was no impairment of long-lived assets.

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Income Tax-  The Company’sincome tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated future taxes to be paid.  The Company is subject to income taxes in both the U.S. and several foreign jurisdictions.  Significant judgments and estimates by management are required in determining the consolidated income tax expense assessment.The Company has a foreign tax credit carry-forward of $78,100 and $112,327 at April 30, 2015 and 2014, respectively, that will begin to expire in fiscal year April 30, 2024.  The Company determined it is more likely than not that it will realize the foreign tax credit due to the reversal of federal deferred tax liabilities.

Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense and tax credit carry forwards.  In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations.  In projecting future taxable income, the Company begins with historical resultsand changes in accounting policies, and incorporates assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies.  These assumptions require significant judgment and estimates by management about the forecasts of future taxable income and are consistent with the plans and estimates the Company uses to manage the underlying businesses.  In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating income and/or loss.

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations.  Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future.  Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position.

A  tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available.  Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities.  These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined.

New Accounting Standards:

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers."  This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2017 and early adoption is not permitted.  Accordingly, the Company will adopt this ASU on May 1, 2018.  Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use and the full impact this ASU will have on the Company’s future consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40).  The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  An entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued, when applicable).  ASU 2014-15 is effective for the Company beginning with the annual reporting for fiscal 2016, and reports for interim and annual periods thereafter.  Early adoption is permitted. The Company does not expect the impact of adoption of this ASU to have a material impact on its consolidated financial statements.

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In April 2015, the FASB issued ASU No. 2015- 03, “Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs.” ASU No. 2015-03 simplifies the presentation of debt issuance costs by requiring that these costs related to a recognized debt liability be presented in the statement of financial condition as a direct reduction from the carrying amount of that liability. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period.ASU No. 2015-03 is required to be applied retrospectively to all periods presented beginning in the year of adoption. Adoption will not materially affect the firm’s financial condition, results of operations, or cash flows.The Company does not expect the impact of adoption of this ASU to have a material impact on its consolidated financial statements.

Results of Operations:

FISCAL YEAR ENDED APRIL 30, 2015 COMPARED

TO FISCAL YEAR ENDED APRIL 30, 2014

The following table sets forth the percentage relationships of expense items to net sales for the years indicated:

	Fiscal Years
	2015	2014
Net sales	100.0%	100.0%
Operating expenses:
Cost of products sold	90.4	89.7
Selling and administrative expenses	8.5	8.7
Total operating expenses	98.9	98.4
Operating income	1.1%	1.6%

Net sales increased 3.5% to $230,237,161 in fiscal year 2015 from $222,485,940 in the prior year.  The Company’s sales increased in fiscal year 2015 in appliance,telecommunication and semiconductor marketplaces as compared to the prior year.  The increase in sales dollars for these marketplaces was partially offset by a decrease in sales dollars in the fitness, medical/life sciences and gaming marketplaces.  The modest increase in revenues is from sales to existing customers and new customers and from new programs with various customers that were launched in the fourth quarter of fiscal year 2015.  The Company has also seen gains in markets that it has been pursuing during the past two fiscal years and is optimistic revenues in fiscal year 2016 will increase.

The Company’s sales in a particular industry are driven by the fluctuating forecasts and end-market demand of the customers within that industry.  Sales to customers are subject to variations from period to period depending on customer order cancellations, the life cycle of customer products and product transition.  Sales to the Company’s five largest customers accounted for 62.5% and 60.0% of net sales for fiscal years 2015 and 2014, respectively.

Gross profit decreased to $22,068,838, or 9.6% of net sales, in fiscal year 2015 compared to $22,826,998, or 10.3% of net sales, in the prior fiscal year.  The decrease in gross profit dollars for fiscal year 2015 was the result of product mix and margin pressures.  Margin pressures continue from both customers and vendors and will likely continue in fiscal year 2016.

Selling and administrative expenses increased in fiscal year 2015 to $19,431,637, or8.5% of net sales compared to $19,200,514, or 8.7% of net sales, in fiscal year 2014.  The increase was attributable to salaries and other administrative expenses for the Elgin division, increased IT salaries, and increased other general and administration expenses, including an accrual for the aforementioned lawsuit.  The increase in the foregoing

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selling and administrative expenses were partially offset by a decrease in general office salaries and bonus expense.

Interest expense, net, increased to $1,081,323in fiscal year 2015 compared to $966,038 in fiscal year 2014.  Interest expense increased primarily due to the increased borrowings under the Company’s banking arrangements, capital lease and mortgage obligations.  Interest expense for fiscal year 2016 may increase if interest rates or borrowings, or both, increase during fiscal year 2016.

In fiscal year 2015,  the income tax expense was $801,049 compared to an income tax benefit of $133,867 in fiscal year 2014.  The effective rate for the years ended April 30, 2015 and 2014 was 47.0% and (4.8%), respectively.  The increase in the effective rate for the year ended April 30, 2015 is due to the impact of foreign tax rates, unrealized foreign currency losses and the impact of the Company’s inability to utilize a foreign tax credit resulting from a foreign dividend repatriation.  Additionally, for the year ended April 30, 2014, the Company realized a tax benefit of $828,175 related to the impact of a change in Mexican Tax Law which became effective on January 1, 2014.

The Company reported net income of $903,412 in fiscal year 2015 compared to $2,918,691 for fiscal year 2014.  Basic and diluted earnings per share for fiscal year 2015 were $0.22 each compared to basic and diluted earnings per share of $0.74 and $0.72, respectively, for the year ended April 30, 2014.

Liquidity and Capital Resources:

Operating Activities.

Cash flow used in operating activities was $2,781,680 for the fiscal year ended April 30, 2015 compared to cash flow provided by operating activities of $1,956,831 for the prior fiscal year.  Cash flow used in operating activities was primarily the result of increased inventories and accounts receivable and a decrease in accrued expenses and wages.  Net cash used in operating activities was partially offset by the result of net income adjusted by the non-cash effects of depreciation and amortization and an increase in accounts payable.  The increase in inventory of $14,412,734 and increase in accounts receivable of $913,776 is primarily due to additional customer orders and the startup of new programs.  The increase in accounts payable is due to renegotiated vendor terms with several of the Company’s largest vendors.

Cash flow provided by operating activities was $1,956,831 for the fiscal year ended April 30, 2014.  Cash flow provided by operating activities was primarily the result of net income, adjusted by the non-cash effects of depreciation and amortization.  Net cash provided by operations in fiscal year 2014 was partially offset by an increase of inventories of $3,118,520, and a $4,206,275 decrease in accounts payable.  The increase in inventory is primarily due to additional customer orders and the reduction of trade accounts payable is due to payments in the ordinary course of business.

Investing Activities.

In fiscal year 2015, the Company purchased approximately $4,800,000 in machinery and equipment to be used in the ordinary course of business.  The Company anticipates it may purchase in fiscal year 2016 up to $6,000,000 in machinery and equipment, which will be funded by lease transactions or raising capital from other sources.  There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all, in the future.  With respect to fiscal 2016, and the uncertainty of the Company’s financing arrangements and its domestic liquidity profile, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts. 

In fiscal year 2014, the Company purchased approximately $8,400,000 in machinery and equipment to be used in the ordinary course of business.  The Company purchases were funded by lease transactions and its bank line of credit.

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Financing Activities.

Cash provided by financing activities was $5,011,967 for the fiscal year ended April 30, 2015 compared to cash provided by financing activities of $7,241,796 in fiscal year 2014.  Cash provided by financing activities in fiscal year 2015 was primarily the result of increased net borrowings of approximately $4,400,000 under the credit facility, proceeds received from a sale leaseback transaction for machinery and equipment and refinancing the mortgage for the Company’s facility in Elk Grove Village, Illinois.  The additional borrowings were required to support the increase in inventory.

Cash provided by financing activities was $7,241,796 for the fiscal year ended April 30, 2014.  Cash provided by financing activities in fiscal year 2014 was primarily the result of increased net borrowings of $4,500,000 under the credit facility; proceeds received from a sale leaseback transaction for machinery and equipment and proceeds from a mortgage for the Company’s facility in Elgin, Illinois.  The additional borrowings were required to support the purchases of machinery and equipment, and the increase in inventory.

Financing Summary.

The Company has a senior secured credit facility with Wells Fargo, N.A. with a credit limit up to $30,000,000 and current term through October 31, 2017.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The credit facility is collateralized by substantially all of the domestically located assets of the Company and the Company has pledged 65% of its equity ownership interest in some of its foreign entities.  The Company is required to be in compliance with several financial covenants.  Pursuant to the agreement, financial covenants were amended, an unused line fee was added, and the borrowing interest rate was changed.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The interest rate is the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) or LIBOR plus two and one quarter percent (effectively 2.625% at April 30, 2015).  Interest is paid monthly.  Under the senior secured credit facility, the Company may borrow up to the lesser of (i) $30,000,000 or (ii) an amount equal to the sum of 85% of the receivable borrowing base plus a percentage of the inventory borrowing base (collectively, “Borrowing Base”, which cannot exceed 50% of combined eligible receivables and inventory).  Further, in specific circumstances, the Company is entitled to an over advance of up to $5,000,000 through October 31, 2015; however, at no time can the borrowings under the credit facility exceed $30,000,000.  The effective interest rate for the over advance facility was LIBOR plus two and three quarter percent.  Effective December 31, 2014, the Company amended its senior secured credit facility agreement to temporarily increase the total Borrowing Base limit to 60% through June 30, 2015 and reverting to 50% of total Borrowing Base after June 30, 2015.  Further, the senior secured credit facility agreement was modified to allow specific foreign receivables to become eligible collateral. The receivable modification is effective until June 30, 2015. The Company agreed to an increase in the effective interest rate for the over advance facility and a $5,000 amendment fee. The interest rate for the over advance facility increased from LIBOR plus two and three quarter percent (effectively 3.125% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) to LIBOR plus three and one half percent (effectively 3.875% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015).  As of April 30, 2015, there was a $27,416,793 outstanding balance and $2,583,207 of unused availability under the credit facility agreement.  At April 30, 2015, the Company was in compliance with its financial covenants.

The Company entered into a mortgage agreement on January 8, 2010, in the amount of $2,500,000, with Wells Fargo, N.A. to refinance the property that serves as the Company’s corporate headquarters and its Illinois manufacturing facility.  The Wells Fargo, N.A. note historically boar interest at a fixed rate of 6.42% per year and was amortized over a sixty month period.  A final payment of approximately $2,000,000 was due on or before January 8, 2015.  On November 24, 2014, the Company refinanced the mortgage agreement with Wells Fargo, N.A.  The note requires the Company to pay monthly principal payments in the amount of $9,500, bears an interest rate of LIBOR plus two and one-quarter percent(effectively 2.625% at April 30, 2015) and is payable over a sixty month period.  Final payment of approximately $2,289,500 is due on or before November 8, 2019.  The outstanding balance as of April 30, 2014 was $2,075,017.  The outstanding balance as of April 30, 2015 was $2,802,500.

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On August 20, 2010 and October 26, 2010, the Company entered into two capital leasing transactions (a lease finance agreement and a sale leaseback agreement) with Wells Fargo Equipment Finance, Inc., to purchase equipment totaling $1,150,582.  The term of the lease finance agreement, with an initial principal amount of $315,252, extends to September 2016 with monthly payments of $4,973 and a fixed interest rate of 4.28%.  The term of the sale leaseback agreement, with an initial principal payment amount of $825,330, extends to August 2016 with monthly payments of $13,207 and a fixed interest rate of 4.36%.  At April 30, 2015, $81,809 and $192,296 was outstanding under the lease finance and sale leaseback agreements, respectively.  The net book value at April 30, 2015 of the equipment under the lease finance agreement and sale leaseback agreement was $194,843and $481,805, respectively.

In September 2010, the Company entered into a real estate lease agreement in Union City, CA, to rent 116,993 square feet of manufacturing and office space.  Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through March 2021.  The amount of the deferred rent income recorded for the fiscal year ended April 30, 2015 was $33,950.  In addition, the landlord provided the Company tenant incentives of $418,000, which are being amortized over the life of the lease.

In November 2010, the Company entered into a capital lease with Wells Fargo Equipment Finance, Inc., to purchase equipment totaling $226,216.  The term of the lease agreement extends to October 2016 with monthly payments of $3,627 and a fixed interest rate of 4.99%.  At April 30, 2015, the balance outstanding under the capital lease agreement was $62,778.  The net book value of the equipment under this lease at April 30, 2015 was $140,676.

On May 31, 2012, the Company entered into a lease agreement in Tijuana, MX, to rent 112,000 square feet of manufacturing and office space.  Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through November 2018.  The amount of the deferred rent income for the fiscal year ended April 30, 2015 was $8,353.

On October 3, 2013, the Company entered into two sale leaseback agreements with Associated Bank, National Association in the amount of $2,281,355 to finance equipment purchased in June 2012.  The term of the first agreement, with an initial principal amount of $2,201,638, extends to September 2018 with monthly payments of $40,173 and a fixed interest rate of 3.75%.  The term of the second agreement, with an initial principal payment amount of $79,717, extends to September 2018 with monthly payments of $1,455 and a fixed interest rate of 3.75%.  At April 30, 2015, $1,543,684 and $55,894 was outstanding under the first and second agreements, respectively.  The net book value at April 30, 2015 of the equipment under each of the two agreements was $1,736,474 and $61,448, respectively.

The Company entered into a mortgage agreement on October 24, 2013, in the amount of $1,275,000, with Wells Fargo, N.A. to finance the property that serves as the Company’s engineering and design center in Elgin, Illinois.  The Wells Fargo, N.A. note requires the Company to pay monthly principal payments in the amount of $4,250, bears interest at a fixed rate of 4.51% per year and is payable over a sixty month period.  A final payment of approximately $1,030,000 is due on or before October 24, 2018.  The outstanding balance as of April 30, 2014 was $1,249,500.The outstanding balance as of April 30, 2015 was $1,198,500.

On March 6, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $589,083.  The term of the lease extends to March 2019 with monthly payments of $10,441 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the capital lease agreement was $486,541.  The net book value of the equipment under the lease as of April 30, 2015 was $524,248.

On May 7, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $108,971.  The term of the lease extends to May 2019 with monthly payments of $1,931 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the capital lease was $92,996.  The net book value of the equipment under the lease as of April 30, 2015 was $99,890.

On August 1, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $609,179.  The term of the lease extends to July 2019 with monthly payments of

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$10,797 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the capital lease was $536,459.  The net book value of the equipment under the lease as of April 30, 2015 was $566,875.

On September 22, 2014, the Company entered into a sale leaseback agreement with Associated Bank, National Association in the amount of $664,676 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $12,163 and a fixed interest rate of 3.87%.  At April 30, 2015, the balance outstanding under the lease was $581,419. The net book value of the equipment under the lease as of April 30, 2015 was $567,067.  

On September 22, 2014, the Company entered into a sale leaseback agreement with Associated Bank, National Association in the amount of $437,641 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $8,008 and a fixed interest rate of 3.87%.  At April 30, 2015, the balance outstanding under the lease was $382,822. The net book value of the equipment under the lease as of April 30, 2015 was $395,868.

On September 22, 2014, the Company entered into a capital lease agreement with Associated Bank, National Association in the amount of $106,346 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $1,947 and a fixed interest rate of 3.89%.  At April 30, 2015, the balance outstanding under the lease was $93,030.  The net book value of the equipment under the lease as of April 30, 2015 was $99,700.

On October 27, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $501,590.  The term of lease extends to October 2019 with monthly payments of $8,890 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the lease was $461,954. The net book value of the equipment under the lease as of April 30, 2015 was $470,460.

On January 16, 2015, the Company entered into a capital lease agreement with Associated Bank, National Association in the amount of $81,030 to finance equipment purchases.  The term of lease extends to December 2019 with monthly payments of $1,487 and a fixed interest rate of 4.01%.  At April 30, 2015, the balance outstanding under the lease was $75,864.  The net book value of the equipment under the lease as of April 30, 2015 was $77,654.

The Company provides funds for salaries, wages, overhead and capital expenditure items as necessary to operate its wholly-owned Mexican, Vietnam and Chinese subsidiaries and the Taiwan international procurement office.  The Company provides funding, as needed, in U.S. dollars, which are exchanged for Pesos, Dong, Renminbi, and New Taiwan dollars, except for the Acuna Mexico operation, which is funded in Pesos.  The fluctuation of currencies from time to time, without an equal or greater increase in inflation, could have a material impact on the financial results of the Company.  The impact of currency fluctuation for the fiscal year ended April 30, 2015 resulted in a net foreign currency gain of $40,000 compared to a net foreign currency loss of approximately $128,000 for the same period in the prior year.  During fiscal year 2015, the Company’s U.S. operations paid approximately $52,220,000 to its foreign subsidiaries for services provided.

During fiscal year 2014, the Company realized a distribution of approximately $3,006,825 from foreign subsidiaries based in Mexico.  The U.S. income tax on the distribution was $333,128 which is reflected in the Company’s tax provision for the fiscal year ended April 30, 2014.  The Company has not recorded U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries. Since the earnings of the foreign subsidiaries have been, and under fiscal April 30, 2015 plans, will continue to be indefinitely reinvested, no deferred tax liability has been recorded.  With respect to fiscal April 30, 2016, as a result of the uncertainty of the Company’s financing arrangements and its domestic liquidity profile, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts.  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

During fiscal year 2015, the Company reflected tax expense of $643,708 related to the inability to realize the tax benefit of a foreign tax credit related to this distribution.  The Company’s estimate of cumulative taxable

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income during the foreign tax credit carryforward period is insufficient to support that the tax benefit from the foreign tax credit is more likely than not to be realized.

The Company anticipates that its credit facilities, cash flow from operations and leasing resources are adequate to meet its working capital requirements and capital expenditures for fiscal year 2016 at the Company’s current level of business.  The Company has received forecasts from current customers for increased business that would require additional investment in inventory. To the extent that these forecasts come to fruition, the Company intends to meet any increased capital requirements by raising capital from other sources of debt or equity.  The Company has selected an investment banker for the purpose of completing a capital raise in the third fiscal quarter of 2016.  The capital raise, if successful, may consist of debt, equity or a combination of debt and equity.  If the capital raise is not completed, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts.  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

In addition, in the event the Company desires to expand its operations, its business grows more rapidly than expected, the current economic climate deteriorates, customers delay payments, or the Company desires to consummate an acquisition, additional financing resources may be necessary in the current or future fiscal years.  There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all, in the future.  There is no assurance that the Company will be able to retain or renew its credit agreements in the future, or that any retention or renewal will be on the same terms as currently exist.

The impact of inflation on the Company’s net sales, revenues and incomes from continuing operations for the past two fiscal years has been minimal.

Off-balance Sheet Transactions:

The Company has no off-balance sheet transactions.

Tabular Disclosure of Contractual Obligations:

As a smaller reporting company, as defined in Rule 10(f)(1) of Regulation S-K under the Exchange Act, the Company is not required to provide the information required by this item.

ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

As a smaller reporting company, as defined in Rule 10(f)(1) of Regulation S-K under the Exchange Act, the Company is not required to provide the information required by this item.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The response to this item is included in Item 15(a) of this Report.

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ITEM 9.CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING

AND FINANCIAL DISCLOSURE

None.

ITEM 9A.CONTROLS AND PROCEDURES

Disclosure Controls:

The Company’s management, including its President and Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined under the SecuritiesExchange Act of 1934, as amended (the “Exchange Act”), Rules 13a-15(e) and 15(d)-15(e)) as of April 30, 2015.  The Company’s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and its President and Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of April 30, 2015.

Internal Controls:

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f).The Company’s internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with U.S. GAAP.  Under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Based on the Company’s evaluation, management concluded that its internal controls over financial reporting were effective at the reasonable assurance level as of April 30, 2015.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to the rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

There has been no change in the Company’s internal control over financial reporting during the quarter ended April 30, 2015, that has materially affected or is reasonably likely to materially affect, its internal control over financial reporting.

On May 14, 2013, COSO issued an updated version of its Internal Control - Integrated Framework (the “2013 Framework”) which officially superseded the 1992 Framework on December 15, 2014. Originally issued in 1992, the framework helps organizations design, implement and evaluate the effectiveness of internal control concepts and simplify their use and application. Neither COSO, the Securities and Exchange Commission or any other regulatory body has mandated adoption of the 2013 Framework by a specified date. We intend to perform an analysis to evaluate what changes to our control environment, if any, would be needed to successfully implement the 2013 Framework. Until such time as such analysis and any related transition to the 2013 Framework is complete, we will continue to use the 1992 Framework in connection with our assessment of internal control.

ITEM 9B.OTHER INFORMATION

Not Applicable.

30

PART III

ITEM 10.DIRECTORS,  EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required under this item is incorporated herein by reference to the Company’s definitive proxy statement, to be filed with the Securities and Exchange Commission not later than 120 days after the close of the Company’s fiscal year ended April 30, 2015.

ITEM 11.EXECUTIVE COMPENSATION

The information required under this item is incorporated herein by reference to the Company’s definitive proxy statement, to be filed with the Securities and Exchange Commission not later than 120 days after the close of the Company’s fiscal year ended April 30, 2015.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERSAND MANAGEMENT

AND RELATED STOCKHOLDER MATTERS

The information required under this item is incorporated herein by reference to the Company’s definitive proxy statement, to be filed with the Securities and Exchange Commission not later than 120 days after the close of the Company’s fiscal year ended April 30, 2015.

ITEM 13.CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS ANDDIRECTOR

INDEPENDENCE

The information required under this item is incorporated herein by reference to the Company’s definitive proxy statement, to be filed with the Securities and Exchange Commission not later than 120 days after the close of the Company’s fiscal year ended April 30, 2015.

ITEM 14.PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required under this item is incorporated herein by reference to the Company’s definitive proxy statement, to be filed with the Securities and Exchange Commission not later than 120 days after the close of the Company’s fiscal year ended April 30, 2015.

PART IV

ITEM 15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1)

The financial statements are listed in the Index to Financial Statements filed as part of this AnnualReport onForm 10-K beginning on Page F-1.

31

Index to Exhibits

(a)(2)

(a)(3) and (b)

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, incorporated herein by reference to Exhibit  3.2 to the Company’s Form 10-K for the fiscal year ended April 30, 2000.
10.1	Form of 1993 Stock Option Plan, incorporated herein by reference to Exhibit 10.4 to the Company’s Registration Statement on Form S-1, File No. 33-72100.*
10.2	Form of Incentive Stock Option Agreement for the Company’s 1993 Stock Option Plan , incorporated herein by reference to Exhibit 10.5 to the Company’s Registration Statement on Form S-1, File No. 33-72100.*
10.3	Form of Non-Statutory Stock Option Agreement for the Company’s 1993 Stock Option Plan, incorporated herein by reference to Exhibit 10.6 to the Company’s Registration Statement on Form S-1, File No. 33-72100.*
10.4	2004 Directors’ Stock Option Plan, incorporated herein by reference to Appendix C to the Company’s 2004 Proxy Statement filed on August 16, 2004.*
10.5	2004 Employee Stock Option Plan, incorporated herein by reference to Appendix B to the Company’s 2004 Proxy Statement filed on August 16, 2004. *
10.6	Revolving Line of Credit Note issued by SigmaTron International, Inc. to Wells Fargo International Banking and Trade Solutions (IBTS), dated January 8, 2010 incorporated herein by reference to Exhibit 10.2 to the Company’s Form 8-K filed on January 14, 2010.
10.7	Promissory Note issued by SigmaTron International, Inc. to Wells Fargo International Banking and Trade Solutions (IBTS), dated January 8, 2010, incorporated herein by reference to Exhibit 10.3 to the Company’s Form 8-K filed on January 14, 2010.
10.8	SigmaTron International, Inc. 2011 Employee Stock Option Plan dated September 16, 2011, incorporated herein by reference to Exhibit 10.14 to the Company’s Registration Statement on Form S-8 filed on December 14, 2011.*
10.9	Purchase Agreement between SigmaTron International, Inc., and its nominees and Spitfire Control, Inc., dated as of May 31, 2012, incorporated herein by reference to Exhibit 2.1 to the Company’s Form 8-K filed on June 4, 2012.
10.10	SigmaTron International, Inc. 2014 Employee Bonus Plan dated May 21, 2013, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K filed on May 23, 2013.*
10.11	SigmaTron International, Inc. 2013 Employee Stock Purchase Plan dated September 20, 2013, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K filed on September 25, 2013.*
10.12	SigmaTron International, Inc. 2013 Non-Employee Director Restricted Stock Plan dated September 20, 2013, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K filed on September 25, 2013.*

32

10.13	Mortgage and Assignment of Rents and Leases executed as of October 24, 2013, by SigmaTron International, Inc., to Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.18 to the Company’s Form 10-Q filed on December 13, 2013.
10.14	Second Amended and Restated Credit Agreement entered into as of October 24, 2013, by and between SigmaTron International, Inc., and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.19 to the Company’s Form 10-Q filed on December 13, 2013.
10.15	Master Lease Agreement # 2170 entered into between Associated Bank, National Association, a national banking association and SigmaTron International, Inc., dated October 3, 2013, incorporated herein by reference to Exhibit 10.20 to the Company’s Form 10-Q filed on December 13, 2013.
10.16	SigmaTron International, Inc. Amended and Restated Change in Control Severance Payment Plan dated March 11, 2014, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K/A filed on March 14, 2014.*
10.17	Master Lease Number 81344 entered into between CIT Finance LLC and SigmaTron International, Inc., dated March 6, 2014, incorporated herein by reference to Exhibit 10.17 to the Company’s Form 10-K filed on July 24, 2014.
10.18	Schedule # 1217927 to Master Lease Agreement Number 81344 entered into between CIT Finance LLC and SigmaTron International, Inc. dated May 7, 2014, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 10-Q filed on September 11, 2014.
10.19	Third Amended and Restated Credit Agreement entered into as of October 31, 2014, by and between SigmaTron International, Inc., and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K filed on December 10, 2014.
10.20	Second Amended and Restated Promissory Note dated November 24, 2014 issued by the Company to Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.2 to the Company’s Form 8-K filed on December 10, 2014.
10.21	Schedule # 1223197 to Master Lease Agreement Number 81344 entered into by and between CIT Finance LLC and SigmaTron International, Inc. dated August 1, 2014, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 10-Q filed on December 12, 2014.
10.22	Lease No. 003 is an attachment to Master Lease No. 2170 dated October 17, 2013 by and between Associated Bank, National Association and SigmaTron International, Inc. dated September 22, 2014, incorporated herein by reference to Exhibit 10.2 to the Company’s Form 10-Q filed on December 12, 2014.
10.23	Lease No. 004 is an attachment to Master Lease No. 2170 dated October 17, 2013 by and between Associated Bank, National Association and SigmaTron International, Inc. dated September 22, 2014, incorporated herein by reference to Exhibit 10.3 to the Company’s Form 10-Q filed on December 12, 2014.
10.24	Lease No. 005 is an attachment to Master Lease No. 2170 dated October 17, 2013 by and between Associated Bank, National Association and SigmaTron International, Inc. dated September 22, 2014, incorporated herein by reference to Exhibit 10.4 to the Company’s Form 10-Q filed on December 12, 2014.
10.25	Schedule # 1246045 to Master Lease Agreement Number 81344 entered into by and between CIT Finance LLC and SigmaTron International, Inc. dated October 27, 2014, incorporated herein by reference to Exhibit 10.5 to the Company’s Form 10-Q filed on December 12, 2014.

33

10.26	First Amendment to Third Amended and Restated Credit Agreement entered into as of March 7, 2015, by and between SigmaTron International, Inc. and Wells Fargo Bank, National Association, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K filed on March 12, 2015.
10.27	Lease No. 006 is an attachment to Master Lease No. 2170 dated October 17, 2013 by and between Associated Bank, National Association and SigmaTron International, Inc. dated January 16, 2015, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 10-Q filed on March 16, 2015.
10.28	SigmaTron International, Inc. Employee Bonus Plan for Fiscal Year 2016 dated July 9, 2015, incorporated herein by reference to Exhibit 10.1 to the Company’s Form 8-K filed on July 10, 2015.*
10.29	Schedule # 1284094 to Master Lease Agreement Number 81344 entered into by and between CIT Finance LLC and SigmaTron International, Inc. dated June 2, 2015.**
21.0	Subsidiaries of the Registrant, incorporated herein by reference to Exhibit 21 to the Company’s Form 10-K for the fiscal year ended April 30, 2014, filed on July 24, 2014.
23.1	Consent of BDO USA, LLP.**
24.0	Power of Attorney of Directors and Executive Officers (included on the signature page of this Form 10-K for the fiscal year ended April 30, 2015).**
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).**

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Scheme Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Indicates management contract or compensatory plan.

** Filed herewith

(c) Exhibits

The Company hereby files as exhibits to this Report the exhibits listed in Item 15(a)(3) above, which are

attached hereto or incorporated herein.

34

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGMATRON INTERNATIONAL, INC.

By:      /s/ Gary R. Fairhead

Gary R. Fairhead, President and Chief Executive Officer,

Principal Executive Officer and Director

Dated:  July 24, 2015

 KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned directors and officers of SigmaTron International, Inc., a Delaware corporation, which is filing an Annual Report on Form 10-K with the Securities and Exchange Commission under the provisions of the Securities Exchange Act of 1934 as amended, hereby constitute and appoint Gary R. Fairhead and Linda K. Frauendorfer, and each of them, each of their true and lawful attorneys-in fact and agents, with full power of substitution and resubstitution, for him and in his name, place and stead, in all capacities, to sign any or all amendments to the report to be filed with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as each of them might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities, and on the dates indicated.

Signature	Title	Date
/s/ Gary R. Fairhead	Chairman of the Board of Directors,	July 24, 2015
Gary R. Fairhead	President and Chief Executive Officer,
	(Principal Executive Officer) and Director
/s/ Linda K. Frauendorfer	Chief Financial Officer, Secretary and Treasurer	July 24 2015
Linda K. Frauendorfer	(Principal Financial Officer and Principal
	Accounting Officer) and Director
/s/ Thomas W. Rieck	Director	July 24, 2015
Thomas W. Rieck
/s/ Dilip S. Vyas	Director	July 24, 2015
Dilip S. Vyas
/s/ Paul J. Plante	Director	July 24, 2015
Paul J. Plante
/s/ Barry R. Horek	Director	July 24, 2015
Barry R. Horek
/s/ Bruce J. Mantia	Director	July 24, 2015
Bruce J. Mantia

35

INDEX TO FINANCIAL STATEMENTS

Page

SigmaTron International, Inc. and Subsidiaries

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F-2
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS	F-3
CONSOLIDATED STATEMENTS OF INCOME	F-5
CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY	F-6
CONSOLIDATED STATEMENTS OF CASH FLOWS	F-7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	F-9

Financial statement schedules are omitted because they are not applicable or required.

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

SigmaTron International, Inc.

Elk Grove Village, Illinois

We have audited the accompanying consolidated balance sheets of SigmaTron International, Inc. as of April 30, 2015 and 2014  and the related consolidated statements of income, changes in stockholders' equity and cash flows for the years then ended.  These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of SigmaTron International, Inc. at April 30, 2015 and 2014 and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ BDO USA, LLP

Chicago, Illinois

July 24, 2015

F-2

SigmaTron International, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

APRIL 30, 2015 and 2014

ASSETS		2015		2014
CURRENT ASSETS
Cash and cash equivalents	$	2,868,217	$	5,440,319
Accounts receivable, less allowance for doubtful accounts of
$186,844 and $150,000 at April 30, 2015 and 2014,
respectively		20,170,723		19,293,791
Inventories, net		68,669,709		53,728,377
Prepaid expenses and other assets		2,103,367		1,826,254
Deferred income taxes		2,179,178		2,524,993
Other receivables		486,085		356,746
Total current assets		96,477,279		83,170,480
PROPERTY, MACHINERY AND EQUIPMENT, NET		33,864,527		32,692,908
OTHER LONG-TERM ASSETS
Intangible assets, net of amortization of $3,737,856
and $3,309,246 at April 30, 2015 and 2014, respectively		5,174,144		5,602,754
Goodwill		3,222,899		3,222,899
Other assets		1,319,901		790,390
Total other long-term assets		9,716,944		9,616,043
TOTAL ASSETS	$	140,058,750	$	125,479,431

The accompanying notes are an integral part of these statements.

F-3

SigmaTron International, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS - CONTINUED

APRIL 30, 2015 and 2014

LIABILITIES AND STOCKHOLDERS’ EQUITY		2015		2014
CURRENT LIABILITIES
Trade accounts payable	$	35,838,275	$	27,141,079
Accrued expenses		592,644		584,050
Accrued wages		5,140,851		5,969,024
Income taxes payable		302		80,936
Current portion of long-term debt		165,000		2,126,017
Current portion of capital lease obligations		1,245,632		765,961
Current portion of contingent consideration		275,288		331,429
Current portion of deferred rent		150,594		12,302
Total current liabilities		43,408,586		37,010,798
Long-term debt,
less current portion		31,252,793		24,198,500
Capital lease obligations,
less current portion		3,401,913		2,423,001
Contingent consideration,
less current portion		1,223,697		1,533,571
Other long-term liabilities		536,209		525,739
Deferred rent, less current portion		999,929		1,163,819
Deferred income taxes		2,550,236		3,217,660
Total long-term liabilities		39,964,777		33,062,290
Total liabilities		83,373,363		70,073,088
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value; 500,000 shares
authorized, none issued or outstanding		-		-
Common stock, $.01 par value; 12,000,000 shares
authorized, 4,075,785 and 4,012,319 shares issued
and outstanding at April 30, 2015 and 2014, respectively		40,703		40,215
Capital in excess of par value		21,239,641		20,864,497
Retained earnings		35,405,043		34,501,631
Total stockholders’ equity		56,685,387		55,406,343
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	140,058,750	$	125,479,431

The accompanying notes are an integral part of these statements.

F-4

SigmaTron International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

Years ended April 30, 2015 and 2014

		2015		2014
Net sales	$	230,237,161	$	222,485,940
Cost of products sold		208,168,323		199,658,942
Gross profit		22,068,838		22,826,998
Selling and administrative expenses		19,431,637		19,200,514
Operating income		2,637,201		3,626,484
Other income		(148,583)		(124,378)
Interest expense		1,081,323		966,038
Income before income tax expense		1,704,461		2,784,824
Income tax expense (benefit)		801,049		(133,867)
NET INCOME	$	903,412	$	2,918,691
Earnings per common share
Basic	$	0.22	$	0.74
Diluted	$	0.22	$	0.72
Weighted-average shares of common
stock outstanding
Basic		4,046,988		3,969,391
Diluted		4,116,424		4,074,487

The accompanying notes are an integral part of these statements.

F-5

SigmaTron International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Years ended April 30, 2015 and 2014

						Capital in				Total
		Preferred		Common		excess of par		Retained		stockholders’
		stock		stock		value		earnings		equity
Balance at May 1, 2013	$	-	$	39,779	$	20,361,012	$	31,582,940	$	51,983,731
Recognition of stock-based compensation		-		-		89,219		-		89,219
Exercise of stock options		-		436		158,357		-		158,793
Issuance and vesting of restricted stock		-		-		54,997		-		54,997
Tax benefit from exercise of options		-		-		200,912		-		200,912
Net income		-		-		-		2,918,691		2,918,691
Balance at April 30, 2014		-		40,215		20,864,497		34,501,631		55,406,343
Recognition of stock-based compensation		-		-		59,648		-		59,648
Exercise of stock options		-		136		57,825		-		57,961
Issuance and vesting of restricted stock		-		150		61,796		-		61,946
Employee stock purchases		-		202		126,612		-		126,814
Tax benefit from contingent consideration		-		-		69,263		-		69,263
Net income		-		-		-		903,412		903,412
Balance at April 30, 2015	$	-	$	40,703	$	21,239,641	$	35,405,043	$	56,685,387

The accompanying notes are an integral part of these statements.

F-6

SigmaTron International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended April 30, 2015 and 2014

		2015		2014
Cash flows from operating activities
Net income	$	903,412	$	2,918,691
Adjustments to reconcile net income to net
cash (used in) provided by operating activities
Depreciation		4,985,272		4,791,663
Stock-based compensation		59,648		89,219
Restricted stock expense		61,946		54,997
Employee stock purchases		126,814		-
Provision for doubtful accounts		36,844		-
(Write-off) provision for inventory obsolescence		(528,598)		34,884
Tax benefit from option exercises		-		(200,912)
Tax benefit from contingent consideration		(69,263)		-
Deferred income tax benefit		(252,347)		(623,233)
Amortization of intangible assets		428,610		346,680
Fair value adjustment of contingent consideration		(106,015)		-
Loss from disposal or sale of machinery and equipment		52,615		37,603
Stock option repurchase expense		-		300,410
Changes in assets and liabilities
Accounts receivable		(913,776)		127,461
Inventories		(14,412,734)		(3,118,520)
Prepaid expenses and other assets		(935,963)		343,580
Income taxes payable/refundable		(80,634)		509,874
Trade accounts payable		8,697,196		(4,206,275)
Deferred rent		(25,598)		79,849
Accrued expenses and wages		(809,109)		470,860
Net cash (used in) provided by operating activities		(2,781,680)		1,956,831
Cash flows from investing activities
Purchases of machinery and equipment		(4,802,389)		(8,366,039)
Net cash used in investing activities		(4,802,389)		(8,366,039)
Cash flows from financing activities
Proceeds from exercise of common stock options		57,961		158,793
Repurchase of stock options		-		(300,410)
Proceeds under sale leaseback agreements		1,102,317		2,281,354
Payments of contingent consideration		(260,000)		(260,000)
Payments under capital lease and sale leaseback agreements		(1,050,850)		(488,357)
Proceeds under building notes payable		834,481		1,275,000
Payments under building notes payable		(157,998)		(125,496)
Borrowings under lines of credit		165,496,222		121,696,357
Payments under lines of credit		(161,079,429)		(117,196,357)
Tax benefit from option exercises		-		200,912
Tax benefit from contingent consideration		69,263		-
Net cash provided by financing activities		5,011,967		7,241,796
Change in cash		(2,572,102)		832,588
Cash and cash equivalents at beginning of year		5,440,319		4,607,731
Cash and cash equivalents at end of year	$	2,868,217	$	5,440,319

The accompanying notes are an integral part of these statements.

F-7

SigmaTron International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued

Years ended April 30, 2015 and 2014

		2015		2014
Supplementary disclosures of cash flow information
Cash paid for interest	$	1,018,419	$	893,967
Cash paid for income taxes		915,115		271,502
Cash refunded for income taxes		-		(689,298)
Purchase of machinery and equipment financed
under capital leases		1,407,116		2,870,437
Puchase of machinery and equipment financed
under sale leaseback agreements		1,102,317		-

The accompanying notes are an integral part of these statements.

F-8

DRAFT - A

DRAFT - A

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

April 30, 2015 and 2014

NOTE A - DESCRIPTION OF THE BUSINESS

SigmaTron International, Inc., its subsidiaries, foreign enterprises and international procurement office (collectively, the “Company”) operates in one business segment as an independent provider of electronic manufacturing services (“EMS”), which includes printed circuit board assemblies and completely assembled (box-build) electronic products.  In connection with the production of assembled products, the Company also provides services to its customers, including (1) automatic and manual assembly and testing of products; (2) material sourcing and procurement; (3) manufacturing and test engineering support; (4) design services; (5) warehousing and distribution services; and (6) assistance in obtaining product approval from governmental and other regulatory bodies.  As of April 30, 2015, the Company provided these manufacturing services through an international network of facilities located in the United States, Mexico, China, Vietnam and Taiwan.  Approximately 15.1% and 15.7% of the total non-current consolidated assets of the Company are located outside of the United States as of April 30, 2015 and 2014, respectively.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation Policy

The consolidated financial statements include the accounts and transactions of SigmaTron International, Inc. (“SigmaTron”), its wholly-owned subsidiaries, Standard Components de Mexico, S.A., AbleMex S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd. and SigmaTron International Trading Co., wholly-owned foreign enterprises Suzhou SigmaTron Electronics Co. Ltd., and SigmaTron Electronic Technology Co., Ltd. (collectively, “SigmaTron China”), and its international procurement office, SigmaTron Taiwan.  The functional currency of the Mexican, Vietnamese and Chinese subsidiaries and procurement branch is the U.S. dollar.  Intercompany transactions are eliminated in the consolidated financial statements.  The impact of foreign currency fluctuation for the fiscal year ended April 30, 2015 resulted in a net gain of approximately $40,000 compared to a net foreign currency loss of $128,000 in the prior year.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory and valuation of long-lived assets.  Actual results could materially differ from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid short-term investments maturing within three months of the purchase date.

F-9

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Accounts Receivable

The majority of the Company’s accounts receivable are due from companies in the consumer electronics, gaming, fitness, industrial electronics, medical/life sciences, semiconductor, telecommunications and appliance industries.  Credit is extended based on evaluation of a customer’s financial condition, and, generally, collateral is not required.  Accounts receivable are due in accordance with agreed upon terms, and are stated at amounts due from customers net of an allowance for doubtful accounts.  Accounts outstanding longer than the contractual payments terms are considered past due.  The Company writes off accounts receivable when they are determined to be uncollectible.

Allowance for Doubtful Accounts

The Company’s allowance for doubtful accounts relates to receivables not expected to be collected from its customers.  This allowance is based on management’s assessment of specific customer balances, considering the age of receivables and financial stability of the customer and a five year average of prior uncollectible amounts.  If there is an adverse change in the financial condition of the Company’s customers, or if actual defaults are higher than provided for, an addition to the allowance may be necessary.

Inventories

Inventories are valued at the lower of cost or market.  Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods.  In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or market.  The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory.  The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss.  Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold.  The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions.  Actual product demand or market conditions could be different than that projected by management.

Property, Machinery and Equipment

Property, machinery and equipment are valued at cost.  The Company provides for depreciation and amortization using the straight-line method over the estimated useful life of the assets:

Buildings	20 years
Machinery and equipment	5-12 years
Office equipment and software	3-5 years
Tools and dies	12 months
Leasehold improvements	lesser of lease term or useful life

Expenses for repairs and maintenance are charged to selling and administrative expenses as incurred.

Deferred Financing Costs

Deferred financing costs consist of costs incurred to obtain the Company’s long-term debt and are amortized using the straight-line method over the term of the related debt.  Deferred financing fees of $147,537 and $52,484 net of accumulated amortization of $390,266 and $332,352, respectively, as of April 30, 2015 and 2014, respectively, are classified in other long-term assets on the Company’s balance sheet.

F-10

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Income Taxes

Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and for tax credit carryforwards, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse.  Valuation allowances are established when necessary to reduce deferred income tax assets to an amount more likely than not to be realized.

A tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available.  Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities.  These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined.

Earnings per Share

Basic earnings per share are computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period.  The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common stock equivalents such as stock options and restricted stock, had been exercised or vested.  There were 991,anti-dilutive common stock equivalents, at both April 30, 2015 and 2014, which have been excluded from the calculation of diluted earnings per share.

Revenue Recognition

Revenues from sales of the Company’s electronic manufacturing services business are recognized when the finished good product is shipped to the customer.  In general, and except for consignment inventory, it is the Companys’ policy to recognize revenue and related costs when the finished goods have been shipped from our facilities, which is also the same point that title passes under the terms of the purchase order.  Finished goods inventory for certain customers is shipped from the Company to an independent warehouse for storage or shipped directly to the customer and stored in a segregated part of the customer’s own facility.  Upon the customer’s request for finished goods inventory, the inventory is shipped to the customer if the inventory was stored off-site, or transferred from the segregated part of the customer’s facility for consumption or use by the customer.  The Company recognizes revenue upon such shipment or transfer.  The Company does not earn a fee for such arrangements.  The Company from time to time may ship finished goods from its facilities, which is also the same point that title passes under the terms of the purchase order, and invoice the customer at the end of the calendar month.  This is done only in special circumstances to accommodate a specific customer.  Further, from time to time customers request the Company hold finished goods after they have been invoiced to consolidate finished goods for shipping purposes.  The Company generally provides a 90 day warranty for workmanship only, except for products with proprietary designs and does not have any installation, acceptance or sales incentives (although the Company has negotiated longer warranty terms in certain instances).  The Company assembles and tests assemblies based on customers’ specifications.  Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties.

F-11

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Shipping and Handling Costs

The Company records shipping and handling costs as selling and administrative expenses.  Customers are typically invoiced for shipping costs.  Shipping and handling costs were not material to the financial statements for fiscal years 2015 or 2014.

Fair Value Measurements

Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs.  The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Fair Value of Financial Instruments

The Company’s financial instruments include cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued expenses which approximate fair value at April 30, 2015 and 2014, due to their short-term nature.  The carrying amounts of the Company’s debt obligations approximate fair value based on future payments discounted at current interest rates for similar obligations or interest rates which fluctuate with the market.

The Company measured the net assets included in the fiscal 2013 Spitfire acquisition under the fair value standard (primarily using level 3 measurement inputs) including the contingent consideration which continues to be measured and reported at fair value at each period end.  The Company currently does not have any other non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.

Goodwill

Goodwill represents the purchase price in excess of the fair value of assets acquired in business combinations.  The Company assesses goodwill for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment.  The Company is permitted the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of any reporting unit is less than its corresponding carrying value.  If, after assessing the totality of events and circumstances, the Company concludes that it is not more likely than not that the fair value of any reporting unit is less than its corresponding carrying value, then the Company is not required to take further action.  However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test, including computing the fair value of the reporting unit and comparing that value to its carrying value.  If the fair value is less than its carrying value, a second step of the test is required to determine if recorded goodwill is impaired.  The Company also has the option to bypass the qualitative assessment for goodwill in any period and proceed directly to performing the quantitative impairment test.  The Company will be able to resume performing the qualitative assessment in any subsequent period.  The Company performed its annual goodwill impairment test as of February 1, 2015 and determined that no impairment existed as of that date.

F-12

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Intangible Assets

Intangible assets are comprised of finite life intangible assets including patents,trade names, backlog, non-compete agreements, and customer relationships.  Finite life intangible assets are amortized on a straight line or accelerated basis over their estimated useful lives of five years for patents, 20 years for trade names, 1 year for backlog, 7 years for non-compete agreements and 15 years for customer relationships.

Impairment of Long-Lived Assets

The Company reviews long-lived assets, including amortizable intangible assets, for impairment.  Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment.  If events or changes in circumstances occur that indicate possible impairment, the Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities.  This analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates.  The Company conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment.  Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset group.  When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value.  As of April 30, 2015, there was no impairment of long-lived assets. 

Stock Incentive Plans

Under the Company’s stock option plans, options to acquire shares of common stock have been made available for grant to certain employees and directors.  Each option granted has an exercise price of not less than 100% of the market value of the common stock on the date of grant.  The contractual life of each option is generally 10 years.  The vesting of the grants varies according to the individual options granted.  The Company measures the cost of employee services received in exchange for an equity award based on the grant date fair value and records that cost over the respective vesting period of the award.

Reclassifications

Certain reclassifications have been made to the previously reported 2014 financial statements to conform to the 2015 presentation.

New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers."  This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2017 and early adoption is not permitted.  Accordingly, the Company will adopt this ASU on May 1, 2018.  Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use and the full impact this ASU will have on the Company’s future consolidated financial statements.

F-13

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

New Accounting Standards - Continued

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40).  The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  An entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued, when applicable).  ASU 2014-15 is effective for the Company beginning with the annual reporting for fiscal 2016, and reports for interim and annual periods thereafter.  Early adoption is permitted. The Company does not expect the impact of adoption of this ASU will have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015- 03, “Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs.” ASU No. 2015-03 simplifies the presentation of debt issuance costs by requiring that these costs related to a recognized debt liability be presented in the statement of financial condition as a direct reduction from the carrying amount of that liability. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period.ASU No. 2015-03 is required to be applied retrospectively to all periods presented beginning in the year of adoption. Adoption will not materially affect the firm’s financial condition, results of operations, or cash flows.The Company does not expect the impact of adoption of this ASU to have a material impact on its consolidated financial statements.

NOTE C - ALLOWANCE FOR DOUBTFUL ACCOUNTS

Changes in the Company’s allowance for doubtful accounts are as follows:

		2015		2014
Beginning Balance	$	150,000	$	150,000
Bad debt expense		36,844		-
Write-offs		-		-
	$	186,844	$	150,000

F-14

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE D - INVENTORIES

Inventories consist of the following at April 30:

	2015		2014
Finished products	$	24,316,404	$	18,553,112
Work-in-process		2,966,846		3,126,596
Raw materials		42,662,845		33,853,653
		69,946,095		55,533,361
Less obsolescence reserve		1,276,386		1,804,984
	$	68,669,709	$	53,728,377

Changes in the Company’s inventory obsolescence reserve are as follows:

	2015		2014
Beginning balance	$	1,804,984	$	1,770,100
Provision for obsolescence		-		34,884
Write-offs		(528,598)		-
	$	1,276,386	$	1,804,984

F-15

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE E - PROPERTY, MACHINERY AND EQUIPMENT, NET

Property, machinery and equipment consist of the following at April 30:

		2015		2014
Land and buildings	$	15,265,758	$	14,707,780
Machinery and equipment		56,142,919		54,933,857
Office equipment and software		8,640,964		7,413,077
Leasehold improvements		2,540,693		2,539,193
Equipment under capital leases		6,746,668		4,237,235
		89,337,002		83,831,142
Less accumulated depreciation
and amortization, including
amortization of assets under
capital leases of $1,329,661
and $729,723 at April 30,
2015 and 2014, respectively		55,472,475		51,138,234
Property, machinery and
equipment, net
	$	33,864,527	$	32,692,908

Depreciation and amortization expense was $4,985,272 and $4,791,663 for the years ended April 30, 2015 and 2014, respectively.

F-16

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE F - GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

There were no changes in carrying amount of tax deductible goodwill in the amount of $3,222,899 for the fiscal years ended April 30, 2015 and 2014, respectively. 

Other Intangible Assets

Intangible assets subject to amortization are summarized as of April 30, 2015 as follows:

	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization
Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	12.08		4,690,000		548,781
Backlog	-		22,000		22,000
Trade names	17.08		980,000		142,905
Non-compete agreements	4.08		50,000		20,825
Patents	2.08		400,000		233,345
Total		$	8,912,000	$	3,737,856

Intangible assets subject to amortization are summarized as of April 30, 2014 as follows:

	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization
Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	13.08		4,690,000		256,311
Backlog	-		22,000		22,000
Trade names	18.08		980,000		93,909
Non-compete agreements	5.08		50,000		13,685
Patents	3.08		400,000		153,341
Total		$	8,912,000	$	3,309,246

F-17

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE F - GOODWILL AND OTHER INTANGIBLE ASSETS - Continued

Estimated aggregate amortization expense for the Company’s intangible assets, which become fully amortized in 2032, for the remaining fiscal years is as follows:

For the fiscal year ending April 30:	2016	$	470,899
	2017		490,010
	2018		435,043
	2019		423,721
	2020		411,406
	Thereafter		2,943,065
		$	5,174,144

Amortization expense was $428,610 and $346,680 for the years ended April 30, 2015 and 2014, respectively.

In conjunction with the May 2012 acquisition of Spitfire, the estimate of the fair value of the contingent consideration ($2,320,000) was based on expected operating results through fiscal 2019 and the specific terms of when such consideration would be earned.  Those terms provide for additional consideration to be paid based on a percentage of sales and pre-tax profits over those years in excess of certain minimums.  Payments are made quarterly each year and adjusted after each year end audit.  The Company made four quarterly payments of $65,000 each in fiscal 2015 and 2014 and made three quarterly payments of $65,000 each in fiscal 2013.  As of April 30, 2015, the Company had not materially changed its estimated aggregate consideration expected to be earned under this arrangement.  Any changes in the Company’s estimate is reflected as a change in the contingent consideration liability and as additional or credits to selling and administrative expenses.  As of April 30, 2015, the contingent consideration liability was $1,498,985.

F-18

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE G - LONG-TERM DEBT

Note Payable - Bank

The Company has a senior secured credit facility with Wells Fargo, N.A. with a credit limit up to $30,000,000 and current term through October 31, 2017.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The credit facility is collateralized by substantially all of the domestically located assets of the Company and the Company has pledged 65% of its equity ownership interest in some of its foreign entities.  The Company is required to be in compliance with several financial covenants.  Pursuant to the agreement, financial covenants were amended, an unused line fee was added, and the borrowing interest rate was changed.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The interest rate is the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) or LIBOR plus two and one quarter percent (effectively 2.625% at April 30, 2015).  Interest is paid monthly.  Under the senior secured credit facility, the Company may borrow up to the lesser of (i) $30,000,000 or (ii) an amount equal to the sum of 85% of the receivable borrowing base plus a percentage of the inventory borrowing base (collectively, “Borrowing Base”, which cannot exceed 50% of combined eligible receivables and inventory).  Further, in specific circumstances, the Company is entitled to an over advance of up to $5,000,000 through October 31, 2015; however, at no time can the borrowings under the credit facility exceed $30,000,000.  The effective interest rate for the over advance facility was LIBOR plus two and three quarter percent.  Effective December 31, 2014, the Company amended its senior secured credit facility agreement to temporarily increase the total Borrowing Base limit to 60% through June 30, 2015 and reverting to 50% of total Borrowing Base after June 30, 2015.  Further, the senior secured credit facility agreement was modified to allow specific foreign receivables to become eligible collateral. The receivable modification is effective until June 30, 2015. The Company agreed to an increase in the effective interest rate for the over advance facility and a $5,000 amendment fee. The interest rate for the over advance facility increased from LIBOR plus two and three quarter percent (effectively 3.125% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) to LIBOR plus three and one half percent (effectively 3.875% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015).  As of April 30, 2015, there was a $27,416,793 outstanding balance and $2,583,207 of unused availability under the credit facility agreement.  At April 30, 2015, the Company was in compliance with its financial covenants.

The Company anticipates that its credit facilities, cash flow from operations and leasing resources are adequate to meet its working capital requirements and capital expenditures for fiscal year 2016 at the Company’s current level of business.  The Company has received forecasts from current customers for increased business that would require additional investments in inventory. To the extent that these forecasts come to fruition, the Company intends to meet any increased capital requirements by raising capital from other sources of debt or equity.  The Company has selected an investment banker for the purpose of completing a capital raise in the third fiscal quarter of 2016.  The capital raise, if successful, may consist of debt, equity or a combination of debt and equity.  If the capital raise is not completed, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts.  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

In addition, in the event the Company desires to expand its operations, its business grows more rapidly than expected, the current economic climate deteriorates, customers delay payments, or the Company desires to consummate an acquisition, additional financing resources may be necessary in the current or future fiscal years.  There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all, in the future.  There is no assurance that the Company will be able to retain or renew its credit agreements in the future, or that any retention or renewal will be on the same terms as currently exist.

F-19

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE G - LONG-TERM DEBT - Continued

Capital Lease Obligations

On August 20, 2010 and October 26, 2010, the Company entered into two capital leasing transactions (a lease finance agreement and a sale leaseback agreement) with Wells Fargo Equipment Finance, Inc., to purchase equipment totaling $1,150,582.  The term of the lease finance agreement, with an initial principal amount of $315,252, extends to September 2016 with monthly payments of $4,973 and a fixed interest rate of 4.28%.  The term of the sale leaseback agreement, with an initial principal payment amount of $835,330, extends to August 2016 with monthly payments of $13,207 and a fixed interest rate of 4.36%.  At April 30, 2014,  $136,561 and $338,562 was outstanding under the lease finance and sale leaseback agreements, respectively.  The net book value at April 30, 2014 of the equipment under the lease finance agreement and sale leaseback agreement was $221,114 and $550,583, respectively.At April 30, 2015, $81,809 and $192,296 was outstanding under the lease finance and sale leaseback agreements, respectively.  The net book value at April 30, 2015 of the equipment under the lease finance agreement and sale leaseback agreement was $194,843 and $481,805, respectively.

On November 29, 2010, the Company entered into a capital lease with Wells Fargo Equipment Finance, Inc., to purchase equipment totaling $226,216.  The term of the lease agreement extends to October 2016 with monthly payments of $3,627 and a fixed interest rate of 4.99%.  At April 30, 2014, the balance outstanding under the capital lease agreement was $102,099.  The net book value of the equipment under this lease at April 30, 2014 was $159,528.At April 30, 2015, the balance outstanding under the capital lease agreement was $62,777.  The net book value of the equipment under this lease at April 30, 2015 was $140,676.

On October 3, 2013, the Company entered into two sale leaseback agreementswith Associated Bank, National Association in the amount of $2,281,355 to finance equipment purchased in June 2012.  The term of the first agreement, with an initial principal amount of $2,201,638, extends to September 2018 with monthly payments of $40,173 and a fixed interest rate of 3.75%.  The term of the second agreement, with an initial principal payment amount of $79,717, extends to September 2018 with monthly payments of $1,455 and a fixed interest rate of 3.75%.  At April 30, 2014,  $1,959,381 and $70,945 was outstanding under the first and second agreements, respectively.  The net book value at April 30, 2014 of the equipment under each of the two agreements was $1,828,038 and $68,092, respectively.At April 30, 2015, $1,543,684 and $55,894 was outstanding under the first and second agreements, respectively.  The net book value at April 30, 2015 of the equipment under each of the two agreements was $1,736,474 and $61,448, respectively.

On March 6, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $589,083.  The term of the lease extends to March 2019 with monthly payments of $10,441 and a fixed interest rate of 5.65%.  At April 30, 2014, the balance outstanding under the capital lease agreement was $581,415.  The net book value of the equipment under the lease as of April 30, 2014 was $573,338.At April 30, 2015, the balance outstanding under the capital lease agreement was $486,541.  The net book value of the equipment under the lease as of April 30, 2015 was $524,248.

On May 7, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $108,971.  The term of the lease extends to May 2019 with monthly payments of $1,931 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the capital lease was $92,996.  The net book value of the equipment under the lease as of April 30, 2015 was $99,890.

On August 1, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $609,179.  The term of the lease extends to July 2019 with monthly payments of $10,797 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the capital lease was $536,459.  The net book value of the equipment under the lease as of April 30, 2015 was $566,875.

F-20

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE G - LONG-TERM DEBT - Continued

Capital Lease Obligations - Continued

On September 22, 2014, the Company entered into a sale leaseback agreement with Associated Bank, National Association in the amount of $664,676 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $12,163 and a fixed interest rate of 3.87%.  At April 30, 2015, the balance outstanding under the lease was $581,419. The net book value of the equipment under the lease as of April 30, 2015 was $567,067.

On September 22, 2014, the Company entered into a sale leaseback agreement with Associated Bank, National Association in the amount of $437,641 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $8,008 and a fixed interest rate of 3.87%.  At April 30, 2015, the balance outstanding under the lease was $382,822. The net book value of the equipment under the lease as of April 30, 2015 was $395,868.

On September 22, 2014, the Company entered into a capital lease agreement with Associated Bank, National Association in the amount of $106,346 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $1,947 and a fixed interest rate of 3.89%.  At April 30, 2015, the balance outstanding under the lease was $93,030.  The net book value of the equipment under the lease as of April 30, 2015 was $99,700.

On October 27, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $501,590.  The term of lease extends to October 2019 with monthly payments of $8,890 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the lease was $461,954. The net book value of the equipment under the lease as of April 30, 2015 was $470,460.

On January 16, 2015, the Company entered into a capital lease agreement with Associated Bank, National Association in the amount of $81,030 to finance equipment purchases.  The term of lease extends to December 2019 with monthly payments of $1,487 and a fixed interest rate of 4.01%.  At April 30, 2015, the balance outstanding under the lease was $75,864.  The net book value of the equipment under the lease as of April 30, 2015 was $77,654.

Note Payable - Buildings

The Company entered into a mortgage agreement on January 8, 2010, in the amount of $2,500,000, with Wells Fargo, N.A. to refinance the property that serves as the Company’s corporate headquarters and its Illinois manufacturing facility.  The Wells Fargo, N.A. note historically boar interest at a fixed rate of 6.42% per year and was amortized over a sixty month period.  A final payment of approximately $2,000,000 was due on or before January 8, 2015.  On November 24, 2014, the Company refinanced the mortgage agreement with Wells Fargo, N.A.  The note requires the Company to pay monthly principal payments in the amount of $9,500, bears an interest rate of LIBOR plus two and one-quarter percent(effectively 2.625% at April 30, 2015) and is payable over a sixty month period.  Final payment of approximately $2,289,500 is due on or before November 8, 2019.  The outstanding balance as of April 30, 2014 was $2,075,017.  The outstanding balance as of April 30, 2015 was $2,802,500.

The Company entered into a mortgage agreement on October 24, 2013, in the amount of $1,275,000, with Wells Fargo, N.A. to finance the property that serves as the Company’s engineering and design center in Elgin, Illinois.  The Wells Fargo, N.A. note requires the Company to pay monthly principal payments in the amount of $4,250, bears interest at a fixed rate of 4.51% per year and is payable over a sixty month period.  A final payment of approximately $1,030,000 is due on or before October 24, 2018.  The outstanding balance as of April 30, 2014 was $1,249,500.The outstanding balance as of April 30, 2015 was $1,198,500.

F-21

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE G - LONG-TERM DEBT - Continued

The aggregate amount of debt maturingin each of the following fiscal years and thereafter is as follows:

Fiscal Year	Total
2016	$	165,000
2017		165,000
2018		27,581,793
2019		1,159,500
2020		2,346,500
	$	31,417,793

See Note L - Leases, Page F-30for future maturities under capital lease obligations.

Other Long-Term Liabilities

As of April 30, 2015 and 2014, the Company had recorded $536,209 and $525,739, respectively, for seniority premiums and retirement accounts related to benefits for employees working in the Company’s foreign subsidiaries.

F-22

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE H - ACCRUED EXPENSES AND WAGES

Accrued expensesconsist of the following at April 30:

		2015		2014
Interest	$	74,395	$	69,467
Commissions		57,681		48,043
Professional fees		304,864		262,755
Other		155,704		203,785
	$	592,644	$	584,050

Accrued wages consist of the following at April 30:

		2015		2014
Wages	$	1,544,959	$	1,812,049
Bonuses		409,549		510,159
Foreign wages		1,689,934		1,704,821
Foreign benefits		1,496,409		1,941,995
	$	5,140,851	$	5,969,024

F-23

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE I - INCOME TAX

U.S. and foreign income (loss) before income tax expense for the years ended April 30 are as follows:

		2015		2014
Domestic	$	(2,481,049)	$	(545,501)
Foreign		4,185,510		3,330,325
	$	1,704,461	$	2,784,824

Provision (benefit) for Income Taxes

The income tax provision (benefit) for the years ended April 30 consists of the following:

		2015		2014
Current
Federal	$	2,963	$	(203,951)
State		29,613		28,726
Foreign		1,020,820		664,591
Total Current		1,053,396		489,366
Deferred
Federal		(138,335)		365,008
State		(154,208)		64,952
Foreign		40,196		(1,053,193)
Total Deferred		(252,347)		(623,233)
Provision (benefit) for income taxes	$	801,049	$	(133,867)

F-24

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE I - INCOME TAX - Continued

Provision (benefit) for Income Taxes - Continued

The difference between the income tax provision (benefit) and the amounts computed by applying the statutory Federal income tax rates to income before tax expense for the years ended April 30 are as follows:

		2015		2014
U.S Federal Provision:
At statutory rate	$	579,516	$	951,623
State taxes		(86,377)		61,828
Change in valuation allowance		46,615		-
Foreign tax differential		(256,343)		(465,835)
Impact of state tax rate change		(42,471)		-
Change in foreign valuation allowance		(53,011)		-
Foreign profit sharing		32,912		(60,626)
Foreign dividends		643,708		295,522
Other		22,996		20,175
Foreign currency exchange gain/loss		136,299		-
Impact of tax legislation		-		(828,175)
Impact of foreign permanent items		(123,987)		(25,099)
Foreign inflation adjustment		(98,808)		-
Insurance reserves		-		(83,280)
Provision (benefit) for income taxes	$	801,049	$	(133,867)

F-25

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the deferred tax assets for federal and state income taxes are as follows:

		2015		2014
Deferred Tax Assets
Federal & State NOL carryforwards	$	449,325	$	-
Foreign NOL carryforwards		-		98,254
Research & Other Credits		78,100		-
Reserves and accruals		795,721		944,454
Stock based compensation		133,744		137,343
Inventories		1,154,335		1,340,302
Other intangible assets		207,044		338,014
Deferred rent		263,703		293,242
Allowance for doubtful accounts		72,271		61,515
Other		22,978		305,335
Total Gross Deferred Tax Assets		3,177,221		3,518,459
Less: Valuation allowance		(95,295)		(101,691)
Net Deferred Tax Assets	$	3,081,926	$	3,416,768
Deferred Tax Liabilities
Other assets	$	(272,409)	$	(474,768)
Property, machinery & equipment		(3,180,575)		(3,384,821)
Undistributed foreign earnings		-		(249,846)
Total Deferred Tax Liabilities	$	(3,452,984)	$	(4,109,435)
Net Deferred Tax Liability	$	(371,058)	$	(692,667)

As of April 30, 2015, the Company had net operating loss carryforwards for federal income tax purposes of approximately$658,000, portions of which will begin to expire in 2035. The Company had a total state net operating loss carryforwardof approximately $2,318,000, which will begin to expire in 2023 to 2031. Utilization of some of the federal and state net operating lossand credit carryforwards are subject to annual limitations due to the “change in ownership” provisions of Section 382 the Internal Revenue Codeof 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits beforeutilization.

At April 30, 2015, the Company has federal net operating loss carry-forward totaling approximately $657,529 that will expire on April 30, 2035. The Company recognizes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The Company determined it is more likely than not that it will realize the federal deferred tax assets due to the reversal of

F-26

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities-Continued

federal deferred tax liabilities. The federal deferred tax liabilities exceed the federal deferred tax assets and based on the reversing pattern, the Company has concluded that substantially all of the federal deferred tax liabilities are expected to reverse and be a sufficient source of future federal taxable income within the period of time available for existing net operating loss carry-forwards and other federal deferred tax assets. The federal deferred tax liability is of the same character as the differences giving rise to the federal deferred tax assets. If the Company experiences substantial changes in ownership, the net operating loss carry-forwards would be subject to an annual limitation pursuant to Section 382 which may impact the realization of the net operating loss carry-forwards.

The Company also has state net operating loss carry-forwards totaling approximately $2,318,000at April 30, 2015, that will begin to expire in fiscal year April 30, 2022. The Company recorded a valuation allowance related to state net operating loss carry-forwards of $46,615 as of the year ended April 30, 2015. The state deferred tax liabilities exceed the state deferred tax assets and based on the reversing pattern the Company has concluded that substantially all of the state deferred tax liabilities are expected to reverse within the period of time available to fully utilize all state deferred tax assets except for certain state net operating losses, with shorter expirations. Based on the reversing schedule performed on a state by state basis, the Company has concluded that a valuation allowance of $46,615 is required as of April 30, 2015, related to state net operating loss carryforwards that are expected to expire before being utilized. These states required a valuation allowance because the net operating loss carry-forward periods are expected to expire before being utilized, based upon the scheduled reversal of the deferred tax liabilities.

F-27

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities - Continued

The above amounts are classified in the Consolidated Balance Sheets at April 30, are as follows:

		2015		2014
Current assets:
Deferred income taxes	$	2,179,178	$	2,524,993
Non-current liabilities:
Deferred income taxes		(2,550,236)		(3,217,660)
Net Deferred Tax Liability	$	(371,058)	$	(692,667)

The Company has not recorded U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries. Since the earnings of the foreign subsidiaries have been, and under fiscal April 30, 2015 plans, will continue to be indefinitely reinvested, no deferred tax liability has been recorded.  With respect to fiscal April 30, 2016, as a result of the uncertainty of the Company’s financing arrangements and its domestic liquidity profile, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts .  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

Effective January 1, 2014, the Mexican federal income tax law changes were enacted eliminating the statutory income tax rate reduction scheduled to start in 2014, and leaving the 30% statutory income tax rate in effect for future years.  In addition the Entrepreneurial Tax of Unique Rate (flat tax) was repealed as of January 31, 2014. 

During fiscal year 2015, the Company reflected tax expense of $643,708 related to the inability to realize the tax benefit recorded in fiscal year 2014 for potential foreign tax credits related to the above distribution from Mexico.  The Company’s current estimate of cumulative taxable income during the foreign tax credit carryforward period is insufficient to support that the tax benefit from the foreign tax credit is more likely than not to be realized.

F-28

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities - Continued

The Company has a foreign tax credit carry-forward of $78,100and $112,327 at April 30, 2015 and 2014, respectively, that will begin to expire in fiscal year April 30, 2024.  The Company determined it is more likely than not that it will realize the foreign tax credit due to the reversal of federal deferred tax liabilities.

The Company’s Vietnam subsidiary has a net operating loss carry-forward of $221,274 and $399,109at April 30, 2015 and 2014, respectively, that will begin to expire within the fiscal year April 30, 2017.A portion of the net operating loss carry-forward, $147,594, expired in the fiscal year ended April 30, 2015.  Vietnam has a tax holiday and is at a 0% tax rate currently.  The Company anticipates that it will use the net operating loss before the tax holiday expires, which resulted in no benefit being booked.

Unrecognized Tax Benefits

The Company has not identified any uncertain tax positions or expects any to be taken in the Company’s tax returns.  For the fiscal year ended April 30, 2015 and 2014, the amount of consolidated worldwide liability for uncertain tax positions that impacted the Company’s effective tax rate was $0 for each year.

Other

Interest related to tax positions taken in the Company’s tax returns are recorded in income tax expense in the Consolidated Statements of Income. 

The Company is subject to taxation in the U.S. and various state and foreign jurisdictions.  With few exceptions, the Company is no longer subject to state, local or foreign examinations by tax authorities for tax years before 2011.  The Internal Revenue Service is currently examining fiscal year 2013.  The Company is no longer subject to U.S. Federal examinations by tax authorities for tax years before 2012.

NOTE J - 401(k) RETIREMENT SAVINGS PLAN

The Company sponsors 401(k) retirement savings plans, which are available to all non-union U.S. employees.  The Company may elect to match participant contributions up to $300 per participant annually.  The Company contributed $114,207 and $93,452 to the plans during the fiscal years ended April 30, 2015 and 2014, respectively.  The Company paid total expenses of $8,500 and $6,850 for the fiscal years ended April 30, 2015 and 2014, respectively, relating to costs associated with the administration of the plans.

NOTE K - MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of uncollateralized accounts receivable.  For the year ended April 30, 2015, two customers accounted for 36.8% and 9.9% of net sales of the Company, and 9.6% and 5.5%, respectively, of accounts receivable at April 30, 2015.  For the year ended April 30, 2014, two customers accounted for 31.6% and 12.0% of net sales of the Company and 11.2% and 4.5%, respectively, of accounts receivable at April 30, 2014.  Further, the Company has $2,462,057in cash in China as of April 30, 2015.  These funds are not insured by a guaranteed deposit insurance system.  Effective May 1, 2015, China implemented a deposit insurance program to insure up to approximately $81,000 in deposits. 

F-29

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE L - LEASES

The Company leases certain facilities and office space under various operating leases expiring at various dates through March 2021.  The Company also leases various machinery and equipment under capital leases.

Future minimum lease payments under leases with terms of one year or more are as follows:

		Capital		Operating
Years ending April 30,		Leases		Leases
2016	$	1,429,205	$	1,840,697
2017		1,253,770		2,026,999
2018		1,167,522		1,960,493
2019		924,596		1,651,233
2020		310,012		950,166
Thereafter		-		603,437
Total future minimum lease payments	$	5,085,105	$	9,033,025
Less amounts representing interest		437,560
		4,647,545
Less Current Portion		1,245,632
Long Term Portion	$	3,401,913

F-30

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE L - LEASES - Continued

Rent expense incurred under operating leases was $2,102,312 and $1,981,977 for the years ended April 30, 2015 and 2014, respectively.

In September 2010, the Company entered into a real estate lease agreement in Union City, CA, to rent manufacturing and office space.  Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through March 2021.  The amount of the deferred rent income recorded was $33,950 for the fiscal year ended April 30, 2015, compared to deferred rent income of $17,770 recorded for the year ended April 30, 2014.

On May 31, 2012, the Company entered into a lease agreement in Tijuana, MX, to rent 112,000 square feet of manufacturing and office space.  Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through November 2018.  The amount of the deferred rent income for the fiscal year ended April 30, 2015 was $8,353.  Deferred rent expense in the amount of $8,353 was recorded for the twelve month period ended April 30, 2015.

NOTE M - STOCK COMPENSATION

The Company has stock option plans (“Option Plans”) under which certain employees and non-employee directors may acquire shares of common stock.  All Option Plans have been approved by the Company’s shareholders.  At April 30, 2015, the Company has 402,914 shares available for future issuance to employees under the employee plans and none are available under the non-employee director plans.  The Option Plans are interpreted and administered by the Compensation Committee of the Board of Directors.  The maximum term of options granted under the Option Plans is generally 10 years.  Options granted under the Option Plans are either incentive stock options or nonqualified options.  Each option under the Option Plans is exercisable for one share of stock.  Options forfeited under the Option Plans are available for reissuance.  Options granted under these plans are granted at an exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant.

The Company granted 25,000 options to employees in fiscal year 2014.The Company recognized approximately $18,100 in compensation expense in fiscal year 2015 and 2014.  The balance of unrecognized compensation expense at April 30, 2015 was approximately $21,700.

In fiscal year 2013, 115,000 options were granted to employees.The Company recognized approximately $13,800 and $54,860 of compensation expense in fiscal years 2015 and 2014, respectively.  The balance of unrecognized compensation expense at April 30, 2015 and 2014 was approximately $0 and $13,800, respectively.

F-31

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE M - STOCK COMPENSATION - Continued

The Company offered to purchase 395,190options upon the terms  stated in Schedule TO (“TO”) filed with the SEC on October 1, 2013.  The stock options subject to the TO were those options to purchase SGMA common stock which had not expired or terminated prior to October 29, 2013.  Options, all of which were fully vested, were granted under the following Company stock option plans: 1993 Stock Option Plan, 2004 Employee Stock Option Plan, 2000 Directors’ Stock Option Plan and 2004 Directors’ Stock Option Plan.The Company offered to pay a cash amount ranging from $0.18 to $1.35 per Eligible Option, totaling up to $301,500 and 394,200options were tendered and purchased for a total cash payment of $300,410 as of October 31, 2013.

The fair value of each option grant in fiscal 2014 is estimated on the grant date using the Black-Scholes option pricing model with the following assumptions:

Expected dividend yield	0%
Expected stock price volatility	78%
Average risk-free interest rate	4.49%
Weighted-average expected life of options	6.0 years

Option-valuation models require the input of highly subjective assumptions. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing method does not necessarily provide a reliable single measure of the fair value of the Company’s stock options. When the Company does grant stock options, it uses the U.S. Treasury yield in effect at the time of the option grant to calculate the risk-free interest rate and the simplified method to calculate the weighted-average expected life, due to limited history. The expected dividend, volatility and forfeitures rates of options are based on historical experience and expected future results. The vesting period of the stock options ranges from three to five years.

F-32

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE M - STOCK COMPENSATION - Continued

The table below summarizes option activity through April 30, 2015:

	Number of			Number of
	securities to be			options
	issued upon		Weighted-	exercisable
	exercise of		average	at end
	outstanding options		exercise price	of year
Outstanding at April 30, 2013	515,192	$	8.02	438,142
Options granted during 2014	25,000		4.24
Options exercised during 2014	(43,588)		3.64
Options expired during 2014	(850)		4.24
Options repurchased during 2014	(394,200)		9.34
Outstanding at April 30, 2014	101,554		3.88	48,304
Options exercised during 2015	(13,600)		4.26
Options expired during 2015	(2,000)		4.24
Outstanding at April 30, 2015	85,954	$	3.81	76,954

Intrinsic value is calculated as the positive difference between the market price of the Company’s common stock and the exercise price of the underlying options.  During the fiscal years ended April 30, 2015 and 2014, the aggregate intrinsic value of options exercised was $51,520 and $291,025, respectively.  As of April 30, 2015 and 2014, the aggregate intrinsic value of in the money options outstanding was $365,245 and $653,803, respectively.

Information with respect to stock options outstanding at April 30, 2015 follows:

		Options outstanding
		Number	Weighted-average		Weighted-
		outstanding at	remaining		average
		April 30, 2015	contract life		exercise price
Range of exercise prices
$	3.60-5.40	84,963	7.87 years	$	3.75
$	9.17-11.56	991	.38 years		9.17
		85,954		$	3.81

F-33

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE M - STOCK COMPENSATION - Continued

Information with respect to stock options outstanding and exercisable at April 30, 2015 follows:

		Options outstanding and exercisable
		Number	Weighted-average		Weighted-
		outstanding at	remaining		average
		April 30, 2015	contract life		exercise price
Range of exercise prices
$	3.60-5.40	75,963	7.87 years	$	3.69
$	9.17-11.56	991	.38 years		9.17
		76,954		$	3.76

The Company implemented an employee stock purchase plan (“ESPP”), for all eligible employees on February 1, 2014.  Under the ESPP, employees may purchase shares of the Company’s common stock at three-month intervals at 85%of the lower of the fair market value of the Company’s common stock on the first day or the last day of the offering period (calculated in the manner provided in the plan). Employees purchase such stock using payroll deductions, which may not be less than 1%nor exceed 15%of their total gross compensation. Shares of common stock are offered under the ESPP through a series of successive offering periods. The plan imposes certain limitations upon an employee’s right to acquire common stock, including the following: (i) termination of employment for any reason immediately terminates the employee’s participation in the plan (ii) no employee may be granted rights to purchase more than $25,000worth of common stock for each calendar year that such rights are at any time outstanding, and (iii) the maximum number of shares of common stock purchasable in total by all participants in the ESPP on any purchase date is limited to 500,000shares. The number of shares of common stock reserved for issuance under the plan automatically increases on the first day of the Company’s fiscal years by 25,000shares.  There were 18,118and 2,158shares issued under the ESPP and the Company recorded $27,747and $4,151in compensation expense, for fiscal years ended April 30, 2015 and 2014, respectively.

The Company issued 25,000 shares of restricted stock on June 1, 2012, of which 8,330 vested in June 2012 and 8,330 vested in June 2013.  The Company recognized approximately $1,745 and $15,325 in compensation expense for the years ended April 30, 2015 and 2014, respectively.  The balance of unrecognized compensation expense related to the Company’s restricted stock award was approximately $0 and $1,750 at April 30, 2015 and 2014, respectively.

On October 1, 2014, the Company granted 1,750 shares to each non-employee director pursuant to the 2013 Non-Employee Director Restricted Stock Plan.  A total of 8,750 restricted shares were granted and the shares vest in six months from the date of grant.  The Company recognized $60,200 in compensation expense in fiscal year 2015.  There was no unrecognized compensation expense related to the 8,750 shares of restricted stock at April 30, 2015.

On October 1, 2013, the Company granted 1,500 shares to each non-employee director pursuant to the 2013 Non-Employee Director Restricted Stock Plan.  A total of 7,500 restricted shares were granted and the shares vested in six months from the date of grant.  The Company recognized no compensation expense in fiscal year 2015 and there was no unrecognized compensation expense related to the 7,500 shares of restricted stock at April 30, 2015.

F-34

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE N - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of unaudited quarterly financial data for fiscal year 2015:

		First		Second		Third		Fourth
2015		Quarter		Quarter		Quarter		Quarter
Net sales	$	54,947,477	$	61,533,519	$	53,702,613	$	60,053,552
Income before income		15,566		723,254		562,123		403,518
tax expense
Net income		16,810		146,429		564,080		176,093
Earnings per share	$	0.00	$	0.04	$	0.14	$	0.04
Basic
Earnings per share	$	0.00	$	0.04	$	0.14	$	0.04
Diluted
Total shares- Basic		4,028,535		4,044,240		4,054,146		4,061,504
Total shares- Diluted		4,105,627		4,120,178		4,116,015		4,117,600

F-35

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE N - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued

The following is a summary of unaudited quarterly financial data for fiscal year 2014:

		First		Second		Third		Fourth
2014		Quarter		Quarter		Quarter		Quarter
Net sales	$	56,166,061	$	56,577,287	$	54,175,196	$	55,567,396
Income (loss) before income
tax (benefit) expense		1,240,339		949,811		(130,182)		724,856
Net income		967,464		784,654		743,794		422,779
Earnings per share
Basic	$	0.24	$	0.20	$	0.19	$	0.11
Earnings per share
Diluted	$	0.24	$	0.19	$	0.18	$	0.10
Total shares- Basic		3,961,232		3,961,232		3,966,814		3,988,923
Total shares- Diluted		4,011,001		4,037,627		4,088,695		4,107,736

NOTE O – LITIGATION

In November 2008, the Company received notice of an Equal Employment Opportunity Commission (“EEOC”) claim based on allegations of discrimination, sexual harassment, and retaliation filed by Maria Gracia, a former employee.  On December 5, 2008, Ms. Gracia’s employment as an assembly supervisor was terminated after she knowingly permitted an assembly line to run leaded boards in a lead-free room with lead-free solder, contrary to the customer’s specifications and prohibited by Company policy.  The use of lead-free solder for leaded components can lead to devices that fail and significant penalties to the Company and customers from regulatory bodies.  The parts were quarantined and were not shipped.  Ms. Gracia openly admitted to permitting this to take place.

The EEOC declined to pursue Ms. Gracia’s charges against the Company but  on July 26, 2011, Ms. Gracia received a right to sue letter from the EEOC. On October 25, 2011, Ms. Gracia filed suit against the Company in the U.S. District Court for the Northern District of Illinois under Title VII of the Civil Rights Act.  The Complaint alleged claims that Ms. Gracia was subject to discrimination, harassment, and hostile work environment based on sex and national origin.  In the Complaint, Ms. Gracia alleged that her supervisor engaged in a pattern of unwanted sexual advances and that he sent her emails that were offensive to her gender and national origin.  Further, the Complaint also alleged that the Company retaliated by terminating Ms. Gracia’s employment after she filed her initial charge of

F-36

SigmaTron International, Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED

April 30, 2015 and 2014

NOTE O – LITIGATION - Continued

discrimination with the EEOC.  Ms. Gracia sought relief in the form of (a) damages sufficient to compensate her injuries; (b) attorney’s fees; (c) costs of the action; (d) and equitable remedies.

In the court’s October 25, 2013 ruling on the Company’s Motion for Summary Judgment, the court limited plaintiff’s claims to two: (1) hostile work environment caused by gender (sexual harassment), and (2) retaliation.  In December 2014, a jury trial found in favor of the Company with respect to the first claim and for the plaintiff with respect to the second claim, awarding plaintiff damages totaling $307,000.  In post-trial motions, the judge reduced the verdict to $300,000.  The judge will now consider plaintiff’s claim for equitable remedies and attorneys’ fees and costs, along with the Company’s motion for sanctions, as the plaintiff introduced knowingly altered documents as evidence during the trial which had not been previously disclosed.  It is uncertain when these claims will be ruled upon by the court.

The plaintiff has offered to accept $607,000 in settlement of all claims.  The Company has rejected that offer and intends to await the final judgment.  The Company has not waived its right to appeal that judgment and will determine its next steps once it is entered.  As of April 30, 2015, the Company has accrued $300,000 in recognition of the jury’s verdict and the judge’s subsequent adjustment to that verdict.

Even with a favorable ruling for the Company with regard to sanctions, the Company believes it will be required to pay plaintiff a minimum of $300,000.  While the plaintiff has offered to accept $607,000 in settlement of all claims, it is not possible to predict where, within the range of $300,000 to $607,000 that the judge may enter the judgment.

From time to time the Company is involved in legal proceedings, claims or investigations that are incidental to the conduct of the Company’s business.  In future periods, the Company could be subjected to cash cost or non-cash charges to earnings if any of these matters are resolved on unfavorable terms.  However, although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including management’s assessment of the merits of any particular claim, the Company does not expect that these legal proceedings or claims will have any material adverse impact on its future consolidated financial position or results of operations.

F-37

EX-10.29

Exhibit 10.29 ProductScheduletoMasterLeaseAgreement

ThisSchedule#1284094toMasterLeaseAgreement#81344(the“Schedule”) containsthetermsofyouragreementwithus.Pleasereaditcarefullyandaskusanyquestionsyoumayhave.Thewordsyou,yourandlesseemean you,the Lesseelistedbelowwhoareourcustomer.Thewordswe,us,ourandthelessor,meanCITFinanceLLC

ProductDescription	Product Address
(1)Yamaha YCP 10-S Automatic Screen Printer, SN: Y33396	Miguel De Cervantes No. 151 Complejo Industrial Chihuahua Chihuahua, Chih. Mexico C.P. 31109
(2)Yamaha YSM20-2/FES Dual Stage Compact High-Speed Modular Mounter, SN: Y33361 & Y33362
(102)8mm Tape Feeder – ZS Type, (15) 12MM/16MM Tape Feeder – ZS Type, (6) 24MM Tape Feeder – ZS Type, (1)
Feeder set-up/power station for external set-up
(3)Nutek Linking Conveyor L Size 600MM and (1) Nutek Inspection Conveyor L Size 1000MM
(1) P-TOOL Data Programming Package,(1) IT System Server Utility, (1) Basic Package Software for Printer PW R-2 - Power
Module
TPCXICU20 - PC W in XP, LCD monitor, USB system module, industrial 20-slot chassis
Hot Air Station 120V, Ref # JT-1B, with 2 Tools Control Unit 120V, Ref # DD-1B, Compact Soldering St. 120V, Ref # CD-1BC

Foradditionalequipmentandaccessories,attachaddendum.

SupplierInfo: Trans-Tec America, LLC

End of Lease Purchase	Lessee
☒   10% Purchase Upon Termination	SigmaTron International, Inc.
	Lessee Legal Name (a “Lessee”)
Term and Lease
Term (Months) 60	2201 Landmeier Road
Lease Payment 60 payments at $12,764.45, plus PUT amount of $70,322.88	Billing Street Address
(plus taxes, if applicable)	Elk Grove Village, IL 60007
Payment Frequency   Monthly	Billing City, State, Zip
Variable Payment Schedule if applicable	Billing Contact Name &Phone No.
	Lessee Phone Number (if different from above)
	1.LEASE OF PRODUCT; FEE: W e agree to lease to you and you agree to lease from us the Products shown above for the number of months and monthly payment identified above ("Lease Payment"). You agree to pay the Documentation Fee with your first invoice. This  Schedule will commence on the date  that any of the Products are delivered to you ("Inception Date"). Your first Lease Payment is due 30 days from the Acceptance Date, and your remaining Lease Payments shall be due on the same day of each subsequent month until you have paid all the Lease Payments due under the Schedule. Each day between the Inception Date and the Acceptance Date is an "Interim Rent Day". You shall pay us interim rent for each Interim Rent Day at 1/30th of the Lease Payment. You will make all payments required under the Lease at the address set forth in our Lease invoice. You will execute a Delivery and Acceptance Certificate upon receipt of the Products, if we provide one to you, and if not, you expressly agree that you accepted the Products no later than 10 days after it was delivered to you (collectively, the "Acceptance Date") unless you have notified us of your non-acceptance in writing. 2.LESSEE REPRESENTATIONS: By execution of this Schedule, you confirm that (a) no Event of Default exists under the Master Lease as of the date hereof, and (b) the Products will be used for a business purpose, and not for personal, family or household purposes. 3.CELLULAR PHONES: You agree that providing a telephone number to a cellular or other wireless device, you are expressly consenting to receiving communications from us, our affiliates and agents (for non-marketing purposes) at that number, including, but not limited to, prerecorded and artificial voice messages, text messages, and calls from automated telephone dialing systems; these calls may incur fees from your cellular provider; and this consent applies to each telephone number you provide to us now or in the future. 4.FINANCIAL STATEMENTS:  You agree to provide us copies of your balance sheet, income statement and other financial reports as we may reasonably request. 5.PRODUCTS PLACED OUTSIDE OF UNITED STATES. Products may be relocated from the United States to within a “Maquiladora Zone” in Mexico. If a Schedule lists a Product location outside of the United States (“Foreign Use Product”). Lessee agrees that in addition to its obligations under the Agreement, Lessee will be obligated to pay, or to reimburse Lessor for the payment of, any and all taxes applicable to the Foreign Use Product and the periodic Payments described in the Schedule which are assessed by any taxing authorities. Tax This includes any withholding tax, goods and services tax, value added tax, or any other taxes that may arise out of any Foreign Use Product being located in the Approved Location (“Relevant Tax”) together with any penalty and/or interest thereon. Lessee agrees to self-assess any Relevant Tax and remit such tax to the relevant taxing authorities on a monthly basis.  Lessee agrees that Lessor will receive from Lessee a net amount equal to the full amount which Lessor would have received had the Payments not been made subject to any Relevant Tax. Lessee will cooperate with Lessor in obtaining any relevant documentation necessary to substantiate payment of such Relevant Tax and in providing original or certified copies thereof. If any income, franchise,  turnover or other taxes are  due  and payable  to  any taxing authority as a result of the lease of Foreign Use Product, Lessee agrees to register and file all necessary returns, on Lessor’s behalf, and pay all such taxes and associated costs. Lessee agrees to act as importer / exporter of record and pay all costs of customs, duties and other fees with respect to the import and export of any Foreign Use Product (whether in connection with the delivery or return of the
The following additional payments are due on the date you sign this agreement:
One-time Documentation Fee $ n/a Payable with First Invoice
Advanced Payment                 $ n/a due at Lease signing
(plus taxes, if applicable)
DATA SECURITY: Some or all of the items of Equipment returned to us at any time may contain sensitive information or data belonging to your organization, or your customer/clients/patients, that is stored, recorded, or in any way contained within or on the Equipment. You specifically agree that before the Equipment is shipped to or retrieved by us or our agents, or removed by a supplier, you will, at your sole cost and expense, permanently destroy, delete and remove all such information and data that is stored, recorded or in any way contained within or on the Equipment, to the extent that further recovery of any of such data and information is not possible. You have the sole responsibility to so destroy, delete, and remove all data and information stored in or on the Equipment. We have absolutely no liability for any data or information that you fail to so destroy, delete, and remove. All hard drives and other data retention components must function as originally installed after data removal.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: W hen you open an account, we will ask for (i) if you are a legal entity, your name, address, and other information that will allow us to identify you; (ii) if you are an individual, your name, address, and date of birth. We may also ask to see your driver’s license or other identifying documents.

Foreign Use Product from the Approved Location, or otherwise).

5.1DELIVERY AND RETURN OF FOREIGN USE PRODUCT: Upon termination or expiring of the Schedule, and notwithstanding any other provision hereof limiting such costs, you will, at its full cost and expense, act as importer / exporter of record and return the Foreign Use Product pursuant to the terms of the Agreement to a location designated by us in the United States and will obtain (at your cost) all appropriate export and import permits and licenses with respect to theexport of  the Foreign  Use  Product, and  ensuring  that Foreign  Use  Product is properly marked for import. Provided, however, that if you are not in Default under this Schedule and in the event you have either a nominal purchase option or a fixed purchase price a PUT, title will pass to you upon payment of such purchase price.

5.2EXPORT CONTROL: You acknowledges that the export of Foreign Use Product supplied hereunder (which may include technology and software licensed for use on or with such Foreign Use Product), is subject to such export control laws and regulations, including by not limited to the United States Export Control Act of 1079 and the Export Administration Act of 1985, together with such further United States, local, or other export laws and regulations as may be in force from time to time and applicable to the Foreign Use Product and software when being delivered to or returned from the Approved Location. You agree to comply with all such laws.

5.3TAX INDEMNIFICATION. You agree that the indemnification rights of ours under the Agreement shall include, and you shall indemnify, defend and hold harmless us from and against any claim, demand, action, proceeding, investigation, loss, liability, cost or expense, including attorneys’ fees, suffered or incurred by us or any such persons arising out of or related to the location, use or possession of Foreign Use Product and Relevant Taxes. The parties will cooperate with each other with respect to any tax audits conducted by a taxing jurisdiction and other matters involving taxes, including without limitation any tax related credits due to or from a taxing jurisdiction and evidence of tax exemption certificates. If we are subjected to a Tax audit with respect to this Agreement or the Products, you agree to promptly provide evidence of the Relevant Taxes paid to the jurisdiction relating to the Master Lease or the Products leased hereunder and the basis for such Tax payment.

6.Custodial Agreement.  Following the acceptance of the Products and origination of this Lease, Lessee shall cause its Authorized Affiliate to execute a Custodial Agreement, in such form as reasonably agreed by the parties, within 10 days of Lessor’s execution of the document and have the agreement returned to Lessor. The failure of Lessee to obtain the execution of the Custodial Agreement within the presubscribed timeframe shall be an additional event of default under Section 13(b) of the Master Lease.

7.PURCHASE UPON TERMINATION (“PUT”): For value received, receipt of which is hereby acknowledged, Lessee hereby agrees to purchase, at the end of the original 60 month term of the Lease, Lessor’s interest in the Equipment on an AS-IS, WHERE-IS basis, for $50,158.99 or 10% of the Equipment’s original cash price (“PUT Price”).

Customer will pay to Lessor the PUT Price and all other unpaid obligations of the Customer under the Lease, plus any applicable tax within 15 days of the expiration of the original term of the Lease and upon receipt of such payment, Lessor will transfer to Customer its interest in the Equipment on an AS-IS, W HERE-IS basis, without any warranty or representation of any kind, express or implied.

LESSOR	CIT Finance LLC	Lessee: SigmaTron International, Inc.
	10201 Centurion Parkway N. #100
	Jacksonville, FL 32256
/s/ Magalie Gilbert		X /s/ Linda K. Frauendorfer
Authorized Signature		Authorized Signature
Magalie Gilbert		X Linda K. Frauendorfer
Printed Name		Print Signer’s Name
Authorized Signatory	6/2/15	X Chief Financial Officer	X 6/2/15
Print Title	Date Signed	Signer’s Title	Date Signed
		BankT100Srev. 7-24-13

EX-23.1

	Tel:  312-856-9100	330 N. Wabash, Suite 3200
	Fax: 312-856-1379	Chicago, IL 60611
	www.bdo.com

EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

SigmaTron International, Inc.

Elk Grove Village, IL

We hereby consent to the incorporation by reference in the Registration Statements on Form S­8  (Nos.  33-80147, 333-166210 and 333-178478)  of SigmaTron International, Inc. of our report dated July 24, 2015, relating to the consolidatedfinancial statements which appear in this Form 10-K.

/s/ BDO USA, LLP

BDO USA, LLP

Chicago,  IL

July 24, 2015

BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

EX-31.1

                             EXHIBIT 31.1

Certification of Principal Executive Officer of

SigmaTron International, Inc.

Pursuant to Rule 13a-14(a) under the Exchange Act,

as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Gary R. Fairhead, President and Chief Executive Officer of SigmaTron International, Inc., certify that:

1.I have reviewed this Annual Report on Form 10-K of SigmaTron International, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely

affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  July 24, 2015

/s/ Gary R. Fairhead

Gary R. Fairhead

President and Chief Executive Officer of

SigmaTron International, Inc.

EX-31.2

EXHIBIT 31.2

Certification of Principal Financial Officer of

SigmaTron International, Inc.

Pursuant to Rule 13a-14(a) under the Exchange Act,

as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Linda K. Frauendorfer, Chief Financial Officer, Secretary and Treasurer of SigmaTron International, Inc., certify that:

1.I have reviewed this Annual Report on Form 10-K of SigmaTron International, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  July 24,  2015

/s/ Linda K. Frauendorfer

Linda K. Frauendorfer

Chief Financial Officer, Secretary and

Treasurer of SigmaTron International, Inc.

EX-32.1

EXHIBIT 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)

I, Gary R. Fairhead, am President and Chief Executive Officer of SigmaTron International, Inc. (the “Company”).

This certification is being furnished pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Company’s Annual Report on Form 10-K for the year ended April 30, 2015 (the “Report”).

I hereby certify that to the best of my knowledge:

(a)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act (15 U.S.C. 78 m(a) or 78o(d)); and

(b)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  July 24, 2015

/s/ Gary R. Fairhead

Gary R. Fairhead

President and Chief Executive Officer of

SigmaTron International, Inc.

EX-32.2

EXHIBIT 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)

I, Linda K. Frauendorfer, am Chief Financial Officer, Secretary and Treasurer of SigmaTron International, Inc. (the “Company”).

This certification is being furnished pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Company’s Annual Report on Form 10-K for the year ended April 30, 2015  (the “Report”).

I hereby certify that to the best of my knowledge:

(a)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act (15 U.S.C. 78 m(a) or 78o(d)); and

(b)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  July 24, 2015

/s/ Linda K. Frauendorfer

Linda K. Frauendorfer

Chief Financial Officer, Secretary and

Treasurer of SigmaTron International, Inc.

XML

Inventories (Changes in Inventory Obsolescence Reserve) (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Inventories [Abstract]
Beginning balance	$ 1,804,984	$ 1,770,100
Provision for obsolescence	(528,598)	$ 34,884
Write-offs	(528,598)
Ending balance	$ 1,276,386	$ 1,804,984

XML

Income Tax (Deferred Tax Assets and Liabilities) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Deferred Tax Assets:
Federal & State NOL carryforwards	$ 449,325
Foreign NOL carryforwards		$ 98,254
Research & other credits	78,100
Reserves and accruals	795,721	944,454
Stock based compensation	133,744	137,343
Inventories	1,154,335	1,340,302
Other intangible assets	207,044	338,014
Deferred rent	263,703	293,242
Allowance for doubtful accounts	72,271	61,515
Other	22,978	305,335
Total Gross Deferred Tax Assets	3,177,221	3,518,459
Less: Valuation allowance	(95,295)	(101,691)
Net Deferred Tax Assets	3,081,926	3,416,768
Deferred Tax Liabilities:
Other assets	(272,409)	(474,768)
Property, machinery & equipment	(3,180,575)	(3,384,821)
Undistributed foreign earnings		(249,846)
Total Deferred Tax Liabilities	(3,452,984)	(4,109,435)
Net Deferred Tax Asset/(Liability)	$ (371,058)	$ (692,667)

XML

Accrued Expenses And Wages (Schedule of Accrued Expenses) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Accrued Expenses And Wages [Abstract]
Interest	$ 74,395	$ 69,467
Commissions	57,681	48,043
Professional fees	304,864	262,755
Other	155,704	203,785
Accrued expenses, total	$ 592,644	$ 584,050

XML

Income Tax (Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheet) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Current assets:
Deferred income taxes	$ 2,179,178	$ 2,524,993
Non-current liabilities:
Deferred income taxes	(2,550,236)	(3,217,660)
Net Deferred Tax Asset/(Liability)	$ (371,058)	$ (692,667)

XML

Long-Term Debt (Details) - USD ($)														12 Months Ended
	Jan. 16, 2015	Nov. 24, 2014	Oct. 27, 2014	Sep. 22, 2014	Aug. 01, 2014	May. 07, 2014	Mar. 06, 2014	Oct. 24, 2013	Oct. 03, 2013	Nov. 29, 2010	Oct. 26, 2010	Aug. 20, 2010	Jan. 08, 2010	Apr. 30, 2015	Apr. 30, 2014
Debt Instrument [Line Items]
Cumulative amount of unremitted earnings														$ 12,163,000
Equipment refinanced through leasing transaction														4,647,545
Monthly payment under capital lease														5,085,105
Mortgage agreement, maturity date													Jan. 08, 2015
Other long-term liabilities														536,209	$ 525,739
Wells Fargo Equipment Finance [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease											$ 1,150,582
Wells Fargo Equipment Finance [Member] | Lease Finance Agreement [Member]
Debt Instrument [Line Items]
Principal payment under capital lease												$ 315,252
Monthly payment under capital lease												$ 4,973
Extended lease financing agreement period												Sep. 01, 2016
Fixed interest rate under capital lease												4.28%
Outstanding amount under capital lease														81,809	136,561
Net book value of capital leased assets														194,843	221,114
Wells Fargo Equipment Finance [Member] | Sale Leaseback Agreement [Member]
Debt Instrument [Line Items]
Principal payment under capital lease											835,330
Monthly payment under capital lease											$ 13,207
Extended lease financing agreement period											Aug. 01, 2016
Fixed interest rate under capital lease											4.36%
Outstanding amount under capital lease														192,296	338,562
Net book value of capital leased assets														481,805	550,583
Wells Fargo Equipment Finance [Member] | Capital Lease [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease										$ 226,216
Monthly payment under capital lease										$ 3,627
Extended lease financing agreement period										Oct. 01, 2016
Fixed interest rate under capital lease										4.99%
Outstanding amount under capital lease														62,777	102,099
Net book value of capital leased assets														140,676	159,528
Associated Bank, National Association [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease									$ 2,281,355
Associated Bank, National Association [Member] | Sale Leaseback Agreement [Member]
Debt Instrument [Line Items]
Principal payment under capital lease									2,201,638
Monthly payment under capital lease									$ 40,173
Extended lease financing agreement period									Sep. 01, 2018
Fixed interest rate under capital lease									3.75%
Outstanding amount under capital lease														1,543,684	1,959,381
Net book value of capital leased assets														1,736,474	1,828,038
Associated Bank, National Association [Member] | Sale Leaseback Agreement 2 [Member]
Debt Instrument [Line Items]
Principal payment under capital lease									$ 79,717
Monthly payment under capital lease									$ 1,455
Extended lease financing agreement period									Sep. 01, 2018
Fixed interest rate under capital lease									3.75%
Outstanding amount under capital lease														55,894	70,945
Net book value of capital leased assets														61,448	68,092
Associated Bank, National Association [Member] | Sale Leaseback Agreement 3 [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease				$ 664,676
Monthly payment under capital lease				$ 12,163
Extended lease financing agreement period				Aug. 01, 2019
Fixed interest rate under capital lease				3.87%
Outstanding amount under capital lease														581,419
Net book value of capital leased assets														567,067
Associated Bank, National Association [Member] | Sale Leaseback Agreement 4 [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease				$ 437,641
Monthly payment under capital lease				$ 8,008
Extended lease financing agreement period				Aug. 01, 2019
Fixed interest rate under capital lease				3.87%
Outstanding amount under capital lease														382,822
Net book value of capital leased assets														395,868
Associated Bank, National Association [Member] | Capital Lease [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease				$ 106,346
Monthly payment under capital lease				$ 1,947
Extended lease financing agreement period				Aug. 01, 2019
Fixed interest rate under capital lease				3.89%
Outstanding amount under capital lease														93,030
Net book value of capital leased assets														99,700
Associated Bank, National Association [Member] | Capital Lease 2 [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease	$ 81,030
Monthly payment under capital lease	$ 1,487
Extended lease financing agreement period	Dec. 01, 2019
Fixed interest rate under capital lease	4.01%
Outstanding amount under capital lease														75,864
Net book value of capital leased assets														77,654
CIT Finance LLC [Member] | Capital Lease [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease							$ 589,083
Monthly payment under capital lease							$ 10,441
Extended lease financing agreement period							Mar. 01, 2019
Fixed interest rate under capital lease							5.65%
Outstanding amount under capital lease														486,541	581,415
Net book value of capital leased assets														524,248	573,338
CIT Finance LLC [Member] | Capital Lease 2 [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease						$ 108,971
Monthly payment under capital lease						$ 1,931
Extended lease financing agreement period						May 01, 2019
Fixed interest rate under capital lease						5.65%
Outstanding amount under capital lease														92,996
Net book value of capital leased assets														99,890
CIT Finance LLC [Member] | Capital Lease 3 [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease					$ 609,179
Monthly payment under capital lease					$ 10,797
Extended lease financing agreement period					Jul. 01, 2019
Fixed interest rate under capital lease					5.65%
Outstanding amount under capital lease														536,459
Net book value of capital leased assets														566,875
CIT Finance LLC [Member] | Capital Lease 4 [Member]
Debt Instrument [Line Items]
Equipment purchased under the capital lease			$ 501,590
Monthly payment under capital lease			$ 8,890
Extended lease financing agreement period			Oct. 01, 2019
Fixed interest rate under capital lease			5.65%
Outstanding amount under capital lease														461,954
Net book value of capital leased assets														470,460
Wells Fargo Bank [Member] | Mortgage [Member]
Debt Instrument [Line Items]
Mortgage agreement, amount													$ 2,500,000
Mortgage agreement, amount repaid														$ 2,289,500
Mortgage agreement, interest rate		2.25%											6.42%
Mortgage agreement, effective interest rate		2.625%
Mortgage agreement, amount due													$ 2,000,000
Mortgage agreement, maturity date														Nov. 08, 2019
Mortgage agreement, monthly principal payment		$ 9,500
Mortgage agreement, payable period		60 months
Outstanding amount														$ 2,802,500	2,075,017
Debt, amortization period													60 months
Wells Fargo Bank [Member] | Mortgage 2 [Member]
Debt Instrument [Line Items]
Mortgage agreement, amount								$ 1,275,000
Mortgage agreement, interest rate								4.51%
Mortgage agreement, amount due								$ 1,030,000
Mortgage agreement, maturity date								Oct. 24, 2018
Mortgage agreement, monthly principal payment								$ 4,250
Mortgage agreement, payable period								60 months
Outstanding amount														1,198,500	$ 1,249,500
Wells Fargo Bank [Member] | Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility credit limit														$ 30,000,000
Expiration date														Oct. 31, 2017
Equity ownership in foreign entities pledged as collateral, percentage														65.00%
Fixed interest rate														2.25%
Effective interest rate														3.25%
Variable interest rate														1.00%
Receivable borrowing base, percentage														85.00%
Inventory borrowing base, percentage														50.00%
Wells Fargo Bank [Member] | Senior Secured Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Effective interest rate														2.625%
Variable interest rate														2.25%
Wells Fargo Bank [Member] | Senior Secured Credit Facility Over Advance [Member]
Debt Instrument [Line Items]
Credit facility credit limit														$ 5,000,000
Expiration date														Oct. 31, 2015
Fixed interest rate														2.50%
Effective interest rate														3.25%
Variable interest rate														3.50%
Line of credit facility amendment fee														$ 5,000
Wells Fargo Bank [Member] | Senior Secured Credit Facility Over Advance [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Effective interest rate														3.125%
Variable interest rate														2.75%
Wells Fargo Bank [Member] | Amended Senior Secured Credit Facility Over Advance [Member]
Debt Instrument [Line Items]
Fixed interest rate														2.25%
Effective interest rate														3.25%
Variable interest rate														1.00%
Outstanding balance under the credit facility														$ 27,416,793
Unused availability under the credit facility														$ 2,583,207
Temporary borrowing base														60.00%
Borrowing base after temporary adjustment														50.00%
Wells Fargo Bank [Member] | Amended Senior Secured Credit Facility Over Advance [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Effective interest rate														3.875%
Variable interest rate														2.75%
Maximum [Member] | Wells Fargo Bank [Member] | Senior Secured Credit Facility Over Advance [Member]
Debt Instrument [Line Items]
Credit facility credit limit														$ 30,000,000

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Selected Quarterly Financial Data (Tables)

12 Months Ended

Apr. 30, 2015

Selected Quarterly Financial Data [Abstract]

Summary Of Quarterly Financial Data

The following is a summary of unaudited quarterly financial data for fiscal year 2015:

		First		Second		Third		Fourth
2015		Quarter		Quarter		Quarter		Quarter
Net sales	$	54,947,477	$	61,533,519	$	53,702,613	$	60,053,552
Income before income		15,566		723,254		562,123		403,518
tax expense
Net income		16,810		146,429		564,080		176,093
Earnings per share	$	0.00	$	0.04	$	0.14	$	0.04
Basic
Earnings per share	$	0.00	$	0.04	$	0.14	$	0.04
Diluted
Total shares- Basic		4,028,535		4,044,240		4,054,146		4,061,504
Total shares- Diluted		4,105,627		4,120,178		4,116,015		4,117,600

NOTE N - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued

The following is a summary of unaudited quarterly financial data for fiscal year 2014:

		First		Second		Third		Fourth
2014		Quarter		Quarter		Quarter		Quarter
Net sales	$	56,166,061	$	56,577,287	$	54,175,196	$	55,567,396
Income (loss) before income
tax (benefit) expense		1,240,339		949,811		(130,182)		724,856
Net income		967,464		784,654		743,794		422,779
Earnings per share
Basic	$	0.24	$	0.20	$	0.19	$	0.11
Earnings per share
Diluted	$	0.24	$	0.19	$	0.18	$	0.10
Total shares- Basic		3,961,232		3,961,232		3,966,814		3,988,923
Total shares- Diluted		4,011,001		4,037,627		4,088,695		4,107,736

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Major Customers and Concentration of Credit Risk (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	May. 01, 2015
CHINA
Concentration Risk [Line Items]
Cash	$ 2,462,057
Cash insured amount from deposit insurance program			$ 81,000
Major customer one | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk from major customer, percentage	36.80%	31.60%
Major customer one | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk from major customer, percentage	9.60%	11.20%
Major customer two | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk from major customer, percentage	9.90%	12.00%
Major customer two | Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk from major customer, percentage	5.50%	4.50%

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Inventories (Tables)

12 Months Ended

Apr. 30, 2015

Inventories [Abstract]

Components Of Inventory

	2015		2014
Finished products	$	24,316,404	$	18,553,112
Work-in-process		2,966,846		3,126,596
Raw materials		42,662,845		33,853,653
		69,946,095		55,533,361
Less obsolescence reserve		1,276,386		1,804,984
	$	68,669,709	$	53,728,377

Changes In Inventory Obsolescence Reserve

	2015		2014
Beginning balance	$	1,804,984	$	1,770,100
Provision for obsolescence		-		34,884
Write-offs		(528,598)		-
	$	1,276,386	$	1,804,984

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Income Tax (Narrative) (Detail) - USD ($)		12 Months Ended
	Jan. 01, 2014	Apr. 30, 2015	Apr. 30, 2014
Income Tax [Line Items]
Cumulative amount of unremitted earnings		$ 12,163,000
Unrecognized tax benefits		0	$ 0
Federal [Member]
Income Tax [Line Items]
Net operating loss carryforwards		$ 657,529
Net operating loss carryforwards expire date		Apr. 30, 2035
Net operating loss carryforwards expire year		2035
State [Member]
Income Tax [Line Items]
Net operating loss carryforwards		$ 2,318,000
Operating loss carryforwards, valuation allowance		$ 46,615
Net operating loss carryforwards expire date		Apr. 30, 2022
Foreign [Member]
Income Tax [Line Items]
Tax credit carryforwards		$ 78,100	112,327
Tax credit carryforwards expire date		Apr. 30, 2024
Minimum [Member] | State [Member]
Income Tax [Line Items]
Net operating loss carryforwards expire year		2023
Maximum [Member] | State [Member]
Income Tax [Line Items]
Net operating loss carryforwards expire year		2031
Vietnam [Member]
Income Tax [Line Items]
Net operating loss carryforwards		$ 221,274	$ 399,109
Operating loss carryforwards, valuation allowance		$ 147,594
Net operating loss carryforwards expire date		Apr. 30, 2017
Income tax holiday rate		0.00%
Mexican Tax Authority [Member]
Income Tax [Line Items]
Income tax expense		$ 643,708
Mexican Tax Authority [Member] | Federal [Member]
Income Tax [Line Items]
Statutory income tax rate	30.00%

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Goodwill And Other Intangible Assets (Narrative) (Details)	12 Months Ended			24 Months Ended
	Apr. 30, 2015 USD ($)	Apr. 30, 2014 USD ($)	Apr. 30, 2013 USD ($) item	Apr. 30, 2015 USD ($) item	May. 31, 2012 USD ($)
Goodwill [Line Items]
Amortization expense	$ 428,610	$ 346,680
Goodwill	3,222,899	3,222,899		$ 3,222,899
Estimated fair value of contingent consideration					$ 2,320,000
Number of quarterly payments for consideration with the Spitfire aquisition | item			3	4
Quarterly payment for business acquisition	65,000		$ 65,000	$ 65,000
Contingent consideration liability	1,498,985			$ 1,498,985
Spitfire [Member]
Goodwill [Line Items]
Carrying amount of goodwill	$ 0	$ 0

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Allowance For Doubtful Accounts (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Allowance For Doubtful Accounts [Abstract]
Beginning Balance	$ 150,000	$ 150,000
Bad debt expense	$ 36,844
Write-offs
Ending Balance	$ 186,844	$ 150,000

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Income Tax (Income Tax Provision (Benefit)) (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Income Tax [Abstract]
Federal	$ 2,963	$ (203,951)
State	29,613	28,726
Foreign	1,020,820	664,591
Total Current	1,053,396	489,366
Federal	(138,335)	365,008
State	(154,208)	64,952
Foreign	40,196	(1,053,193)
Total Deferred	(252,347)	(623,233)
Provision (benefit) for income taxes	$ 801,049	$ (133,867)

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Stock Compensation (Black-Scholes Option Pricing Model) (Details) - 12 months ended Apr. 30, 2014	Total
Stock Compensation [Abstract]
Expected dividend yield	0.00%
Expected stock price volatility	78.00%
Average risk-free interest rate	4.49%
Weighted-average expected life of options	6 years

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Long-Term Debt (Aggregate Amount of Debt Maturing) (Details)	Apr. 30, 2015 USD ($)
Long-term Debt [Abstract]
2016	$ 165,000
2017	165,000
2018	27,581,793
2019	1,159,500
2020	2,346,500
Total	$ 31,417,793

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Allowance For Doubtful Accounts

12 Months Ended

Apr. 30, 2015

Allowance For Doubtful Accounts [Abstract]

Allowance For Doubtful Accounts

NOTE C - ALLOWANCE FOR DOUBTFUL ACCOUNTS

Changes in the Company’s allowance for doubtful accounts are as follows:

		2015		2014
Beginning Balance	$	150,000	$	150,000
Bad debt expense		36,844		-
Write-offs		-		-
	$	186,844	$	150,000

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Stock Compensation (Summarized Option Activity) (Details) - $ / shares	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Number of Securities to be issued upon exercise of outstanding options
Options Outstanding, beginning balance	101,554	515,192
Options granted		25,000
Options exercised	(13,600)	(43,588)
Options expired	(2,000)	(850)
Options repurchased		(394,200)
Options Outstanding, ending balance	85,954	101,554	515,192
Weighted average exercise price
Options Outstanding, Weighted-average exercise price, beginning balance	$ 3.88	$ 8.02
Options, Weighted-average exercise price, granted		4.24
Options, Weighted-average exercise price, exercised	4.26	3.64
Options, Weighted-average exercise price, expired	4.24	4.24
Options, Weighted-average exercise price, repurchased		9.34
Options Outstanding, Weighted-average exercise price, ending balance	$ 3.81	$ 3.88	$ 8.02
Number of options exercisable at end of year	76,954	48,304	438,142

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Goodwill And Other Intangible Assets ( Schedule Of Acquired Intangible Assets Amortized Over Estimated Useful Life) (Details)	12 Months Ended
	Apr. 30, 2015
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	20 years
Non-Compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years

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Accrued Expenses and Wages (Tables)

12 Months Ended

Apr. 30, 2015

Accrued Expenses And Wages [Abstract]

Schedule Of Accrued Expenses

		2015		2014
Interest	$	74,395	$	69,467
Commissions		57,681		48,043
Professional fees		304,864		262,755
Other		155,704		203,785
	$	592,644	$	584,050

Schedule Of Accrued Wages

		2015		2014
Wages	$	1,544,959	$	1,812,049
Bonuses		409,549		510,159
Foreign wages		1,689,934		1,704,821
Foreign benefits		1,496,409		1,941,995
	$	5,140,851	$	5,969,024

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Long-Term Debt (Tables)

12 Months Ended

Apr. 30, 2015

Long-term Debt [Abstract]

Aggregate Amount of Debt Maturing

Fiscal Year	Total
2016	$	165,000
2017		165,000
2018		27,581,793
2019		1,159,500
2020		2,346,500
	$	31,417,793

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401(k) Retirement Savings Plan (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
401(k) Retirement Savings Plan [Abstract]
Annual contribution to be matched by employer	$ 300
Amount contributed towards retirement plans	114,207	$ 93,452
Plan administration expenses paid	$ 8,500	$ 6,850

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Goodwill And Other Intangible Assets (Summary Of Intangible Assets Subject To Amortization) (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 8,912,000	$ 8,912,000
Accumulated Amortization	3,737,856	3,309,246
Able [Member] | Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	375,000	375,000
Accumulated Amortization	375,000	375,000
Able [Member] | Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,395,000	2,395,000
Accumulated Amortization	$ 2,395,000	$ 2,395,000
Spitfire [Member] | Non-Contractual Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	12 years 29 days	13 years 29 days
Gross Carrying Amount	$ 4,690,000	$ 4,690,000
Accumulated Amortization	548,781	256,311
Spitfire [Member] | Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,000	22,000
Accumulated Amortization	$ 22,000	$ 22,000
Spitfire [Member] | Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	17 years 29 days	18 years 29 days
Gross Carrying Amount	$ 980,000	$ 980,000
Accumulated Amortization	$ 142,905	$ 93,909
Spitfire [Member] | Non-Compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	4 years 29 days	5 years 29 days
Gross Carrying Amount	$ 50,000	$ 50,000
Accumulated Amortization	$ 20,825	$ 13,685
Spitfire [Member] | Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	2 years 29 days	3 years 29 days
Gross Carrying Amount	$ 400,000	$ 400,000
Accumulated Amortization	$ 233,345	$ 153,341

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Income Tax (Tables)

12 Months Ended

Apr. 30, 2015

Income Tax [Abstract]

Income (Loss) Before Income Tax Expense

		2015		2014
Domestic	$	(2,481,049)	$	(545,501)
Foreign		4,185,510		3,330,325
	$	1,704,461	$	2,784,824

Income Tax Provision

		2015		2014
Current
Federal	$	2,963	$	(203,951)
State		29,613		28,726
Foreign		1,020,820		664,591
Total Current		1,053,396		489,366
Deferred
Federal		(138,335)		365,008
State		(154,208)		64,952
Foreign		40,196		(1,053,193)
Total Deferred		(252,347)		(623,233)
Provision (benefit) for income taxes	$	801,049	$	(133,867)

Reconciliation of Income Taxes

		2015		2014
U.S Federal Provision:
At statutory rate	$	579,516	$	951,623
State taxes		(86,377)		61,828
Change in valuation allowance		46,615		-
Foreign tax differential		(256,343)		(465,835)
Impact of state tax rate change		(42,471)		-
Change in foreign valuation allowance		(53,011)		-
Foreign profit sharing		32,912		(60,626)
Foreign dividends		643,708		295,522
Other		22,996		20,175
Foreign currency exchange gain/loss		136,299		-
Impact of tax legislation		-		(828,175)
Impact of foreign permanent items		(123,987)		(25,099)
Foreign inflation adjustment		(98,808)		-
Insurance reserves		-		(83,280)
Provision (benefit) for income taxes	$	801,049	$	(133,867)

Deferred Tax Assets and Liabilities

		2015		2014
Deferred Tax Assets
Federal & State NOL carryforwards	$	449,325	$	-
Foreign NOL carryforwards		-		98,254
Research & Other Credits		78,100		-
Reserves and accruals		795,721		944,454
Stock based compensation		133,744		137,343
Inventories		1,154,335		1,340,302
Other intangible assets		207,044		338,014
Deferred rent		263,703		293,242
Allowance for doubtful accounts		72,271		61,515
Other		22,978		305,335
Total Gross Deferred Tax Assets		3,177,221		3,518,459
Less: Valuation allowance		(95,295)		(101,691)
Net Deferred Tax Assets	$	3,081,926	$	3,416,768
Deferred Tax Liabilities
Other assets	$	(272,409)	$	(474,768)
Property, machinery & equipment		(3,180,575)		(3,384,821)
Undistributed foreign earnings		-		(249,846)
Total Deferred Tax Liabilities	$	(3,452,984)	$	(4,109,435)
Net Deferred Tax Liability	$	(371,058)	$	(692,667)

Deferred Tax Assets and Liabilities Classified in Consolidated Balance Sheet

		2015		2014
Current assets:
Deferred income taxes	$	2,179,178	$	2,524,993
Non-current liabilities:
Deferred income taxes		(2,550,236)		(3,217,660)
Net Deferred Tax Liability	$	(371,058)	$	(692,667)

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Leases (Tables)

12 Months Ended

Apr. 30, 2015

Leases [Abstract]

Future Minimum Lease Payments Under Leases

		Capital		Operating
Years ending April 30,		Leases		Leases
2016	$	1,429,205	$	1,840,697
2017		1,253,770		2,026,999
2018		1,167,522		1,960,493
2019		924,596		1,651,233
2020		310,012		950,166
Thereafter		-		603,437
Total future minimum lease payments	$	5,085,105	$	9,033,025
Less amounts representing interest		437,560
		4,647,545
Less Current Portion		1,245,632
Long Term Portion	$	3,401,913

XML

Summary Of Significant Accounting Policies

12 Months Ended

Apr. 30, 2015

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation Policy

The consolidated financial statements include the accounts and transactions of SigmaTron International, Inc. (“SigmaTron”), its wholly-owned subsidiaries, Standard Components de Mexico, S.A., AbleMex S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd. and SigmaTron International Trading Co., wholly-owned foreign enterprises Suzhou SigmaTron Electronics Co. Ltd., and SigmaTron Electronic Technology Co., Ltd. (collectively, “SigmaTron China”), and its international procurement office, SigmaTron Taiwan.  The functional currency of the Mexican, Vietnamese and Chinese subsidiaries and procurement branch is the U.S. dollar.  Intercompany transactions are eliminated in the consolidated financial statements.  The impact of foreign currency fluctuation for the fiscal year ended April 30, 2015 resulted in a net gain of approximately $40,000 compared to a net foreign currency loss of $128,000 in the prior year.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory and valuation of long-lived assets.  Actual results could materially differ from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid short-term investments maturing within three months of the purchase date.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Accounts Receivable

The majority of the Company’s accounts receivable are due from companies in the consumer electronics, gaming, fitness, industrial electronics, medical/life sciences, semiconductor, telecommunications and appliance industries.  Credit is extended based on evaluation of a customer’s financial condition, and, generally, collateral is not required.  Accounts receivable are due in accordance with agreed upon terms, and are stated at amounts due from customers net of an allowance for doubtful accounts.  Accounts outstanding longer than the contractual payments terms are considered past due.  The Company writes off accounts receivable when they are determined to be uncollectible.

Allowance for Doubtful Accounts

The Company’s allowance for doubtful accounts relates to receivables not expected to be collected from its customers.  This allowance is based on management’s assessment of specific customer balances, considering the age of receivables and financial stability of the customer and a five year average of prior uncollectible amounts.  If there is an adverse change in the financial condition of the Company’s customers, or if actual defaults are higher than provided for, an addition to the allowance may be necessary.

Inventories

Inventories are valued at the lower of cost or market.  Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods.  In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or market.  The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory.  The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss.  Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold.  The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions.  Actual product demand or market conditions could be different than that projected by management.

Property, Machinery and Equipment

Property, machinery and equipment are valued at cost.  The Company provides for depreciation and amortization using the straight-line method over the estimated useful life of the assets:

Buildings	20 years
Machinery and equipment	5-12 years
Office equipment and software	3-5 years
Tools and dies	12 months
Leasehold improvements	lesser of lease term or useful life

Expenses for repairs and maintenance are charged to selling and administrative expenses as incurred.

Deferred Financing Costs

Deferred financing costs consist of costs incurred to obtain the Company’s long-term debt and are amortized using the straight-line method over the term of the related debt.  Deferred financing fees of $147,537 and $52,484 net of accumulated amortization of $390,266 and $332,352, respectively, as of April 30, 2015 and 2014, respectively, are classified in other long-term assets on the Company’s balance sheet.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Income Taxes

Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and for tax credit carryforwards, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse.  Valuation allowances are established when necessary to reduce deferred income tax assets to an amount more likely than not to be realized.

A tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available.  Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities.  These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined.

Earnings per Share

Basic earnings per share are computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period.  The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common stock equivalents such as stock options and restricted stock, had been exercised or vested.  There were 991,anti-dilutive common stock equivalents, at both April 30, 2015 and 2014, which have been excluded from the calculation of diluted earnings per share.

Revenue Recognition

Revenues from sales of the Company’s electronic manufacturing services business are recognized when the finished good product is shipped to the customer.  In general, and except for consignment inventory, it is the Companys’ policy to recognize revenue and related costs when the finished goods have been shipped from our facilities, which is also the same point that title passes under the terms of the purchase order.  Finished goods inventory for certain customers is shipped from the Company to an independent warehouse for storage or shipped directly to the customer and stored in a segregated part of the customer’s own facility.  Upon the customer’s request for finished goods inventory, the inventory is shipped to the customer if the inventory was stored off-site, or transferred from the segregated part of the customer’s facility for consumption or use by the customer.  The Company recognizes revenue upon such shipment or transfer.  The Company does not earn a fee for such arrangements.  The Company from time to time may ship finished goods from its facilities, which is also the same point that title passes under the terms of the purchase order, and invoice the customer at the end of the calendar month.  This is done only in special circumstances to accommodate a specific customer.  Further, from time to time customers request the Company hold finished goods after they have been invoiced to consolidate finished goods for shipping purposes.  The Company generally provides a 90 day warranty for workmanship only, except for products with proprietary designs and does not have any installation, acceptance or sales incentives (although the Company has negotiated longer warranty terms in certain instances).  The Company assembles and tests assemblies based on customers’ specifications.  Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Shipping and Handling Costs

The Company records shipping and handling costs as selling and administrative expenses.  Customers are typically invoiced for shipping costs.  Shipping and handling costs were not material to the financial statements for fiscal years 2015 or 2014.

Fair Value Measurements

Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs.  The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Fair Value of Financial Instruments

The Company’s financial instruments include cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued expenses which approximate fair value at April 30, 2015 and 2014, due to their short-term nature.  The carrying amounts of the Company’s debt obligations approximate fair value based on future payments discounted at current interest rates for similar obligations or interest rates which fluctuate with the market.

The Company measured the net assets included in the fiscal 2013 Spitfire acquisition under the fair value standard (primarily using level 3 measurement inputs) including the contingent consideration which continues to be measured and reported at fair value at each period end.  The Company currently does not have any other non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.

Goodwill

Goodwill represents the purchase price in excess of the fair value of assets acquired in business combinations.  The Company assesses goodwill for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment.  The Company is permitted the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of any reporting unit is less than its corresponding carrying value.  If, after assessing the totality of events and circumstances, the Company concludes that it is not more likely than not that the fair value of any reporting unit is less than its corresponding carrying value, then the Company is not required to take further action.  However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test, including computing the fair value of the reporting unit and comparing that value to its carrying value.  If the fair value is less than its carrying value, a second step of the test is required to determine if recorded goodwill is impaired.  The Company also has the option to bypass the qualitative assessment for goodwill in any period and proceed directly to performing the quantitative impairment test.  The Company will be able to resume performing the qualitative assessment in any subsequent period.  The Company performed its annual goodwill impairment test as of February 1, 2015 and determined that no impairment existed as of that date.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Intangible Assets

Intangible assets are comprised of finite life intangible assets including patents,trade names, backlog, non-compete agreements, and customer relationships.  Finite life intangible assets are amortized on a straight line or accelerated basis over their estimated useful lives of five years for patents, 20 years for trade names, 1 year for backlog, 7 years for non-compete agreements and 15 years for customer relationships.

Impairment of Long-Lived Assets

The Company reviews long-lived assets, including amortizable intangible assets, for impairment.  Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment.  If events or changes in circumstances occur that indicate possible impairment, the Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities.  This analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates.  The Company conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment.  Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset group.  When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value.  As of April 30, 2015, there was no impairment of long-lived assets. 

Stock Incentive Plans

Under the Company’s stock option plans, options to acquire shares of common stock have been made available for grant to certain employees and directors.  Each option granted has an exercise price of not less than 100% of the market value of the common stock on the date of grant.  The contractual life of each option is generally 10 years.  The vesting of the grants varies according to the individual options granted.  The Company measures the cost of employee services received in exchange for an equity award based on the grant date fair value and records that cost over the respective vesting period of the award.

Reclassifications

Certain reclassifications have been made to the previously reported 2014 financial statements to conform to the 2015 presentation.

New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers."  This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2017 and early adoption is not permitted.  Accordingly, the Company will adopt this ASU on May 1, 2018.  Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use and the full impact this ASU will have on the Company’s future consolidated financial statements.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

New Accounting Standards - Continued

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40).  The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  An entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued, when applicable).  ASU 2014-15 is effective for the Company beginning with the annual reporting for fiscal 2016, and reports for interim and annual periods thereafter.  Early adoption is permitted. The Company does not expect the impact of adoption of this ASU will have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015- 03, “Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs.” ASU No. 2015-03 simplifies the presentation of debt issuance costs by requiring that these costs related to a recognized debt liability be presented in the statement of financial condition as a direct reduction from the carrying amount of that liability. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period.ASU No. 2015-03 is required to be applied retrospectively to all periods presented beginning in the year of adoption. Adoption will not materially affect the firm’s financial condition, results of operations, or cash flows.The Company does not expect the impact of adoption of this ASU to have a material impact on its consolidated financial statements.

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Stock Compensation (Tables)

12 Months Ended

Apr. 30, 2015

Stock Compensation [Abstract]

Black-Scholes Option Pricing Model

Expected dividend yield	0%
Expected stock price volatility	78%
Average risk-free interest rate	4.49%
Weighted-average expected life of options	6.0 years

Summarized Option Activity

	Number of			Number of
	securities to be			options
	issued upon		Weighted-	exercisable
	exercise of		average	at end
	outstanding options		exercise price	of year
Outstanding at April 30, 2013	515,192	$	8.02	438,142
Options granted during 2014	25,000		4.24
Options exercised during 2014	(43,588)		3.64
Options expired during 2014	(850)		4.24
Options repurchased during 2014	(394,200)		9.34
Outstanding at April 30, 2014	101,554		3.88	48,304
Options exercised during 2015	(13,600)		4.26
Options expired during 2015	(2,000)		4.24
Outstanding at April 30, 2015	85,954	$	3.81	76,954

Stock Options Outstanding and Exercisable

Information with respect to stock options outstanding at April 30, 2015 follows:

		Options outstanding
		Number	Weighted-average		Weighted-
		outstanding at	remaining		average
		April 30, 2015	contract life		exercise price
Range of exercise prices
$	3.60-5.40	84,963	7.87 years	$	3.75
$	9.17-11.56	991	.38 years		9.17
		85,954		$	3.81

NOTE M - STOCK COMPENSATION - Continued

Information with respect to stock options outstanding and exercisable at April 30, 2015 follows:

		Options outstanding and exercisable
		Number	Weighted-average		Weighted-
		outstanding at	remaining		average
		April 30, 2015	contract life		exercise price
Range of exercise prices
$	3.60-5.40	75,963	7.87 years	$	3.69
$	9.17-11.56	991	.38 years		9.17
		76,954		$	3.76

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Property, Machinery and Equipment, Net (Narrative) (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Property, Machinery And Equipment, Net [Abstract]
Depreciation and amortization expense	$ 4,985,272	$ 4,791,663

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Income Tax (Reconciliation of Income Taxes) (Details) - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
U.S. Federal provision:
At statutory rate	$ 579,516	$ 951,623
State taxes	(86,377)	61,828
Change in valuation allowance	46,615
Foreign tax differential	(256,343)	(465,835)
Impact of state tax rate change	(42,471)
Foreign valuation allowance	(53,011)
Foreign profit sharing	32,912	(60,626)
Foreign dividends	643,708	295,522
Other	22,996	20,175
Foreign currency exchange gain/loss	136,299
Impact of tax legislation		(828,175)
Impact of foreign permanent items	(123,987)	(25,099)
Foreign inflation adjustment	(98,808)
Insurance reserves		(83,280)
Provision (benefit) for income taxes	$ 801,049	$ (133,867)

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Consolidated Balance Sheets - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Current assets:
Cash and cash equivalents	$ 2,868,217	$ 5,440,319
Accounts receivable, less allowance for doubtful accounts of $186,844 and $150,000 at April 30, 2015 and 2014, respectively	20,170,723	19,293,791
Inventories, net	68,669,709	53,728,377
Prepaid expenses and other assets	2,103,367	1,826,254
Deferred income taxes	2,179,178	2,524,993
Other receivables	486,085	356,746
Total current assets	96,477,279	83,170,480
Property, machinery and equipment, net	33,864,527	32,692,908
Other long-term assets:
Intangible assets, net of amortization of $3,737,856 and $3,309,246 at April 30, 2015 and 2014, respectively	5,174,144	5,602,754
Goodwill	3,222,899	3,222,899
Other assets	1,319,901	790,390
Total other long-term assets	9,716,944	9,616,043
Total assets	140,058,750	125,479,431
Current liabilities:
Trade accounts payable	35,838,275	27,141,079
Accrued expenses	592,644	584,050
Accrued wages	5,140,851	5,969,024
Income taxes payable	302	80,936
Current portion of long-term debt	165,000	2,126,017
Current portion of capital lease obligations	1,245,632	765,961
Current portion of contingent consideration	275,288	331,429
Current portion of deferred rent	150,594	12,302
Total current liabilities	43,408,586	37,010,798
Long-term debt, less current portion	31,252,793	24,198,500
Capital lease obligations, less current portion	3,401,913	2,423,001
Contingent consideration, less current portion	1,223,697	1,533,571
Other long-term liabilities	536,209	525,739
Deferred rent, less current portion	999,929	1,163,819
Deferred income taxes	2,550,236	3,217,660
Total long-term liabilities	39,964,777	33,062,290
Total liabilities	$ 83,373,363	$ 70,073,088
Commitments and contingencies:
Stockholders' equity:
Preferred stock, $.01 par value; 500,000 shares authorized, none issued or outstanding
Common stock, $.01 par value; 12,000,000 shares authorized, 4,075,785 and 4,012,319 shares issued and outstanding at April 30, 2015 and 2014, respectively	$ 40,703	$ 40,215
Capital in excess of par value	21,239,641	20,864,497
Retained earnings	35,405,043	34,501,631
Total stockholders' equity	56,685,387	55,406,343
Total liabilities and stockholders' equity	$ 140,058,750	$ 125,479,431

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Goodwill And Other Intangible Assets (Estimated Aggregate Amortization Expense) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Goodwill And Other Intangible Assets [Abstract]
For the fiscal year ending April 30, 2016	$ 470,899
For the fiscal year ending April 30, 2017	490,010
For the fiscal year ending April 30, 2018	435,043
For the fiscal year ending April 30, 2019	423,721
For the fiscal year ending April 30, 2020	411,406
Thereafter	2,943,065
Total	$ 5,174,144	$ 5,602,754

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Consolidated Statements Of Cash Flows - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Cash flows from operating activities
Net income	$ 903,412	$ 2,918,691
Adjustments to reconcile net income to net cash (used in) operating activities:
Depreciation	4,985,272	4,791,663
Stock-based compensation	59,648	89,219
Restricted stock expense	61,946	$ 54,997
Employee stock purchases	126,814
Provision for doubtful accounts	36,844
(Write-off) provision for inventory obsolescence	(528,598)	$ 34,884
Tax benefit from option exercises		(200,912)
Tax benefit from contingent consideration	(69,263)
Deferred income tax benefit	(252,347)	(623,233)
Amortization of intangible assets	428,610	346,680
Fair value adjustment of contingent consideration	(106,015)
Loss from disposal or sale of machinery and equipment	52,615	37,603
Stock option repurchase expense		300,410
Changes in assets and liabilities
Accounts receivable	(913,776)	127,461
Inventories	(14,412,734)	(3,118,520)
Prepaid expenses and other assets	(935,963)	343,580
Income taxes payable/refundable	(80,634)	509,874
Trade accounts payable	8,697,196	(4,206,275)
Deferred rent	(25,598)	79,849
Accrued expenses and wages	(809,109)	470,860
Net cash (used in) provided by operating activities	(2,781,680)	1,956,831
Cash flows from investing activities
Purchases of machinery and equipment	(4,802,389)	(8,366,039)
Net cash used in investing activities	(4,802,389)	(8,366,039)
Cash flows from financing activities
Proceeds from the exercise of common stock options	57,961	158,793
Repurchase of stock option		(300,410)
Proceeds under sale leaseback agreements	1,102,317	2,281,354
Payments of contingent consideration	(260,000)	(260,000)
Payments under capital lease and sale leaseback agreements	(1,050,850)	(488,357)
Proceeds under building notes payable	834,481	1,275,000
Payments under building notes payable	(157,998)	(125,496)
Borrowings under lines of credit	165,496,222	121,696,357
Payments under lines of credit	(161,079,429)	(117,196,357)
Tax benefit from option exercises		200,912
Tax benefit from contingent consideration	69,263
Net cash provided by financing activities	5,011,967	7,241,796
Change in cash	(2,572,102)	832,588
Cash and cash equivalents at beginning of year	5,440,319	4,607,731
Cash and cash equivalents at end of year	2,868,217	5,440,319
Supplementary disclosures of cash flow information
Cash paid for interest	1,018,419	893,967
Cash paid for income taxes	915,115	271,502
Cash refunded for income taxes		(689,298)
Purchase of machinery and equipment financed under capital leases	1,407,116	$ 2,870,437
Purchase of machinery and equipment financed under sale leaseback agreements	$ 1,102,317

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Leases (Future Minimum Lease Payments under Leases) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Capital leases abstract
2016	$ 1,429,205
2017	1,253,770
2018	1,167,522
2019	924,596
2020	310,012
Total future minimum lease payments	5,085,105
Less amounts representing interest	437,560
Capital lease obligation	4,647,545
Less current portion	1,245,632	$ 765,961
Capital lease obligations, less current portion	3,401,913	$ 2,423,001
Operating leases abstarct
2016	1,840,697
2017	2,026,999
2018	1,960,493
2019	1,651,233
2020	950,166
Thereafter	603,437
Total future minimum lease payments	$ 9,033,025

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Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)		12 Months Ended
	Feb. 01, 2015	Apr. 30, 2015	Apr. 30, 2014
Summary Of Significant Accounting Policies [Line Items]
Impact of currency fluctuation		$ 40,000	$ (128,000)
Accounts receivables period		5 years
Deferred financing fees		$ 147,537	52,484
Deferred finance cost accumulated amortization		$ 390,266	$ 332,352
Anti dilutive common stock excluded from the calculation of diluted earnings per share		991	991
Product warranty period		90 days
Goodwill impairment	$ 0
Long-lived assets impairment		$ 0
Contractual life of options		10 years
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Option exercise price as a percentage of market price of shares		100.00%
Patents [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		5 years
Trade Names [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		20 years
Non-Compete Agreements [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		7 years
Customer Relationships [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life		15 years

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Litigation (Narrative) (Details) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2014	Apr. 30, 2015
Loss Contingencies [Line Items]
Damages awarded	$ 307,000
Reduced damages awarded	300,000
Damages sought, value	$ 607,000
Accrual loss contingency		$ 300,000
Maximum [Member]
Loss Contingencies [Line Items]
Damages awarded		607,000
Minimum [Member]
Loss Contingencies [Line Items]
Damages awarded		$ 300,000

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Summary Of Significant Accounting Policies (Policies)

12 Months Ended

Apr. 30, 2015

Summary Of Significant Accounting Policies [Abstract]

Consolidation Policy

Consolidation Policy

The consolidated financial statements include the accounts and transactions of SigmaTron International, Inc. (“SigmaTron”), its wholly-owned subsidiaries, Standard Components de Mexico, S.A., AbleMex S.A. de C.V., Digital Appliance Controls de Mexico, S.A. de C.V., Spitfire Controls (Vietnam) Co. Ltd., Spitfire Controls (Cayman) Co. Ltd. and SigmaTron International Trading Co., wholly-owned foreign enterprises Suzhou SigmaTron Electronics Co. Ltd., and SigmaTron Electronic Technology Co., Ltd. (collectively, “SigmaTron China”), and its international procurement office, SigmaTron Taiwan.  The functional currency of the Mexican, Vietnamese and Chinese subsidiaries and procurement branch is the U.S. dollar.  Intercompany transactions are eliminated in the consolidated financial statements.  The impact of foreign currency fluctuation for the fiscal year ended April 30, 2015 resulted in a net gain of approximately $40,000 compared to a net foreign currency loss of $128,000 in the prior year.

Use Of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates made in preparing the consolidated financial statements include depreciation and amortization periods, the allowance for doubtful accounts, reserves for inventory and valuation of long-lived assets.  Actual results could materially differ from these estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid short-term investments maturing within three months of the purchase date.

Accounts Receivable

Accounts Receivable

The majority of the Company’s accounts receivable are due from companies in the consumer electronics, gaming, fitness, industrial electronics, medical/life sciences, semiconductor, telecommunications and appliance industries.  Credit is extended based on evaluation of a customer’s financial condition, and, generally, collateral is not required.  Accounts receivable are due in accordance with agreed upon terms, and are stated at amounts due from customers net of an allowance for doubtful accounts.  Accounts outstanding longer than the contractual payments terms are considered past due.  The Company writes off accounts receivable when they are determined to be uncollectible.

Allowance For Doubtful Accounts

Allowance for Doubtful Accounts

The Company’s allowance for doubtful accounts relates to receivables not expected to be collected from its customers.  This allowance is based on management’s assessment of specific customer balances, considering the age of receivables and financial stability of the customer and a five year average of prior uncollectible amounts.  If there is an adverse change in the financial condition of the Company’s customers, or if actual defaults are higher than provided for, an addition to the allowance may be necessary.

Inventories

Inventories

Inventories are valued at the lower of cost or market.  Cost is determined by an average cost method and the Company allocates labor and overhead to work-in-process and finished goods.  In the event of an inventory write-down, the Company records expense to state the inventory at lower of cost or market.  The Company establishes inventory reserves for valuation, shrinkage, and excess and obsolete inventory.  The Company records provisions for inventory shrinkage based on historical experience to account for unmeasured usage or loss.  Actual results differing from these estimates could significantly affect the Company’s inventories and cost of products sold.  The Company records provisions for excess and obsolete inventories for the difference between the cost of inventory and its estimated realizable value based on assumptions about future product demand and market conditions.  Actual product demand or market conditions could be different than that projected by management.

Property, Machinery And Equipment

Property, Machinery and Equipment

Property, machinery and equipment are valued at cost.  The Company provides for depreciation and amortization using the straight-line method over the estimated useful life of the assets:

Buildings	20 years
Machinery and equipment	5-12 years
Office equipment and software	3-5 years
Tools and dies	12 months
Leasehold improvements	lesser of lease term or useful life

Expenses for repairs and maintenance are charged to selling and administrative expenses as incurred.

Deferred Financing Costs

Deferred Financing Costs

Deferred financing costs consist of costs incurred to obtain the Company’s long-term debt and are amortized using the straight-line method over the term of the related debt.  Deferred financing fees of $147,537 and $52,484 net of accumulated amortization of $390,266 and $332,352, respectively, as of April 30, 2015 and 2014, respectively, are classified in other long-term assets on the Company’s balance sheet.

Income Tax

Income Taxes

Deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and for tax credit carryforwards, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse.  Valuation allowances are established when necessary to reduce deferred income tax assets to an amount more likely than not to be realized.

A tax benefit from an uncertain tax position may only be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

The Company adjusts its tax liabilities when its judgment changes as a result of the evaluation of new information not previously available.  Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities.  These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined.

Earnings Per Share

Earnings per Share

Basic earnings per share are computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period.  The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common stock equivalents such as stock options and restricted stock, had been exercised or vested.  There were 991,anti-dilutive common stock equivalents, at both April 30, 2015 and 2014, which have been excluded from the calculation of diluted earnings per share.

Revenue Recognition

Revenue Recognition

Revenues from sales of the Company’s electronic manufacturing services business are recognized when the finished good product is shipped to the customer.  In general, and except for consignment inventory, it is the Companys’ policy to recognize revenue and related costs when the finished goods have been shipped from our facilities, which is also the same point that title passes under the terms of the purchase order.  Finished goods inventory for certain customers is shipped from the Company to an independent warehouse for storage or shipped directly to the customer and stored in a segregated part of the customer’s own facility.  Upon the customer’s request for finished goods inventory, the inventory is shipped to the customer if the inventory was stored off-site, or transferred from the segregated part of the customer’s facility for consumption or use by the customer.  The Company recognizes revenue upon such shipment or transfer.  The Company does not earn a fee for such arrangements.  The Company from time to time may ship finished goods from its facilities, which is also the same point that title passes under the terms of the purchase order, and invoice the customer at the end of the calendar month.  This is done only in special circumstances to accommodate a specific customer.  Further, from time to time customers request the Company hold finished goods after they have been invoiced to consolidate finished goods for shipping purposes.  The Company generally provides a 90 day warranty for workmanship only, except for products with proprietary designs and does not have any installation, acceptance or sales incentives (although the Company has negotiated longer warranty terms in certain instances).  The Company assembles and tests assemblies based on customers’ specifications.  Historically, the amount of returns for workmanship issues has been de minimis under the Company’s standard or extended warranties.

Shipping And Handling Costs

Shipping and Handling Costs

The Company records shipping and handling costs as selling and administrative expenses.  Customers are typically invoiced for shipping costs.  Shipping and handling costs were not material to the financial statements for fiscal years 2015 or 2014.

Fair Value Measurements

Fair Value Measurements

Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs.  The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Fair Value Of Financial Instruments

Fair Value of Financial Instruments

The Company’s financial instruments include cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued expenses which approximate fair value at April 30, 2015 and 2014, due to their short-term nature.  The carrying amounts of the Company’s debt obligations approximate fair value based on future payments discounted at current interest rates for similar obligations or interest rates which fluctuate with the market.

The Company measured the net assets included in the fiscal 2013 Spitfire acquisition under the fair value standard (primarily using level 3 measurement inputs) including the contingent consideration which continues to be measured and reported at fair value at each period end.  The Company currently does not have any other non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.

Goodwill

Goodwill

Goodwill represents the purchase price in excess of the fair value of assets acquired in business combinations.  The Company assesses goodwill for impairment at least annually in the absence of an indicator of possible impairment and immediately upon an indicator of possible impairment.  The Company is permitted the option to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of any reporting unit is less than its corresponding carrying value.  If, after assessing the totality of events and circumstances, the Company concludes that it is not more likely than not that the fair value of any reporting unit is less than its corresponding carrying value, then the Company is not required to take further action.  However, if the Company concludes otherwise, then it is required to perform a quantitative impairment test, including computing the fair value of the reporting unit and comparing that value to its carrying value.  If the fair value is less than its carrying value, a second step of the test is required to determine if recorded goodwill is impaired.  The Company also has the option to bypass the qualitative assessment for goodwill in any period and proceed directly to performing the quantitative impairment test.  The Company will be able to resume performing the qualitative assessment in any subsequent period.  The Company performed its annual goodwill impairment test as of February 1, 2015 and determined that no impairment existed as of that date.

Intangible Assets

Intangible Assets

Intangible assets are comprised of finite life intangible assets including patents,trade names, backlog, non-compete agreements, and customer relationships.  Finite life intangible assets are amortized on a straight line or accelerated basis over their estimated useful lives of five years for patents, 20 years for trade names, 1 year for backlog, 7 years for non-compete agreements and 15 years for customer relationships.

Impairment Of Long-Lived Assets

Impairment of Long-Lived Assets

The Company reviews long-lived assets, including amortizable intangible assets, for impairment.  Property, machinery and equipment and finite life intangible assets are reviewed whenever events or changes in circumstances occur that indicate possible impairment.  If events or changes in circumstances occur that indicate possible impairment, the Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of its assets and liabilities.  This analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates.  The Company conducts annual reviews for idle and underutilized equipment, and reviews business plans for possible impairment.  Impairment occurs when the carrying value of the assets exceeds the future undiscounted cash flows expected to be earned by the use of the asset group.  When impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset or asset group and an impairment charge is recorded for the difference between the carrying value and the estimated fair value.  As of April 30, 2015, there was no impairment of long-lived assets. 

Stock Incentive Plans

Stock Incentive Plans

Under the Company’s stock option plans, options to acquire shares of common stock have been made available for grant to certain employees and directors.  Each option granted has an exercise price of not less than 100% of the market value of the common stock on the date of grant.  The contractual life of each option is generally 10 years.  The vesting of the grants varies according to the individual options granted.  The Company measures the cost of employee services received in exchange for an equity award based on the grant date fair value and records that cost over the respective vesting period of the award.

Reclassifications

Reclassifications

Certain reclassifications have been made to the previously reported 2014 financial statements to conform to the 2015 presentation.

New Accounting Standards

New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers."  This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2017 and early adoption is not permitted.  Accordingly, the Company will adopt this ASU on May 1, 2018.  Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and the Company is currently evaluating which transition approach to use and the full impact this ASU will have on the Company’s future consolidated financial statements.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

New Accounting Standards - Continued

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40).  The amendments in this ASU provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures.  An entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or are available to be issued, when applicable).  ASU 2014-15 is effective for the Company beginning with the annual reporting for fiscal 2016, and reports for interim and annual periods thereafter.  Early adoption is permitted. The Company does not expect the impact of adoption of this ASU will have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015- 03, “Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs.” ASU No. 2015-03 simplifies the presentation of debt issuance costs by requiring that these costs related to a recognized debt liability be presented in the statement of financial condition as a direct reduction from the carrying amount of that liability. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period.ASU No. 2015-03 is required to be applied retrospectively to all periods presented beginning in the year of adoption. Adoption will not materially affect the firm’s financial condition, results of operations, or cash flows.The Company does not expect the impact of adoption of this ASU to have a material impact on its consolidated financial statements.

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Summary Of Significant Accounting Policies (Schedule of Estimated Useful Life) (Details)	12 Months Ended
	Apr. 30, 2015
Buildings
Property Plant and Equipment Estimated Useful Lives [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Machinery And Equipment [Member] | Minimum [Member]
Property Plant and Equipment Estimated Useful Lives [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Machinery And Equipment [Member] | Maximum [Member]
Property Plant and Equipment Estimated Useful Lives [Line Items]
Property, Plant and Equipment, Useful Life	12 years
Office equipment and software | Minimum [Member]
Property Plant and Equipment Estimated Useful Lives [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Office equipment and software | Maximum [Member]
Property Plant and Equipment Estimated Useful Lives [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Tools And Dies [Member]
Property Plant and Equipment Estimated Useful Lives [Line Items]
Property, Plant and Equipment, Useful Life	12 months

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Allowance for Doubtful Accounts (Tables)

12 Months Ended

Apr. 30, 2015

Allowance For Doubtful Accounts [Abstract]

Changes in Company's Allowance for Doubtful Accounts

		2015		2014
Beginning Balance	$	150,000	$	150,000
Bad debt expense		36,844		-
Write-offs		-		-
	$	186,844	$	150,000

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Description Of The Business

12 Months Ended

Apr. 30, 2015

Basis Of Presentation [Abstract]

Description Of The Business

NOTE A - DESCRIPTION OF THE BUSINESS

SigmaTron International, Inc., its subsidiaries, foreign enterprises and international procurement office (collectively, the “Company”) operates in one business segment as an independent provider of electronic manufacturing services (“EMS”), which includes printed circuit board assemblies and completely assembled (box-build) electronic products.  In connection with the production of assembled products, the Company also provides services to its customers, including (1) automatic and manual assembly and testing of products; (2) material sourcing and procurement; (3) manufacturing and test engineering support; (4) design services; (5) warehousing and distribution services; and (6) assistance in obtaining product approval from governmental and other regulatory bodies.  As of April 30, 2015, the Company provided these manufacturing services through an international network of facilities located in the United States, Mexico, China, Vietnam and Taiwan.  Approximately 15.1% and 15.7% of the total non-current consolidated assets of the Company are located outside of the United States as of April 30, 2015 and 2014, respectively.

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Consolidated Balance Sheets (Parenthetical) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Consolidated Balance Sheets [Abstract]
Accounts receivable, Allowance for doubtful accounts	$ 186,844	$ 150,000
Intangible assets, Amortization	$ 3,737,856	$ 3,309,246
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	12,000,000	12,000,000
Common stock, shares issued	4,075,785	4,012,319
Common stock, shares outstanding	4,075,785	4,012,319

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Major Customers And Concentration Of Credit Risk

12 Months Ended

Apr. 30, 2015

Major Customers And Concentration Of Credit Risk [Abstract]

Major Customers And Concentration Of Credit Risk

NOTE K - MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of uncollateralized accounts receivable.  For the year ended April 30, 2015, two customers accounted for 36.8% and 9.9% of net sales of the Company, and 9.6% and 5.5%, respectively, of accounts receivable at April 30, 2015.  For the year ended April 30, 2014, two customers accounted for 31.6% and 12.0% of net sales of the Company and 11.2% and 4.5%, respectively, of accounts receivable at April 30, 2014.  Further, the Company has $2,462,057 in cash in China as of April 30, 2015.  These funds are not insured by a guaranteed deposit insurance system.  Effective May 1, 2015, China implemented a deposit insurance program to insure up to approximately $81,000 in deposits. 

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Document And Entity Information - USD ($)	12 Months Ended
	Apr. 30, 2015	Jul. 22, 2015	Oct. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Apr. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Trading Symbol	sgma
Entity Registrant Name	SIGMATRON INTERNATIONAL INC
Entity Central Index Key	0000915358
Current Fiscal Year End Date	--04-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,162,285
Entity Public Float			$ 25,246,669
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No

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Leases

12 Months Ended

Apr. 30, 2015

Leases [Abstract]

Leases

NOTE L - LEASES

The Company leases certain facilities and office space under various operating leases expiring at various dates through March 2021.  The Company also leases various machinery and equipment under capital leases.

Future minimum lease payments under leases with terms of one year or more are as follows:

		Capital		Operating
Years ending April 30,		Leases		Leases
2016	$	1,429,205	$	1,840,697
2017		1,253,770		2,026,999
2018		1,167,522		1,960,493
2019		924,596		1,651,233
2020		310,012		950,166
Thereafter		-		603,437
Total future minimum lease payments	$	5,085,105	$	9,033,025
Less amounts representing interest		437,560
		4,647,545
Less Current Portion		1,245,632
Long Term Portion	$	3,401,913

NOTE L - LEASES - Continued

Rent expense incurred under operating leases was $2,102,312 and $1,981,977 for the years ended April 30, 2015 and 2014, respectively.

In September 2010, the Company entered into a real estate lease agreement in Union City, CA, to rent manufacturing and office space.  Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through March 2021.  The amount of the deferred rent income recorded was $33,950 for the fiscal year ended April 30, 2015, compared to deferred rent income of $17,770 recorded for the year ended April 30, 2014.

On May 31, 2012, the Company entered into a lease agreement in Tijuana, MX, to rent 112,000 square feet of manufacturing and office space.  Under the terms of the lease agreement, the Company receives incentives over the life of the lease, which extends through November 2018.  The amount of the deferred rent income for the fiscal year ended April 30, 2015 was $8,353.  Deferred rent expense in the amount of $8,353 was recorded for the twelve month period ended April 30, 2015.

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Consolidated Statements Of Income - USD ($)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Consolidated Statements Of Income [Abstract]
Net sales	$ 230,237,161	$ 222,485,940
Cost of products sold	208,168,323	199,658,942
Gross profit	22,068,838	22,826,998
Selling and administrative expenses	19,431,637	19,200,514
Operating income	2,637,201	3,626,484
Other income	(148,583)	(124,378)
Interest expense, net	1,081,323	966,038
Income from operations before income tax expense	1,704,461	2,784,824
Income tax expense (benefit)	801,049	(133,867)
Net income	$ 903,412	$ 2,918,691
Earnings per share - basic	$ 0.22	$ 0.74
Earnings per share - diluted	$ 0.22	$ 0.72
Weighted average shares of common stock outstanding Basic	4,046,988	3,969,391
Weighted average shares of common stock outstanding Diluted	4,116,424	4,074,487

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Goodwill And Other Intangible Assets

12 Months Ended

Apr. 30, 2015

Goodwill And Other Intangible Assets [Abstract]

Goodwill And Other Intangible Assets

NOTE F - GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

There were no changes in carrying amount of tax deductible goodwill in the amount of $3,222,899 for the fiscal years ended April 30, 2015 and 2014, respectively. 

Other Intangible Assets

Intangible assets subject to amortization are summarized as of April 30, 2015 as follows:

	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization
Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	12.08		4,690,000		548,781
Backlog	-		22,000		22,000
Trade names	17.08		980,000		142,905
Non-compete agreements	4.08		50,000		20,825
Patents	2.08		400,000		233,345
Total		$	8,912,000	$	3,737,856

Intangible assets subject to amortization are summarized as of April 30, 2014 as follows:

	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization
Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	13.08		4,690,000		256,311
Backlog	-		22,000		22,000
Trade names	18.08		980,000		93,909
Non-compete agreements	5.08		50,000		13,685
Patents	3.08		400,000		153,341
Total		$	8,912,000	$	3,309,246

NOTE F - GOODWILL AND OTHER INTANGIBLE ASSETS - Continued

Estimated aggregate amortization expense for the Company’s intangible assets, which become fully amortized in 2032, for the remaining fiscal years is as follows:

For the fiscal year ending April 30:	2016	$	470,899
	2017		490,010
	2018		435,043
	2019		423,721
	2020		411,406
	Thereafter		2,943,065
		$	5,174,144

Amortization expense was $428,610 and $346,680 for the years ended April 30, 2015 and 2014, respectively.

In conjunction with the May 2012 acquisition of Spitfire, the estimate of the fair value of the contingent consideration ($2,320,000) was based on expected operating results through fiscal 2019 and the specific terms of when such consideration would be earned.  Those terms provide for additional consideration to be paid based on a percentage of sales and pre-tax profits over those years in excess of certain minimums.  Payments are made quarterly each year and adjusted after each year end audit.  The Company made four quarterly payments of $65,000 each in fiscal 2015 and 2014 and made three quarterly payments of $65,000 each in fiscal 2013.  As of April 30, 2015, the Company had not materially changed its estimated aggregate consideration expected to be earned under this arrangement.  Any changes in the Company’s estimate is reflected as a change in the contingent consideration liability and as additional or credits to selling and administrative expenses.  As of April 30, 2015, the contingent consideration liability was $1,498,985.

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Property, Machinery And Equipment, Net

12 Months Ended

Apr. 30, 2015

Property, Machinery And Equipment, Net [Abstract]

Property, Machinery And Equipment, Net

NOTE E - PROPERTY, MACHINERY AND EQUIPMENT, NET

Property, machinery and equipment consist of the following at April 30:

		2015		2014
Land and buildings	$	15,265,758	$	14,707,780
Machinery and equipment		56,142,919		54,933,857
Office equipment and software		8,640,964		7,413,077
Leasehold improvements		2,540,693		2,539,193
Equipment under capital leases		6,746,668		4,237,235
		89,337,002		83,831,142
Less accumulated depreciation
and amortization, including
amortization of assets under
capital leases of $1,329,661
and $729,723 at April 30,
2015 and 2014, respectively		55,472,475		51,138,234
Property, machinery and
equipment, net
	$	33,864,527	$	32,692,908

Depreciation and amortization expense was $4,985,272 and $4,791,663 for the years ended April 30, 2015 and 2014, respectively.

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Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Apr. 30, 2015

Summary Of Significant Accounting Policies [Abstract]

Depreciation and Amortization Using Straight-Line Method Over Estimated Useful Life

Buildings	20 years
Machinery and equipment	5-12 years
Office equipment and software	3-5 years
Tools and dies	12 months
Leasehold improvements	lesser of lease term or useful life

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Stock Compensation

12 Months Ended

Apr. 30, 2015

Stock Compensation [Abstract]

Stock Compensation

NOTE M - STOCK COMPENSATION

The Company has stock option plans (“Option Plans”) under which certain employees and non-employee directors may acquire shares of common stock.  All Option Plans have been approved by the Company’s shareholders.  At April 30, 2015, the Company has 402,914 shares available for future issuance to employees under the employee plans and none are available under the non-employee director plans.  The Option Plans are interpreted and administered by the Compensation Committee of the Board of Directors.  The maximum term of options granted under the Option Plans is generally 10 years.  Options granted under the Option Plans are either incentive stock options or nonqualified options.  Each option under the Option Plans is exercisable for one share of stock.  Options forfeited under the Option Plans are available for reissuance.  Options granted under these plans are granted at an exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant.

The Company granted 25,000 options to employees in fiscal year 2014.The Company recognized approximately $18,100 in compensation expense in fiscal year 2015 and 2014.  The balance of unrecognized compensation expense at April 30, 2015 was approximately $21,700.

In fiscal year 2013, 115,000 options were granted to employees.The Company recognized approximately $13,800 and $54,860 of compensation expense in fiscal years 2015 and 2014, respectively.  The balance of unrecognized compensation expense at April 30, 2015 and 2014 was approximately $0 and $13,800, respectively.

NOTE M - STOCK COMPENSATION - Continued

The Company offered to purchase 395,190options upon the terms  stated in Schedule TO (“TO”) filed with the SEC on October 1, 2013.  The stock options subject to the TO were those options to purchase SGMA common stock which had not expired or terminated prior to October 29, 2013.  Options, all of which were fully vested, were granted under the following Company stock option plans: 1993 Stock Option Plan, 2004 Employee Stock Option Plan, 2000 Directors’ Stock Option Plan and 2004 Directors’ Stock Option Plan.The Company offered to pay a cash amount ranging from $0.18 to $1.35 per Eligible Option, totaling up to $301,500 and 394,200options were tendered and purchased for a total cash payment of $300,410 as of October 31, 2013.

The fair value of each option grant in fiscal 2014 is estimated on the grant date using the Black-Scholes option pricing model with the following assumptions:

Expected dividend yield	0%
Expected stock price volatility	78%
Average risk-free interest rate	4.49%
Weighted-average expected life of options	6.0 years

Option-valuation models require the input of highly subjective assumptions. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing method does not necessarily provide a reliable single measure of the fair value of the Company’s stock options. When the Company does grant stock options, it uses the U.S. Treasury yield in effect at the time of the option grant to calculate the risk-free interest rate and the simplified method to calculate the weighted-average expected life, due to limited history. The expected dividend, volatility and forfeitures rates of options are based on historical experience and expected future results. The vesting period of the stock options ranges from three to five years.

NOTE M - STOCK COMPENSATION - Continued

The table below summarizes option activity through April 30, 2015:

	Number of			Number of
	securities to be			options
	issued upon		Weighted-	exercisable
	exercise of		average	at end
	outstanding options		exercise price	of year
Outstanding at April 30, 2013	515,192	$	8.02	438,142
Options granted during 2014	25,000		4.24
Options exercised during 2014	(43,588)		3.64
Options expired during 2014	(850)		4.24
Options repurchased during 2014	(394,200)		9.34
Outstanding at April 30, 2014	101,554		3.88	48,304
Options exercised during 2015	(13,600)		4.26
Options expired during 2015	(2,000)		4.24
Outstanding at April 30, 2015	85,954	$	3.81	76,954

Intrinsic value is calculated as the positive difference between the market price of the Company’s common stock and the exercise price of the underlying options.  During the fiscal years ended April 30, 2015 and 2014, the aggregate intrinsic value of options exercised was $51,520 and $291,025, respectively.  As of April 30, 2015 and 2014, the aggregate intrinsic value of in the money options outstanding was $365,245 and $653,803, respectively.

Information with respect to stock options outstanding at April 30, 2015 follows:

		Options outstanding
		Number	Weighted-average		Weighted-
		outstanding at	remaining		average
		April 30, 2015	contract life		exercise price
Range of exercise prices
$	3.60-5.40	84,963	7.87 years	$	3.75
$	9.17-11.56	991	.38 years		9.17
		85,954		$	3.81

NOTE M - STOCK COMPENSATION - Continued

Information with respect to stock options outstanding and exercisable at April 30, 2015 follows:

		Options outstanding and exercisable
		Number	Weighted-average		Weighted-
		outstanding at	remaining		average
		April 30, 2015	contract life		exercise price
Range of exercise prices
$	3.60-5.40	75,963	7.87 years	$	3.69
$	9.17-11.56	991	.38 years		9.17
		76,954		$	3.76

The Company implemented an employee stock purchase plan (“ESPP”), for all eligible employees on February 1, 2014.  Under the ESPP, employees may purchase shares of the Company’s common stock at three-month intervals at 85%of the lower of the fair market value of the Company’s common stock on the first day or the last day of the offering period (calculated in the manner provided in the plan). Employees purchase such stock using payroll deductions, which may not be less than 1%nor exceed 15%of their total gross compensation. Shares of common stock are offered under the ESPP through a series of successive offering periods. The plan imposes certain limitations upon an employee’s right to acquire common stock, including the following: (i) termination of employment for any reason immediately terminates the employee’s participation in the plan (ii) no employee may be granted rights to purchase more than $25,000worth of common stock for each calendar year that such rights are at any time outstanding, and (iii) the maximum number of shares of common stock purchasable in total by all participants in the ESPP on any purchase date is limited to 500,000shares. The number of shares of common stock reserved for issuance under the plan automatically increases on the first day of the Company’s fiscal years by 25,000shares.  There were 18,118and 2,158shares issued under the ESPP and the Company recorded $27,747and $4,151in compensation expense, for fiscal years ended April 30, 2015 and 2014, respectively.

The Company issued 25,000 shares of restricted stock on June 1, 2012, of which 8,330 vested in June 2012 and 8,330 vested in June 2013.  The Company recognized approximately $1,745 and $15,325 in compensation expense for the years ended April 30, 2015 and 2014, respectively.  The balance of unrecognized compensation expense related to the Company’s restricted stock award was approximately $0 and $1,750 at April 30, 2015 and 2014, respectively.

On October 1, 2014, the Company granted 1,750 shares to each non-employee director pursuant to the 2013 Non-Employee Director Restricted Stock Plan.  A total of 8,750 restricted shares were granted and the shares vest in six months from the date of grant.  The Company recognized $60,200 in compensation expense in fiscal year 2015.  There was no unrecognized compensation expense related to the 8,750 shares of restricted stock at April 30, 2015.

On October 1, 2013, the Company granted 1,500 shares to each non-employee director pursuant to the 2013 Non-Employee Director Restricted Stock Plan.  A total of 7,500 restricted shares were granted and the shares vested in six months from the date of grant.  The Company recognized no compensation expense in fiscal year 2015 and there was no unrecognized compensation expense related to the 7,500 shares of restricted stock at April 30, 2015.

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Income Tax

12 Months Ended

Apr. 30, 2015

Income Tax [Abstract]

Income Tax

NOTE I - INCOME TAX

U.S. and foreign income (loss) before income tax expense for the years ended April 30 are as follows:

		2015		2014
Domestic	$	(2,481,049)	$	(545,501)
Foreign		4,185,510		3,330,325
	$	1,704,461	$	2,784,824

Provision (benefit) for Income Taxes

The income tax provision (benefit) for the years ended April 30 consists of the following:

		2015		2014
Current
Federal	$	2,963	$	(203,951)
State		29,613		28,726
Foreign		1,020,820		664,591
Total Current		1,053,396		489,366
Deferred
Federal		(138,335)		365,008
State		(154,208)		64,952
Foreign		40,196		(1,053,193)
Total Deferred		(252,347)		(623,233)
Provision (benefit) for income taxes	$	801,049	$	(133,867)

NOTE I - INCOME TAX - Continued

Provision (benefit) for Income Taxes - Continued

The difference between the income tax provision (benefit) and the amounts computed by applying the statutory Federal income tax rates to income before tax expense for the years ended April 30 are as follows:

		2015		2014
U.S Federal Provision:
At statutory rate	$	579,516	$	951,623
State taxes		(86,377)		61,828
Change in valuation allowance		46,615		-
Foreign tax differential		(256,343)		(465,835)
Impact of state tax rate change		(42,471)		-
Change in foreign valuation allowance		(53,011)		-
Foreign profit sharing		32,912		(60,626)
Foreign dividends		643,708		295,522
Other		22,996		20,175
Foreign currency exchange gain/loss		136,299		-
Impact of tax legislation		-		(828,175)
Impact of foreign permanent items		(123,987)		(25,099)
Foreign inflation adjustment		(98,808)		-
Insurance reserves		-		(83,280)
Provision (benefit) for income taxes	$	801,049	$	(133,867)

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the deferred tax assets for federal and state income taxes are as follows:

		2015		2014
Deferred Tax Assets
Federal & State NOL carryforwards	$	449,325	$	-
Foreign NOL carryforwards		-		98,254
Research & Other Credits		78,100		-
Reserves and accruals		795,721		944,454
Stock based compensation		133,744		137,343
Inventories		1,154,335		1,340,302
Other intangible assets		207,044		338,014
Deferred rent		263,703		293,242
Allowance for doubtful accounts		72,271		61,515
Other		22,978		305,335
Total Gross Deferred Tax Assets		3,177,221		3,518,459
Less: Valuation allowance		(95,295)		(101,691)
Net Deferred Tax Assets	$	3,081,926	$	3,416,768
Deferred Tax Liabilities
Other assets	$	(272,409)	$	(474,768)
Property, machinery & equipment		(3,180,575)		(3,384,821)
Undistributed foreign earnings		-		(249,846)
Total Deferred Tax Liabilities	$	(3,452,984)	$	(4,109,435)
Net Deferred Tax Liability	$	(371,058)	$	(692,667)

As of April 30, 2015, the Company had net operating loss carryforwards for federal income tax purposes of approximately$658,000, portions of which will begin to expire in 2035. The Company had a total state net operating loss carryforwardof approximately $2,318,000, which will begin to expire in 2023 to 2031. Utilization of some of the federal and state net operating lossand credit carryforwards are subject to annual limitations due to the “change in ownership” provisions of Section 382 the Internal Revenue Codeof 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits beforeutilization.

At April 30, 2015, the Company has federal net operating loss carry-forward totaling approximately $657,529 that will expire on April 30, 2035. The Company recognizes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The Company determined it is more likely than not that it will realize the federal deferred tax assets due to the reversal of

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities-Continued

federal deferred tax liabilities. The federal deferred tax liabilities exceed the federal deferred tax assets and based on the reversing pattern, the Company has concluded that substantially all of the federal deferred tax liabilities are expected to reverse and be a sufficient source of future federal taxable income within the period of time available for existing net operating loss carry-forwards and other federal deferred tax assets. The federal deferred tax liability is of the same character as the differences giving rise to the federal deferred tax assets. If the Company experiences substantial changes in ownership, the net operating loss carry-forwards would be subject to an annual limitation pursuant to Section 382 which may impact the realization of the net operating loss carry-forwards.

The Company also has state net operating loss carry-forwards totaling approximately $2,318,000at April 30, 2015, that will begin to expire in fiscal year April 30, 2022. The Company recorded a valuation allowance related to state net operating loss carry-forwards of $46,615 as of the year ended April 30, 2015. The state deferred tax liabilities exceed the state deferred tax assets and based on the reversing pattern the Company has concluded that substantially all of the state deferred tax liabilities are expected to reverse within the period of time available to fully utilize all state deferred tax assets except for certain state net operating losses, with shorter expirations. Based on the reversing schedule performed on a state by state basis, the Company has concluded that a valuation allowance of $46,615 is required as of April 30, 2015, related to state net operating loss carryforwards that are expected to expire before being utilized. These states required a valuation allowance because the net operating loss carry-forward periods are expected to expire before being utilized, based upon the scheduled reversal of the deferred tax liabilities.

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities - Continued

The above amounts are classified in the Consolidated Balance Sheets at April 30, are as follows:

		2015		2014
Current assets:
Deferred income taxes	$	2,179,178	$	2,524,993
Non-current liabilities:
Deferred income taxes		(2,550,236)		(3,217,660)
Net Deferred Tax Liability	$	(371,058)	$	(692,667)

The Company has not recorded U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries. Since the earnings of the foreign subsidiaries have been, and under fiscal April 30, 2015 plans, will continue to be indefinitely reinvested, no deferred tax liability has been recorded.  With respect to fiscal April 30, 2016, as a result of the uncertainty of the Company’s financing arrangements and its domestic liquidity profile, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts .  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

Effective January 1, 2014, the Mexican federal income tax law changes were enacted eliminating the statutory income tax rate reduction scheduled to start in 2014, and leaving the 30% statutory income tax rate in effect for future years.  In addition the Entrepreneurial Tax of Unique Rate (flat tax) was repealed as of January 31, 2014. 

During fiscal year 2015, the Company reflected tax expense of $643,708 related to the inability to realize the tax benefit recorded in fiscal year 2014 for potential foreign tax credits related to the above distribution from Mexico.  The Company’s current estimate of cumulative taxable income during the foreign tax credit carryforward period is insufficient to support that the tax benefit from the foreign tax credit is more likely than not to be realized.

NOTE I - INCOME TAX - Continued

Deferred Tax Assets and Liabilities - Continued

The Company has a foreign tax credit carry-forward of $78,100and $112,327 at April 30, 2015 and 2014, respectively, that will begin to expire in fiscal year April 30, 2024.  The Company determined it is more likely than not that it will realize the foreign tax credit due to the reversal of federal deferred tax liabilities.

The Company’s Vietnam subsidiary has a net operating loss carry-forward of $221,274 and $399,109at April 30, 2015 and 2014, respectively, that will begin to expire within the fiscal year April 30, 2017.A portion of the net operating loss carry-forward, $147,594, expired in the fiscal year ended April 30, 2015.  Vietnam has a tax holiday and is at a 0% tax rate currently.  The Company anticipates that it will use the net operating loss before the tax holiday expires, which resulted in no benefit being booked.

Unrecognized Tax Benefits

The Company has not identified any uncertain tax positions or expects any to be taken in the Company’s tax returns.  For the fiscal year ended April 30, 2015 and 2014, the amount of consolidated worldwide liability for uncertain tax positions that impacted the Company’s effective tax rate was $0 for each year.

Other

Interest related to tax positions taken in the Company’s tax returns are recorded in income tax expense in the Consolidated Statements of Income. 

The Company is subject to taxation in the U.S. and various state and foreign jurisdictions.  With few exceptions, the Company is no longer subject to state, local or foreign examinations by tax authorities for tax years before 2011.  The Internal Revenue Service is currently examining fiscal year 2013.  The Company is no longer subject to U.S. Federal examinations by tax authorities for tax years before 2012.

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Stock Compensation (Narrative) (Details) - USD ($)						1 Months Ended		12 Months Ended			24 Months Ended
	Oct. 01, 2014	Oct. 31, 2013	Oct. 29, 2013	Oct. 01, 2013	Jun. 01, 2012	Jun. 30, 2013	Jun. 30, 2012	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum term of options granted								10 years
Options granted									25,000
Aggregate intrinsic value of options exercised								$ 51,520	$ 291,025
Aggregate intrinsic value of options outstanding								$ 365,245	653,803		$ 365,245
Number of eligible option to be repurchased				395,190
Authorized tender offer amount			$ 301,500
Shares repurchased through tender offer		394,200
Shares repurchased through tender offer, value		$ 300,410							$ 300,410
Shares issued under employee stock purchase plan								18,118	2,158
Value of shares issued under employee stock purchase plan								$ 126,814
2014 Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted									25,000
Recognized stock-based compensation											18,100
Balance of unrecognized compensation expense related to stock options plans								21,700			21,700
2013 Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted										115,000
Recognized stock-based compensation								13,800	$ 54,860
Balance of unrecognized compensation expense related to stock options plans								0	13,800		0
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Recognized stock-based compensation								1,745	15,325
Restricted stock issued					25,000
Shares of restricted stock vested						8,330	8,330
Balance of unrecognized compensation expense related to restricted stock award								$ 0	1,750		$ 0
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period								3 years
Authorized tender offer amount, per share			$ 0.18
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period								5 years
Authorized tender offer amount, per share			$ 1.35
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options eligible to purchase under the plan								500,000			500,000
Price of common stock as a percent of the average fair market value								85.00%
Maximum individual purchase amount per year								$ 25,000
Maximum number of shares of common stock purchasable in total by all participants in the ESPP								500,000			500,000
Number of shares released for issuance each fiscal year								25,000
Value of shares issued under employee stock purchase plan								$ 27,747	$ 4,151
Employee Stock Purchase Plan [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Payroll deduction percentage								1.00%
Employee Stock Purchase Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Payroll deduction percentage								15.00%
Employees Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for future issuance								402,914			402,914
Non Employee Director Plan [Member] | Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Recognized stock-based compensation								$ 60,200			$ 0
Vesting period	6 months			6 months
Restricted stock issued	1,750			1,500
Shares of restricted stock granted	8,750			7,500
Balance of unrecognized compensation expense related to restricted stock award								$ 0			$ 0

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Long-term Debt

12 Months Ended

Apr. 30, 2015

Long-term Debt [Abstract]

Long-term Debt

NOTE G - LONG-TERM DEBT

Note Payable - Bank

The Company has a senior secured credit facility with Wells Fargo, N.A. with a credit limit up to $30,000,000 and current term through October 31, 2017.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The credit facility is collateralized by substantially all of the domestically located assets of the Company and the Company has pledged 65% of its equity ownership interest in some of its foreign entities.  The Company is required to be in compliance with several financial covenants.  Pursuant to the agreement, financial covenants were amended, an unused line fee was added, and the borrowing interest rate was changed.  The facility allows the Company to choose among interest rates at which it may borrow funds.  The interest rate is the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) or LIBOR plus two and one quarter percent (effectively 2.625% at April 30, 2015).  Interest is paid monthly.  Under the senior secured credit facility, the Company may borrow up to the lesser of (i) $30,000,000 or (ii) an amount equal to the sum of 85% of the receivable borrowing base plus a percentage of the inventory borrowing base (collectively, “Borrowing Base”, which cannot exceed 50% of combined eligible receivables and inventory).  Further, in specific circumstances, the Company is entitled to an over advance of up to $5,000,000 through October 31, 2015; however, at no time can the borrowings under the credit facility exceed $30,000,000.  The effective interest rate for the over advance facility was LIBOR plus two and three quarter percent.  Effective December 31, 2014, the Company amended its senior secured credit facility agreement to temporarily increase the total Borrowing Base limit to 60% through June 30, 2015 and reverting to 50% of total Borrowing Base after June 30, 2015.  Further, the senior secured credit facility agreement was modified to allow specific foreign receivables to become eligible collateral. The receivable modification is effective until June 30, 2015. The Company agreed to an increase in the effective interest rate for the over advance facility and a $5,000 amendment fee. The interest rate for the over advance facility increased from LIBOR plus two and three quarter percent (effectively 3.125% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015) to LIBOR plus three and one half percent (effectively 3.875% at April 30, 2015) or the bank fixed rate of two and one quarter percent plus one percent (effectively 3.25% at April 30, 2015).  As of April 30, 2015, there was a $27,416,793 outstanding balance and $2,583,207 of unused availability under the credit facility agreement.  At April 30, 2015, the Company was in compliance with its financial covenants.

The Company anticipates that its credit facilities, cash flow from operations and leasing resources are adequate to meet its working capital requirements and capital expenditures for fiscal year 2016 at the Company’s current level of business.  The Company has received forecasts from current customers for increased business that would require additional investments in inventory. To the extent that these forecasts come to fruition, the Company intends to meet any increased capital requirements by raising capital from other sources of debt or equity.  The Company has selected an investment banker for the purpose of completing a capital raise in the third fiscal quarter of 2016.  The capital raise, if successful, may consist of debt, equity or a combination of debt and equity.  If the capital raise is not completed, the Company has determined that it  might be required to repatriate from offshore cash, fiscal 2016 foreign earnings, to meet certain domestic funding needs but will not need to repatriate prior earnings based on current forecasts.  The cumulative amount of unremitted earnings for which U.S. income taxes have not been recorded is $12,163,000 as of April 30, 2015.  The amount of U.S. income taxes on these earnings is impractical to compute due to the complexities of the hypothetical calculation.

In addition, in the event the Company desires to expand its operations, its business grows more rapidly than expected, the current economic climate deteriorates, customers delay payments, or the Company desires to consummate an acquisition, additional financing resources may be necessary in the current or future fiscal years.  There is no assurance that the Company will be able to obtain equity or debt financing at acceptable terms, or at all, in the future.  There is no assurance that the Company will be able to retain or renew its credit agreements in the future, or that any retention or renewal will be on the same terms as currently exist.

NOTE G - LONG-TERM DEBT - Continued

Capital Lease Obligations

On August 20, 2010 and October 26, 2010, the Company entered into two capital leasing transactions (a lease finance agreement and a sale leaseback agreement) with Wells Fargo Equipment Finance, Inc., to purchase equipment totaling $1,150,582.  The term of the lease finance agreement, with an initial principal amount of $315,252, extends to September 2016 with monthly payments of $4,973 and a fixed interest rate of 4.28%.  The term of the sale leaseback agreement, with an initial principal payment amount of $835,330, extends to August 2016 with monthly payments of $13,207 and a fixed interest rate of 4.36%.  At April 30, 2014,  $136,561 and $338,562 was outstanding under the lease finance and sale leaseback agreements, respectively.  The net book value at April 30, 2014 of the equipment under the lease finance agreement and sale leaseback agreement was $221,114 and $550,583, respectively.At April 30, 2015, $81,809 and $192,296 was outstanding under the lease finance and sale leaseback agreements, respectively.  The net book value at April 30, 2015 of the equipment under the lease finance agreement and sale leaseback agreement was $194,843 and $481,805, respectively.

On November 29, 2010, the Company entered into a capital lease with Wells Fargo Equipment Finance, Inc., to purchase equipment totaling $226,216.  The term of the lease agreement extends to October 2016 with monthly payments of $3,627 and a fixed interest rate of 4.99%.  At April 30, 2014, the balance outstanding under the capital lease agreement was $102,099.  The net book value of the equipment under this lease at April 30, 2014 was $159,528.At April 30, 2015, the balance outstanding under the capital lease agreement was $62,777.  The net book value of the equipment under this lease at April 30, 2015 was $140,676.

On October 3, 2013, the Company entered into two sale leaseback agreementswith Associated Bank, National Association in the amount of $2,281,355 to finance equipment purchased in June 2012.  The term of the first agreement, with an initial principal amount of $2,201,638, extends to September 2018 with monthly payments of $40,173 and a fixed interest rate of 3.75%.  The term of the second agreement, with an initial principal payment amount of $79,717, extends to September 2018 with monthly payments of $1,455 and a fixed interest rate of 3.75%.  At April 30, 2014,  $1,959,381 and $70,945 was outstanding under the first and second agreements, respectively.  The net book value at April 30, 2014 of the equipment under each of the two agreements was $1,828,038 and $68,092, respectively.At April 30, 2015, $1,543,684 and $55,894 was outstanding under the first and second agreements, respectively.  The net book value at April 30, 2015 of the equipment under each of the two agreements was $1,736,474 and $61,448, respectively.

On March 6, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $589,083.  The term of the lease extends to March 2019 with monthly payments of $10,441 and a fixed interest rate of 5.65%.  At April 30, 2014, the balance outstanding under the capital lease agreement was $581,415.  The net book value of the equipment under the lease as of April 30, 2014 was $573,338.At April 30, 2015, the balance outstanding under the capital lease agreement was $486,541.  The net book value of the equipment under the lease as of April 30, 2015 was $524,248.

On May 7, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $108,971.  The term of the lease extends to May 2019 with monthly payments of $1,931 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the capital lease was $92,996.  The net book value of the equipment under the lease as of April 30, 2015 was $99,890.

On August 1, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $609,179.  The term of the lease extends to July 2019 with monthly payments of $10,797 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the capital lease was $536,459.  The net book value of the equipment under the lease as of April 30, 2015 was $566,875.

NOTE G - LONG-TERM DEBT - Continued

Capital Lease Obligations - Continued

On September 22, 2014, the Company entered into a sale leaseback agreement with Associated Bank, National Association in the amount of $664,676 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $12,163 and a fixed interest rate of 3.87%.  At April 30, 2015, the balance outstanding under the lease was $581,419. The net book value of the equipment under the lease as of April 30, 2015 was $567,067.

On September 22, 2014, the Company entered into a sale leaseback agreement with Associated Bank, National Association in the amount of $437,641 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $8,008 and a fixed interest rate of 3.87%.  At April 30, 2015, the balance outstanding under the lease was $382,822. The net book value of the equipment under the lease as of April 30, 2015 was $395,868.

On September 22, 2014, the Company entered into a capital lease agreement with Associated Bank, National Association in the amount of $106,346 to finance equipment purchases.  The term of lease extends to August 2019 with monthly payments of $1,947 and a fixed interest rate of 3.89%.  At April 30, 2015, the balance outstanding under the lease was $93,030.  The net book value of the equipment under the lease as of April 30, 2015 was $99,700.

On October 27, 2014, the Company entered into a capital lease agreement with CIT Finance LLC to purchase equipment in the amount of $501,590.  The term of lease extends to October 2019 with monthly payments of $8,890 and a fixed interest rate of 5.65%.  At April 30, 2015, the balance outstanding under the lease was $461,954. The net book value of the equipment under the lease as of April 30, 2015 was $470,460.

On January 16, 2015, the Company entered into a capital lease agreement with Associated Bank, National Association in the amount of $81,030 to finance equipment purchases.  The term of lease extends to December 2019 with monthly payments of $1,487 and a fixed interest rate of 4.01%.  At April 30, 2015, the balance outstanding under the lease was $75,864.  The net book value of the equipment under the lease as of April 30, 2015 was $77,654.

Note Payable - Buildings

The Company entered into a mortgage agreement on January 8, 2010, in the amount of $2,500,000, with Wells Fargo, N.A. to refinance the property that serves as the Company’s corporate headquarters and its Illinois manufacturing facility.  The Wells Fargo, N.A. note historically boar interest at a fixed rate of 6.42% per year and was amortized over a sixty month period.  A final payment of approximately $2,000,000 was due on or before January 8, 2015.  On November 24, 2014, the Company refinanced the mortgage agreement with Wells Fargo, N.A.  The note requires the Company to pay monthly principal payments in the amount of $9,500, bears an interest rate of LIBOR plus two and one-quarter percent(effectively 2.625% at April 30, 2015) and is payable over a sixty month period.  Final payment of approximately $2,289,500 is due on or before November 8, 2019.  The outstanding balance as of April 30, 2014 was $2,075,017.  The outstanding balance as of April 30, 2015 was $2,802,500.

The Company entered into a mortgage agreement on October 24, 2013, in the amount of $1,275,000, with Wells Fargo, N.A. to finance the property that serves as the Company’s engineering and design center in Elgin, Illinois.  The Wells Fargo, N.A. note requires the Company to pay monthly principal payments in the amount of $4,250, bears interest at a fixed rate of 4.51% per year and is payable over a sixty month period.  A final payment of approximately $1,030,000 is due on or before October 24, 2018.  The outstanding balance as of April 30, 2014 was $1,249,500.The outstanding balance as of April 30, 2015 was $1,198,500.

NOTE G - LONG-TERM DEBT - Continued

The aggregate amount of debt maturingin each of the following fiscal years and thereafter is as follows:

Fiscal Year	Total
2016	$	165,000
2017		165,000
2018		27,581,793
2019		1,159,500
2020		2,346,500
	$	31,417,793

See Note L - Leases, Page F-30for future maturities under capital lease obligations.

Other Long-Term Liabilities

As of April 30, 2015 and 2014, the Company had recorded $536,209 and $525,739, respectively, for seniority premiums and retirement accounts related to benefits for employees working in the Company’s foreign subsidiaries.

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Accrued Expenses And Wages

12 Months Ended

Apr. 30, 2015

Accrued Expenses And Wages [Abstract]

Accrued Expenses And Wages

NOTE H - ACCRUED EXPENSES AND WAGES

Accrued expensesconsist of the following at April 30:

		2015		2014
Interest	$	74,395	$	69,467
Commissions		57,681		48,043
Professional fees		304,864		262,755
Other		155,704		203,785
	$	592,644	$	584,050

Accrued wages consist of the following at April 30:

		2015		2014
Wages	$	1,544,959	$	1,812,049
Bonuses		409,549		510,159
Foreign wages		1,689,934		1,704,821
Foreign benefits		1,496,409		1,941,995
	$	5,140,851	$	5,969,024

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401(k) Retirement Savings Plan

12 Months Ended

Apr. 30, 2015

401(k) Retirement Savings Plan [Abstract]

401(k) Retirement Savings Plan

NOTE J - 401(k) RETIREMENT SAVINGS PLAN

The Company sponsors 401(k) retirement savings plans, which are available to all non-union U.S. employees.  The Company may elect to match participant contributions up to $300 per participant annually.  The Company contributed$114,207 and $93,452 to the plans during the fiscal years ended April 30, 2015 and 2014, respectively.  The Company paid total expenses of $8,500 and $6,850 for the fiscal years ended April 30, 2015 and 2014, respectively, relating to costs associated with the administration of the plans.

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Selected Quarterly Financial Data (Details) - USD ($)	3 Months Ended								12 Months Ended
	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2015	Apr. 30, 2014
Selected Quarterly Financial Data [Abstract]
Net sales	$ 60,053,552	$ 53,702,613	$ 61,533,519	$ 54,947,477	$ 55,567,396	$ 54,175,196	$ 56,577,287	$ 56,166,061	$ 230,237,161	$ 222,485,940
Income before income tax (benefit) expense	403,518	562,123	723,254	15,566	724,856	(130,182)	949,811	1,240,339	1,704,461	2,784,824
Net income	$ 176,093	$ 564,080	$ 146,429	$ 16,810	$ 422,779	$ 743,794	$ 784,654	$ 967,464	$ 903,412	$ 2,918,691
Basic earnings per share	$ 0.04	$ 0.14	$ 0.04	$ 0.000	$ 0.11	$ 0.19	$ 0.20	$ 0.24	$ 0.22	$ 0.74
Diluted earnings per share	$ 0.04	$ 0.14	$ 0.04	$ 0.000	$ 0.10	$ 0.18	$ 0.19	$ 0.24	$ 0.22	$ 0.72
Total shares- Basic	4,061,504	4,054,146	4,044,240	4,028,535	3,988,923	3,966,814	3,961,232	3,961,232	4,046,988	3,969,391
Total shares-Diluted	4,117,600	4,116,015	4,120,178	4,105,627	4,107,736	4,088,695	4,037,627	4,011,001	4,116,424	4,074,487

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Stock Compensation (Stock Options Outstanding and Exercisable) (Details) - Apr. 30, 2015 - $ / shares	Total
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of options outstanding	85,954
Weighted- average exercise price, outstanding	$ 3.81
Number of options outstanding and exercisable	76,954
Weighted- average exercise price, outstanding and exercisable	$ 3.76
$3.60 - 5.40 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower	3.60
Range of exercise prices, upper	$ 5.4
Number of options outstanding	84,963
Weighted-average remaining contractual life, outstanding	7 years 10 months 13 days
Weighted- average exercise price, outstanding	$ 3.75
Number of options outstanding and exercisable	75,963
Weighted-average remaining contractual life, outstanding and exercisable	7 years 10 months 13 days
Weighted- average exercise price, outstanding and exercisable	$ 3.69
$9.17 - 11.56 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower	9.17
Range of exercise prices, upper	$ 11.56
Number of options outstanding	991
Weighted-average remaining contractual life, outstanding	4 months 17 days
Weighted- average exercise price, outstanding	$ 9.17
Number of options outstanding and exercisable	991
Weighted-average remaining contractual life, outstanding and exercisable	4 months 17 days
Weighted- average exercise price, outstanding and exercisable	$ 9.17

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Description Of The Business (Details) - segment	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014
Description Of Business [Abstract]
Number of business segments as an independent provider of electronic manufacturing services	1
Total consolidated assets of Company located in foreign jurisdictions outside the United States	15.10%	15.70%

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Income Tax (Income (Loss) before Income Tax Expense) (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2015	Apr. 30, 2014
Income Tax [Abstract]
Domestic									$ (2,481,049)	$ (545,501)
Foreign									4,185,510	3,330,325
Income from operations before income tax expense	$ 403,518	$ 562,123	$ 723,254	$ 15,566	$ 724,856	$ (130,182)	$ 949,811	$ 1,240,339	$ 1,704,461	$ 2,784,824

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Litigation

12 Months Ended

Apr. 30, 2015

Litigation [Abstract]

Litigation

NOTE O – LITIGATION

In November 2008, the Company received notice of an Equal Employment Opportunity Commission (“EEOC”) claim based on allegations of discrimination, sexual harassment, and retaliation filed by Maria Gracia, a former employee.  On December 5, 2008, Ms. Gracia’s employment as an assembly supervisor was terminated after she knowingly permitted an assembly line to run leaded boards in a lead-free room with lead-free solder, contrary to the customer’s specifications and prohibited by Company policy.  The use of lead-free solder for leaded components can lead to devices that fail and significant penalties to the Company and customers from regulatory bodies.  The parts were quarantined and were not shipped.  Ms. Gracia openly admitted to permitting this to take place.

The EEOC declined to pursue Ms. Gracia’s charges against the Company but  on July 26, 2011, Ms. Gracia received a right to sue letter from the EEOC. On October 25, 2011, Ms. Gracia filed suit against the Company in the U.S. District Court for the Northern District of Illinois under Title VII of the Civil Rights Act.  The Complaint alleged claims that Ms. Gracia was subject to discrimination, harassment, and hostile work environment based on sex and national origin.  In the Complaint, Ms. Gracia alleged that her supervisor engaged in a pattern of unwanted sexual advances and that he sent her emails that were offensive to her gender and national origin.  Further, the Complaint also alleged that the Company retaliated by terminating Ms. Gracia’s employment after she filed her initial charge of

NOTE O – LITIGATION - Continued

discrimination with the EEOC.  Ms. Gracia sought relief in the form of (a) damages sufficient to compensate her injuries; (b) attorney’s fees; (c) costs of the action; (d) and equitable remedies.

In the court’s October 25, 2013 ruling on the Company’s Motion for Summary Judgment, the court limited plaintiff’s claims to two: (1) hostile work environment caused by gender (sexual harassment), and (2) retaliation.  In December 2014, a jury trial found in favor of the Company with respect to the first claim and for the plaintiff with respect to the second claim, awarding plaintiff damages totaling $307,000.  In post-trial motions, the judge reduced the verdict to $300,000.  The judge will now consider plaintiff’s claim for equitable remedies and attorneys’ fees and costs, along with the Company’s motion for sanctions, as the plaintiff introduced knowingly altered documents as evidence during the trial which had not been previously disclosed.  It is uncertain when these claims will be ruled upon by the court.

The plaintiff has offered to accept $607,000 in settlement of all claims.  The Company has rejected that offer and intends to await the final judgment.  The Company has not waived its right to appeal that judgment and will determine its next steps once it is entered.  As of April 30, 2015, the Company has accrued $300,000 in recognition of the jury’s verdict and the judge’s subsequent adjustment to that verdict.

Even with a favorable ruling for the Company with regard to sanctions, the Company believes it will be required to pay plaintiff a minimum of $300,000.  While the plaintiff has offered to accept $607,000 in settlement of all claims, it is not possible to predict where, within the range of $300,000 to $607,000 that the judge may enter the judgment.

From time to time the Company is involved in legal proceedings, claims or investigations that are incidental to the conduct of the Company’s business.  In future periods, the Company could be subjected to cash cost or non-cash charges to earnings if any of these matters are resolved on unfavorable terms.  However, although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including management’s assessment of the merits of any particular claim, the Company does not expect that these legal proceedings or claims will have any material adverse impact on its future consolidated financial position or results of operations.

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Property, Machinery And Equipment, Net (Tables)

12 Months Ended

Apr. 30, 2015

Property, Machinery And Equipment, Net [Abstract]

Schedule Of Property, Machinery And Equipment

		2015		2014
Land and buildings	$	15,265,758	$	14,707,780
Machinery and equipment		56,142,919		54,933,857
Office equipment and software		8,640,964		7,413,077
Leasehold improvements		2,540,693		2,539,193
Equipment under capital leases		6,746,668		4,237,235
		89,337,002		83,831,142
Less accumulated depreciation
and amortization, including
amortization of assets under
capital leases of $1,329,661
and $729,723 at April 30,
2015 and 2014, respectively		55,472,475		51,138,234
Property, machinery and
equipment, net
	$	33,864,527	$	32,692,908

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Accrued Expenses And Wages (Schedule of Accrued Wages) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Accrued Expenses And Wages [Abstract]
Wages	$ 1,544,959	$ 1,812,049
Bonuses	409,549	510,159
Foreign wages	1,689,934	1,704,821
Foreign benefits	1,496,409	1,941,995
Accrued wages, total	$ 5,140,851	$ 5,969,024

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Property, Machinery and Equipment, Net (Schedule Of Property, Machinery And Equipment) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 89,337,002	$ 83,831,142
Less accumulated depreciation and amortization, including amortization of assets under capital leases of $1,329,661 and $729,723 at April 30, 2015 and 2014, respectively	55,472,475	51,138,234
Property, plant and equipment, net	33,864,527	32,692,908
Amortization of assets under capital leases	1,329,661	729,723
Land And Buildings [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	15,265,758	14,707,780
Machinery And Equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	56,142,919	54,933,857
Office Equipment And Software [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	8,640,964	7,413,077
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	2,540,693	2,539,193
Equipment Under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 6,746,668	$ 4,237,235

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Consolidated Statements Of Changes In Stockholders' Equity - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Capital In Excess Of Par Value [Member]	Retained Earnings [Member]	Total
Balance at at Apr. 30, 2013		$ 39,779	$ 20,361,012	$ 31,582,940	$ 51,983,731
Recognition of stock-based compensation			89,219		89,219
Exercise of stock options		436	158,357		158,793
Issuance and vesting of restricted stock awards			54,997		54,997
Tax benefit from exercise of options			200,912		200,912
Net income				2,918,691	2,918,691
Balance at at Apr. 30, 2014		40,215	20,864,497	34,501,631	55,406,343
Recognition of stock-based compensation			59,648		59,648
Exercise of stock options		136	57,825		57,961
Issuance and vesting of restricted stock awards		150	61,796		61,946
Employee stock purchases		202	126,612		126,814
Tax benefit from contingent consideration			69,263		69,263
Net income				903,412	903,412
Balance at at Apr. 30, 2015		$ 40,703	$ 21,239,641	$ 35,405,043	$ 56,685,387

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Inventories

12 Months Ended

Apr. 30, 2015

Inventories [Abstract]

Inventories

NOTE D - INVENTORIES

Inventories consist of the following at April 30:

	2015		2014
Finished products	$	24,316,404	$	18,553,112
Work-in-process		2,966,846		3,126,596
Raw materials		42,662,845		33,853,653
		69,946,095		55,533,361
Less obsolescence reserve		1,276,386		1,804,984
	$	68,669,709	$	53,728,377

Changes in the Company’s inventory obsolescence reserve are as follows:

	2015		2014
Beginning balance	$	1,804,984	$	1,770,100
Provision for obsolescence		-		34,884
Write-offs		(528,598)		-
	$	1,276,386	$	1,804,984

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Leases (Narrative) (Details)		12 Months Ended
	May. 31, 2012 USD ($) ft²	Apr. 30, 2015 USD ($)	Apr. 30, 2014 USD ($)
Leases Disclosure [Line Items]
Operating lease rent expense		$ 2,102,312	$ 1,981,977
Union City, CA [Member]
Leases Disclosure [Line Items]
Deferred rent income (expense)		$ 33,950	$ 17,770
Tijuana, MX [Member]
Leases Disclosure [Line Items]
Deferred rent income (expense)	$ 8,353
Number of square feet of manufacturing and office space | ft²	112,000
Extended lease agreement period	Nov. 01, 2018

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Goodwill And Other Intangible Assets (Tables)

12 Months Ended

Apr. 30, 2015

Goodwill And Other Intangible Assets [Abstract]

Summary Of Intangible Assets Subject To Amortization

Intangible assets subject to amortization are summarized as of April 30, 2015 as follows:

	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization
Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	12.08		4,690,000		548,781
Backlog	-		22,000		22,000
Trade names	17.08		980,000		142,905
Non-compete agreements	4.08		50,000		20,825
Patents	2.08		400,000		233,345
Total		$	8,912,000	$	3,737,856

Intangible assets subject to amortization are summarized as of April 30, 2014 as follows:

	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization
Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	13.08		4,690,000		256,311
Backlog	-		22,000		22,000
Trade names	18.08		980,000		93,909
Non-compete agreements	5.08		50,000		13,685
Patents	3.08		400,000		153,341
Total		$	8,912,000	$	3,309,246

Estimated Aggregate Amortization Expense

For the fiscal year ending April 30:	2016	$	470,899
	2017		490,010
	2018		435,043
	2019		423,721
	2020		411,406
	Thereafter		2,943,065
		$	5,174,144

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Inventories, Net (Components Of Inventory) (Details) - USD ($)	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Inventories [Abstract]
Finished products	$ 24,316,404	$ 18,553,112
Work-in-process	2,966,846	3,126,596
Raw materials	42,662,845	33,853,653
Total inventory, gross	69,946,095	55,533,361
Less obsolescence reserve	1,276,386	1,804,984	$ 1,770,100
Total inventory, net	$ 68,669,709	$ 53,728,377

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Selected Quarterly Financial Data

12 Months Ended

Apr. 30, 2015

Selected Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data

NOTE N - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of unaudited quarterly financial data for fiscal year 2015:

		First		Second		Third		Fourth
2015		Quarter		Quarter		Quarter		Quarter
Net sales	$	54,947,477	$	61,533,519	$	53,702,613	$	60,053,552
Income before income		15,566		723,254		562,123		403,518
tax expense
Net income		16,810		146,429		564,080		176,093
Earnings per share	$	0.00	$	0.04	$	0.14	$	0.04
Basic
Earnings per share	$	0.00	$	0.04	$	0.14	$	0.04
Diluted
Total shares- Basic		4,028,535		4,044,240		4,054,146		4,061,504
Total shares- Diluted		4,105,627		4,120,178		4,116,015		4,117,600

NOTE N - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued

The following is a summary of unaudited quarterly financial data for fiscal year 2014:

		First		Second		Third		Fourth
2014		Quarter		Quarter		Quarter		Quarter
Net sales	$	56,166,061	$	56,577,287	$	54,175,196	$	55,567,396
Income (loss) before income
tax (benefit) expense		1,240,339		949,811		(130,182)		724,856
Net income		967,464		784,654		743,794		422,779
Earnings per share
Basic	$	0.24	$	0.20	$	0.19	$	0.11
Earnings per share
Diluted	$	0.24	$	0.19	$	0.18	$	0.10
Total shares- Basic		3,961,232		3,961,232		3,966,814		3,988,923
Total shares- Diluted		4,011,001		4,037,627		4,088,695		4,107,736