SigmaTron International Inc. (NASDAQ:SGMA), a provider of electronic manufacturing services, announced the departure of its Chief Financial Officer, James J. Reiman, and the appointment of Frank Cesario as the new CFO, effective Monday. The transition comes after Reiman resigned for personal reasons on November 8, 2024.
Cesario, aged 55, brings a wealth of experience to the role, having previously served in senior finance positions and as CEO of Yunhong Green CTI Ltd, a publicly traded manufacturer. His background includes roles in manufacturing, international business, and SEC reporting, as well as a history with companies such as Nanophase Technologies Corporation and ISCO International, Inc.
The company's board ratified Cesario's employment agreement on Monday, which includes an annual base salary of $300,000. He will also participate in SigmaTron's annual bonus program, stock option plan, and other benefits offered to senior executives. The agreement stipulates that Cesario will receive severance equivalent to thirteen weeks of his base salary should his employment be terminated without cause.
As part of his compensation, Cesario will receive options to purchase 30,000 shares of SigmaTron's common stock, with a portion vesting six months from the grant date and the remainder over the next three years.
SigmaTron's recent filing with the SEC confirms these changes, with no reported arrangements or understandings between Cesario and other company personnel influencing his appointment. Furthermore, Cesario has no family ties within the company's leadership nor any direct or material interest in transactions that would necessitate disclosure under SEC regulations.
In other recent news, SigmaTron International, a manufacturing company, has reported multiple significant developments. The company recently announced its earnings and revenue results at its 2024 Annual Meeting of Stockholders. During this meeting, shareholders re-elected Linda K. Frauendorfer, Bruce J. Mantia, and John P. Sheehan as Class I Directors, with their terms set to expire at the 2027 Annual Meeting. The company's selection of BDO USA, P.C. as its registered public accountants for the fiscal year ending April 30, 2025, was also ratified.
SigmaTron has regained Nasdaq compliance by filing its annual report for the period ending April 2024, following a previous notification from Nasdaq stating that SigmaTron was not in compliance due to a delay. The company has made key changes to its credit agreements with JPMorgan Chase (NYSE:JPM) Bank and other financial institutions, including amendments to existing credit arrangements and modifications to financial ratios.
In terms of leadership changes, SigmaTron announced the retirement of Executive Vice President and Assistant Secretary Greg A. Fairhead, scheduled for August 2024, and the appointment of John P. Sheehan, currently serving as the company's President, as a Class I Director. Furthermore, SigmaTron has agreed to pursue a Replacement Transaction (JO:TCPJ) by September 2025 unless it achieves a specific Total (EPA:TTEF) Debt to EBITDA Ratio by the end of August 2025.
InvestingPro Insights
As SigmaTron International Inc. (NASDAQ:SGMA) undergoes this leadership transition, InvestingPro data provides additional context for investors. The company's market capitalization stands at a modest $16.89 million, reflecting its position as a smaller player in the electronic manufacturing services sector.
SigmaTron's financial performance has been challenging, as evidenced by its negative P/E ratio of -2.82 and a revenue decline of 11.5% over the last twelve months. These figures align with an InvestingPro Tip indicating that the company "is not profitable over the last twelve months," which may explain the recent executive changes.
Another InvestingPro Tip notes that SigmaTron is "trading at a low Price / Book multiple," currently at 0.27. This could suggest that the stock is undervalued relative to its book value, potentially offering an opportunity for value investors despite the company's recent struggles.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for SigmaTron, which could provide valuable insights into the company's financial health and market position as it navigates this transition period.
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