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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