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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