Sanmina Updates Fourth Quarter Fiscal Year Outlook

Sep 04, 2001, 01:00 ET from Sanmina Corporation

    SAN JOSE, Calif., Sept. 4 /PRNewswire/ --
 Sanmina Corporation (Nasdaq:   SANM), a leading electronics contract
 manufacturer, announced today that its 2001 fourth quarter revenues and
 earnings are being impacted by the continued slowdown in its end-markets.  For
 its fiscal fourth quarter, ending September 29, 2001, revenues are currently
 expected to be in the range of $600 million to $620 million.  Diluted earnings
 per share and cash diluted earnings per share for the fourth fiscal quarter
 before restructuring and other one-time charges are expected to be
 approximately $0.00 to $0.01 and $0.01 to $0.02 respectively.
     Commenting on the revised outlook for the company's fourth fiscal quarter,
 Jure Sola, Sanmina's chairman and chief executive officer, said, "Sanmina's
 operations continue to be affected by the ongoing slowdown in capital spending
 by its end-markets.  As a result of reduced near-term demand, we have
 implemented a number of aggressive programs to consolidate operations, improve
 efficiencies and realign our capacity to meet customer demand.  At the same
 time, mindful of our customers' future needs, we are committed to investing in
 leading-edge technology and to pursuing our long-term strategic objectives of
 growing our business and building shareholder value.  Clearly, our goal is to
 navigate as efficiently and effectively as possible during this challenging
     "While we are disappointed by the current outlook, we believe the long-
 term fundamentals of the electronic manufacturing services industry remain
 intact due to the increasing trend in outsourcing as well as our customers'
 expanding new product programs.  We are confident of our growth prospects, and
 we believe we have taken the necessary steps to enable us to come out of this
 challenging environment well positioned for the future," concluded Sola.
     Conference Call Information
     The company will be holding a conference call regarding these
 announcements on Tuesday, September 4, 2001 at 8:30 a.m. EST (5:30 a.m. PST).
 The dial-in number for the call is (703) 871-3022.  Callers should dial in 10
 minutes prior to commencement of the call.  A telephone replay will be
 available for 48 hours following the conference call.  The phone call replay
 access number is (703) 925-2533, access code 5501059.
     Conference Call Webcast Information
     The conference call will also be broadcast live over the Internet.  Log
 onto the live webcast at .  A
 digital replay will be available for 48 hours following the conference call at
 the web address listed above.
     Company Profile
     Founded in 1980, Sanmina Corporation ( ) 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
     Safe Harbor Statement
     The foregoing, including the discussion regarding the company's future
 prospects contain 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 business 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, and the company's
 most recent quarterly 10-Q Report dated August 10, 2001.
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SOURCE Sanmina Corporation