Sanmina Announces Fourth Quarter and Year-End Results
SAN JOSE, Calif., Oct. 24 /PRNewswire/ -- Sanmina Corporation (Nasdaq: SANM), a leading supplier of integrated design and electronics manufacturing solutions (EMS), today reported financial results for its fourth quarter and twelve months ended September 29, 2001. Results for the prior periods have been restated to reflect the company's March 1, 2001 acquisition of Segerstrom & Svensson. In addition, earnings per share for the prior periods have been restated due to the company's two-for-one stock splits effective January 8, 2001 and March 22, 2000. Fourth quarter fiscal 2001 highlights include: -- CASH EARNINGS PER SHARE OF $0.04, EXCLUDING CHARGES -- FOURTH QUARTER SG&A EXPENSE REDUCED OVER 46% COMPARED TO FOURTH QUARTER LAST YEAR, EXCLUDING CHARGES -- SANMINA'S LEADERSHIP IN EMS INDUSTRY TO BE FURTHER ENHANCED WITH UPCOMING SCI MERGER -- STOCK REPURCHASE PROGRAM INITIATED Summary of Financial Results (excluding merger, restructuring and other infrequent or unusual charges): (Thousands, except per share data) Q4:01 Q4:00 12MOS01 12MOS00 Revenues $600,737 $1,367,207 $4,054,048 $4,239,102 Operating margin 1%% 12% 10% 11% Operating income $3,425 $162,437 $409,236 $451,574 Net income $3,648 $102,377 $266,421 $277,144 EPS - basic $0.01 $0.33 $0.83 $0.91 EPS - diluted $0.01 $0.30 $0.79 $0.85 Cash EPS - basic $0.04 $0.34 $0.95 $0.96 Cash EPS - diluted $0.04 $0.32 $0.90 $0.90 The financial tables, which follow this release, contain a presentation of Sanmina's results both before and after giving effect to merger, restructuring and other infrequent or unusual charges. Management Continues to Lower Selling, General and Administrative Expenses For the year ended September 29, 2001, Sanmina reported revenues of $4.1 billion, compared to $4.2 billion for the year ended September 30, 2000. Revenues for the fourth quarter of fiscal 2001 were $600.7 million. The decrease in revenues reflects the continued slowdown in the economy and customer end-markets. During the fourth quarter of this year, selling, general and administrative expenses decreased to $39.0 million from $42.1 million in the third quarter of this year and from $71.5 million, or a 46 percent decrease, as compared to the fourth quarter of last year. The continuing decrease in these expenses reflects management's strong financial controls and commitment to realign resources to meet demand. Net income for this year was $266.4 million, compared to $277.1 million for the year ended September 30, 2000. For the fourth quarter this year, net income was $3.6 million, or $0.04 cash earnings per share. The financial results noted above do not include merger, restructuring and other infrequent or unusual charges. In addition, restructuring charges as well as other charges related to specific customer issues totaled $218.0 million. Also, impairment charges of approximately $40.0 million relating to previously capitalized goodwill and intangibles have been written off as a result of specific plant closures. For the year ended September 29, 2001, Sanmina reported $1.4 billion in cash and investments. Cash provided by operations this quarter was $127.4 million. At year-end, the company had a current ratio of 5.3, working capital of $2.1 billion and shareholders' equity of $1.8 billion. Fiscal 2001 Reflects Company's Focus on Business Fundamentals and Growth Strategy "Over the past five years, Sanmina has achieved record growth benefiting from the industry's increasing trend in outsourcing, robust growth in our customers' end-markets, our leading-edge technology and our expanding manufacturing capabilities," said Jure Sola, Sanmina's Chairman and Chief Executive Officer. "While the trend in outsourcing is continuing, this year was one of the most challenging in our history due to the weak economy and lower capital spending. In building Sanmina, our focus has been on the fundamentals: financial management, customer responsiveness and manufacturing flexibility. As a result, our management team has been able to successfully respond to the current marketplace challenges and opportunities. We have rationalized our manufacturing operations, downsized capacity as appropriate, increased our operating cash flow, and sustained our record of solid profitability. Simultaneously, we have kept our eye on the future and our goal of becoming the world's premier EMS company. "In support of our growth strategy, during the year, we expanded our global footprint and our end-to-end manufacturing solutions capabilities," continued Sola. "As a result of our acquisition of Segerstrom & Svensson, a leading supplier of integrated enclosure systems, we can now provide our customers with full system integration in North America, the United Kingdom, Eastern Europe, Scandinavia, and South America. As a result of our planned merger with SCI, which we expect to complete in the current quarter, Sanmina will have a manufacturing presence in over 20 countries. In addition to increasing our global manufacturing and order fulfillment capabilities, this combination further enhances our technology leadership position, one of our core strategic advantages. "While the current market environment continues to be difficult, we are seeing a number of growth opportunities in key sectors of our customer markets, in new product programs as well as in the trend in outsourcing as OEMs strive to increase their operating efficiencies. Underscoring our confidence in the EMS industry, Sanmina's solid business opportunity, and our commitment to shareholders, we recently began a stock repurchase program. "In summary, we believe our strong and expanding customer relationships and our advanced engineering technology and global integrated service offering will serve us well over the long-term and keep us at the forefront of our industry," Sola concluded. Company Outlook Sanmina projects first quarter fiscal 2002 revenue to be approximately $600 to $630 million, and cash earnings per share to be between $0.03 to $0.04 before merger, restructuring and other infrequent or unusual charges. These estimates are prior to Sanmina's merger with SCI, which is expected to close in the first quarter of Sanmina's fiscal 2002. Company Conference Call Information Sanmina will be holding a conference call regarding this announcement on Wednesday, October 24, 2001 at 5:00 p.m. EDT (2:00 p.m. PDT). The conference will be broadcast live over the Internet. Log onto the live webcast at http://www.videonewswire.com/event.asp?id=1544 . If you are unable to listen to the call via webcast, please contact investor relations at 408-964-3610. If you are not able to listen to the call at the time of broadcast, a replay is available for 48 hours, the replay number is 800-642-1687, and conference ID number is 2088821. Company Profile Founded in 1980, Sanmina Corporation (www.sanmina.com) provides a cost-efficient, design and manufacturing solution to the world's leading original equipment manufacturing (OEMs) in the communications, medical, industrial instrumentation, and high-end computer sectors. Sanmina's complete end-to-end solution includes design, engineering, circuit fabrication of bare printed circuit boards, circuit board and backplane order fulfillment, and end-of life-product services. OEMs benefit from this model by dealing with a single-source supply-chain and global supply-base, which helps them achieve cost efficiencies in material acquisition as well as flexibility to reduce lead times. Safe Harbor Statement The foregoing, including the discussion regarding the company's future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the company, changes in customer requirements and in the volume of sales to principal customers, the ability of the company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, competition and technological change. The company's actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in the company's 2000 Annual Report on Form 10-K filed with the Securities Exchange Commission on December 18, 2000, and the company's most recent quarterly 10-Q Report dated August 10, 2001. Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) September 30, September 29, 2000 2001 (unaudited) ASSETS Current Assets: Cash and short-term investments $1,263,550 $1,388,390 Accounts receivable, net 714,509 409,803 Inventories, net 608,434 504,458 Deferred income taxes 87,187 159,899 Prepaid and other 30,077 121,286 Total current assets 2,703,757 2,583,836 Property, plant and equipment, net 700,718 632,018 Goodwill and intangibles, net 347,018 294,397 Long-term investments 55,917 98,515 Deposits and other 28,190 32,122 Total assets $3,835,600 $3,640,888 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $541,268 $332,231 Accrued liabilities and other 248,872 159,879 Total current liabilities 790,140 492,110 Long-term liabilities Convertible subordinate debentures 1,108,973 1,135,019 Long-term debt and other 177,694 171,422 Total stockholders' equity 1,758,793 1,842,337 Total liabilities and stockholders' equity $3,835,600 $3,640,888 Sanmina Corporation Consolidated Statements of Operations (Excluding One-time Charges) (in thousands, except for per share data) (unaudited) Three Months Ending Twelve Months Ending September September September September 29, 30, 29, 30, 2001 2000 2001 2000 Net sales $600,737 $1,367,207 $4,054,048 $4,239,102 Cost of sales 552,343 1,126,263 3,403,988 3,544,888 Gross profit 48,394 240,944 650,060 694,214 Selling, general and administrative 38,967 71,546 214,474 219,095 Amortization of goodwill and intangibles 6,002 6,961 26,350 23,545 Total operating expenses 44,969 78,507 240,824 242,640 Operating income 3,425 162,437 409,236 451,574 Other income (expense), net 2,450 1,547 19,319 (5,106) Income before provision for income taxes 5,875 163,984 428,555 446,468 Provision for income taxes 2,227 61,607 162,134 169,324 Net income $3,648 $102,377 $266,421 $277,144 Earnings per share: Basic EPS $0.01 $0.33 $0.83 $0.91 Diluted EPS $0.01 $0.30 $0.79 $0.85 Shares used in computing per share amounts: Basic 320,966 314,330 319,360 304,824 Diluted 329,661 348,668 348,348 337,350 Dilutive interest add back $-- $2,624 $10,415 $10,483 Dilutive shares add back -- 15,982 15,945 16,091 CASH EPS - Supplemental Information: Income before taxes, goodwill amortization and unusual and infrequent charges $11,877 $170,945 $454,905 $470,013 Provision for income taxes 4,502 64,222 172,103 178,253 Cash net income before goodwill amortization and unusual and infrequent charges, net of tax $7,375 $106,723 $282,802 $291,760 Non-cash interest expense, net of tax 4,913 1,019 19,447 1,013 Cash net income $12,288 $107,742 $302,249 $292,773 CASH earnings per share: Cash basic eps $0.04 $0.34 $0.95 $0.96 Cash diluted eps $0.04 $0.32 $0.90 $0.90 Shares used in computing per share amounts: Cash basic shares 320,966 314,330 319,360 304,824 Cash diluted shares 329,661 348,668 348,348 337,350 Cash dilutive interest add back $-- $2,624 $10,415 $10,483 Cash dilutive shares add back -- 15,982 15,945 16,091 Sanmina Corporation Consolidated Statements of Operations (in thousands, except for per share data) (unaudited) Three Months Ending Twelve Months Ending September September September September 29, 30, 29, 30, 2001 2000 2001 2000 Net sales $600,737 $1,367,207 $4,054,048 $4,239,102 Cost of sales 611,812 1,126,263 3,512,579 3,562,430 Gross profit (11,075) 240,944 541,469 676,672 Selling, general and administrative 53,334 71,546 239,683 235,720 Amortization of goodwill and intangibles 6,002 6,961 26,350 23,545 Write-down of long-lived assets 40,308 -- 40,308 8,750 Merger costs -- -- 12,523 -- Restructuring costs 143,748 -- 159,132 47,201 Total operating expenses 243,392 78,507 477,996 315,216 Operating income (loss) (254,467) 162,437 63,473 361,456 Other income (expense), net 2,450 1,547 19,319 (3,487) Income (loss) before provision for income taxes (252,017) 163,984 82,792 357,969 Provision (benefit) for income taxes (84,170) 61,607 42,346 142,916 Income (loss) before extraordinary charge (167,847) 102,377 40,446 215,053 Extraordinary charge, net of tax benefit of $3,039 -- 4,959 -- 4,959 Net income (loss) $(167,847) $97,418 $40,446 $210,094 Earnings per share Basic before extraordinary event $(0.52) $0.33 $0.13 $0.71 Cumulative effect of extraordinary event -- $0.02 -- $0.02 Basic EPS $(0.52) $0.31 $0.13 $0.69 Dilutive before extraordinary event $(0.52) $0.30 $0.12 $0.67 Cumulative effect of extraordinary event -- $0.01 -- $0.02 Diluted EPS $(0.52) $0.29 $0.12 $0.65 Shares used in computing per share amounts: Basic 320,966 314,330 319,360 304,824 Diluted 320,966 348,668 330,229 337,350 Dilutive interest add back $-- $2,624 $-- $10,145 Dilutive shares add back -- 15,982 -- 16,091
SOURCE Sanmina Corporation
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