Sanmina Announces Third Quarter 2001 Results
SAN JOSE, Calif., July 18 /PRNewswire/ -- Sanmina Corporation (Nasdaq: SANM), a leading supplier of integrated design and electronics manufacturing solutions (EMS), today reported financial results for the third quarter and nine months ended June 30, 2001. Results for prior periods have been restated to reflect the company's March 1, 2001 acquisition of Segerstrom & Svensson, a leading global supplier of integrated enclosure systems. Earnings per share for the prior periods have been restated to reflect the company's two-for-one stock splits effective January 8, 2001 and March 22, 2000. Third quarter fiscal 2001 highlights: -- Diluted earnings per share on a GAAP basis of $0.10 excluding one-time charges -- Solid balance sheet with $1.4 billion in cash and equivalents -- Worldwide TL9000 certification achieved by PCB operations Summary of Financial Results (excluding one-time charges): (Thousands, except per share data) Q3:01 Q3:00 9MOS01 9MOS00 Revenues $776,602 $1,086,182 $3,453,311 $2,871,895 Operating margin 6.1% 10.8% 11.8% 10.1% Operating income $47,621 $117,635 $405,811 $289,137 Net income $31,932 $68,982 $262,773 $174,767 EPS -- basic $0.10 $0.22 $0.82 $0.58 EPS -- diluted $0.10 $0.21 $0.77 $0.55 Cash EPS -- basic $0.11 $0.23 $0.86 $0.61 Cash EPS -- diluted $0.11 $0.22 $0.81 $0.58 Summary of Financial Results (including one-time charges): (Thousands, except per share data) Q3:01 Q3:00 9MOS01 9MOS00 Revenues $776,602 $1,086,182 $3,453,311 $2,871,895 Operating margin 5.8% 2.5% 9.2% 6.9% Operating income $44,662 $27,517 $317,940 $199,019 Net income $30,097 $6,891 $208,293 $112,676 EPS -- basic $0.09 $0.02 $0.65 $0.37 EPS -- diluted $0.09 $0.02 $0.62 $0.36 Cash EPS -- basic $0.11 $0.03 $0.69 $0.42 Cash EPS -- diluted $0.10 $0.03 $0.66 $0.40 Revenues for the third quarter of fiscal 2001 were $776.6 million down from $1.09 billion in the third quarter of fiscal 2000. The decrease in revenues reflects the slowdown in the economy and our customer end-markets. Selling, general and administrative expenses for the quarter decreased to $42.1 million from $53.2 million excluding charges related to merger and restructuring costs and other one-time charges in the third quarter last year. The decrease in this expense reflects Sanmina's ability to respond quickly to marketplace challenges and cost effectively scale back manufacturing operations. Excluding one-time charges for both years, Sanmina's operating margin was 6.1%, compared to 10.8% in the same quarter last year. Sanmina reported operating income of $47.6 million in the third quarter this year, compared to $117.6 million in last year's third quarter. Excluding one-time charges, net income for the third quarter was $31.9 million, or $0.10 diluted earnings per share on a GAAP basis. This compares to $69.0 million, or $0.21 diluted earnings per share on a GAAP basis in the third quarter of fiscal 2000. Results for the periods have been restated to give effect to Sanmina's acquisition of Segerstrom and Svensson, which was completed on March 1, 2001. Earnings per share for the prior periods have been restated to reflect the company's two-for-one stock splits effective January 8, 2001 and March 22, 2000. Company Continues to Achieve Solid Profitability "Despite the ongoing challenges of the economy and the slowdown in our customer end-markets, we are pleased that we continue to achieve solid profitability," said Jure Sola, Chairman and Chief Executive Officer of Sanmina. "This is one of the most difficult economic times in the history of the EMS business, and we are proud of our management's ongoing ability to respond to the demands of our customers. We believe our focus on the design and manufacture of complex, advanced technology products, our cost control measures, our emphasis on continuous improvement in manufacturing processes and yields, as well as our vertical integration has served us well in this uncertain market environment. Clearly we remain steadfast in our promise to customers of delivering excellence in performance, flexibility and technology and on exceeding our customers' expectations in quality, delivery and service. A key element in this promise is our achievement as the first EMS company to receive TL9000 certification in our worldwide printed circuit board (PCB) operations. "As we look to the future, we expect our business to continue to benefit from the trend in outsourcing as our customers concentrate on achieving further efficiencies in their operating models. Our strategic focus is very simple: continue to diversify our customer base, expand our global footprint, provide leading-edge technology and offer our customers a full service solution. Our plan is to leverage our current strategic advantages so that we are well positioned to accelerate our growth when the market improves. Our recently announced agreement to merge with SCI Systems, another leading contract manufacturer, complements our effort and advances our objective to be the premier EMS company in the industry," Sola concluded. As of June 30, 2001, the company had $1.4 billion in cash and investments. The company has a current ratio of 5.5, working capital of $2.1 billion and shareholders' equity of $2.0 billion. Company Conference Call Sanmina will be holding a conference call regarding this announcement on Wednesday, July 18, 2001 at 5:00 p.m. EDT (2:00 p.m. PDT). The conference call will be broadcast live over the Internet. Log onto the live webcast at http://www.videonewswire.com/event.asp?id=163 . 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 manufacturers (OEMs) in the communications, medical, industrial instrumentation, and high-end computer sectors. Sanmina's end-to-end solution includes design engineering and product development, new product introduction, global materials management, PCB and backplane fabrication and assembly, custom memory and DSP modules, enclosure systems, cable assembly, complete system integration and test, global order fulfillment and distribution, 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, and competition and technological change. The company's actual results of operations may differ significantly than 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, the company's most recent quarterly 10-Q Report dated May 11, 2001, and the company's Form 8-K dated May 14, 2001. Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) Sept. 30, June 30, 2000 2001 (unaudited) ASSETS Current Assets: Cash and short-term investments $1,263,550 $1,395,319 Accounts receivable, net 714,509 553,954 Inventories, net 608,434 550,535 Deferred income taxes 87,187 90,282 Prepaid and other 30,077 29,681 Total current assets 2,703,757 2,619,771 Property, plant and equipment, net 700,718 723,881 Goodwill and intangibles, net 347,018 323,974 Long-term investments 55,917 78,954 Deposits and other 28,190 25,562 Total assets $3,835,600 $3,772,142 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $541,268 $363,175 Accrued liabilities and other 248,872 113,220 Total current liabilities 790,140 476,395 Long-term liabilities Convertible subordinate debentures 1,108,973 1,129,174 Long-term debt and other 177,694 160,715 Total stockholders' equity 1,758,793 2,005,858 Total liabilities and stockholders' equity $3,835,600 $3,772,142 Sanmina Corporation Consolidated Statements of Operations (Excluding One-time Charges) (in thousands, except for per share data) (unaudited) Q3 Three Months Ending Nine Months Ending June 30, July 1, June 30, July 1, 2001 2000 2001 2000 Net sales $776,602 $1,086,182 $3,453,311 $2,871,895 Cost of sales 680,231 909,694 2,851,645 2,418,625 Gross profit 96,371 176,488 601,666 453,270 Selling, general and administrative 42,069 53,239 175,507 147,549 Amortization of goodwill and intangibles 6,681 5,614 20,348 16,584 Total operating expenses 48,750 58,853 195,855 164,133 Operating income 47,621 117,635 405,811 289,137 Other income (expense), net 3,881 (92) 16,869 (6,653) Income before provision for income taxes 51,502 117,543 422,680 282,484 Provision for income taxes 19,570 48,561 159,907 107,717 Net income $31,932 $68,982 $262,773 $174,767 Earnings per share: Basic EPS $0.10 $0.22 $0.82 $0.58 Diluted EPS $0.10 $0.21 $0.77 $0.55 Shares used in computing per share amounts: Basic 321,011 312,892 318,824 301,655 Diluted 333,231 345,458 349,266 333,480 Dilutive interest add back 13 2,480 7,819 7,847 Dilutive shares add back 143 16,121 15,949 16,128 CASH EPS - Supplemental Information: Income before taxes, goodwill amortization and write down of long-lived assets $58,183 $123,157 $443,028 $299,068 Provision for income taxes 22,109 50,880 167,605 114,041 Cash net income before goodwill amortization and write down of long-lived assets $36,074 $72,277 $275,423 $185,027 Amortization of goodwill, net of tax 4,142 3,295 12,650 10,260 Write down of long-lived assets, net of tax -- -- -- -- Net income $31,932 $68,982 $262,773 $174,767 CASH earnings per share: Cash basic eps $0.11 $0.23 $0.86 $0.61 Cash diluted eps $0.11 $0.22 $0.81 $0.58 Shares used in computing per share amounts: Cash basic shares 321,011 312,892 318,824 301,655 Cash diluted shares 333,231 345,458 349,266 333,480 Cash dilutive interest add back $13 $2,480 $7,819 $7,847 Cash dilutive shares add back 143 16,121 15,949 16,128 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X47528634
SOURCE Sanmina Corporation
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